Bulls n Bears Daily Market Commentary : 23 May 2018

Wed May 23 15:25:26 CAT 2018

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Bulls n Bears Daily Market Commentary : 23 May 2018

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Zimbabwe Stock Exchange Update

Market Turnover $6,051,718.00 with foreign buys at $3,498,603.80 and foreign
sales were $479,994.43. Total trades were 109.

The All Share index went up by a further 0.25 points  to settle at 105.17
points. Heavyweight counters gained ground as PPC  rose by $0.1250 to close
at $1.6000, OLD MUTUAL  increased by $0.0765 to $7.8881 and OK ZIMBABWE
gained $0.0100 to end at $0.2198. ZIMPLOW  advanced by $0.0045 to $0.1150,
AFRICAN SUN  improved by $0.0040 to close at $0.0550 while DAIRIBOARD  was
$0.0021 higher at $0.1400.

Only three counters lost ground as HIPPO   came off $0.0100 to end at
$1.6300, AXIA   dropped $0.0025 to close at $0.2425 whilst INNSCOR
decreased by $0.0011 to trade at $1.3000.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Uganda

Uganda shilling weakens on high demand from energy, manufacturing firms

(Reuters) - The Uganda shilling        weakened on Wednesday due to swelling
demand for hard currency from firms in the manufacturing and energy sectors,
traders said. 

At 0928 GMT commercial banks quoted the shilling at 3,730/3,740, weaker than
Tuesday's close of 3,725/3,735.

Kenya

Kenyan shilling weakens on end of month demand from companies

(Reuters) - The Kenyan shilling weakened against the dollar on Wednesday due
to end of month demand from multinational companies and importers, exceeding
inflows in the market, traders said. 

At 0843 GMT, commercial banks quoted the shilling at 100.90/101.10 per
dollar, compared with 100.80/101.00 at Tuesday's close. 

Europe

Euro, Pound Fall After Disappointing Data

The euro and sterling were lower on Wednesday. The euro and sterling were
lower on Wednesday.

Investing.com - The euro and sterling were near five-month lows on Wednesday
after disappointing economic data while the U.S. dollar surged as investors
look ahead to Fed meeting minutes later in the day.

The euro was near a five-month low after private sector growth in the euro
zone fell to its slowest pace in 18 months in May.

The Flash Euro Zone Composite Output Index, which measures the combined
output of both the manufacturing and service sectors, registered a reading
of 54.1 this month, compared to expectations for a reading of 55.0.

The report is likely to push back expectations of an interest rate hike by
the European Central Bank.

The euro was down, with EUR/USD falling 0.48% to 1.1724 as of 4:42 AM ET
(8:42 GMT).

Meanwhile the pound slumped to new five month lows after data showed that
annual inflation slowed in April, which could ease pressure on the Bank of
England to increase interest rates.

GBP/USD dipped 0.53% to 1.3362.

Elsewhere the greenback rose to a five month high, as investors look ahead
to the latest meeting minutes from the Federal Reserve. The minutes are set
to be released at 2:00 PM ET (18:30 GMT).

Investors will be looking closely for any sign of tightening monetary
policy.

A recent increase in bond yields, along with positive economic data and
rising inflation, has boosted expectations that the Federal Reserve will
increase interest rates and tighten monetary policy.

The Fed raised rates in March and is expected to raise rates twice more,
with some investors expecting a third hike.

The U.S. dollar index, which measures the greenback’s strength against a
trade-weighted basket of six major currencies, was up 0.28% to 93.77.
Expectations of higher interest rates tend to boost the dollar by making the
currency more attractive to yield-seeking investors.

The dollar was down against the safe haven yen, with USD/JPY falling 0.90%
to 109.89.

Commodities Markets

Gold rises on U.S.-China trade negotiations but dollar weighs

(Reuters) - Gold prices rose on Wednesday on uncertainty about trade talks
between the United States and China, which boosted the metal's safe-haven
appeal, but a firmer dollar kept a lid on gains.

The precious metal, which is often used as store of wealth in times of
political or economic uncertainty, showed signs of strength after U.S.
President Donald Trump said he was not

pleased with recent talks with China.             

Trump also said there was a "substantial chance" his summit with North
Korean leader Kim Jong Un will not take place as planned on June 12 amid
concerns that Kim is resistant to giving

up his nuclear weapons.             

But the dollar, in which gold and other commodities are priced, rose versus
a basket of currencies       , with investors awaiting minutes of the
Federal Reserve's latest policy meeting due later in the day.       

