Bulls n Bears Daily Market Commentary : 22 November 2018

Fri Nov 23 08:36:39 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 : 22 November 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $756,334.89 with foreign buys at $10,412.20 and foreign
sales were $68.15. Total trades were 171.

The All Share index retreated 0.55 points  to close at 155.79 points.
INNSCOR  shed $0.0858 to trade at $1.8142, ECONET  dropped $0.0278 to end at
$1.6253 and FIRST MUTUAL PROPERTIES lost $0.0098 to $0.0702. PADENGA   came
off $0.0094 to end at $0.9206 while FIRST CAPITAL BANK closed at $0.0664
following a $0.0036 decrease.

Trading in the positive; MEIKLES  added $0.0990 to settle at $0.6000,
SIMBISA  put on $0.0193 to trade at $0.7193 and AFRICAN SUN  went up by
$0.0160 to $0.1160. BINDURA  also increased by $0.0058 to close at $0.0708
and ZIMPLOW HOLDINGS  closed at $0.2950 following a $0.0050 gain.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

S.Africa raises rates for first time in nearly 3 years in tight call

(Reuters) - South Africa’s central bank increased its benchmark lending rate
for the first time in nearly three years, saying the risk of higher
inflation in the longer-term remained elevated and that it could not risk
waiting until later to take action.

The decision to raise rates by 25 basis points to 6.75 percent on Thursday
was the closest in recent times, and analysts said it was likely to be a
once-off. The bank last raised rates in the first quarter of 2016.

Governor Lesetja Kganyago told reporters the Monetary Policy Committee (MPC)
was aiming to anchor inflation expectations near the midpoint of its 3 to 6
percent target range while fending off calls to ease rates to boost growth.

Consumer inflation ticked up to 5.1 percent in October from 4.9 percent
previously, data showed on Wednesday.

Three of the six MPC members argued in favour of a 25 basis points raise
while the other three called for no change, said Kganyago, who is seen as
one of the MPC’s more hawkish members.

The rand was buoyed by the decision, firming by more than 1.3 percent to the
dollar to its strongest level since Aug. 10. It later traded 1.22 percent
firmer at 13.7450.

In a poll taken by Reuters last week, 16 of 26 economists said the South
African Reserve Bank (SARB) would keep its repo rate at 6.50 percent, while
the rest opted for a 25 basis point hike.

“ONCE-OFF DECISION”

The central bank has faced calls from politicians to help growth in the
recession-bound economy. It did not meaningfully change its growth forecasts
since the September MPC meeting, predicting growth will rise to 1.9 percent
in 2019 from 0.6 percent this year.

The bank said it saw consumer inflation in Africa’s most industrialised
economy averaging 4.7 percent in 2018, rising to 5.5 percent in 2019 and 5.4
percent the year after.

It said inflation would continue to deviate from the mid-point of its 3 to 6
percent target range, peaking at around 5.6 percent in the third quarter of
2019.

Kganyago said the weaker exchange rate and the impact of higher oil prices
were key risks to inflation.

The bank has also been under pressure to match rate hikes in other emerging
markets like Turkey and Russia in response to policy tightening in the
United States, which has triggered a massive sell-off in emerging currencies
and bonds.

Nigeria

Nigeria's central bank holds benchmark lending rate at 14 pct

(Reuters) - Nigeria’s central bank kept its main interest rate at 14 percent
on Thursday, its governor Godwin Emefiele said.

The rate has been at the record high level of 14 percent since July 2016.
Analysts polled by Reuters predicted that the bank would hold interest rates
at 14 percent and continue to do so through 2019.

Emefiele said all of the 11 members of the monetary policy committee who met
voted to hold the rate.

Nigeria emerged from its first recession in 25 years in 2017 but continues
to suffer from sluggish growth and high inflation.

Economic growth dipped to 1.50 percent in the second quarter, continuing a
slowing trend that began in the first quarter.

President Muhammadu Buhari, who came to power in 2015 partly on promises to
revive the economy, is seeking a second term in elections to be held in
February 2019. 

       <mailto:info at bulls.co.zw> 

Europe

Failed tech reboot hits stocks, pound cheers Brexit progress

(Reuters) - Europe’s share markets fell back into the red on Thursday, as
investor worries about slowing global growth in the face of rising U.S.
interest rates and trade tensions outweighed crucial Brexit progress.

Chinese markets had extended their slump in Asia amid the trade war with the
United States, and with Wall Street closed later for Thanksgiving and
trading therefore lighter than normal, Europe followed suit.

The region also had plenty to keep it busy.

A disappointing batch of company earnings added to the stocks gloom but
Italian bonds rallied for a second day as sparring continued over its budget
and sterling jumped as London and Brussels agreed wording on a Brexit
transition deal.

The dollar also edged lower for a second day as traders sold the greenback
going into Thanksgiving and after Wall Street had seen Apple shares, which
have slumped $280 billion in recent weeks, fail with an attempted rebound.

