Bulls n Bears Daily Market Commentary : 29 May 2018

Tue May 29 17:13:03 CAT 2018

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Bulls n Bears Daily Market Commentary : 29 May 2018

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover $5,932,671.91 with foreign buys at $2,211,613.51 and foreign
sales were $1,647,512.68. Total trades were 162.

The All Share index rebounded by 0.45 points  to settle at 105.50 points.
HIPPO VALLEY gained a further $0.2000 to close at $1.6000, DELTA  rose by
$0.0122 to close at $2.0398 and  OLD MUTUAL  advanced by $0.0049 to end at
$7.8514. BARCLAYS went up by $0.0030 to $0.0650, DAIRIBOARD added $0.0025 to
settle at $0.1450 while BINDURA  increased by $0.0017 to close at $0.0517.

However, SEEDCO shed $0.0407 to close at $2.2500,  SIMBISA lost $0.0100 to
$0.4600 and  INNSCOR  shifted down $0.0085 to end at $1.3000. MASHONALAND
HOLDINGS  ,  PADENGA and STAR AFRICA  each inched down by $0.0002 to settle
at $0.0210, $0.6600 and $0.0198 respectively. <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Zimbabwe

Golix Advises Customers To Withdraw Their Money And Cryptos

Golix has finally released an update to customers and in their email, Golix
addressed a few of the issues currently plaguing them.

You can read the email they sent to customers below:

Dear Valued Customer 

A lot has been happening at Golix between the last communication we sent to
you on 15 May 2018 and today. A lot of you are concerned about when you are
going to receive the funds you have on Golix and a lot of you are concerned
about whether they will be able to continue trading or if they can make
deposits again. We’re going to answer all of these questions in this
email/post but first, here is a summary of everything that has happened the
last 2 weeks:

1.   11 May 2018 – the RBZ issues a circular to all the banks instructing
them to close all our bank accounts. They give us a 60 day window though.

2.   15 May 2018 – we issued a statement to our customers to let them know
that we are aware of the directive and that we have started the process of
engaging the RBZ to explore how we can address their concerns.

3.   17 May 2018 – the RBZ issues a second circular that was addressed to
Golix where they instructed Golix to cease all operations immediately. The
letter was dated 15 May 2018 but we only saw it on the 17th.

4.   18 May 2018 – by this date, all our bank accounts had now been closed.

5.   21 May 2018 – Golix files an urgent chamber application at the High
Court requesting the ban on Golix to be lifted.

6.   24 May 2018 – the High Court grants Golix an interim relief that lifts
the ban on cryptocurrencies by the Central Bank.

Here are some answers to the questions we think you’re likely to have right
now: 

What does the interim relief (lift of the ban on cryptocurrencies) mean for
me?

Before we answer this question it’s important for us to emphasize that the
court case is still ongoing and this interim relief is only valid until the
outcome of the case is determined in court. Because the case is still in
court, we cannot comment on questions that are related to the case and this
is the response you will get if you contact anyone on the Golix Team to make
an inquiry that is related to this case.

However, here is what we can say for now:

Golix can continue operation it’s business.

The interim relief does not guarantee that we will get our bank accounts
reopened. We are working hard to get our bank accounts reopened and we will
send another update to let you know how this goes

Why hasn’t my withdrawal been processed yet?

Although we  are working hard to have our bank accounts reopened, we have
started a separate conversation with banks to allow us to send customer
funds we are holding back to the customers and because the bank would like
to limit the activity on the accounts, we cannot be able to process
withdrawals as often as we used to.

Also, given the circumstances, cryptocurrency withdrawals are now also being
manually processed from cold storage and we can no longer process them as
quickly as we used to.

When can I expect my withdrawal to be processed?

Because of the logistics involved in processing withdrawals, we encourage
every customer to initiate the withdrawal of the funds in their Golix
accounts between Monday and Wednesday so that we have all the withdrawals
processed on Friday. Those that are unable to initiate withdrawals before
the end of day on Wednesday this week should do so before the end of the day
on Wednesday next week so that we process them by Friday next week.

