Bulls n Bears Daily Market Commentary : 20 November 2018

Wed Nov 21 07:07:58 CAT 2018

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Bulls n Bears Daily Market Commentary : 20 November 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $8,143,424.81 with foreign buys at $3,176,198.98 and foreign
sales were $168,890.19. Total trades were 205.

The All Share index retreated by a significant 14.58 points  to close at
155.47 points. ECONET  dropped by a hefty $0.8578 to close at $1.5877,
MEIKLES  lost $0.0990 to $0.5010 and RIOZIM was $0.0543 down at $1.8207.
HIPPO VALLEY ESTATES   also went down by $0.0450 to $1.7050 and PADENGA  was
$0.0185 lower to trade at $0.9215.

Trading in the positive was OLD MUTUAL LIMITED  which added $0.0540 to close
at $7.7767, CBZ   gained $0.0058 to settle at $0.1558 and OK ZIMBABWE
traded $0.0032 higher at $0.2982.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South Africa's rand weakens on subdued risk sentiment; stocks tumble

(Reuters) - South Africa’s rand weakened on Tuesday in line with some other
emerging market currencies as a dollar rally, trade tensions and U.S.
Federal Reserve comments on global growth dimmed investor appetite for
riskier assets.

Stocks fell in tandem with global markets, led by Naspers , on the back of a
sell-off in technology stocks.

At 1517 GMT, the rand was 0.77 percent weaker at 14.1425 to the dollar,
compared to a close of 14.0350 in New York.

The market largely expects the Reserve Bank (SARB) to hold lending rates
steady at its final meeting of 2018 on Thursday. 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.

The rand may be at risk of a downgrade in a sovereign rating review by S&P
due on Friday, due to concerns about the postponement of fiscal
consolidation and a lack of clarity around land expropriation, a senior S&P
Global Ratings analyst said Oct. 30.

Persistent worries about the China-U.S. trade conflict and cautious comments
overnight by Federal Reserve officials about the global economic outlook
kept investors jittery.

Bonds were slightly weaker, with the yield on the benchmark 2026 government
bond up 0.5 basis points to 9.135 percent.

In equities, the Top 40 index slumped 2.91 percent to 44,844 points while
the All Share index fell 2.59 percent to 51,068 points.

Media and e-commerce giant Naspers fell 7.35 percent to 2,617 rand as
worries over softening demand for the iPhone triggered a sell-off by tech
stocks around the world, raising further worries about a slowdown in the
global economy.

Naspers said on Monday it expected half-year core headline earnings per
share to be between 35 percent and 43 percent higher than a year earlier. 

Tanzania

Tanzanian exchange bureaus raided on suspicion of money laundering

(Reuters) - Tanzania’s central bank conducted a surprise inspection of
foreign exchange bureaus in a crackdown on black market currency trading and
money laundering, it said on Tuesday.

Soldiers and other security forces took part in Monday’s operation in the
northern town of Arusha, a tourism and gemstone trading hub, so different
bureaus could be inspected at once, a statement said.

Tanzania has 110 licensed foreign currency bureaus, the bank said.

Opposition leaders accused the government of unduly involving the military
in the economy after it deployed the army earlier this month to collect the
cashew nut harvests after rejecting low prices offered by private buyers.

The central bank suspended issuance of new licenses for foreign exchange
bureaus over the past three months to conduct thorough inspections of
existing foreign exchange retail bureaus, Luoga said.

       <mailto:info at bulls.co.zw> 

Europe

Euro weakens as equity-market selloff hits sentiment

(Reuters) - The euro fell from a two-week high on Tuesday as a selloff in
world stock markets and nervousness about Italian banks fed through to the
currency, while boosting the Swiss franc and Japanese yen.

Earlier, cautious comments overnight by Federal Reserve officials about the
global economic outlook, weak U.S. data and a selloff on Wall Street had
knocked the dollar and supported the single currency.

But the euro gave up its gains as a tech share slide spooked European
equities, Italian bank shares hit a two-year low and Italian bonds sold off
again amid a continuing confrontation with the European Union over Rome’s
budget plans.

Persisting worries about the China-U.S. trade conflict and Brexit
negotiations also kept investors jittery.

The euro fell 0.2 percent to $1.1430 at 1115 GMT, off the day’s lows but
below a two-week high of $1.1472 reached earlier.

With investor nerves high, the safe-haven Japanese yen added 0.1 percent to
112.46. The Swiss franc gained as much as 0.4 percent versus the euro to
1.1339 francs before easing slightly.

Measured against a basket of its peers, the dollar index edged higher, up
0.1 percent to 96.297, off its weakest in a fortnight.

The dollar has struggled in recent weeks as investors worry about slowing
U.S. economic growth.

Comments from Federal Reserve officials expressing concern about a potential
global slowdown have encouraged some investors to bet the rate-hike cycle
could be near its end.

U.S. 10-year Treasury yields pulled back slightly, removing some support for
the greenback.

Overnight, the dollar was also weighed down by weak U.S. housing data.

The Australian dollar skidded more than half a percent before recovering
slightly to trade at $0.7271, down 0.3 percent on the day, pushed lower by
fears of Chinese economic slodown.

The Aussie is viewed as a barometer of global risk sentiment given its
sensitivity to Chinese demand for Australia’s exports.

