Bulls n Bears Daily Market Commentary : 01November 2018

Fri Nov 2 08:08:01 CAT 2018

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Bulls n Bears Daily Market Commentary : 01November 2018

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Zimbabwe Stock Exchange Update

Market Turnover $3,887,599.01 with foreign buys at $1,826,287.43 and foreign
sales were $1,365,896.10. Total trades were 149.

The All Share index dropped further by 2.87 points  to close the day at
160.95 points. OLD MUTUAL LIMITED  retreated $0.1925 to close at $6.5095,
DELTA  dropped $0.0990 to $2.8988 and ECONET  shed $0.0704 to $2.0151.
PADENGA  also went down by $0.0367 to close at $0.9588 and INNSCOR (INN.zw)
traded $0.0096 lower at $1.7779.

Losses were partially offset by gains in NATFOODS  which added $0.1000 to
$6.5000, TURNALL  and PPC  both put on $0.0018 to settle at $0.0500 and
$1.5017 respectively. DAWN   also increased by $0.0009 to close at $0.0260.

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

  Global Currencies & Equity Markets

Kenya

Kenyan central bank sells dollars after shilling weakens

(Reuters) - The Kenya's central bank sold dollars in the foreign exchange
market on Thursday after the shilling weakened, traders said. 

Traders said the central bank mopped up 5 billion shillings  from the money
market, which gave the shilling further support,by making it slightly more
expensive for traders to buy dollars.

"The central bank has intervened ...even if there was  demand, it will be
catered for by the amount of dollars they have sold into the market," a
senior trader

South Africa

South Africa's rand firmer on improved risk appetite, Naspers gains

(Reuters) - South Africa’s rand firmed on Thursday, recovering from a
three-week low hit in the previous session, as investors dumped the dollar
and jumped back into riskier assets.

Stocks began the new month on a high note after a brutal October as market
heavy-weight Naspers extended gains.

At 1520 GMT the rand was 2.06 percent firmer at 14.4700 per dollar compared
to Wednesday’s close of 14.7750.

The rand caught a bloody nose on Wednesday after the trade balance swung to
a deficit in September, pushing the currency to its weakest since Oct. 9.

The currency lost around 5 percent of its value against the greenback over
October as emerging markets were battered by rising interest rates in the
U.S. and global growth concerns.

In the absence of local market-moving data, investors are waiting for U.S.
employment data on Friday which could reinforce the view that the U.S.
economy is outperforming rivals, sending money back into the buck.

A Reuters poll found on Thursday that the rand is expected to trade just 2
percent higher in a year as local economic reforms kick in and support the
currency, but it may be held back by a potentially more hawkish U.S. Federal
Reserve.

Bonds also firmed, with the yield on the benchmark paper due in 2026 falling
9 basis points to 9.285 percent.

On the bourse, Naspers maintained gains from the previous session after
index provider MSCI Inc said it would allow companies like Naspers, that
give shareholders unequal voting rights, to remain on its current equity
indexes.

Shares in Naspers ended the day 8.56 percent stronger at 2,814.72 rand.

The All-share index climbed 2.27 percent to 53,578 points, while the Top-40
index rose 2.42 percent to 47,256 points.

Other gainers included ArcelorMittal South Africa which rose 1.31 percent to
3.86 rand after it reported a 5 percent rise in quarterly liquid steel
production. 

South Africa

South African stocks follow global rally, rand falls on trade data

(Reuters) - South African markets sharply diverged on Wednesday, with stocks
tracking a global rally higher while the rand yielded ground to a resurgent
dollar.

At 1530 GMT, the rand was 1.4 percent lower against the dollar, which scaled
its highest level in 16 months against a basket of currencies as investors
bought the greenback on rising Treasury yields.

The rand was further hobbled by data that showed South Africa’s trade
balance swung to a 2.95 billion rand ($199 million) deficit in September
from a revised 8.77 billion rand surplus in August.

Stocks made hefty gains, led by market heavyweight Naspers , as global
markets bounced back at the end of a volatile month.

The blue chip Top-40 index surged 3.61 percent to 46,141 points, while the
wider All Share index was 3.22 percent firmer at 52,388 points.

The All-share index had lost 8 percent this month before Wednesday, amid
rising U.S. interest rates and concerns about global growth.

Naspers bounced back from recent lows, jumping 9.40 percent to 2,593 rand as
its Chinese cash spinner Tencent, the gaming and social media firm in which
it has a 31 percent stake, closed 5.87 percent firmer.

Index provider MSCI Inc said on Tuesday it would allow companies, such as
Naspers, with a dual voting system that give shareholders unequal voting
rights to remain in its equity indexes without their weightings being
reduced.

       <mailto:info at bulls.co.zw> 

Asia

Asia starts new month up on strong Wall St after brutal Oct

(Reuters) - Asian stocks rose on Thursday as bruised investor sentiment got
some relief from another robust Wall Street session thanks to upbeat
corporate earnings, while the dollar hovered near a 16-month high on further
signs of strength in the world’s largest economy.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.15
percent, adding to modest gains the previous day, though this came after a
brutal October month.

The index had fallen 10.2 percent in October, it worst monthly performance
since August 2015, as factors ranging from Sino-U.S. trade tensions to
worries about global economic growth, higher U.S. interest rates and company
earnings spurred volatility in global markets.

