Bulls n Bears Daily Market Commentary : 13 November 2018

Wed Nov 14 06:01:48 CAT 2018

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Bulls n Bears Daily Market Commentary : 13 November 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $2,398,176.44 with foreign buys at $612,190.30 and foreign
sales were $1,041,392.67. Total trades were 134.

The All Share index added another 5.01 points  to close at 166.03 points.
BRITISH AMERICAN TOBACCO  recovered $3.6870 to close at $36.6870,  OLD
MUTUAL  was further up by $0.2629 to $6.7829 and ECONET  traded $0.1909
higher at $2.3703. INNSCOR  also increased by $0.0552 to $1.6498 and DELTA
was $0.0438 stronger at $3.1780.

Trading in the negative was PPC  which lost $0.0500 to $1.4500, LAFARGE
dropped $0.0300 to settle at $1.5000 and BINDURA  was $0.0061 down at
$0.0650. AXIA  also dropped $0.0002 to end at $0.4298 and
STARAFRICACORPORATION  decreased by $0.0001 to $0.0138.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Uganda

Ugandan shilling steady amid slump in demand for hard currency

(Reuters) - The Ugandan shilling was unchanged on Tuesday amid a slump in
importer demand for hard currency and inflows from charities and commodity
exporters, traders said.

At 0913 GMT commercial banks quoted the shilling at 3,740/3,750, same level
as Monday’s close. 

Kenya

Kenyan shilling firms, helped by investor inflows into T-bond sale

(Reuters) - The Kenyan shilling firmed against the dollar on Tuesday due to
inflows from  investors interested in buying government debt, traders said.

At 0835 GMT, commercial banks quoted the shilling at 102.35/55 per dollar,
compared with 102.50/70 at Monday's close.

The central bank will auction an infrastructure bond worth 50 billion
shillings ($488.52 million)on Wednesday.

       <mailto:info at bulls.co.zw> 

Europe

European shares recover after U.S. tech rout; dollar falls

(Reuters) - European shares recovered on Tuesday after feeling the strain of
a tech rout on Wall Street, while the dollar lost momentum as hopes mounted
for a de-escalation in the Sino-U.S. tariff war.

Fears of a peak in corporate earnings growth, softening global demand and
rising interest rates in the United States have put investors on edge in the
past month.

The trade war between Washington and Beijing plus risks from Brexit and
Italy’s budget row with the European Union have helped the dollar as
investors dump riskier assets. Volatility is on the rise again.

Monday’s equity sell-off in the U.S. was led by tech stocks, with Apple’s
stock slumping over 5 percent.

But fears about a long-term slump in technology stocks faded on Monday as
investors focused on efforts to ease trade tensions between the world’s two
largest economies. The pan-European STOXX 600 had gained 0.5 percent by 1130
GMT.

Markets in Asia also recouped some losses after a report that China’s top
trade negotiator was preparing to visit the United States before a meeting
between the leaders of the world’s two largest economies.

The Shanghai composite index rose 0.9 percent but Japan’s Nikkei lost more
than 2 percent.

Some reckon that U.S. President Donald Trump will turn up the heat over
trade. His administration is broadening its trade battle with a plan to use
export controls, indictments and other tools to counter alleged Chinese
theft of intellectual property, the Wall Street Journal reported.

Riskier assets including Asian equities have been hurt by rising U.S.
interest rates. The Federal Reserve is expected to tighten policy further in
December.

In Europe, sterling jumped half a percent to as high as $1.2924 after a
British cabinet office minister said a Brexit agreement with the EU was
still possible in the next 24 to 48 hours.

A growing rift over Italy’s budget has hit the euro recently but the
currency rose from a 16-month low to $1.1258, up 0.3 percent.

The Italian government faces a Tuesday deadline to submit a revised budget
to the EU. Its refusal so far to cut the draft deficit sets the stage for a
collision with Brussels.

The political malaise in Europe failed to aid the dollar against a basket of
currencies. At 1200 GMT it was down 0.1 percent at 97.4. It had hit 97.7 on
Monday, its highest since June 2017.

Oil prices fell more than 2 percent on Tuesday after U.S. President Donald
Trump put pressure on OPEC not to cut supply to prop up the market.

