Bulls n Bears Daily Market Commentary : 23 July 2018

Tue Jul 24 08:20:26 CAT 2018

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Bulls n Bears Daily Market Commentary : 23 July 2018

 <http://www.posb.co.zw/> 

Zimbabwe Stock Exchange Update

Market Turnover $3,292,048.42 with foreign buys at $731,711.03 and foreign
sales were $380,392.67. Total trades were 190.

The All Share index opened the week on a high note adding 1.24 points  to
close at 118.53. BRITISH AMERICAN TOBACCO  put on $0.1816 to end at $25.40,
INNSCOR  put on $0.1353 to settle at $1.4928 and NATIONAL FOODS went up by
$0.0500 TO $5.5100.  SEEDCO  advanced by $0.0451 to trade at $2.5002 and
AXIA  was $0.0209 higher at $0.2609.

However, ECONET eased $0.0051 to end at $1.2940,  MEIKLES shed $0.0029 to
$0.4000 whilst MEDTECH HOLDINGS LIMITED  went down by $0.0003 to settle at
$0.0002.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Kenya

Kenyan shilling firmer on export earnings

(Reuters) - The Kenyan shilling was firmer on Monday as hard currency
inflows from horticulture exports and portfolio investors  countered
month-end dollar demand from importers, traders said.  

At 1210 GMT, commercial banks quoted the shilling at 100.45/65 per dollar,
compared with 100.65/85 at Friday's close.

Uganda

Ugandan shilling firms due to low importer demand for dollars

(Reuters) - The Ugandan shilling was slightly firmer on Monday, thanks to a
slump in appetite for the dollar from both importers and banks.

At 1120 GMT, commercial banks quoted the shilling at 3,720/3,730, firmer
than Friday’s close of 3,730/3,740. UGX Spot Rate..... Ugandan Shilling
Money 

Bond yields rise worldwide on BoJ easing talk, stocks slip

(Reuters) - Signs that the Bank of Japan (BoJ) might scale back support for
the economy faster than expected sent tremors through debt markets on
Monday, while stocks slipped as threats of further U.S. tariffs on China
drained risk appetite.

Bond yields climbed after a Reuters report that the BoJ was discussing
modifying its huge stimulus program sent Japan’s 10-year bond yield to a
six-month high.

The report rekindled anxieties about monetary stimulus easing around the
world and piled further pressure on investors already struggling to navigate
rising protectionism.

The yield on Europe’s benchmark bond, the German 10-year Bund, hit a
one-month high of 0.39 percent. U.S. 10-year Treasury yields also hit their
highest in a month at 2.937 percent.

The Japanese yen climbed 0.05 percent to two-week highs against the
greenback at 111.34 per dollar.

The dollar index rose a bit off two-week lows it hit after U.S. President
Trump criticized the Federal Reserve’s rate hikes and accused the European
Union and China of manipulating their currencies.

Beijing said it has no intention of devaluing the yuan to help exports.

Trump’s warnings about excessive interest rate hikes also helped the gap
between short and long-term Treasury yields widen. That “steepening” of the
yield curve continued on Monday, with yields on 30-year Treasuries more than
0.46 percentage points higher than their 2-year counterparts, the biggest
gap in nearly a month.

Short-end yields are influenced by U.S. monetary policy, and longer-term
government bonds are driven by more by inflation and growth expectations.

The yield curve’s flattening, or the shrinking gap between short and long
yields, has been seen as a possible sign of an coming recession.

The U.S. president’s new threats to slap duties on all $500 billion of U.S.
imports from China triggered sell-offs across global stock markets that hit
market-leading technology names, such as Amazon.com Inc, when U.S. markets
opened.

The Dow Jones Industrial Average fell 50.4 points, or 0.2 percent, to
25,007.72, the S&P 500 lost 2.02 points, or 0.07 percent, to 2,799.81 and
the Nasdaq Composite dropped 6.11 points, or 0.08 percent, to 7,814.09.

MSCI’s gauge of stocks across the globe shed 0.15 percent, with stocks
broadly lower across Europe, Asia and emerging markets.

Investors are bracing for a packed earnings week, including results from
Google parent Alphabet, and a meeting between European Commission President
Jean-Claude Juncker and Trump to discuss threatened tariffs which may affect
carmakers.

Concerns about growth affecting demand for fuel had dented crude prices in
early trading, but oil rose again as tensions worsened between Iran and the
United States.

U.S. crude rose 0.35 percent to $68.50 per barrel and Brent was last at
$73.52, up 0.62 percent on the day.

