Bulls n Bears Daily Market Commentary : 24 July 2018

Wed Jul 25 08:25:47 CAT 2018

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Bulls n Bears Daily Market Commentary : 24 July 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $3,433,975.20 with foreign buys at $1,523,406.71 and foreign
sales were $563,776.14. Total trades were 163.

The All Share index retreated 0.75 points  to settle at 117.78 points.
MEIKLES  led the losers with a $0.0500 loss to close at $0.3500, DELTA  shed
$0.0304 to trade at $2.3367 and ECONET slipped by $0.0209 to $1.2731.
FIDELITY LIFE came of $0.0180 to settle at $0.1020 while DAIRIBORD closed at
$0.1400 following a $0.0100 loss.

However, gains were seen in FIRST MUTUAL HOLDINGS  which went up by $0.0150
to close at $0.1650, AXIA  put on $0.0134 to end at $0.2743 while INNSCOR
rose by $0.0072 to $1.5000. OLD MUTUAL  advanced by $0.0048 to end at
$5.0100 and  NMBZ HOLDINGS was $0.0045 higher at $0.1200.

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Global Currencies & Equity Markets

Kenya

Kenyan shilling holds steady against the dollar

(Reuters) - Kenya's shilling held steady on Tuesday and traders said it was
expected to trade in a narrow range against the dollar due to slow activity
in the market, traders said.

At 0948 GMT, commercial banks quoted the shilling at 100.45/55 to the
dollar, compared with Monday's close of 100.50/60.

South Africa

South Africa's rand firms after Ramaphosa announces $14.7 bln China
investment

(Reuters) - South Africa’s rand firmed more than one percent on Tuesday to a
three day best following President Cyril Ramaphosa’s announcement that China
would invest $14.7 billion in the local economy, spurring some offshore
demand for the currency.

At 1100 GMT the rand had firmed 1.06 percent to 13.3300 per dollar, its
firmest since Thursday. 

Asia

Asia stocks track Wall Street gains, US-EU meet keeps trade in focus

(Reuters) - Asian stocks were higher on Wednesday, supported by strong Wall
Street earnings and hopes China’s government spending would boost growth but
trade tensions remain in focus ahead of a meeting between the U.S. and
European Commission presidents.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.2
percent.

The index extended the previous day’s gains made after China said it will
adopt a more vigorous fiscal policy to cushion the impact of external
uncertainties.

The Shanghai Composite Index was little changed after brushing a one-month
high. It has advanced roughly 3 percent so far this week. Hong Kong’s Hang
Seng climbed 0.6 percent.

South Korea’s KOSPI lost 0.15 percent and Japan’s Nikkei rose 0.5 percent.

Overnight on Wall Street, the S&P 500 closed at its highest level since Feb.
1 as Alphabet’s blowout results bolstered expectations of a robust earnings
season.

On the trade front, focus was on talks between U.S. President Donald Trump
and European Commission President Jean-Claude Juncker set later on
Wednesday, at which trade issues are likely to dominate.

In foreign exchange markets, the dollar index against a basket of six major
currencies was little changed at 94.568, having edged up from a near
two-week low of 94.207.

The 10-year Treasury note yield stood at 2.943 percent after climbing to a
six-week peak of 2.973 percent overnight.

The yield shot up this week on speculation the Bank of Japan was edging
closer to unwinding its aggressive monetary stimulus, following reports late
last week that the central bank was holding preliminary discussions on
possible changes to its monetary policy.

The euro edged up 0.05 percent to $1.1688 while the dollar added 0.05
percent to 111.26 yen.

The pound was up 0.05 percent at $1.3151, building on gains from the
previous day on news that British Prime Minister Theresa May would lead
negotiations on the country’s departure from the European Union.

The decline in China’s yuan’s appears to have paused for the time being,
with the currency a shade firmer at 6.797 per dollar . It pulled back from a
13-month low of 6.829 set the previous day on expectations that monetary
conditions would be allowed to loosen further.

The Australian dollar dipped 0.1 percent to $0.7411 after gaining 0.5
percent on Tuesday when hopes for China’s stimulus lifted the currency.

The Turkish lira was on the defensive after the country’s central bank on
Tuesday unexpectedly left interest rates on hold.

The central bank’s decision was in focus amid investors’ concern over its
perceived lack of independence from Turkish President Tayyip Erdogan. The
president is seen wanting lower borrowing costs to fuel economic growth,
although the central bank is tasked with combating inflationary pressure.

The South African rand, on the other hand, stood tall after surging more
than 1 percent on Tuesday on news that China would invest $14.7 billion in
the local economy.

