Bulls n Bears Daily Market Commentary : 11 June 2018

Mon Jun 11 16:32:02 CAT 2018

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Bulls n Bears Daily Market Commentary : 11 June 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $3,453,828.47 with foreign buys at $1,363,290.62 and foreign
sales were $813,045.23. Total trades were 88.

The All Share index opened the week firmer at 116.23 points after adding
0.50 points  . OLD MUTUAL   led the movers as it recovered a further $0.0461
to trade at $6.0000, INNSCOR  gained $0.0327 to close at $1.5000 and DELTA
improved by $0.0125 to settle at $2.3500. Other gains were in SIMBISA which
added $0.0096 to close at $0.4800 and OK ZIMBABWE  which was up $0.0083 to
$0.2350.

The gains were partially offset by losses in BRITISH AMERICAN TOBACCO  which
dropped $0.2000 to trade at $25.0000, PPC  shed $0.0020 to close at $1.3000
and AMALGAMATED REGIONAL TRADING eased $0.0001 to close at $0.0650.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South African rand recovers, focus on global events

(Reuters) - South Africa’s rand firmed in early trade on Monday, recovering
some of the losses from last week, as the dollar softened ahead of central
bank policy meetings and the U.S.-North Korea summit this week.

* At 0637 GMT, the rand traded at 13.0125 per dollar, 0.5 percent firmer
than its close on Friday.

* The rand fell to a year low of 13.2875/dollar on Friday in an emerging
markets sell-off as global investors dumped riskier assets.

* The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) starts its
two-day meeting on Tuesday, where it is anticipated to raise U.S. interest
rates. The European Central Bank (ECB) and Bank of Japan’s policy meetings
are also due this week.

* “The sell-off in EM is likely to continue this week if the Fed hikes and
signals an aggressive path and the ECB announces that its bond buying
programme will end sooner than the market expects,” Rand Merchant Bank
analyst Isaah Mhlanga wrote in a note.

* Markets are also keeping a close eye on the summit between U.S. President
Donald Trump and North Korean leader Kim Jong Un in Singapore on Tuesday.

* In fixed income, the yield for the benchmark government bond due in 2026
was down 1.5 basis points to 8.955 percent, reflecting firmer prices. 

Kenya

Kenyan shilling steady on dollar inflows, thin demand

(Reuters) - Kenya's shilling held steady against the dollar on Monday,
underpinned by inflows from offshore investors buying government debt and
thin demand from importers, traders said. 

At 0830 GMT, commercial banks quoted the shilling at 100.90/101.10 per
dollar, unchanged from Friday's close. 

Asia

Asia stocks shake off G7 jolt, US-North Korea summit awaited

(Reuters) - Asia stocks shook off initial modest losses and edged up on
Monday ahead of an historic U.S.-North Korea summit that investors hope
might pave the way to ending a nuclear stand-off on the Korean peninsula.

Spreadbetters expected European stocks follow their Asian peers higher, with
Britain’s FTSE rising 0.25 percent, Germany’s DAX advancing 0.17 percent and
France’s CAC inching up 0.05 percent.

Stocks wobbled in early trade after U.S. President Donald Trump raised fresh
fears of a global trade war when he backed out of a joint Group of Seven
communique over the weekend, in a blow to the group’s efforts to show a
united front.

The S&P 500 futures were 0.1 percent lower after dropping as much as 0.3
percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped early but
was last up 0.3 percent. Hong Kong’s Hang Seng also gained 0.3 percent while
the Shanghai Composite Index fell 0.5 percent.

South Korea’s KOSPI added 0.65 percent, and Japan’s Nikkei climbed 0.55
percent.

After the G7 meeting, the U.S. president withdrew his support for its
communique and blasted Canadian Prime Minister Justin Trudeau amid a spat
over import tariffs.

Trump and North Korean leader Kim Jong Un will have an unprecedented meeting
on Tuesday in Singapore, possibly laying the groundwork for ending a nuclear
stand-off between the old foes.

