Bulls n Bears Daily Market Commentary : 26 July 2018

Fri Jul 27 08:14:51 CAT 2018

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Bulls n Bears Daily Market Commentary : 26 July 2018

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover $7,282,341.95 with foreign buys at $683,051.34 and foreign
sales were $1,404,847.50. Total trades were 173.

The All Share index shed 0.03 points to settle at 115.00 points. PPC LIMITED
led the losers with a $0.1172 loss to close at 1.1628, PADENGA dropped
$0.0128 to end at $0.6047 and RIOZIM came off $0.0025 to $1.4750. OK
ZIMBABWE eased $0.0024 to trade at $0.2210 whilst BINDURA and MEDTECH
HOLDINGS  each inched down $0.0001 to close at $0.0552 and $0.0001
respectively.

Gains were seen in only two counters as FIRST MUTUAL PROPERTIES  rose by
$0.0068 to settle at $0.0558 and mobile giant ECONET  added $0.0011 to close
at $1.2647.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South Africa's rand weakens on dollar strength

(Reuters) - South Africa’s rand weakens more than 1 percent against the
dollar to 13.2500 after the greenback was lifted by U.S. durable goods
orders and jobless claims that suggested solid growth in business activity.

Ghana

Ghana sells $98 mln of local bonds at 18 pct yield

(Reuters) - Ghana accepted all 471 million cedis ($98 million) worth of bids
tendered for a 3-year domestic bond issued on Thursday and will pay a
slightly higher yield of 18 percent compared to the last sale, joint
book-builders Barclays Bank Ghana said.

An initial guide price for the 2021 paper, which was open to non-resident
investors, was set at between 17.25 percent and 18 percent. Settlement is
due on July 30, Barclays said.

The West African major commodity exporter is seeking funds to finance the
government’s 2018 budget and restructure debt. It sold a 3-year bond in a
similar transaction last month with a 17.5 percent yield. 

Asia

Asian shares post modest gains as trade fears keep investors cautious

(Reuters) - Asian stocks struggled to gain traction on Friday, following a
mixed Wall Street finish and as the worsening Sino-U.S. trade dispute kept
investors in the region cautious, despite signs of rapprochement between the
United States and Europe.

MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.1
percent. The CSI300 of Chinese shares fell 0.5 percent.

Japan’s Nikkei eked out a 0.1 percent gain though it was capped by worries
that the Bank of Japan could scale down its asset purchase at its upcoming
policy review next week.

MSCI’s gauge of stocks across the globe, ACWI, hit four-month highs on
Thursday, with European car maker shares gaining 2.6 percent after the
European Union and the United States agreed to negotiate on trade, easing
fears of a Transatlantic trade war.

U.S. industrial shares also made gains, rising 0.8 percent though the S&P
500 Index dipped 0.30 percent on Thursday, due to a 19 percent dive in
Facebook on its earnings showing slowing usage.

While that pushed down the Nasdaq Composite 1.01 percent, other U.S. tech
firms held firm, with Amazon.com shares gaining 3.2 percent after market
following its stellar earnings.

The 10-year U.S. Treasuries yield edged up to 2.9840 percent, its highest
level in 1-1/2 months, on receding worries about trade tensions.

Yet Asian shares were more subdued as trade disputes between Washington and
Beijing have shown few signs of abating.

So far this month, MSCI China A shares have fallen 2.6 percent, taking the
biggest hit from U.S. President Donald Trump’s threats on tariffs and other
issues among major markets, compared to 3.3 percent gains in MSCI ACWI.

The Chinese yuan stayed near its 13-month low touched earlier this week.

The offshore yuan traded at 6.8283 per dollar, near Tuesday’s low of 6.8448.

The Thomson Reuters/HKEX Global CNH index, which tracks the offshore yuan
against a basket of currencies on a daily basis, fell to its lowest levels
since May last year, having fallen 5.2 percent from a two year high hit in
mid-May.

The euro traded at $1.1641, having fallen 0.73 percent on Thursday after the
European Central Bank signalled no change in its timetable to move away from
ultra low rates or end its bond purchase program.

The dollar slipped 0.2 percent to 110.98 yen as the yen got a lift from rise
in Japanese bond yields. The 10-year government bond yield hit one-year high
of 0.105 percent.

In commodities, oil prices extended their recovery, after Saudi Arabia
suspended oil shipments through a strait in the Red Sea following an attack
on two oil tankers.

Brent crude futures traded at $74.41 per barrel, down 0.17 percent, though
they were up 1.9 percent so far this week.

U.S. crude futures were almost flat at $69.55 a barrel.

Commodities Markets

Copper edges higher, heads for first weekly jump in seven

(Reuters) - Copper prices edged higher on Friday as markets were buoyed by
an easing of trade tensions between the United States and the EU. 

After meeting European Commission chief Jean-Claude Juncker on Wednesday,
U.S. President Donald Trump said the two would work toward eliminating trade
barriers on industrial goods.

Copper is on course to gain 2.4 percent on the London Metal Exchange and 3.7
percent on the Shanghai Futures Exchange this week, which would mark its
first weekly rise in seven on both bourses after fears of a global trade war
dragged prices down.

But Malcolm Freeman, CEO of Kingdowm Futures, warned it was premature to say
metals markets had stabilised. 

    FUNDAMENTALS

* SHFE COPPER: The most-traded September copper contract on the ShFE had
inched up 0.2 percent to 50,110 yuan ($7,370) a tonne by the mid-session
interval.

* LME COPPER: Three-month LME copper recovered from an early dip to trade
0.1 percent higher at $6,296 a tonne, as of 0428 GMT, after ending flat on
Thursday. 

* CHINA: Profit growth for China's industrial firms eased in June from the
previous month, data showed on Friday, as factory production slowed amid the
worsening U.S. trade dispute and

Beijing's efforts to cut pollution and debt. 

* ALUMINIUM: Shanghai aluminium gained 0.4 percent and is on course for a
2.3-percent gain this week, which would be its biggest weekly jump since
April. London aluminium slipped 0.1 percent but is heading for its first
weekly jump in eight after funds cut bets on lower prices. 

* ALERIS: India's Hindalco Industries Ltd said its U.S. unit Novelis Inc has
agreed to buy aluminium processor Aleris Corp for $2.6 billion.  

* PERU: Anglo American is going ahead with the $5 billion development of its
Quellaveco project in Peru, one of the world's largest untapped copper
resources with the potential to transform the company's business outlook.

India's Sun Gold, China National Gold to go ahead with Siberian gold project

(Reuters) - India's Sun Gold and China National Gold are launching a joint
gold mining project in Russia's Siberia region, the two companies said in a
joint statement during a Johannesburg summit of BRICS member states.

In 2016, the sides agreed that Sun Gold would sell a 70-percent stake in the
project, the Kluchevskoye gold deposit, to China National Gold, a major
global gold producer. The Chinese gold company would in turn contribute its
development expertise. 

However, the deal was delayed for various reasons, including red tape issues
in Russia. 

A pre-production investment of up to $500 million is planned, the partners
said in their statement, adding that China National Gold is expected to be
the project's major shareholder

following its final ratification by the Duma, Russia's lower house of
parliament. 

The Duma ratified the project on Thursday, according to the  representative
body's public documents.

An open-pit mine is expected to be built at the Kluchevskoye deposit
producing 6.5 tonnes of gold annually, the partners said. 

They did not disclose when the first gold was expected to be produced. 

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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