Spot gold        was 0.4 percent higher at $1,296.42 per ounce as of 1050
GMT, while U.S. gold futures         for June  delivery rose 0.3 percent at
$1,296 per ounce.     

Prices remained stuck in a narrow range as investors awaited more clues on
the path of U.S. interest rates. 

At its previous meeting in May, the U.S. central bank expressed confidence
in the economy and kept its benchmark lending rate unchanged. It said
inflation was near the bank's

target, leaving the bank on track to raise borrowing costs in June.

Gold is highly sensitive to rising U.S. rates, as these tend to boost the
dollar in which the metal is priced. 

Gold has shown reduced volatility in the last few trading sessions as it
attempted a break above $1,300 and prices are "waiting for a new, clear
direction," said ActivTrades chief

analyst Carlo Alberto De Casa.

Holdings of the world's largest gold-backed exchange-traded fund (ETF), New
York-based SPDR Gold Shares      , fell 0.38 percent to 852.04 tonnes on
Monday from 855.28 tonnes on Friday.

In other precious metals, silver        inched up 0.1 percent to $16.54 an
ounce and platinum        was 0.6 percent higher at $908.20 an ounce. 

Palladium        eased 0.5 percent to $986 an ounce.

Copper slides as optimism fades over U.S.-China trade talks

(Reuters) - Copper fell 2 percent on Wednesday as U.S. President Donald
Trump tempered optimism that a China-U.S. trade stand-off was at an end,
knocking appetite for cyclical assets and helping pull the metal from the
previous day’s near one-month high.

Stock markets slid and the dollar fell against the Japanese yen - seen as a
haven from risk - after Trump said he was not pleased with recent trade
talks with China.

His comments came after U.S. Treasury Secretary Steven Mnuchin said over the
weekend that the prospect of a trade war between the two countries was “on
hold”, giving a boost to nominally riskier assets like stocks and industrial
metals.

China is the world’s largest consumer of copper, which is chiefly used in
construction.

* COPPER: Three-month copper on the London Metal Exchange was down 2.1
percent at $6,830 a tonne by 0931 GMT, after peaking at $6,999 on Tuesday,
its loftiest since April 26.

* COPPER INVENTORIES: On-warrant stocks of copper in London Metal Exchange
(LME) warehouses — metal not earmarked for delivery and therefore available
to the market — fell 7,975 tonnes to 226,300 tonnes, their lowest since late
January.

* GRASBERG: Global miner Rio Tinto Ltd said it was in discussions to sell
its interest in the world’s second largest copper mine to Indonesia’s state
mining holding company Inalum.

* VEDANTA: An Indian court halted the proposed expansion of Vedanta
Resources copper smelter where a day earlier 11 people were killed when
police fired on protesters seeking closure of the plant on environmental
grounds.

* LEAD: LME lead was down 0.9 percent at $2,454 a tonne, retreating from a
12-week high hit in the previous session after Chinese speculators drove a
rally based by potential supply shortages.

* NICKEL: LME nickel was 1.8 percent lower at $14,510 a tonne. Nickel
remains the best performer among base metals, with a year-to-date gain of
nearly 14 percent.

* NICKEL INVENTORIES: LME nickel stockpiles fell by another 2,454 tonnes,
data on Wednesday showed, and are at their lowest since 2014, underlining a
deficit in the metal used for stainless steel.

* OTHER METALS: LME zinc was down 1.5 percent at $3,011.50 a tonne, while
tin was up 0.4 percent at $20,620 a tonne.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Zimplow

AGM

Head Office, 36 Birmingham Road, Southerton

23/05/2018 10am

Proplastics

AGM

Ophir Room, Monomotapa Hotel

24/05/2018 10am

NMB

AGM

Head Office, 4th Floor, Unity Court, Corner 1st Street/Kwame Nkrumah Ave

24/05/2018 3pm

Africa Day

Africa Day

Africa Day

25/05/2018

FMP

AGM

Royal Harare Golf Club

29/05/2018 2.30pm

Unifreight

AGM

Royal Harare Golf Club

30/05/2018 10am

Barclays

AGM

Stewart Rooms, Meikles

30/05/2018 3pm

Masimba

AGM

Head Office , 44 Tilbury Road, Willowvale

31/05/2018 13.30pm

Edgars

AGM

Edgars Training Auditorium, 1st Floor, LAPF House, 8th Ave/Jason Moyo St,
Bulawayo

07/06/2018 9am

Turnall

AGM

Jacaranda Room, Rainbow Towers

07/06/2018 9am

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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