Bulls n Bears Daily Market Commentary : 16 May 2018

Wed May 16 15:47:11 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 : 16 May 2018

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover $3,363,386.02 with foreign buys at $1,451,321.90 and foreign
sales were $459,727.50. Total trades were 109.

The All Share index extended further gains by adding 0.11 points   to close
at 104.36 points. Insurance giant OLD MUTUAL  was $0.4410 stronger at
$7.4916, PPC  added $0.0983 to close at $1.2983 and RIOZIM  traded $0.0514
to settle at $1.2914. INNSCOR   increased by $0.0376 to close at $1.2929,
SEEDCO   was $0.0245 firmer at $2.2590 and PADENGA ended $0.0025 to trade at
$0.6650.

OK ZIMBABWE  shed $0.0375 to trade at $0.2100, CBZ  and FIRST MUTUAL
HOLDINGS  both eased $0.0100 to close at $0.1100 and $0.1500 respectively.
DELTA  dropped a marginal $0.0043 to settle at $2.0200 and MASHONALAND
HOLDINGS   slipped $0.0008 to trade at $0.0212. 

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South African rand weaker before retail sales data

(Reuters) - South Africa’s rand was slightly weaker early on Wednesday as
investors awaited retail sales data for clues about the health of the
economy.

* At 0610 GMT, the rand traded at 12.5900 versus the dollar, down around
0.15 percent from its close on Tuesday.

* Statistics South Africa is scheduled to publish March retail sales data,
which reflects the strength of consumer confidence, at around 1100 GMT.

* Economists polled by Reuters expect retail sales growth to slow to 4.4
percent from 4.9 percent in February.

* The rand slumped by almost 2 percent on Tuesday, hurt by a strong dollar
fuelled by rising U.S. bond yields.

* The South African currency has been pulled this way and that in recent
weeks, taking its cue from global market moves. It is down around 1 percent
against the U.S. currency since the end of last month.

* Government bonds were also weaker in early deals, with the yield on the
benchmark instrument due in 2026 up 1.5 basis points to 8.505 percent.

Kenya

Kenyan shilling declines slightly amid pressure from importers

(Reuters) - The Kenyan shilling inched down on Wednesday with importer
demand for dollars putting pressure on the currency, traders said.  

At 1030 GMT, commercial banks quoted the shilling at 100.55 per dollar,
compared with Tuesday's close of 100.45.

America

Dollar near 5-mth high after benchmark Treasury yield soars above 3 pct

(Reuters) - The dollar hovered near a five-month high against a group of
major currencies on Wednesday, as a surge in the benchmark 10-year Treasury
yield above 3 percent reignited a rally that had lost steam last week.

The dollar index versus a basket of six major peers added 0.1 percent to
93.335 after rallying to 93.457 overnight, its highest since Dec. 22.

The greenback had gained with few interruptions since mid-April as easing
tensions in the Korean Peninsula and moves by China and the United States to
prevent a full-blown trade war allowed investors to focus on the yield
advantage the United States enjoys over other countries.

The advance stalled last week after weaker-than-expected April U.S.
inflation data, but regained traction overnight as strong U.S. consumer
spending numbers sent long-term Treasury yields surging to a seven-year peak
of 3.095 percent .

The 10-year Treasury yield had hovered around 3 percent since reaching the
threshold late last month on concerns about rising inflation and a
ballooning federal budget gap. But until Tuesday, 3 percent level wasn’t
convincingly broken.

The yen tends to benefit during times of market turmoil and investor risk
aversion.

The uptick in U.S. yields unnerved equity markets and sent Wall Street
shares significantly lower on Tuesday.

The euro was 0.1 percent lower at $1.1823 after brushing $1.1817, its
weakest since late December.

The dollar was little changed at 110.300 yen, having risen to 110.450
overnight, its strongest since Feb. 5.

The yen barely budged after data showed Japan’s economy contracted for the
first time in nine quarters during January-March.

The Australian dollar was largely flat at $0.7467 after sliding 0.7 percent
overnight. The New Zealand dollar, which fell about 0.75 percent the
previous day to a five-month trough of $0.6855, last traded at $0.6882.

The pound was a shade weaker at $1.3499 after slipping to $1.3452 on
Tuesday, its lowest since Dec. 29.

Commodities Markets

Gold steadies after biggest fall since 2016

(Reuters) - Gold steadied on Wednesday aftera surge in the dollar and U.S.
bond yields in the previous session had pushed prices down 1.7 percent to
their lowest this year. 