Some analysts also raised the prospect of international sanctions against
North Korea being lifted.

Investors also got prepared for a raft of other key events.

The Fed holds a two-day meeting starting on June 12, and it is widely
expected to raise interest rates for the second time this year. The focus is
on whether the central bank will hint at raising rates a total of four times
in 2018.

The ECB meets on June 14, when it could signal intentions to start unwinding
its massive bond purchasing programme.

Also, the Bank of Japan on Friday concludes a two-day meeting at which it is
widely expected to keep its loose monetary policy intact.

The Canadian dollar, which has been dogged by fears Trump may scrap the
North American Free Trade Agreement (NAFTA), fell 0.3 percent to C$1.2967
per dollar.

The euro, which was lifted last week amid the prospect of the ECB signalling
its exit from easy policy, was 0.25 percent higher at $1.1797.

The dollar erased earlier losses to trade 0.2 percent higher at 109.80 yen
as regional equities gained and the U.S. Treasuries yields rose ahead of a
raft of auctions.

The dollar index against a basket of six major currencies was 0.1 percent
lower at 93.470.

Oil prices were slipped from a downward pull of rising Russian production
and increasing U.S. oil drilling activity.

Brent crude futures fell 0.33 percent to $76.21 a barrel and U.S. crude
futures slipped 0.3 percent to $65.54 a barrel.

Bitcoin struggled near two-month lows after South Korean cryptocurrency
exchange Coinrail said it was hacked over the weekend, raising concerns
about security at small- to mid-sized virtual currency exchanges.

Commodities Markets

Copper slides as fears about supply disruptions wane

(Reuters) - Copper prices slid on Monday as fears about output disruption at
the Escondida mine in Chile receded, but worries about supplies from
Vedanta’s copper smelter in India and a softer dollar provided some support.

Benchmark copper on the London Metal Exchange traded down 1.2 percent at
$7,223 a tonne in official rings. Last week, the metal used widely in the
power and construction industries touched $7,348, its highest since January
2014.

ESCONDIDA: The union at BHP’s, Escondida copper mine in Chile said on Friday
it saw a “favorable scenario” for reaching a deal on a new labour contract
with the company, citing higher copper prices.

In a letter to its members published on its website, the union at the
world’s largest copper mine said BHP had promised to respond to its recent
proposal for a new contract by 1900 GMT on Monday.

VEDANTA: The Indian state of Tamil Nadu ordered the permanent closure of a
copper smelter controlled by Vedanta Resources in May after 13 people
protesting to demand its shutdown on environmental grounds were killed.

The smelter has capacity to produce 400,000 tonnes a year, a fair chunk of
global supplies estimated at around 24 million tonnes this year.

CHINA: Signs of robust demand from top consumer China are also expected to
underpin copper prices.

China imported 475,000 tonnes of unwrought copper and copper products last
month, the largest since Dec. 2016. It was the highest May figure for at
least a decade, up 22 percent from the same month last year and up 8 percent
from April.

DOLLAR: A lower U.S. currency makes dollar-denominated commodities cheaper
for non-U.S. firms, which could potentially boost demand for industrial
metals.

TRADE WAR: Traders and analysts say renewed fears of a trade war in the wake
of a divisive G7 meeting over the weekend in Canada were weighing on the
base complex.

LME WARRANTS: Traders are watching a large position holding between 40 to 49
percent copper warrants, which has fuelled worries about a tight LME market
and created a premium for the cash contract over the 3-month contract.

* PRICES: Aluminium was down 0.1 percent at $2,297, zinc slipped 0.2 percent
to $3,195.5, lead gained 0.8 percent to $2,486, tin shed 0.6 percent to
$21,100 and nickel lost 0.4 percent to $15,350.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

FMHL

AGM

Royal Harare Golf Club

11/06/2018 2:30pm

RioZim

AGM

Head Office, 1 Kenilworth Road, Highlands

21/06/2018 10:30am

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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