Brent dropped $1.97 a barrel, or 2.8 percent, to a low of $68.15 before
recovering to around $68.72, down $1.40, by 1140 GMT. U.S. light crude was
$1.30 lower at $58.63.

Both crude benchmarks have fallen more than 20 percent since peaking at
four-year highs in early October.

Saudi Arabia’s energy minister sent Brent crude futures around 2 percent
higher on Monday with comments that Riyadh could reduce supply to world
markets by 500,000 barrels per day in December.

Spot gold was down 0.2 percent at $1,198.11 per ounce. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold dips below $1,200 as dollar holds near 16-month peak

(Reuters) - Gold slid below key support at $1,200 an ounce for the first
time in a month on Tuesday as concerns over Italy’s budget and ongoing
Brexit talks, along with expectations for further U.S. rate hikes, held the
dollar near 16-month highs.

Dollar strength has outweighed any positive impact of risk aversion on gold,
traditionally also seen as a safe store of value in times of market
volatility.

Stock markets recovered some lost ground after the previous day’s tech-led
losses, meanwhile, potentially diverting interest from alternative assets
like bullion.

Spot gold was down 0.2 percent at $1,197.77 per ounce at 1049 GMT, having
fallen to its lowest since Oct. 11 at $1,195.90 earlier in the day. U.S.
gold futures fell 0.5 percent at $1,198.00 per ounce.

The $1,200 level is important psychologically and from a technical point of
view, he added. “It will be quite crucial for gold to keep this level in
order to not see bigger downside risks,” he said.

The metal posted its biggest weekly drop since August last week after the
U.S. Federal Reserve reaffirmed its commitment to tightening monetary
policy, a move likely to weigh on interest in non-yielding bullion.

More positively for gold, holdings of the world’s largest gold-backed
exchange-traded fund, SPDR Gold Trust, rose 0.90 percent to 762.00 tonnes on
Monday. Its holdings hit their lowest since early 2016 last month after
declining over the summer.

On the wider financial markets, European shares edged up on Tuesday,
shrugging off losses on Asian markets overnight and a rout among Wall Street
tech stocks on Monday.

Among other precious metals, silver was up 0.3 percent at $14.00 per ounce,
having touched a more than two-month low of $13.92 earlier in the session.

Palladium climbed 0.7 percent to $1,103.50 per ounce, while platinum rose
0.3 percent to $843.60 an ounce. 

Copper rebounds amid U.S.-China trade optimism

(Reuters) - Copper prices rose on Tuesday as worries about growth in top
consumer China receded following a report that the country’s chief trade
negotiator may visit the United States before a meeting between the two
countries’ leaders.

Benchmark copper on the London Metal Exchange was up 0.8 percent at $6,099 a
tonne at 1113 GMT, down from an earlier high session at $6,181.

TRADE: China’s top trade negotiator Liu He may visit Washington to prepare
for talks between U.S. President Donald Trump and his Chinese counterpart Xi
Jinping on the sidelines of the G20 summit in Argentina later this month,
the South China Morning Post reported.

CHINA: China accounts for nearly half of global copper demand estimated at
around 24 million tonnes this year. Copper is widely used in power and
construction and seen by investors as a gauge of economic health.

China’s copper imports fell 18.7 percent from a month ago to 423,000 tonnes
in October, while those for the Jan-Oct period rose 17 percent to 4.41
million tonnes from the same period last year.

NICKEL: Nickel was up 1.0 percent at $11,485 a tonne. Earlier the stainless
steel ingredient touched an 11-month low of $11,299 a tonne due to weak
fundamentals.

SPREAD: The premium for cash zinc over the 3-month contract CMZN0-3 at a
1-year high of $66 a tonne is due to a few firms holding substantial amounts
of LME zinc warrants and fuelling worries about shortages on the LME market,
traders said.

The other problem, traders say, is physical customers are looking for better
quality zinc then they are being offered.

Zinc was up 0.9 percent at $2,519 a tonne.

PRICES: Aluminium was little changed at $1,942 a tonne, lead down 0.1
percent at $1,927 and tin gained 0.2 percent to $19,300.

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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