Bulls n Bears Daily Market Commentary : 19 November 2018

Tue Nov 20 07:52:17 CAT 2018

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 19 November 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $3,028,053.53 with foreign buys at $2,469,360.64 and foreign
sales were $241,965.20. Total trades were 82.

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 The All Share index opened the week on a
higher note after adding 0.66 points to close at 170.05 points. OLD MUTUAL
led the movers as it was up by $0.2159 to close at $7.7227, INNSCOR   gained
$0.1091 to $1.9000 and PPC  ended $0.1000 higher at $1.6000. MEIKLES
increased by $0.0800 to trade at $0.6000 and AXIA  added $0.057 to close at
$0.4400.

Three counters lost ground; ECONET  came off $0.0540 to settle at $2.4455,
AFRICAN SUN  dropped $0.0152 to close at $0.1008 and STARAFRICACORPORATION
eased $0.0016 to close at $0.0112.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South African rand dips on trade war jitters, stock rise

(Reuters) - South Africa’s rand weakened on Monday, slipping back above a
crucial psychological level as higher bets of an interest rate hike by the
local central bank later in the week were overshadowed by the simmering
U.S.-Chinese trade dispute.

Stocks edged up, led by Netcare after the private hospital group said it
would pay investors a special dividend, as well as strong gains by financial
firms lapping up the local currency’s recent rally.

At 1530 GMT the rand was 0.15 percent weaker at 14.0025 per dollar, crossing
back above the key 14.00 mark as early gains that saw it touch a
session-best 13.9200 were scuttled as New York traders came on-line.

Bets that the Reserve Bank (SARB) will lift lending rates at its final
meeting of 2018 on Thursday has lured some yield-seeking investors back into
the rand, but the optimism has been short-lived with a tariffs deal between
Washington and Beijing looking increasingly remote.

U.S. Vice President Mike Pence said on Saturday the United States would not
back down from its trade dispute with China, and might even double its
tariffs, unless Beijing bows to U.S. demands.

In a Reuters poll conducted last 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 ended slightly weaker, with the yield on the benchmark paper due in
2026 adding 0.5 basis points to 9.11 percent.

On the bourse, the benchmark Top-40 index was up 0.74 percent at 46,188
points while the broader All-share index rose 0.63 percent to 52,423 points.

The financials index was up 1.1 percent, with investment bank PSG Group
climbing 3.14 percent to 235,37 rand, followed by Absa and Sanlam which both
rose more than two percent to 159,13 rand and 78,76 rand respectively.

Shares of the country’s second-largest private hospital firm Netcare climbed
3.67 percent to 25,70 rand.

On Monday the firm announced a special dividend payout of 40 cents per share
after reporting a marginal rise in full-year earnings. 

Uganda

Ugandan shilling firmer, helped by remittance inflows

(Reuters) - The Ugandan shilling        was stronger on Monday, buoyed by
hard currency inflows from Ugandans living abroad and exporters of
commodities like coffee.

At 0941 GMT, commercial banks quoted the shilling at 3,725/3,735, stronger
than Friday's close of 3,730/3,740.

       <mailto:info at bulls.co.zw> 

America

Stock markets tumble on tech sell-off, dollar sags

(Reuters) - Asian stock markets skidded on Tuesday, extending sharp losses
on Wall Street as technology firms bore the brunt of worries about
slackening demand, while the dollar sagged after weak U.S. data further
sapped confidence in the currency.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.9
percent.

The Shanghai Composite Index retreated 1 percent, Australian stocks lost 0.9
percent and tech-heavy South Korean shares dropped 0.8 percent.

In Seoul, Samsung Electronics fell 1.8 percent and SK Hynix Inc dropped 2.8
percent, while Japan’s Tokyo Electron was down 1.4 percent, Advantest lost
1.2 percent and Sony Corp shed 2.6 percent.

Japan’s Nikkei slipped 0.9 percent. Shares of Nissan Motor Co tumbled 4.3
percent after its Chairman Carlos Ghosn was arrested on Monday for alleged
financial misconduct and will be fired from the board this week.

U.S. stocks came under heavy selling on Monday, with Nasdaq tumbling 3
percent, as investors dumped Apple, internet and other technology shares.
Conflicting signals between the United States and China on their trade
dispute added to caution.

Worries of a peak in corporate earnings growth amid rising borrowing costs,
slowing global economic momentum and international trade tensions triggered
a shakeout in stocks over the past two months, with trillions of dollars
wiped off equities in a particularly torrid October month.

In currencies, the dollar struggled at a near two-week low against a basket
of currencies.

The greenback was hit after data released on Monday showed U.S. home builder
sentiment recorded its steepest one-month drop in over 4-1/2 years in
November.

The dollar had also been weighed down after Fed Vice Chair Richard Clarida
and Dallas Fed President Robert Kaplan late last week raised concerns over a
potential global slowdown.

The U.S. currency has rallied strongly this year, buoyed by three Fed rate
hikes and a robust economy, though some expect the bull run may be nearing
an end.

With long-term U.S. Treasury yields slipping to a seven-week low of 3.052
percent in the wake of weaker stocks and U.S. housing data, the dollar index
against a basket of six major currencies hovered near 96.120, an 11-day low
plumbed on Monday.