In metals, copper - among the most sensitive to trade tensions - rose 0.07
percent from a one-year low hit last week, trading at $6,151.50 a tonne.
Gold, hit by a strong greenback that makes the metal priced in dollars more
expensive to foreign buyers, fell further towards one-year lows. Spot gold
dropped 0.5 percent to $1,225.52 an ounce.

Commodities Markets

Aluminium bounces on short-covering after Rusal news

(Reuters) - Aluminium rebounded on Monday as investors bought back bearish
positions after a U.S. official raised the prospect of lifting sanctions on
Russia's Rusal. 

Cancelling sanctions on Rusal, the world's biggest aluminium producer
outside of China, would ease fears of a supply shortage. However, some
investors who had placed short positions

in expectation of sanctions being lifted were now liquidating them, said
Julius Baer analyst Carsten Menke.

Some consumer buying was also seen, Marex Spectron's Alastair Munro said in
a note.  

U.S. Treasury Secretary Steven Mnuchin told Reuters the Treasury was open to
removing Rusal           from a U.S. sanctions list, adding that the
objective was "not to put Rusal

out of business".             

Three-month aluminium         was the biggest gainer on theLondon Metal
Exchange, climbing 2.4 percent in official open outcry trading to $2,077 a
tonne.

Aluminium soared to a seven-year peak of $2,718 in April after sanctions
were slapped on Rusal, but prices tumbled after the United States initially
said there was potential for the

sanctions to be lifted.

Prices lost further ground over the past two months on worries of weaker
demand because of trade tensions and a slowdown in top metals consumer
China.        

* ALUMINIUM INVENTORIES: On-warrant LME aluminium inventories MALSTX-TOTAL
-- those not earmarked for delivery -- slid by 30,275 tonnes to 1,011,725 on
Friday, data showed.  

* ZINC: LME zinc         traded 0.5 percent higher to $2,589 a tonne in
official rings on short-covering because of a lack of immediate available
supply, traders said. LME data showed a

large short in August futures, while a single holder controlled

* STEEL: Zinc, mainly used in galvanising steel, alsoreceived a boost as
China's steel futures rose on Monday for a third session in four on concerns
of tight supply.              

* COPPER: LME copper        , untraded in official activity, was bid up 0.5
percent at $6,180 a tonne. Last week prices fell for a sixth week in a row,
hitting their lowest in a year at

$5,988. 

* STRIKES: Labour negotiations at Chile's Escondida copper mine, the world's
largest, are deadlocked without signs of progress toward an agreement a
little more than a week before

the current contract expires.              

* SCRAP: China's June scrap copper imports dropped by 39.8 percent year on
year to 200,000 tonnes, Chinese customs data showed.             

* PRICES: Nickel         traded unchanged in official rings at $13,530 a
tonne, lead         was bid up 1.1 percent at $2,158 and tin         traded
0.3 percent firmer at $19,530.

Gelin, Gelin, gone: brokerage turning bearish on copper

(Reuters) - Gelin Dahua, the Chinese futures brokerage that made a name for
itself by building up a massive long copper position on the Shanghai Futures
Exchange (ShFE), is now short on the metal for at least the next six months,
exchange data showed on Monday.

The firm, owned by Shanxi Securities Co, has been liquidating its forward
copper positions in recent weeks and on Monday cut its remaining 2,952 lots
on the May 2019 ShFE copper contract, according to position data published
by the bourse.

The liquidation has coincided with a 9.8 percent drop in Shanghai copper
prices since June 11.

Monday’s move means that after holding more than 35 percent of the open
interest in ShFE’s first-half 2018 copper contracts in October last year,
Gelin Dahua is no longer in the top 20 long-position holders, among futures
brokerages, for any month listed on the ShFE website.

By contrast, it holds a short position of 6,839 lots across four copper
contracts from August to November 2018. Data for the February, March and
April 2019 contracts was not visible.

In other metals, the brokerage is long on ShFE aluminium for October and
November — when many industry sources expect a repeat of seasonal
restrictions on smelting in China — and remains the top long-position holder
on the exchange’s January nickel contract with 4,052 lots, down from 5,251
lots on Friday. 

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

OK Zimbabwe

AGM

OKmart Functions Room, 30 Chiremba Road, Hillside

26/07/2018 3pm

Delta

AGM

Head Office, Northridge Close, Borrowdale

27/07/2018 12:30pm

NicozDiamond

shares delist from the ZSE

06/08/2018

Zimbabwe

Heroes’ Day

Zimbabwe

13/08/2018

Zimbabwe

Defence Forces Day

Zimbabwe

14/08/2018

The Harare Agricultural Show

The Harare Agricultural Show

The Harare Agricultural Show

August 27- September 1

DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

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