Can I still deposit funds on Golix?

Please do not make any deposits into Golix until we have announced that we
have resumed trading.

If you try to deposit funds to our bank accounts right now, it may take
weeks before we are able to recover those funds because unless we tell the
bank in advance, those funds will go straight to a suspense account. So
please do not attempt to make deposits to Golix until we announce that we
have resumed trading and that it is now safe to do so.

We have a number of people who are still getting automated deposits into
their Golix accounts from services such as mining pools or BeForward. Feel
free to reach out to our support team if you need help figuring out how you
can stop these services from sending deposits directly to your Golix
account.

Can I continue to store my funds on Golix?

No. We recommend that you initiate a withdrawal your crypto and/or fiat
funds right now until we recommend that we have resumed trading.

If  you don’t think you can store your cryptocurrency assets yourself, feel
free to reach out to our support team who will be happy to make
recommendations on possible wallets you can use.

Is the OTC service still running?

No. Right now we are not conducting any OTC transactions.

>From this email the big takeaways are:

*         The court case is ongoing

*         Golix are still working on getting their bank accounts reopened

*         Customers can start processing withdrawals but only on specific
dates

*         Customers should NOT keep their funds on Golix

*         Do NOT deposit your funds on the exchange until they resolve their
issues.

South Africa

South Africa's rand, stocks tumble as Italian turmoil sparks E.M. retreat

(Reuters) - South Africa’s rand tumbled in mid-morning trade on Tuesday as
political turmoil in Italy hit global risk appetite hard, stoking a selloff
in emerging market currencies and stocks as investors to looked to buy
safe-haven assets.

At 1050 GMT the rand was 1.6 percent weaker at 12.6625 from an opening level
of 12.4550, erasing the small gains eked out in the previous session
following S&P Global Ratings Friday decision to keep the rating steady.

Italy’s anti-establishment 5-Star and League parties abandoned plans to form
a government at the weekend. Investors are now concerned the crisis could
trigger an economic slowdown in the euro-area, with implications for demand
for emerging market goods and services.

“We saw the rand weaken already during Asian trade on the back of Italian
default concerns and that’s led to widespread risk aversion. Stocks are also
lower and the dollar has strengthened across the board,” said senior trader
at Standard Bank Oliver Alwar.

The index measuring the greenback index against a basket of major currencies
was up 0.85 percent. The euro was down 0.65 percent.

The rand led the E.M. currency slide, while other big fallers included
India’s rupee and Russia’s rouble , which both slipped 0.8 percent.

“While local fundamentals have improved, over the past two months the rand
has really been trading on external factors. We’ve seen the capitulation in
Turkey and Brazil and before that the U.S.-China trade wars. That’s what’s
been driving the rand,” Alwar said.

Bonds also tanked, with the yield on the benchmark 2026 paper rising 10
basis points to 8.54 percent.

Stocks were dragged lower by Steinhoff Africa Retail (STAR) after it said it
was slowing its African expansion and that it would not declare an interim
dividend.

At 0945 GMT, its share price was down over 6 percent to 15.85 rand.

Overall, the benchmark Top-40 index was 1.38 percent lower at 49.851.05
while the wider All-share index had shed 1.23 percent to 56,160.70. 

Kenya

Kenya's shilling firms, central bank dollar sales help

(Reuters) - Kenya's shilling firmed on Tuesday after the central bank sold
some dollars early in the session, but traders said it was expected to come
under pressure due to demand from oil companies.

At 0942 GMT, commercial banks quoted the shilling at 101.45/55 to the
dollar, compared with Monday's close of 101.60/70.     

Europe

Euro Bounces From Day’s Lows, Remains under Pressure

Investing.com - The euro bounced off the worst levels of the day on Tuesday
after comments by the leader of Italy’s Five Star political party calmed
investors’ concerns over the prospect of an Italian exit from the euro zone.

EUR/USD was trading at 1.1553 by 06:41 AM ET (10:41 AM GMT), still down
0.58% for the day after falling as low as 1.1511 earlier, the weakest since
July 20, 2017.

