Bulls n Bears Daily Market Commentary : 14 June 2018

Thu Jun 14 18:57:07 CAT 2018

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 14 June 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $1,554,295.00 with foreign buys at $559,580.49 and foreign
sales were $63,599.71. Total trades were 90.

The All Share index retreated by 0.32 points  to close at 118.37 points.
DELTA  dropped $0.0275 to close at $2.4725, FIRST MUTUAL HOLDINGS traded
$0.0059 lower at $0.1641 and INNSCOR  lost $0.0058 to settle at $1.4917.
Other losses were in PPC  which went down $0.0033 to close at $1.2967 and
ECONET shed $0.0028 to $1.1441.

OLD MUTUAL added $0.0214 to $6.5000, CBZ was $0.0200 firmer at $0.1300 and
AXIA  rose $0.0050 to trade at $0.2550. MASIMBA  was up $0.0020 to close at
$0.0600 and TURNALL   gained $0.0015 to $0.0110.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Kenya

Kenyan shilling steady amid high liquidity in money markets

(Reuters) - The Kenyan shilling held steady against the dollar on Thursday
due to lacklustre demand from importers although high liquidity of the local
currency in money markets was seen as reducing demand for the shilling,
traders said.   

At 0908 GMT, commercial banks quoted the shilling at 101.05/15 per dollar,
unchanged from Wednesday's close.  

The weighted average daily interbank lending rate stood at 3.5301 percent
for 13 June, compared with 3.3715 percent for the previous session.

Uganda

Uganda shilling weaker due to strong demand for dollars from banks

(Reuters) - The Ugandan shilling        was weaker on Thursday, undermined
by strong demand for dollars from  commercial banks looking to expand their
positions as they bet on a costlier American currency in the days ahead,
traders said.

At 0908 GMT commercial banks quoted the shilling at 3,845/3,855, weaker than
Wednesday's close of 3,835/3,845.

Europe

Euro craters, stocks jump as ECB holds off on rate hikes

(Reuters) - European stocks jumped more than 1 percent on Thursday, while
the euro cratered against the dollar, after the European Central Bank
indicated it would not raise interest rates through the summer of 2019.

The bank’s unexpectedly dovish guidance on interest rates overshadowed its
statement that it aimed to wrap up its crisis-era stimulus programme,
quantitative easing, at the end of this year.

The ECB now plans to reduce monthly asset purchases between October and
December to 15 billion euros until the end of 2018 and then conclude the
programme, though ECB President Mario Draghi stressed that the governing
council stood ready “to adjust all its instruments as appropriate.”

Investors, though, seized on comments indicating that interest rates would
stay at record lows at least through the summer of 2019.

Some analysts believe it could be even longer.

Ten-year government bond yields in Germany, the euro zone benchmark, fell
around four basis points to 0.43 percent .

The euro, meanwhile, touched on its steepest one-day drop against the U.S.
dollar since June of 2016, while the dollar accelerated to a two-week peak.

The euro was last down 1.37 percent to $1.1628, while the dollar index,
which measures the greenback against six top currencies, rose 0.85 percent.

EQUITIES STRONG

European equities rose sharply after initial losses, with Wall Street
creeping into positive territory.

The pan-European FTSEurofirst 300 index rose 1.40 percent, buoyed by big
gains in interest rate-sensitive sectors like autos and utilities.

MSCI’s gauge of stocks across the globe shed 0.05 percent, while Wall Street
wavered, with two of the three main indexes up after better-than-expected
May retail sales data.

The U.S. Commerce Department reported that retail sales rose 0.8 percent
last month, the biggest advance since November 2017. Data for April was also
revised upward.

The Dow Jones Industrial Average fell 7.94 points, or 0.03 percent, to
25,193.26, the S&P 500 gained 7.6 points, or 0.27 percent, to 2,783.23 and
the Nasdaq Composite added 62.69 points, or 0.81 percent, to 7,758.39.

MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.11
percent lower, while Japan’s Nikkei lost 0.99 percent.

Benchmark 10-year U.S. Treasury notes last rose 8/32 in price to yield
2.9516 percent, from 2.979 percent late on Wednesday.

The 30-year bond last rose 21/32 in price to yield 3.0696 percent, from
3.102 percent Wednesday.

TRADE TENSIONS

One issue keeping investors in check was concern about U.S. threats to
impose tariffs on $50 billion of Chinese goods. U.S. President Donald Trump
was planning to meet with trade advisers later to decide whether to activate
the tariffs, a senior administration official said on Wednesday.

CBOT corn and soybean futures were down sharply as uncertainty about tariffs
and favorable crop weather in the U.S. Midwest have prompted funds to
liquidate big long positions.

CBOT July corn fell to its lowest since mid-January and front-month soybeans
dipped to a 9-1/2 month low. Traders are worries about China, Mexico and
other countries curbing demand for U.S. grain and soy exports.

Another event markets were gearing up for: the start of soccer’s World Cup
in Russia, where time zone differences mean there will be more matches
during European or U.S. and Latin American trading hours than any previous
tournament.

