Bulls n Bears Daily Market Commentary : 20 June 2018

Wed Jun 20 16:10:26 CAT 2018

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Bulls n Bears Daily Market Commentary : 20 June 2018

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Zimbabwe Stock Exchange Update

The ZSE plunged deeper into the red in mid-week?s session on the back of a
heavy sell off across the bourse. The main Indicator All Share eased 0.88%
to 112.09pts on losses in sixteen counters whilst, the Industrials lost a
further 0.85% to 373.75pts. The Top Ten Index tumbled 0.70% to 115.65pts
with the Mining Index dipping 2.09% to settle at 162.47pts. Nickel Miner
Bindura led the casualties of the day as it succumbed 14.24% to close at
$0.0506 whilst, CBZ followed after plunging a hefty 13.77% to see its shares
being swapped lower at $0.1121. PPC let go 7.62% to end at a vwap of
$1.2009, where demand could be established. Banking group NMB reversed its
previous gains with 4.17% dive to settle at $0.1150. 

Other losses were seen in Axia (3.96% to $0.2500), ZB (2.94% to $0.3300),
Star Africa (2.44% to $0.0160), FMP (2.22% to $0.044) and OKZIM (2.18% to
$0.2250). Delta lost a hefty 1.94% to end a vwap of $1.9985, having touched
an intra- day low of $1.8500, whilst Econet lost a negligible 0.0003% to
settle at a vwap of $1.668, despite it closing well offered at $1.1475.

Activity aggregates for the day were also depressed as volumes dipped 95.11%
to 2.31m shares yielding a value of $2.67m which was 14.92% down from prior
session. The major value contributors were Econet (43.41%), Old Mutal
(23.67%) and Delta (11.77%) while, volume wise Econet?s 42.69% and PPC?s
10.82% anchored. Foreign inflows at $1.20m were 9283% up on prior close.
This constituted 45% of the turnover with Old Mutual being the most sought
after stock on the foreign front. Foreign outflows declined 8.32% to $0.37m
leaving the foreign position in a net outflow of $0.83m. –EFE

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Kenya

Kenyan shilling strengthens despite a surging dollar

(Reuters) - The Kenyan shilling firmed against the dollar on Wednesday
countering pressure from a global surge in strength of the dollar with some
support from offshore investors and remittances, traders said. 

At 1118 GMT, commercial banks quoted the shilling at 100.80/101.00 per
dollar, compared with 101.05/25 at Tuesday's close. 

Uganda

Uganda shilling extends losses on demand for dollars from banks, importers

(Reuters) - The Uganda shilling        extended its losing streak on
Wednesday, pressured by strong demand for dollars from commercial banks and
some importers like energy and manufacturing firms, traders said. 

At 0952 GMT commercial banks quoted the shilling at 3,875/3,885, weaker than
Tuesday's close of 3,860/3,870.

Asia

Asian stocks bounce as China turns up on hopes of policy support

(Reuters) - Asian stock markets bounced on Wednesday following a wobbly
morning session that highlighted the lingering anxiety and uncertainty
surrounding a heated trade dispute between China and the United States.

Markets in Europe and the U.S. looked set to follow Asia higher. S&P 500
futures were 0.2 percent higher and Dow Jones futures gained 0.5 percent.

Financial spreadbetters expected London’s FTSE to open 15 points higher,
Frankfurt’s DAX 5 points up and Paris’ CAC 13 points higher.

In Asia, bargain hunters turned out to pick up shares on the cheap after the
previous day’s rout. The MSCI’s broadest index of Asia-Pacific shares
outside Japan jumped 1 percent, after Tuesday’s 2.1 percent tumble,
supported by an afternoon rebound in Chinese shares. Japan’s Nikkei was up
1.2 percent after falling into negative territory earlier in the day. South
Korea’s KOSPI rose 1 percent.

In China, markets turned losses into gains as investors appeared to take
heart from indications of government support.

The Shanghai Composite Index was 0.5 percent higher a day after falling 3.8
percent to a two-year low.

China’s blue-chip CSI300 index gained 0.6 percent, and the Shenzhen
Composite Index rose 1.4 percent.

Hong Kong’s Hang Seng index was 1.1 percent higher after closing down 2.8
percent on Tuesday. The China Enterprises Index reversed losses from the
morning session, rising 0.4 percent.

In a working paper on Tuesday, China’s central bank said the country should
cut banks’ reserve requirement ratios (RRR) to boost market liquidity,
highlighting concerns over trade, a day after the central bank governor
urged investors to remain calm.

An apparent bias toward looser policy “runs counter to the regional bias
toward higher rates to protect currency downside,” she said, adding that
growing policy divergence indicates room for the onshore and offshore yuan
to depreciate.