The single currency found some support after Italy’s Five Star leader Luigi
Di Maio said in comments on Facebook that he never sought a euro exit.

The comments came as Italian bond yields rose rapidly amid a deepening
political crisis which sparked fears over a euro zone breakup.

Italy’s President Sergio Mattarella blocked the nomination of a euro sceptic
finance minister on Sunday, prompting Italy’s populist parties to abandon
their bid to form a coalition government and paving the way for fresh
elections later this year.

Investors fear that fresh elections could be seen as a referendum on Italy's
role in the European Union and may end up bolstering anti euro parties even
more.

The euro also found some support after ratings agency Moody’s said Tuesday
that political developments in Italy in the last few days have no bearing on
its recent decision to put the country’s debt rating on review for a
downgrade.

Meanwhile, investors were continuing to monitor political developments in
Spain, where Prime Minister Mariano Rajoy is facing a vote of no confidence
in the government on Friday, after a corruption case involving members of
the ruling party.

The euro pared back losses against the safe haven yen, with EUR/JPY down
1.18% at 125.77 after falling as low as 125.06 earlier, the weakest since
late June.

The single currency has fallen around 4.7% against the yen so far this month
and is down around 4.2% against the U.S. dollar.

The euro trimmed losses against the traditional safe haven Swiss Franc, with
EUR/CHF down 0.6% to 1.1486, off lows of 1.1447.

The dollar eased back from three week lows against the firmer yen, with
USD/JPY last at 108.76.

The pair hit a high of 109.82 on Monday amid optimism that a planned summit
between the U.S. and North Korea appeared to be back on track, but gains
were quickly erased amid worries over euro zone political concerns.

The U.S. dollar index, which measures the greenback’s strength against a
basket of six major currencies, was up 0.39% at 94.74, the strongest level
since mid-November on the back of the weaker euro.

Commodities Markets

Aluminium producers seek up to 24 pct higher Q3 premiums from Japan buyers
-sources

(Reuters) - Two global aluminium producers have offered Japanese buyers a
premium of $159-160 per tonne for primary metal shipments for the
July-September quarter, up 23-24 percent from the current quarter, four
sources directly involved in pricing talks said.

Japan is Asia’s biggest aluminium importer and the premiums for primary
metal shipments it agrees to pay each quarter over the London Metal Exchange
(LME) cash price set the benchmark for the region.

The premium, if accepted, would be the highest in over three years and the
third straight quarterly rise, reflecting premiums in the United States that
have surged amid the country’s tariffs on aluminium imports and sanctions on
Rusal - the world’s No.2 producer of the metal.

For the quarter ending June, Japanese buyers agreed to pay a premium of $129
PREM-ALUM-JP, up 25 percent from the prior quarter to reflect the spike in
U.S. spot premiums.

Spot premiums in the United States have more than doubled so far this year,
underpinned by a 10 percent tariff on aluminium imports to counter what U.S.
President Donald Trump has described as unfair international competition.

The United States’ move in April to impose sanctions on Rusal, preventing
customers with U.S. exposure from continuing to buy metal from the company,
fanned further supply worries and drove up benchmark London prices to their
highest in almost seven years.

But Rusal resumed shipping aluminium to some customers earlier this month
following an extension of the deadline for companies to wind down contracts
under the U.S. sanctions, sources told Reuters last week.

Given the uncertainty about global metal supply, all the sources said they
expect “more difficult negotiations than usual” between Japanese buyers and
producers.

The latest quarterly pricing negotiations began this week between Japanese
buyers and smelters, including Rio Tinto Ltd , Rusal, South32 Ltd and Alcoa
Corp and are expected to continue through next month. 

India seeks gold, diamond mining rights in Russia

(Reuters) - India is seeking rights to mine for gold and diamonds in
Russia’s resource-rich Far East, Trade Minister Suresh Prabhu told Reuters
on Tuesday.

Prabhu last week led an Indian delegation to attend the St. Petersburg
International Economic Forum.

India seeks to import gold and diamonds for value-addition before exporting
them, the minister said.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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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Invest Wisely!

Bulls n Bears 

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