A study done during the last World Cup with similarly-timed games, the 2010
finals in South Africa, showed trading volumes on share markets dropped by a
third on average when matches were on and 55 percent when a market’s own
team played.

Oil prices were down, facing pressure from evidence of rising U.S. output
and uncertainty over supply, before a meeting next week of the world’s
largest exporters.

U.S. crude fell 0.3 percent to $66.44 per barrel and Brent was last at
$75.95, down 1.03 percent on the day.

Commodities Markets

Weak China data pushes industrial metals prices lower

(Reuters) - Prices of most base metals fell on Thursday after data pointed
to a slowing of economic growth in China, the biggest metals consumer, and
the euro plunged against the dollar.

Industrial output, investment and retail sales all grew less than expected
in May, suggesting further weakness ahead if crackdowns on riskier lending
and pollution continue.

Benchmark copper on the London Metal Exchange (LME) was down 1.2 percent at
$7,170.50 a tonne at 1445 GMT.

It has slipped from a 4-1/2 year high of $7,348 reached last week on
concerns that wage talks at the world’s biggest copper mine could disrupt
supply.

Also pressuring metals was an interest rate hike and a hawkish tone from the
U.S. Federal Reserve on Wednesday, said ABN AMRO analyst Casper Burgering.

Higher rates were likely to strengthen the dollar over time, making
dollar-priced metals costlier for buyers with other currencies, and thus
dampening demand, he said.

However, supply and demand fundamentals were still good for most industrial
metals, with copper, aluminium and nickel, all of which have reached
multi-year highs this year, likely to see further gains, he said.

DOLLAR: The dollar was sharply stronger on Thursday against the euro after
the European Central Bank said it would not raise interest rates before the
middle of next year.

TRADE DISPUTE: U.S. President Donald Trump was due to unveil revisions to a
tariff list targeting $50 billion of Chinese goods on Friday, reviving
concerns of a trade war that could slow global growth and reduce demand for
metals.

COPPER TECHNICALS: Support was at $7,170 and a break below this could cause
prices to slide towards $7,085.

CHINA METALS OUTPUT: While slower Chinese growth suggested lower demand,
China’s output of 10 non-ferrous metals including copper, aluminium, lead,
zinc and nickel rose 4.3 percent in May from a year earlier to 4.55 million
tonnes. Aluminium production was up 1.5 percent at 2.79 million tonnes.

CHINA STEEL: Output surged to a record level in May, which should support
demand for steelmaking ingredients nickel and zinc.

CHINA POLLUTION: However, production capacity could be curtailed as China
expands a crackdown on polluting industry beyond smog-prone Beijing and
surrounding cities.

NICKEL: Sumitomo Metal Mining, Japan’s biggest nickel smelter, said a global
nickel deficit would grow to 88,000 tonnes this year from 72,000 tonnes in
2017. The metal nonetheless reversed gains seen on Wednesday to trade 3
percent lower at $15,175 a tonne.

OTHER METALS: Aluminium was down 0.1 percent at $2,272.50, zinc was 1.7
percent lower at $3,162.50, lead fell 0.9 percent to $2,462.50 and tin was
0.3 percent higher at $20,930.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

ZHL

AGM

Ophir Room, Monomotapa Hotel

20/06/2018 2:30pm

ZPI

AGM

206 Samora Machel Avenue

21/06/2018 12pm

RioZim

AGM

Head Office, 1 Kenilworth Road, Highlands

21/06/2018 10:30am

SeedCo

final dividend of 2.95c and special dividend of 1.48c and sets record date

22/06/2018

GB Holdings

AGM

Cernol Chemicals Boardroom, 11 Dagenham Road, Willowvale

26/06/2018 11:30am

MedTech

AGM

Head Office, Boardroom, Stand 619, Corner Shumba/Hacha Roads, Ruwa

27/06/2018 3pm

Dawn Properties

AGM

Ophir Room, Monomotapa Hotel

28/06/2018 10am

NicozDiamond

Scheme meeting

7th Floor, 30 Samora Machel Ave

28/06/2018 10am

ZBFH

AGM

Boardroom, Ground Floor, 21 Natal Road, Avondale

28/06/2018 10:30am

African Sun

AGM

Kariba Room, Holiday Inn Harare

28/06/2018 12pm

FBC

AGM

Royal Harare Golf Club

28/06/2018 3pm

Hwange

AGM

Royal Harare Golf Club

29/06/2018 10:30am

Fidelity Life

AGM

Great Indaba Room, Monomotapa Hotel

29/06/2018 11am

Barclays

EGM to consider the change of registered statutory name to First Capital
Bank Limited

Meikles Hotel

03/07/2018 3pm

NicozDiamond

shares delist from the ZSE

06/07/2018

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.

(c) 2018 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

Invest Wisely!

Bulls n Bears 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180614/13d5b79e/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180614/13d5b79e/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 23247 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180614/13d5b79e/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29401 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180614/13d5b79e/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180614/13d5b79e/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 159128 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180614/13d5b79e/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180614/13d5b79e/attachment-0011.jpg>