Bulls n Bears Daily Market Commentary : 16 November 2018

Sat Nov 17 10:08:09 CAT 2018

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Bulls n Bears Daily Market Commentary : 16 November 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $3,748,753.75 with foreign buys at $673,861.20 and foreign
sales were $582,701.00. Total trades were 122.

The All Share index closed the week higher at 169.39 points after gaining
1.84 points . OLD MUTUAL  added $0.2383 to trade at $7.5068, INNSCOR traded
$0.1301 higher at $1.7909 and NATFOODS   rose by $0.1000 to close at
$6.6000. SEEDCO INTERNATIONAL put on $0.0800 to trade at $1.6100 and TSL
moved up by a further $0.0500 to close at $0.6000.

Two counters lost ground; PADENGA  dropped $0.0002 to settle at $0.9400
whilst ECONET   marginally dropped $0.0001 to settle at $2.4995.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South African rand rallies, stocks stumble as BAT sinks

(Reuters) - South Africa’s rand rose for a fourth straight session on Friday
to end the week nearly 3 percent firmer, benefiting from political chaos in
Britain and a revival of risk appetite linked to a thawing of U.S.-Sino
trade tensions.

Stocks ended slightly lower, with British American Tobacco (BTIJ.J> taking
the most off the benchmark index after the United States announced sweeping
restrictions on flavoured tobacco products.

At 1530 GMT, the rand was 1.09 percent firmer at 14.0300.

Most of the gains were posted after the dollar wobbled as two Federal
Reserve officials cautioned in separate television interviews about slowing
global economic growth, raising doubts about the number of future U.S. rate
increases.

The rally followed Thursday’s strong gains, particularly against the pound,
as Prime Minister Theresa May battled to salvage a draft Brexit deal.

Growing bets that the South African Reserve Bank (SARB) may raise rates at
its policy meeting on Thursday supported the already attractive carry yield
offered by the rand.

It outpaced most other emerging currencies against the dollar on the day.

In a Reuters poll taken this week, 16 of 26 economists said the SARB would
keep its repo rate at 6.50 percent while the rest forecast a 25 basis-point
hike.

Bonds also rose, with the yield on the benchmark 2026 paper down 4.5 basis
points at 9.115 percent.

On the bourse, the benchmark Top-40 index was down 0.17 percent at 45,851
and the broader All-share index lost 0.1 percent to 52,095.

BAT slumped 6 percent to 495.67 rand, tracking falls in its London-listed
shares. On Thursday the U.S. Food and Drug Administration announced
restrictions on flavoured tobacco products, including electronic cigarettes,
in an effort to prevent a new generation of nicotine addicts.

Investment house Reinet Investment was also under pressure, falling 6.7
percent to 215.58 rand after the company reported a drop in net asset value,
a key profitability measure for investment companies. 

Uganda

Uganda shilling little-changed amid thin importer demand

(Reuters) - The Ugandan shilling was little-changed on Friday amid thin
demand from merchandise importers and traders expected the currency to
remain broadly stable.

At 1121 GMT commercial banks quoted the local currency at 3,733/3,743,
compared to Thursday’s close of 3,730/3,740. 

       <mailto:info at bulls.co.zw> 

America

Dollar, U.S. yields slide on Fed official rate talk

(Reuters) - The U.S. dollar weakened and Treasury yields slid on Friday
after a top Federal Reserve official said U.S. interest rates were near a
neutral rate, while the S&P 500 ended positive after a seesaw session helped
by optimism over U.S.-China trade ties.

Oil prices steadied but still posted their sixth straight week of losses.
Uncertainty over Britain’s exit from the European Union clouded currency and
other markets.

Markets were shaken by comments made by Richard Clarida, newly appointed Fed
vice chair, in a CNBC interview that U.S. interest rates were nearing Fed
estimates of a neutral rate, and being at neutral “makes sense.”

He also said there was “some evidence of global slowing.”

While the Fed is widely expected to raise rates in December, the number of
hikes next year is a matter of debate.