Sterling was firmer against both the dollar and the euro as Prime Minister
Theresa May heads to Brussels for more Brexit talks.

In cryptocurrency markets, Bitcoin lost another 10 percent to below $4,500
as sentiment soured further.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Asia stocks fall, oil stymied as growth worries grip global markets

(Reuters) - Asian stocks slid on Wednesday as intensifying concerns about
global economic growth gripped financial markets, sending Wall Street shares
and crude oil prices tumbling and driving the safe haven dollar up from a
two-week low.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6 percent.

The Shanghai Composite Index swerved in and out of the red and was last down
0.2 percent.

Australian stocks lost 0.6 percent, South Korea’s KOSPI retreated 0.85
percent and Japan’s Nikkei fell 0.7 percent.

U.S. stocks sold off for a second day on Tuesday as energy shares dropped
with oil prices, while retailers including Target and Kohl’s sank after weak
earnings and forecasts, fuelling worries about economic growth.

The Nasdaq closed at its lowest in more than seven months on Tuesday while
the S&P 500 and Dow ended at their weakest since late October.

The recent downturn in global equities has been led in part by a decline in
U.S. technology shares, a group which had helped propel Wall Street’s long
bull market.

The dollar index against a basket of six major currencies was little changed
at 96.838 after rallying 0.7 percent overnight, when it pulled away from a
two-week trough of 96.042.

Earlier in the week, cautious comments by Federal Reserve officials about
the global economic outlook knocked the dollar to two-week troughs as they
suggested the central bank could slow the pace of or even end its monetary
policy tightening cycle.

The euro was effectively flat at $1.1369 after sinking 0.75 percent the
previous day.

The dollar rose 0.25 percent to 112.92 yen.

The Australian dollar, sensitive to shifts in risk sentiment, crawled up 0.2
percent to $0.7229 following a 1 percent slide the previous day.

Commodity currencies such as the Canadian dollar struggled in the wake of
tumbling crude prices.

The Canadian dollar was stuck near a five-month low of C$1.3318 per dollar
plumbed on Tuesday, when it shed more than 1 percent.

Oil prices managed to stabilise after Tuesday’s slump. But the market
remained shaky, with the International Energy Agency (IEA) warning of
unprecedented uncertainty in oil markets due to the economic environment and
political risk.

U.S. crude futures were up 1.2 percent at $54.08 per barrel after retreating
roughly 6 percent to $52.77 on Tuesday, its lowest since late October 2017,
caught in a broader Wall Street selloff fed by mounting concerns about a
slowdown in global economic growth.

Brent crude bounced 1.2 percent to $63.28 per barrel after sliding more than
6 percent on Tuesday, when it plumbed a near one-year low of $61.71. The
contracts had reached a four-year high above $86.00 at the start of October.

Copper down for second day as U.S.-China trade tensions linger

(Reuters) - London copper prices eased on Wednesday as tensions between the
United States and China escalated ahead of a major meeting between the two
presidents next week.

The United States administration on Tuesday said China has failed to alter
its "unfair" practices, adding to tensions ahead of a high-stakes meeting
later this month between U.S.  resident

Donald Trump and Chinese President Xi Jinping.             

    FUNDAMENTALS

* Three-month copper on the London Metal Exchange was down 0.2 percent at
$6,170 a tonne, as of 0117 GMT, while base metals on the Shanghai Futures
Exchange lost ground, with

copper          slipped 1.3 percent to 49,150 yuan ($7,077.24) a tonne.

* "The collapse in oil prices also reverberated through the  sector, with a
risk-off tone pushing copper prices back below$6,200/T," ANZ said in a note.

* U.S. oil prices stabilised on Wednesday after slumping more than 6 percent
the previous day, with some support coming from a report of an unexpected
drop in U.S. commercial crude

inventories.      

* Global primary aluminium output rose to 5.414 million  tonnes in October
from 5.301 million tonnes in September, datafrom the International Aluminium
Institute (IAI) showed on

Tuesday.             

* Japan's top steelmaker Nippon Steel & Sumitomo Metal Corp          is
bracing for a weaker steel market in Asia because the escalating Sino-U.S.
trade war may crimp steel demand in top buyer China and in Southeast Asia, a
senior executive said.

* Mexico expects Washington to begin lifting steel and aluminium tariffs
against it later this month, when Canada, Mexico and the United States are
slated to sign a revamped trade

deal, the Mexican ambassador to the United States told McClatchy on Monday.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Finance minister Mthuli Ncube presents 2019 National Budget

Parliament

22/11/2018

Simbisa Brands

AGM

Standards Association of Zimbabwe, Northend Close, Borrowdale

23/11/2018 (8:15am)

Axia

AGM

Chapman Golf Club, Eastlea

27/11/2018 (8:15am )

Econet

AGM

Econet Park, Msasa

29/11/2018  (9am )

Econet

EGM

Econet Park, Msasa

29/11/2018  (10am )

GetBucks

AGM

Conference Room 1, Monomotapa Hotel

04/12/2018 (10am )

Innscor

AGM

Royal Harare Golf Club

05/12/2018 (8:15am)

Truworths

AGM

Boardroom, Prospect Park, 808 Seke Road

06/12/2018 (9am)

TSL

EGM

Head Office, 28 Simon Mazorodze Road, Southerton

07/11/2018 (10am )

Cassava shares list on the ZSE

11/12/2018

 <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
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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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