There were tentative signs of the gloom slowly beginning to lift, led by a
rebound in beaten-down U.S. shares.

Wall Street rose for a second day on Wednesday as strong company results and
bargain hunting of beaten-down technology and internet favourites lifted
spirits.

The improved mood filtered down to Asia, with Australian stocks up 0.55
percent and South Korea’s KOSPI putting on 0.5 percent. Japan’s Nikkei
slipped 0.3 percent following two days of big gains.

The dollar index against a basket of six major currencies hovered near a
16-month high of 97.20 scaled overnight after the ADP national employment
report showed that U.S. private sector payrolls increased by the most in
eight months in October.

The greenback has enjoyed a boost from robust economic reports, including
data last week which showed the U.S. economy slowed less than expected in
the third quarter.

The euro, on the other hand, has been weighed by less-than-stellar economic
news from the euro zone region.

The single currency stood at $1.1316 after retreating to $1.1302 on
Wednesday, its lowest since mid-August.

The pound rose 0.45 percent to $1.2819 after the Times reported that British
Prime Minister Theresa May had sealed a deal with Brussels that would give
British financial serves companies continued access to European markets
after Brexit.

The bounce lifted the pound further away from a 2-1/2-month low struck on
Tuesday.

In commodities, U.S. crude futures were down 0.47 percent at $65.00 per
barrel.

The benchmark remained on the back foot after falling more than $10 from a
four-year peak reached early in October as the global market tumult last
month was seen hurting demand for fuel. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold jumps 2 pct as dollar falls from multi-month highs

(Reuters) - Gold rose nearly 2 percent on Thursday, bouncing off a
three-week low touched in the previous session as the dollar fell sharply
from recent highs, making the metal cheaper for holders of other currencies.

Spot gold gained 1.7 percent at $1,234.18 per ounce by 14:02 p.m EDT (1802
GMT) after rising as much as 1.9 percent to its highest since Oct. 26 at
$1,237.39. U.S. gold futures settled up $23.60, or 1.94 percent, at
$1,238.60.

The dollar index, which measures the U.S. unit against a basket of six major
currencies, fell 0.9 percent, dropping from a 16-month high hit in the
previous session on continued U.S. economic strength.

Federal data on Thursday showed new applications for U.S. unemployment aid
fell last week and the number of Americans receiving benefits was the lowest
in more than 45 years as labor market conditions tightened further.

The economy’s upbeat outlook was, however, tempered by news that
manufacturing activity slowed in October as a measure of new orders dropped
to its lowest level in 1-1/2 years.

Investors will focus on Friday’s non-farm payrolls data for further clues on
the strength of the U.S. economy.

Markets are also watching the U.S. congressional elections on Tuesday, which
will determine whether the Republican or Democratic party controls the U.S.
Congress, with some predicting increased market volatility on the outcome.

Gold fell in the three previous sessions and touched its lowest since Oct.
11 on Wednesday at $1,211.52 per ounce.

Among other precious metals, platinum climbed 2.8 percent to $859.40 per
ounce, having touched its highest since June 27 at $860.90 earlier in the
session.

Silver jumped 3.7 percent to $14.74 per ounce, while palladium rose 1.2
percent to $1,091.45. 

Metals rise on wider market rebound, dollar fall

(Reuters) - Aluminium rebounded from a 15-month low on Thursday, rising
alongside other metals as buyers returned to markets, denting the dollar.

Three-month aluminium on the London Metal Exchange (LME) ended 0.6 percent
higher at $1,966 tonnes after touching an August 2017 low of $1,953 on
Wednesday.

Market participants were also betting on economic stimulus measures in China
after the world’s top metals consumer pledged to boost domestic
infrastructure spending to combat a perceived slowdown in its economy, he
added.

Month-end buying of dollars on Wednesday ceased with the start of November,
analysts said, while a stronger euro and sterling also pushed the greenback
down.

ALUMINIUM STOCKS: On-warrant stocks of aluminium in LME-registered
warehouses available to the market fell by 1,825 tonnes to 723,900 tonnes.

SMELTERS: China’s aluminium smelters are under pressure from current low
prices, with the situation exacerbated by high costs of key raw material
alumina, analysts say.

CHINA DATA: Chinese imports of scrap metal from the United States fell in
September, according to customs data, spelling out the impact of tariffs
imposed by Beijing, while India and Iceland benefited from a boom in Chinese
alumina exports.

China’s manufacturing sector barely grew last month after stalling in
September, a private survey showed, a day after the country’s official
Purchasing Managers’ Index showed the slowest growth in over two years.

NICKEL: Nickel rebounded from a 10-month low touched on Wednesday, ending
2.7 percent higher at $11,785 tonnes.

SUPPLY: Japanese trading house Sumitomo Corp on Thursday lowered its
forecast for nickel output at its Ambatovy project in Madagascar to slightly
above 40,000 tonnes in the year to March 31, below its projection in May of
48,000 tonnes.

GLENCORE: Miner and trader Glencore said it saw significant structural
deficits continuing in the nickel market due to limited supply and demand
being “much stronger than most market participants recognise”.

ZINC SPREADS: The premium for cash zinc over the three-month LME contract
hovers near one-year high. MZN0-3

OTHER METALS: Copper rose 1.6 percent to $6,089 per tonne, zinc finished the
session up 1.9 percent at $2,540, lead added 1.5 percent to $1,953, while
tin was flat at $19,100.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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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
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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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