Tuesday's fall was the biggest since November 2016. Gold crashed below its
technically important 200-day moving average and the psychologically
significant $1,300 mark to $1,288.31,

the weakest since Dec. 28. 

Spot gold        was up 0.1 percent at $1,290.86 an ounce at 1104 GMT, while
U.S. gold futures         for June delivery were flat at $1,290.30.

A stronger dollar hurts gold by making it more expensive for holders of
other currencies, while higher bond yields make non-yielding bullion less
attractive to investors. 

The dollar rose further on Wednesday to a new 2018 high, while yields on
10-year Treasuries slipped back from a 7-year peak.

Yields and the dollar are likely to rise further, pushing gold to $1,275 by
the end of June and $1,250 by year end, below the $1,310-$1,360 range it has
inhabited since January, said ABN

AMRO analyst Georgette Boele. 

Technical and momentum indicators suggested gold could fall to around
$1,278, said analysts at ScotiaMocatta. Fibonacci support for the metal was
at $1,287, they said.

Investors largely disregarded news that North Korea had called off high
level talks with South Korea due on Wednesday, less than a month before a
planned summit between Kim Jong Un

and U.S. President Donald Trump.             

In other precious metals, silver        was up 0.2 percent at $16.26 an
ounce after falling 1.6 percent on Tuesday. 

Platinum        was 0.3 percent higher $895.70 an ounce and palladium
lost 0.2 percent to $980.72 an ounce.

Copper steady amid strong Chinese data, dollar

(Reuters) - Copper was steady on Wednesday following two losing sessions as
a stronger dollar offset upbeat Chinese home sales data.

Benchmark copper on the London Metal Exchange was traded at a steady $6,808
after falling by more than 1 percent on Tuesday. Copper, used in power and
construction, is down 1.8 percent so far this week.

CHINA: China’s new home prices rose in April with an increasing number of
smaller cities driving broader growth, pointing to a resilient construction
market which is a key industry for industrial metals.

DOLLAR: The dollar index added 0.3 percent to trade at its highest in 2018,
capping gains in commodities priced in the greenback.

NORTH KOREA: North Korea cancelled high-level talks with Seoul, denouncing
military exercises between South Korea and the United States, breaking from
several months of easing relations on the peninsula. This weighed on risk
sentiment.

INVENTORIES: Headline copper stocks in LME-approved warehouses sit at
290,825 tonnes after falling 525 tonnes. This is slightly higher than the
January low touched last week. MCUSTX-TOTAL

ALUMINIUM STOCKS: Aluminium stocks held at three major Japanese ports
AL-STK-JPPRT rose about 9 percent to 267,100 tonnes by the end of April from
the previous month, trading house Marubeni Corp said on Wednesday.

LITHIUM: China’s Tianqi Lithium is nearing a deal to buy a 24 percent stake
in Chile’s Sociedad Quimica Y Minera, one of the world’s biggest lithium
producers, for about $4.3 billion.

RUSAL INSIGHT: On April 23, the U.S. Treasury eased restrictions on
billionaire Oleg Deripaska’s aluminium company Rusal. Instead of barring
Rusal from international markets, which is what the United States originally
intended to do, the Treasury suggested it might lift the sanctions
altogether.

U.S.-CHINA TRADE: The United States is seeking to make a trade deal with
China, White House economic adviser Larry Kudlow said as bilateral talks
between the world’s two economic powerhouses resume in Washington this week.

BAUXITE: Operations at Societe Miniere de Boke’s bauxite mine in Guinea have
restarted following a nearly two-week strike that caused a halt in
production of the aluminium ore, the company’s managing director said on
Wednesday.

OTHER METALS: LME aluminium was down 0.6 percent at $2,312 per tonne in
official rings, lead was bid 0.6 percent lower at $2,333, zinc was flat at
$3,062, tin was down 0.4 percent to $20,800 while nickel was bid 0.2 percent
higher at $14,450.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Workers’ Day

01/05/2018

Africa Day

25/05/2018

Zimbabwe

Heroes’ Day

Zimbabwe

13/08/2018

Zimbabwe

Defence Forces Day

Zimbabwe

14/08/2018

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/20180516/bd109dd9/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/20180516/bd109dd9/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 29401 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180516/bd109dd9/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180516/bd109dd9/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 159128 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180516/bd109dd9/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180516/bd109dd9/attachment-0009.jpg>