Bulls n Bears Daily Market Commentary : 15 June 2018

Mon Jun 18 07:46:46 CAT 2018

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Bulls n Bears Daily Market Commentary : 15 June 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $2,046,690.89 with foreign buys at $1,137,498.92 and foreign
sales were $586,724.00. Total trades were 141.

The All Share index closed the week on a lower note after dropping 0.12
points to close at 118.25 points.OLD MUTUAL  eased $0.0438 to close at
$6.4562, MEIKLES went down $0.0398 to settle at $0.3302 and DELTA slipped
$0.0326 to settle at $2.4399. Other companies which traded in the negative
territory are INNSCOR which slipped $0.0117 to $1.4800, CBZ   eased $0.0054
to close at $0.1246 and BRITISH AMERICAN TOBACCO  lost a marginal $0.0047 to
close at $24.9501.

The losses were partially offset by gains in RIOZIM  which was up $0.0321 to
settle at $1.4321, FML  rose by $0.0159 to settle at $0.1800 and AXIA  moved
up $0.0133 to $0.2683. PROPLASTICS added $0.0119 to trade at $0.0969, TSL
advanced by $0.0100 to $0.4200 and ECONET  gained $0.0091 to trade at
$1.1532. 

 <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.

South Africa

South Africa's rand hovers near 6-month low, bonds weak

(Reuters) - South Africa’s rand hovered near a six-month low early on Friday
after slipping in the previous session following poor mining data and as
power firm Eskom started controlled electricity outages because of a wage
dispute with labour unions.

* At 0817 GMT, the rand traded at 13.4350 per dollar, 0.11 percent firmer
than its close on Thursday, when it fell to a low on 13.4850, its weakest
since Dec. 15.

* South African assets have been hurt recently by weak economic figures and
by global investors pulling back from emerging markets.

* The wage dispute at Eskom has also soured sentiment. The utility
implemented controlled power outages late on Thursday after hundreds of
union members protested over wages and prevented others from showing up.

* South Africa’s power grid was under pressure on Friday, with Eskom saying
controlled blackouts were possible.

* In fixed income, the yield for the benchmark government bond due in 2026
was up 7.5 basis points to 9.035 percent, reflecting weaker prices. 

America

Trade strains, dollar roil emerging stocks, currencies

(Reuters) - Rattled by trade war fears and steep dollar gains, emerging
markets ended the week on a sour note with stocks slipping to more than
two-week lows and a clutch of currencies on track for their worst week in
years.

MSCI’s emerging market stocks benchmark fell 0.8 percent on a third day in
the red, with Chinese mainland stocks suffering while export-heavy South
Korea slipped 0.8 percent.

Markets were spooked the heightening prospect of a trade war after a U.S.
administration official said President Trump had made up his mind to impose
“pretty significant” tariffs on Chinese goods.

Beijing said it was ready to respond if Washington chose to ratchet up trade
tensions.

Trump is due to unveil revisions to his initial tariff list targeting $50
billion of Chinese goods on Friday, while a second list of tariffs on $100
billion in Chinese goods is nearly completed.

Emerging assets had already suffered on Thursday, digesting Wednesday’s
hawkish outlook from the U.S. Federal Reserve with the dollar racing higher
after the European Central Bank signalled on Thursday it would keep interest
rates at record lows up to at least mid-2019.

The dollar’s index against a basket of six major peers rose 0.3 percent to
95.111, its highest level since November, after rallying more than 1 percent
the previous day.

He expected the dollar to continue go “somewhat higher”.

Turkey, which with its large external financing need took centre stage in a
recent emerging markets selloff, saw its lira weaken 0.5 percent in a fifth
straight day of losses, putting the currency on track for its worst week
since the height of the 2008 financial crisis.

Mexico’s peso, a lightning rod for trade sentiment across emerging markets,
extended Thursday’s tumble to weaken 0.2 percent - its weakest level in 18
months. The peso is on track for its worst week since 2015.

China’s yuan fell to a near two-week low against the dollar after the
central bank in Beijing fixed the official midpoint at the lowest in five
months.

Russia’s rouble slipped 0.4 percent ahead of a central bank decision.
Policymakers are expected to keep rates unchanged despite inflationary
pressures following U.S. sanctions.

South Africa’s rand bounced 0.5 percent, clawing back half of Thursday’s
losses.

Borrowing costs across emerging markets stayed at their highest in 18
months.

The premium demanded by investors to hold emerging market hard-currency debt
over safe-haven U.S. Treasuries as measured by the J.P.Morgan EMBI Global
Diversified index has widened 13 basis points (bps) to 356 bps from last
Friday’s close.

Commodities Markets

Copper eyes biggest weekly loss since April on China growth woes, trade
tensions

(Reuters) - Copper hit a one-week low on Friday while the dollar retained
its strength, leaving the market set for its biggest weekly drop since April
on concerns over slowing growth in top metals buyer China and looming U.S.
trade tariffs against the country.

U.S. President Donald Trump has decided to impose “pretty significant”
tariffs, a U.S. official said, and will unveil a list targeting $50 billion
of Chinese goods on Friday. Beijing has warned that it was ready to respond.

While it is not clear when Trump will activate the measures, rising
Sino-U.S. trade tensions will put additional pressure on China’s economy,
which is starting to show signs of cooling under the weight of a multi-year
crackdown on riskier lending.

The dollar index hit a seven-month high earlier, getting a boost as the euro
sagged after a cautious European Central Bank signalled it will keep
interest rates at record lows well into next year.

COPPER PRICES: Three-month copper on the London Metal Exchange was down 0.5
percent at $7,140 a tonne at 0957 GMT, having hit a one-week low of
$7,118.50. The industrial metal has slipped from a 4-1/2 year high hit last
week on supply concerns at the world’s biggest copper mine.

CHINESE GROWTH: China reported weaker-than-expected industrial output,
investment and retail sales for May, suggesting further weakness ahead if
Beijing sustains its crackdown on factory pollution and local government
spending.

CHINA METALS OUTPUT: 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 COPPER STOCKS: Copper inventories in warehouses monitored by the
Shanghai Futures Exchange fell 1.2 percent from last Friday.

CHINA ZINC, LEAD STOCKS: Zinc inventories in warehouses monitored by the
Shanghai Futures Exchange rose 7.6 percent from last Friday and lead gained
6 percent.

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.

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Bulls n Bears 

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