Bulls n Bears Daily Market Commentary : 05 November 2018

Tue Nov 6 07:16:49 CAT 2018

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Bulls n Bears Daily Market Commentary : 05 November 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $1,813,142.71 with foreign buys at $129,365.91 and foreign
sales were $1,542,015.87. Total trades were 97.

The All Share index opened  the week in red after losing 0.18 points  to
close at 158.31 points. OLD MUTUAL LIMITED dropped $0.0543 to close at
$6.4913, PADENGA lost $0.0291 to $0.9297 and INNSCOR  traded $0.0194 lower
at $1.6800. AXIA  also decreased by $0.0050 to $0.4350 and MASHONALAND
HOLDINGS  was $0.0040 down at $0.0200.

Trading in the positive was DELTA which added $0.0100 to $2.9000, ECONET
and SEEDCO INTERNATIONAL  both increased by $0.0086 to settle at $2.0009 and
$1.6100 respectively. TRUWORTHS  also advanced by $0.0028 to $0.0170 whilst
WILLDALE  and BINDURA  each gained a marginal $0.0001 to settle at $0.0082
and $0.0720. 

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

  Global Currencies & Equity Markets

South Africa

South African rand firms, stocks up as risk sentiment improves

(Reuters) - South Africa’s rand firmed in late afternoon trade on Monday,
recovering from losses earlier in the session, as a dollar rally paused with
investors taking profits before U.S. midterm elections that may fuel a bout
of volatility for global markets.

Stocks gained for a fourth consecutive session as positive risk sentiment
upheld.

At 1518 GMT, the rand traded at 14.2175 per dollar, 0.39 percent firmer than
its close on Friday. The rand had earlier in the day weakened nearly one
percent to 14.4100 as risk appetite waned.

Investors head into Tuesday’s U.S. congressional election with the
Democratic Party facing a strong chance of winning control of the U.S. House
of Representatives, with Republicans likely to keep the Senate.

The yield on the South Africa’s benchmark government bond due in 2026 fell
3.5 basis points to 9.15 percent.

In equities, the all-share index rose 1.19 percent to 54,915 points while
the blue chip top 40 was 1.24 percent firmer at 48, 537 points. The banking
index rose 1.54 percent.

Gold shares were 2.55 percent higher, led by AngloGold Ashanti Ltd which
soared nearly 7 percent in the session after the company reported an 11
percent fall in costs and reduced debt.

The miner closed 3.99 percent firmer at 146.67 rand.

Kenya

Kenyan shilling steady amid inflows from exports, remittances

(Reuters) - The Kenyan shilling was stable against the dollar on Monday with
inflows from horticulture exports and diaspora remittances meeting dollar
demand from merchant importers, traders said.

At 0930 GMT, commercial banks quoted the shilling at 101.40/60 per dollar,
the same as Friday's close. 

       <mailto:info at bulls.co.zw> 

Asia

Asian shares wobble, investors brace for U.S. elections

(Reuters) - Asian shares wobbled on Tuesday, supported by Wall Street gains
although sentiment was tempered ahead of the U.S. midterm elections, the
first major electoral test of President Donald Trump’s big tax cuts and
hostile trade policies.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged down 0.1
percent, weighed by a fall in and Chinese shares and technology shares while
Japan’s Nikkei managed to gain 1.0 percent.

Shares in Asia-Pacific Apple suppliers such as Taiwan’s Hon Hai Precision
Industry, eased after Apple Inc lost 2.8 percent after the Nikkei newspaper
reported that the company had told its smartphone assemblers to halt plans
for additional production lines dedicated to the iPhone XR.

On Wall Street, the S&P 500 gained 0.56 percent, with financials such as
Berkshire Hathaway supported by strong earnings.

In oil markets, crude prices wobbled near multi-month lows after the United
States granted eight countries temporary waivers allowing them to continue
buying oil from Iran as Washington formally imposed punitive sanctions on
the Islamic republic.

Ahead of Tuesday’s U.S. elections, investors generally expect opposition
Democrats to take over the House of Representatives while Trump’s Republican
Party is tipped to retain the Senate.

While political gridlock between the White House and Congress could hinder
Trump’s pro-business agenda and raise political instability, including
hearings centring on the administration, some analysts say such an outcome
may have already been priced in by investors.