Copper on the London Metal Exchange (LME) traded at $6,270.50 per tonne
after soaring 2.7 percent overnight to a two-week peak of $6,328.00.

Iron ore on the Dalian Commodity Exchange touched a two-month peak of 479.5
yuan a tonne.

Brent crude futures were up 0.67 percent at $73.92 a barrel, adding to the
previous day’s gains as market focus shifted away from oversupply concerns
to the possibility of increasing Chinese demand

Commodities Markets

Chinese aluminium foil maker sues U.S. over anti-dumping duties

(Reuters) - Chinese aluminium foil producer Shantou Wanshun Package Material
Stock Co on Monday said its subsidiary is suing the United States over twin
anti-dumping and anti-subsidy duties Washington imposed on its shipments.

In a statement to the Shenzhen Stock Exchange, Wanshun said Jiangsu Zhongji
Lamination Materials, which was hit with a countervailing duty of 17.14
percent and an anti-dumping duty of 37.99 percent earlier this year, had
filed a lawsuit with the U.S. Court of International Trade.

Zhongji was among the Chinese foil companies that unsuccessfully filed a
joint “no injury” claim with the U.S. International Trade Commission last
year as Washington probed whether the companies were unfairly subsidised,
and is now trying to reverse the duties on its own.

The total duties of 55.13 percent on Zhongji’s foil were the lowest imposed
on Chinese foil makers, Wanshun’s Board Secretary Huang Wei told Reuters.
This shows the U.S. side had taken some of its arguments into account, she
said.

Huang pointed to the United States comparing the prices of China’s aluminium
foil exports to South Africa as a reference case. The stock exchange filing
noted that Bulgaria would have been a more appropriate choice.

The document made no mention of damages being sought but Huang said she
hoped the U.S. would remove the twin duties.

Aluminium has been a focal point of the U.S.-China trade row, with
Washington calling on China, the world’s top producer of the metal, to rein
in excess production capacity.

U.S. President Donald Trump imposed a broad 10 percent import duty on
aluminium imports from China and other countries from March 23.

A search of the U.S. Court of International Trade website showed Jiangsu
Zhongji had filed a case against the United States in June but the full
document was unavailable.

The Aluminum Association Trade Enforcement Working Group and its individual
members, as well as JW Aluminum Co, Novelis Corp and Reynolds Consumer
Products were named in the stock exchange filing as having intervened in the
Zhongji litigation in support of the United States.

The U.S. Aluminum Association, which had previously hailed the twin tariffs
as a victory for U.S. foil producers and rules-based trade, said it was
confident the duties would be upheld.

The other parties could not immediately be reached for comment outside of
business hours in the United States.

Shanghai copper jumps as Escondida makes final wage offer

(Reuters) - Shanghai copper rose as much as 2.2 percent to a three-week high
on Wednesday, tracking Tuesday's gain in London Metal Exchange prices amid
tense negotiations at Chile's Escondida copper mine, the world's largest.

Speculation last month about a possible strike at Escondida pushed London
copper to a near 4-1/2-year high of $7,348 a tonne on June 7, before fears
that a U.S.-China trade war could crimp demand pushed the price below $6,000
tonne last week.

Shanghai metals gained across the board and Asian shares were trading higher
on hopes a more vigorous fiscal policy in China would spur growth, while the
LME complex was mixed.

Thin trading volumes in Wednesday's Asian session pointed to a
short-covering rally, Malcolm Freeman, CEO, Kingdom Futures, wrote in a
note.

    FUNDAMENTALS

* SHFE COPPER: The most-traded September copper contract on the Shanghai
Futures Exchange climbed as much as 2.2 percent to 50,270 yuan ($7,393.63) a
tonne, the highest since

July 5, and was up 1.4 percent at 49,880 a tonne by the mid-session
interval.

* LME COPPER: Three-month copper on the LME edged down 0.4 percent to
$6,267.50 a tonne, as of 0454 GMT, after a 2.7 percent jump in the previous
session.

* CHILE: BHP's Escondida copper mine in Chile said on Tuesday it had made a
final offer in talks with the union representing its rank-and-file workers
that includes a beefed up contract signing bonus and a 1.5 percent increase
in wages.

* DRC: A computer system used by customs officials in Democratic Republic of
Congo had technical problems at the weekend, adding to delays to mining
trucks carrying copper and

cobalt, sources and officials said on Tuesday.

* BRAZIL: Norwegian aluminium producer Norsk Hydro  said the timing for
resuming full output at its Alunorte alumina refinery in Brazil remained
uncertain, with the possibility it could be achieved between October and the
middle of next year.

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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