On Wall Street, the Dow Jones Industrial Average rose 123.95 points, or 0.49
percent, to 25,413.22, the S&P 500 gained 5.94 points, or 0.22 percent, to
2,736.14 and the Nasdaq Composite dropped 11.16 points, or 0.15 percent, to
7,247.87.

Clarida’s comments helped support stocks, which were also boosted by
comments from President Donald Trump on trade.

Trump said he may not impose more tariffs on Chinese goods after Beijing
sent the United States a list of measures it was willing to take to resolve
trade tensions.

Investors are pointing toward the G20 meeting later this month, when leaders
from the United States and China are expected to meet, and the Fed’s meeting
in December as key events for markets.

Weighing on equity sentiment and the Nasdaq was a disappointing forecast by
chip company Nvidia Corp. Nvidia shares tumbled 18.8 percent while the
Philadelphia semiconductor index fell 1.2 percent.

MSCI’s gauge of stocks across the globe gained 0.35 percent.

The pan-European STOXX 600 index lost 0.20 percent as traders waited on more
clarity involving Britain’s exit from the EU, known as Brexit.

British Prime Minister Theresa May won the backing of the most prominent
Brexiteer in her government as she fought to save a draft EU divorce deal
that has stirred up a plot to force her out of her job.

After tumbling a day earlier, sterling was last trading at $1.2825, up 0.40
percent, while the euro was up 0.78 percent to $1.1414.

The dollar index, which measures the greenback against a basket of
currencies, fell 0.49 percent.

Benchmark 10-year notes last rose 12/32 in price to yield 3.0738 percent,
from 3.118 percent late on Thursday.

U.S. crude settled unchanged at $56.46 a barrel, and Brent settled at $66.76
a barrel, up 0.21 percent.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Barrick Gold eyes assets, exploration as it plots new phase

(Reuters) - Barrick Gold Corp , soon to become the world’s largest bullion
miner, is interested in adding more copper assets as long as the red metal
is accompanied by bullion, executives said on Friday.

Barrick, which expects to complete its $6.1 billion takeover of Randgold
Resources Jan. 1, outlined plans for exploration, expansion, streamlining
and asset sales at an investor presentation in London.

Structured under regions in North America, South America and Africa and the
Middle East, Barrick spent the last four days focusing on where to take the
merged company, said Randgold Chief Executive Officer Mark Bristow, who will
be Barrick’s new CEO.

Barrick is open to copper assets “as long as that copper is a component or
co-product to the gold,” said Rod Quick, who heads Randgold’s projects and
evaluation and will do the same in the merged company. “Or, unless that
copper project will enhance our strategic partner network.”

In Africa, Barrick is open to exploiting its “substantial footprint” in the
Democratic Republic of Congo to acquire world-class deposits, said Willem
Jacobs, who heads Randgold’s operations in central and east Africa and
becomes Chief Operating Officer of Barrick’s Africa and Middle East region.

In Zambia, Barrick aims to lower costs at its “relatively low-grade” Lumwana
copper mine, he added, noting the country’s new mining code stands to
materially affect margins.

Barrick said it is keen on exploration outside its operating base, flagging
South America’s Guyana Shield, which crosses Suriname, Guyana and French
Guyana. It also wants more exposure in Canada.

Rob Krcmarov, executive vice president of exploration, said Barrick is
interested in “copper opportunities” within its operating regions that meet
investment criteria.

To approve projects with potential for more than 5 million ounces of gold,
Barrick will require a 15-percent rate of return, based on a $1,000 gold
price, said Quick. Projects with more than 3 million ounces of gold, need a
20-percent return.

Barrick expects stronger operating cash flows, non-core asset sales and
lower overhead and interest costs will help it increase future dividends,
said Randgold Chief Financial Officer Graham Shuttleworth, who takes the
same role at Barrick.

Talks are underway to sell Barrick’s Lagunas Norte mine, said Mark Hill, COO
of Latin America. Barrick said in August the Peru mine was an example of the
non-core mines it would look at selling. Reuters reported last year that
Barrick was exploring options, including the sale of all or part of, Lagunas
Norte. 

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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