If the Republicans retain their House majority, global stocks are likely to
rally on hopes of more tax cuts.

Trump said last month his administration planned to produce a resolution
calling for a 10 percent tax cut for middle-income households.

The 10-year U.S. Treasuries yield stood at 3.203 percent , maintaining most
of its gains following Friday’s strong U.S. jobs and wage data and staying
not far from its 7 1/2-year peak of 3.261 percent hit on Oct. 9.

Many investors also expect Trump to continue to take a hard line on trade,
regardless of the outcome of the elections.

But some other analysts noted that U.S. equities tended to rally after
midterm elections, possibly because markets tend to price in political risks
ahead of the elections.

In oil markets, U.S. West Texas Intermediate (WTI) crude futures slipped 0.3
percent to $62.86 a barrel after hitting a seven-month low of $62.52 on
Monday.

Brent crude futures dropped 0.3 percent to $72.93 a barrel, near Friday’s 2
1/2-month low of $72.16.

Both oil benchmarks have slid more than 15 percent since hitting four-year
highs in early October.

Moves in major currencies were modest.

The euro traded at $1.1408, about one cent above this year’s low of $1.1301
touched on Aug. 15.

The yen changed hands at 113.28 per dollar, near its three-week low of
113.385 marked last Wednesday.

The British pound touched a two-week high of $1.3070 and last stood at
$1.3058. 

  <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices steady, eyes on U.S. midterm elections

(Reuters) - Gold prices were steady early Tuesday ahead of U.S. midterm
elections that may fuel interest in the metal as a hedge against risk if the
result sparks volatility in wider financial markets.

FUNDAMENTALS

* Spot gold was largely unchanged at $1,230.77 per ounce, as of 0111 GMT.

* U.S. gold futures were flat at $1,232.1 per ounce.

* Asian shares ticked up in early Tuesday trade, supported by Wall Street
gains although sentiment was tempered ahead of the U.S. midterm elections,
the first major electoral test of President Donald Trump’s big tax cuts and
hostile trade policies.

* The United States on Monday restored sanctions targeting Iran’s oil,
banking and transportation sectors and threatened more action to stop its
“outlaw” policies, steps the Islamic Republic called economic warfare and
vowed to defy.

* Euro zone finance ministers called on Italy on Monday to change its 2019
budget before a deadline set for next week to conform with European Union
rules, but Rome dug in its heels saying its disputed deficit plan would not
change.

* Investor morale in the euro zone fell more than expected in November and
hit its lowest level in just over two years, a survey showed on Monday, as
concerns about U.S. trade policies and the future of Germany’s car industry
weighed on sentiment.

* Chinese President Xi Jinping promised on Monday to lower tariffs, broaden
market access and import more from overseas at the start of a trade expo
designed to demonstrate goodwill amid mounting frictions with the U.S. and
others.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund,
said its holdings fell 0.23 percent to 757.29 tonnes on Monday from 759.06
tonnes on Friday.

* If all goes according to plan, Barrick Gold will have fewer mines and
workers one year after acquiring Africa-focused Randgold Resources, the
Canadian miner’s executive chairman said on Monday, as its investors
approved the deal.

* India raised gold holdings by 6.53 tonnes to 586.46 tonnes in September
2018, according to IMF data.

Aluminum trade groups urge U.S. tariff exemptions for Canada, Mexico

(Reuters) - Aluminum associations from the United States, Canada and Mexico
urged their governments on Monday to reach a deal to eliminate U.S. tariffs
on aluminum from Canada and Mexico without imposing any import quotas on
their products.

The heads of the U.S.-based Aluminum Association, Mexico’s IMEDAL and the
Aluminum Association of Canada said the full, quota-free exemptions from the
10 percent “Section 232” national security tariffs for products produced
within North America should be agreed upon before leaders of the three
countries sign the new U.S.-Mexico-Canada Agreement on Nov. 30.

The aluminum associations said they were glad to see the United States take
action to combat illegally subsidized imports of aluminum through China
through new anti-dumping investigations, while Canada has also moved to
combat transhipment of dumped aluminum products and Mexico has launched an
antidumping case against Chinese aluminum foil imports.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

 <mailto:info at bulls.co.zw> 

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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