Europe’s tech sector duly lost another 0.75 percent, but it wasn’t the worst
performer. Banks fell as much as 1.6 percent and mining companies and other
resources firms dropped nearly 2 percent before clawing some ground back.

The falls also reflected the bitter Sino-U.S. trade war, encouraging
investors to take money off the table before U.S. President Donald Trump and
his Chinese counterpart, Xi Jinping, meet in Argentina next week.

The focus is on whether they can make any progress on their trade feud.

Countries belonging to the G20 group of the world’s biggest economies
applied 40 new trade restrictive measures between mid-May and mid-October,
covering around $481 billion of trade, the World Trade Organization said on
Thursday.

Three-quarters of the restrictions were tariff hikes, many of them
retaliation to steel and aluminium tariffs imposed by U.S. President Donald
Trump in March.

But the WTO did not count measures announced since or not yet implemented,
and one G20 country had asked for its actions to be omitted from the
monitoring report, the WTO said.

RUSH FOR THE BREXIT

With no U.S. trading to look forward to later, traders contented themselves
by watching Europe’s Brexit drama unfold.

Sterling jumped back up to $1.29 and 88.50 pence per euro after London and
Brussels agreed on a text setting out their post-split ties that EU leaders
are expected to endorse at a summit on Sunday.

Just over four months before Britain’s departure from the EU, Brexit
negotiations and political uncertainty in Britain remain the key drivers for
the pound, and many analysts are cautious about its prospects.

Simon Fraser, the former permanent secretary at the UK foreign office, said
he expected British politicians to vote on May’s deal on Dec. 10.

OIL TOILS

The Brexit text had also seen the euro rise against the dollar which meant
the single currency barely budged when ECB meeting minutes showed its
policymakers were keen to affirm their plans to cut stimulus at the end of
the year.

South Africa’s central bank triggered far more action though, as a tight
decision to hike interest rate in what had already been a hard to call
meeting sent its currency, the rand, up more than 1 percent.

Back in emerging economy share markets, MSCI’s broadest index of
Asia-Pacific shares outside Japan had ended little changed after recovering
from an initial wobble.

The index has managed to hold up so far in November after three straight
monthly declines, but is on track for its worst annual performance since
2011.

Japan’s Nikkei had finished almost 0.7 percent higher but the ongoing trade
and tech jitters saw Chinese shares close 0.4 percent in the red.

In commodities, China-sensitive metals like copper fell and oil prices
reversed, although they were still above one-year lows touched earlier this
week.

U.S. crude futures were last down 42 cents at $54.21 a barrel after hitting
a one-year low of $52.77 on Tuesday. Brent eased 45 cents to $63.03, off
Tuesday’s low of $61.71.

Gold rose, with spot prices at $1,227.60 an ounce.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Congo's 9-mth copper output up 8.7 pct, cobalt nearly doubles

(Reuters) - Copper output in Democratic Republic of Congo rose 8.7 percent
year on year through the first nine months of 2018 to 908,695 tonnes while
cobalt production jumped 92.5 percent to 115,116 tonnes, the central bank
said on Thursday.

Congo is Africa’s top copper producer and the world’s leading miner of
cobalt, which is a key component in electric vehicles and other electronic
products.

Gold production rose 20.2 percent over the same period to 28,064 kg, central
bank data showed. 

Nickel set to fall for 5th day on supply surplus

(Reuters) - London and Shanghai nickel fell further on Friday, with the
market on track for its fifth day of declines on concerns about a supply
surplus in 2019 and slowing demand in top consumer China.

London’s three-month nickel lost 1.5 percent to $10,805 a tonne by 0435 GMT,
its lowest in nearly a year, while Shanghai’s most active nickel contract
tumbled 3.2 percent to 88,160 yuan ($12,706.65) a tonne.

Other base metals moved in a tight range, with prices capped by trade
tensions between Washington and Beijing and as the market eyed a meeting
next week between the two countries’ leaders.

Trade talks between the United States and China should be equal and mutually
beneficial, Chinese Vice Commerce Minister Wang Shouwen said, adding that he
hoped the two countries can find ways to manage their differences through
dialogue.

U.S.-CHINA: China rejected fresh U.S. accusations of perpetuating “unfair”
trade practices and urged Washington on Thursday to stop making
provocations, showing little sign of backing down days ahead a high-stakes
meeting between leaders from both countries.

INDONESIA COPPER: Indonesia’s environment ministry aims to resolve within
two weeks environmental issues that have been holding up the state’s plans
to acquire a majority stake in Freeport McMoRan Inc’s Grasberg copper mine.

PRICES: Three-month copper on the London Metal Exchange eased 0.3 percent to
$6,238.5 a tonne while Shanghai copper edged up 0.2 percent.

ARBS ($1 = 6.9381 Chinese yuan)

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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
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/20181123/014654fd/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/20181123/014654fd/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/20181123/014654fd/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/20181123/014654fd/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/20181123/014654fd/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/20181123/014654fd/attachment-0009.jpg>