The euro was little changed at $1.1448 after gaining 0.35 percent overnight.

The dollar slipped to a three-week low of 112.40 yen and last traded at
112.58.

The Australian dollar, sensitive to shifts in risk sentiment, was steady at
$0.7294 after losing 0.5 percent the previous day.

Crude oil ran out of steam after gaining the previous day on reported
drawdown of U.S. oil inventories, potential European Union sanctions on Iran
and possible OPEC production cuts.

U.S. crude futures were flat at $57.20 per barrel and Brent slipped 0.1
percent to $66.72 per barrel. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices steady amid softer dollar

(Reuters) - Gold prices held steady early on Tuesday as the dollar was
pressured by weak U.S. economic data and cautious comments about the global
economy from Federal Reserve officials.

FUNDAMENTALS

* Spot gold inched 0.1 percent lower to $1,222.71 per ounce at 0117 GMT.

* U.S. gold futures were down 0.2 percent at $1,223.5 per ounce.

* Asian stock markets slipped on Tuesday, extending sharp overnight losses
on Wall Street as technology firms bore the brunt of worries about
slackening demand, while the dollar sagged after weak U.S. data further
sapped confidence in the currency.

* The dollar index, which measures the greenback against a basket of six
major currencies, fell to its lowest level since Nov. 8 in the previous
session.

* U.S. home builder sentiment recorded its steepest one-month drop in over
4-1/2 years in November.

* The Federal Reserve is pushing ahead with gradual rate-hike plans next
month as it marches toward a more normal policy stance that would keep the
economy expanding, one of its most influential members said on Monday in the
face of growing doubts in financial markets.

* The Fed is still expected to raise interest rates again next month and
three times next year, but a strong majority of economists polled by Reuters
over the past week say the risk is it will slow that pace down.

* British Prime Minister Theresa May vowed on Monday to stick to her draft
European Union divorce deal as dissenting lawmakers in her own party tried
to trigger a leadership challenge.

* Italy will stick with its 2019 budget plan despite criticism from the
European Commission but talks are continuing, Economy Minister Giovanni Tria
said on Monday after attending a meeting of euro zone finance ministers.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund,
said its holdings rose 0.16 percent to 760.86 tonnes on Monday.

* Russia produced 194.23 tonnes of gold in the first eight months of 2018,
up from 193.58 tonnes in the same period last year, the finance ministry
said on Monday.

* Sibanye-Stillwater said on Monday that the Association of Mineworkers and
Construction Union (AMCU) planned to strike on Wednesday at its South
African gold operations after wage agreement talks broke down.

London copper falls after 5-day climb as U.S.-China trade tensions rise

(Reuters) - London copper prices broke a five-session winning streak on
Tuesday, as conflicting signals over the trade dispute between the United
States and China weighed on investor sentiment.

While both U.S. President Donald Trump and Chinese President Xi Jinping
expressed optimism about resolving their trade war ahead of a planned
meeting at the G20 conference in Argentina at the end of next week,
relations have since faltered again.

Leaders attending the Asia Pacific Economic Cooperation summit at the
weekend in Papua New Guinea failed to agree to a joint communique for the
first time in history, amid deep divisions between Washington and Beijing.

The failure of to agree on a communique was down to certain countries
“excusing” protectionism and trying to force their views on others, a senior
Chinese diplomat said on Monday.

* COPPER: Three-month copper on the London Metal Exchange was down 0.6
percent at $6,224 a tonne by 0333 GMT. The most-traded copper contract on
the Shanghai Futures Exchange was almost flat at 49,680 yuan ($7,157.16) a
tonne.

Other base metals were mostly steady, trading in narrow ranges.

* COPPER SUPPLY: Inventories of copper in LME-registered warehouses
MCUSTX-TOTAL fell by 9,400 tonnes to 151,625 tonnes by Nov. 16, near last
month’s 10-year low of 136,675 tonnes, the latest data showed.

* U.S. DOLLAR: The dollar hit a near two-week low against its peers with
sentiment soured by Federal Reserve caution on the global outlook and weak
data at home, pointing to slower rate hikes. A weaker dollar makes it
cheaper to buy dollar-denominated industrial metals for those using other
currencies.

* U.S.-CHINA: China’s Foreign Ministry said on Monday the United States,
whose delegation at the summit was led by Vice President Mike Pence,
attended APEC in a “blaze of anger”, and that China had not gone to “get
into a boxing ring”.

* ZINC: A slide in zinc inventories on the London Metal Exchange to their
lowest in more than a decade has wrong-footed bearish investors who are
scrambling to cover or roll over futures positions before the November
contract expiry.

* NICKEL: A Brazilian court has ordered Vale SA, , one of the world’s top
nickel producers, to stop mining iron or nickel at its Onça Puma unit and
pay damages to two indigenous tribes in the area.

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.

(c) 2018 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

Invest Wisely!

Bulls n Bears 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181120/0120d360/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181120/0120d360/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 87857 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181120/0120d360/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 159128 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181120/0120d360/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181120/0120d360/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181120/0120d360/attachment-0009.jpg>