Bulls n Bears Daily Market Commentary : 07 November 2018

Wed Nov 7 20:41:35 CAT 2018

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Bulls n Bears Daily Market Commentary : 07 November 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $4,252,712 with foreign buys at $2,222,314 and foreign sales
were $2,498,961. Total trades were 110.

The All Share index lost another 1.55 points  to close at 154.77 points.
DELTA  led the shakers with a $0.0714 loss to $2.7851, FIRST MUTUAL HOLDINGS
weakened by $0.0356 to close at $0.1765 and AFRICAN SUN  was $0.0290 lower
at $0.1160. FIDELITY LIFE also dropped $0.0170 to $0.1030 and ECONET  was
$0.0087 down at $1.9921.

Trading in the positive was OLD MUTUAL LIMITED  which added $0.0132 to
$6.4801, STARAFRICACORPORATION  was $0.0028 stronger at $0.0140 and ZIMRE
HOLDINGS  increased by $0.0004 to close at $0.0214. ARISTON also traded in
the positive gaining $0.0003 to end at $0.0245.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

S.African rand firmed after U.S. midterms dent dollar; stocks higher

(Reuters) - South Africa’s rand firmed against a weaker dollar on Wednesday
after U.S. midterm elections split Congress, lowering the chance of any
major U.S. fiscal policy boost soon.

Stocks recovered marginally from a sell-off ahead of the elections.

At 1505 GMT, the rand traded 1.04 percent stronger at 13.9725 per dollar,
having earlier hit a session best of 13.8850.

The dollar index was down 0.43 percent.

Domestic data also helped the rand.

Business confidence rose for a second month in October, bolstered by higher
import volumes, vehicle sales and retail sales, a survey by the South
African Chamber of Commerce and Industry (SACCI) showed.

The rand has been on the back foot since it was announced in September that
the economy had entered a recession.

Bonds firmed, with the yield on the government’s 10-year paper down 7 basis
points to 9.070 percent.

On the bourse, the all-share index rose 0.46 percent to 54,700 points while
the blue chip top 40 index was 0.36 percent higher at 48,295 points.

Banks were 2.3 percent higher. Retailer Woolworths Holdings rose 5.68
percent to 56.21 rand while Mr Price was up 4.92 percent to 248.76 rand.

Telecoms firm Vodacom was down 0.39 percent after it said it had entered
into a roaming and facilities leasing agreement with Telkom, South Africa’s
biggest fixed-line operator. 

Uganda

Ugandan shilling steady, to ease due to uptick in importer demand

(Reuters) - The Ugandan shilling        was little-changed on Wednesday, but
was forecast to ease due to a pick-up in dollar demand from the energy
sector and other goods importers, traders said.

At 0926 GMT, commercial banks quoted the shilling at 3,750/3,760, compared
to Tuesday's close of 3,748/3,758. 

       <mailto:info at bulls.co.zw> 

America

Stocks climb after US midterm vote but dollar takes hit

(Reuters) - World stock markets climbed on Wednesday after the U.S. midterm
election divided control of Congress, but the vote’s outcome, which cast
doubt on further U.S. tax cuts, hit the dollar and sent Treasury yields
lower.

While gridlock in Washington could hamper President Donald Trump’s political
and economic agenda, few expect a reversal of tax cuts and financial
deregulation measures that have already been enacted.

That view helped all three Wall Street equity indices extend gains, and
investors piled into growth sectors such as technology and healthcare.

The Dow Jones Industrial Average rose 262.58 points, or 1.02 percent, to
25,897.59, the S&P 500 gained 33.77 points, or 1.23 percent, to 2,789.22 and
the Nasdaq Composite added 124.50 points, or 1.69 percent, to 7,500.46.

The Democrats looked headed to gain more than 30 seats in the House of
Representatives, well beyond the 23 they needed to claim their first
majority in eight years. With Trump’s Republican party holding on to its
Senate majority, the results from Tuesday’s election were in line with
expectations.

Still, a split Congress could hamper Trump’s push for a further round of tax
cuts and deregulation, measures that have turbocharged the U.S. economy,
stock markets and the dollar.

MSCI’s gauge of stocks across the globe gained 1.02 percent, while the
pan-European STOXX 600 index rose 1.06 percent.

Riskier European bonds such as those from Italy were in demand, with yields
falling 6-9 basis points.

The U.S. Federal Reserve starts its two-day monetary policy meeting on
Wednesday, where it is expected to keep interest rates unchanged. A rate
hike in December is largely priced in.

That view pushed the dollar lower against a basket of currencies. The dollar
index fell 0.42 percent, with the euro up 0.35 percent to $1.1466.

U.S. Treasury yields fell, with investors trying to figure out the impact of
the election on government spending and borrowing in the coming year.