The bounce in share markets comes despite trade tensions between the United
States and China showing few signs of easing. On Tuesday, a White House
trade adviser said that Beijing has underestimated the U.S. president’s
resolve to impose more tariffs.

Washington threatened on Monday to impose a 10 percent tariff on $200
billion of Chinese goods after Beijing decided to raise tariffs on $50
billion in U.S. goods, in response to similar tariffs on Chinese goods
announced Friday.

Nevertheless, the yield on benchmark 10-year Treasury notes rose to 2.9022
percent on Wednesday afternoon after earlier falling to 2.8820.

The two-year yield, which rises with traders’ expectations of higher Fed
fund rates, was at 2.5535 percent.

AUSTRALIA CATCH-UP RALLY

Australian stocks, which saw strong buying throughout the day, ended 1.2
percent higher, supported by a weak local dollar. The Aussie dollar rose 0.2
percent after hitting a one-year low on Tuesday.

A more attractive dividend proposition and a weaker Australian dollar have
made the market more alluring to overseas investors, said Ryan Felsman, a
senior economist at CommSec.

The US dollar was slightly stronger against the yen, rising 0.05 percent to
110.10.

The euro was 0.1 percent lower at $1.1576, while the dollar index, which
tracks the greenback against a basket of six major rivals, was flat at
95.096.

U.S. crude rose 0.6 percent to $65.43 a barrel, supported by a drop in U.S.
commercial crude inventories. But analysts said trade concerns and
disagreements within the Organization of the Petroleum Exporting Countries
over boosting supply continue to loom over the market.

Iran said on Tuesday that OPEC was unlikely to reach a deal on oil output
this week.

Gold was flat after falling near six-month lows Tuesday on a strong dollar.
Spot gold was traded at $1273.91 per ounce.

Investors in cryptocurrencies were also hit by losses after South Korean
virtual currency exchange Bithumb said it had been hacked and $32 million
worth of virtual currency held at the exchange was stolen.

Bitcoin was 1.9 percent lower at $6,607.00.

Commodities Markets

London copper bounces off three-week low, but trade worries drag

(Reuters) - London copper rebounded from a three-week low on Wednesday after
losing nearly 2 percent in the previous session, although a deepening trade
row between China and the United States capped any recovery in risk
appetite.

Nickel, up more than 1 percent, was the top gainer while other metals
including aluminium and zinc also edged up, but most were not far above
multi-week lows reached on Tuesday.

Three-month copper on the London Metal Exchange was up 0.2 percent at $6,855
a tonne by 0710 GMT, after initially hitting $6,807, its weakest level since
May 31. The most-traded

August copper contract on the Shanghai Futures Exchange closed down 0.6
percent at 51,980 yuan ($8,036) a tonne.

    * TRADE ROW: China has underestimated U.S. President Donald Trump's
resolve to impose more tariffs unless it changes its "predatory" trade
practices, a White House trade adviser said.

    Trump threatened on Monday to hit $200 billion of Chinese imports with
10 percent tariffs if Beijing retaliated against his previous targeting of
$50 billion in imports, aimed at pressuring China to stop stealing U.S.
intellectual property.

    * RUSSIA RETALIATES: Russia said it would impose import duties on U.S.
road-building machinery, a measure likely to help Russian oligarch Oleg
Deripaska, who was hit by U.S. 

sanctions and controls Russia's biggest maker of road-building equipment.

    * RUSAL: Sanctions-hit Russian aluminium producer Rusal  said it had
started shipping bauxite from its Dian-Dian bauxite project in Guinea to its
alumina refineries in other countries.

    * CHINA COPPER: China's refined copper output rose 15.5 percent from a
year ago to 767,000 tonnes in May, government data showed.

    * GRAPHITE: Base metals explorer Metals Australia has signed a
preliminary deal to develop a graphite mine in Canada in partnership with a
Chinese supplier to the battery industry for an unspecified amount of
funding.

    * OTHER METALS: LME nickel jumped 1.2 percent to $14,835 a tonne after
hitting a three-week low on Tuesday.

Aluminium rose 0.6 percent to $2,183.50 a tonne after touching $2,167.50 on
Tuesday, its weakest since April 10. Zinc  added 0.7 percent to $3,022.50,
recovering from the prior session's six-week low.

    * SHANGHAI: In Shanghai, aluminium ended 0.6 percent weaker at 14,200
yuan a tonne, but off an 11-week low,  and zinc eased 0.5 percent to 23,505
yuan.

    * MARKETS: The dollar steadied against a basket of currencies, although
persistent worries about the U.S.-China tariff rift kept currencies on edge.
Asian stocks rebounded.

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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