Benchmark 10-year notes last rose 7/32 in price to yield 3.1875 percent,
from 3.215 percent late on Tuesday.

Attention will focus on Trump’s hard line on trade tariffs, which he can
impose without Congressional approval. That keeps alive worries about a
trade war between China and the United States.

Chinese shares closed 0.7 percent lower, while Hong Kong markets ended just
above flat.

The dollar’s weakness lifted other currencies. The Japanese yen strengthened
0.07 percent versus the greenback at 113.37 per dollar, while sterling was
last at $1.3134, up 0.28 percent on the day.

Oil prices reversed earlier declines after a report that Russia and Saudi
Arabia were discussing output cuts in 2019 .

U.S. crude fell 1.32 percent to $61.39 per barrel and Brent was last at
$71.47, down 0.92 percent on the day.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Zinc falls to 7-week low on expectations of rising supply

(Reuters) - Zinc prices on Wednesday fell to a seven-week low on
expectations that a supply crunch will ease. 

Benchmark zinc         on the London Metal Exchange (LME) closed down 1.8
percent at $2,455 a tonne after touching $2,445, the lowest since Sept. 21. 

Prices of zinc, used to galvanise steel, fell 26 percent over June-August
but have recovered from August's low of $2,283. 

China is the biggest producer and consumer of zinc. 

ZINC STOCKS: Headline inventories in the LME warehouse system continue to
fall. At 134,750 tonnes they are close to a 10-year low of 131,775 tonnes
reached in March.

SPREAD: The premium for cash zinc over the three-month contract MZN0-3 at
$47.50 has eased from highs around $60 in late October, but signals that
shortages of nearby supply

remain.  

DEFICIT: The roughly 13.5 million tonne global zinc market had a deficit of
292,000 tonnes in the first eight months of the year, the International Lead
and Zinc Study Group (ILZSG) said.

DOLLAR: Providing some support to metals prices was the dollar, which
weakened after gains by the Democrats in U.S. elections cast doubt on
further tax cuts. A lower dollar makes

metals cheaper for buyers with other currencies.            

CHINA: Despite fears that a U.S.-China trade dispute will undermine China's
economy, exports from the country are expected to have expanded at a healthy
clip in October as businesses

frontal orders before higher U.S. tariffs set in at the turn of the year, a
Reuters poll showed.             

YUAN: In a sign that authorities may be stepping up interventions to keep
the yuan from weakening, China's foreign exchange reserves fell more than
expected to an 18-month low in

October.             

CHINA ALUMINA: China's exports of aluminium raw material alumina last month
were roughly equal to September's bumper volumes, the president of Aluminium
Corp of China                      said.

PRICES: LME copper         closed down 0.1 percent at $6,153  a tonne,
aluminium         finished 1.7 percent higher at $1,984.50, lead
rose 1 percent to $1,927.50, tin ended unchanged at $19,050 and nickel
rose 0.4 percent to $11,820.

Gold firm as dollar dips after U.S. election, Fed in focus

(Reuters) - Gold pared some gains on Wednesday but held firm as the dollar
slid after the U.S. midterm elections delivered a split Congress and as
investors looked ahead to a Federal Reserve meeting for signals on future
interest rate hikes.

Spot gold was up 0.1 percent at $1,227.96 per ounce at 11:47 a.m. EST (1647
GMT), having earlier hit a high of $1,235.83, while U.S. gold futures rose
0.2 percent to $1,228.90.

The dollar index fell, making bullion more attractive for holders of other
currencies as a split Congress dampened expectations for a major fiscal
policy boost to the economy.

Investors have largely opted for the safety of the greenback rather than
gold, a traditional safe haven, this year as a U.S.- China trade row
continues.

Democrats won control of the U.S. House of Representatives, giving them the
opportunity to block President Donald Trump’s push for a further round of
tax cuts and deregulation - measures that have boosted the U.S. economy,
stock markets and the dollar, and have kept the Fed on a policy-tightening
path.

Market participants are now keeping a close eye on a two-day Fed meeting set
to begin on Wednesday to gauge the outlook for U.S. monetary policy.

The Fed raised U.S. rates in September and said it planned four more
increases by the end of 2019 and another in 2020, citing steady economic
growth and a robust jobs market.

Meanwhile, holdings of the world’s largest gold-backed exchange-traded fund,
SPDR Gold Trust, fell for the third straight session to 756.70 tonnes on
Tuesday.

Among other precious metals, silver rose 0.1 percent to $14.55 per ounce,
while palladium jumped 1.9 percent to $1,136.90 per ounce.

Platinum was up 0.9 percent at $875.40 an ounce after hitting $877.50, its
highest level in more than four months.

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
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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