Bulls n Bears Daily Market Commentary : 30 November 2018

Fri Nov 30 20:34:04 CAT 2018

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Bulls n Bears Daily Market Commentary : 30 November 2018

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Zimbabwe Stock Exchange Update

Market Turnover $2,599,196.88 with foreign buys at $1,679,648.75 and foreign
sales were $1,328,169.45. Total trades were 106.

The All Share index closed the week in red after losing 0.79 points  to
close at 160.40 points. INNSCOR   dropped further by $0.0496 to close at
$1.9000, ECONET  decreased by $0.0362 to $1.7648 and FIRST MUTUAL LIMITED
was $0.0101 lower at $0.1474. PADENGA  also lost $0.0333 to $0.9467 and
FIRST CAPITAL BANK   was $0.0001 down at $0.0671.

Trading in the positive was OLD MUTUAL LIMITED  which added $0.0634 to
$8.1742, MEIKLES   gained $0.0200 to end at $0.5300 and DELTA   traded
$0.0051 higher at $3.2900. AXIA   also increased by $0.0010 to settle at
$0.4510 and RTG   was $0.0008 firmer at $0.0200.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Nigeria

Nigerian naira weakens on black market to weakest since Aug 2017-traders

(Reuters) - The Nigerian naira weakened by 1 percent on the black market on
Thursday to 370 per dollar, its weakest since August 2017.

Traders said some black market outlets were hoarding dollars, fearing a
recent sharp fall in oil prices could lead to a shortage of the U.S.
currency.

Global prices of oil, Nigeria’s chief export, have dropped more than 20
percent this month. Traders now fear that the Nigerian central bank may not
have enough reserves to defend the currency against a possible further
weakening of oil prices as foreign investors have been pulling money out of
Nigerian assets.

The central bank has been using up foreign exchange reserves to keep the
naira stable, spending $2.2 billion in October to prop up the currency as
foreign investors have also left the market in favour of rising interest
rates in developed economies.

Central bank data released on Thursday showed Nigeria’s foreign reserves
stood at $41.9 billion as of Nov. 27, down 12.3 percent from a peak of $47.8
billion reached in June.

Investors have also been pulling out funds from equities. On Thursday,
Nigeria’s benchmark stock index fell 1.33 percent to 30,611 points.

The naira also weakened on the over-the-counter market where it is traded by
banks. It was exchanged for between 364 and 364.50 to the dollar on
Thursday, compared to 363 a week earlier. At foreign exchange bureaus it was
quoted at 366 per dollar, while a unit fetched 306.30 on the official
market.

The central bank has kept the official rate stable at 306.30 for over a year
by frequently intervening in the market.

Dollar shortages could worsen, traders say, as investors close their books
for the year unless the central bank increases its intervention in the
foreign exchange market.

The central bank has been raising treasury yields to lure offshore funds,
traders said, but lower oil prices and the prospect of potentially fractious
campaigns ahead of a Nigerian presidential election next year are deterring
foreign investors, traders said. 

South Africa

South Africa's rand lifted by dovish Fed comments, stocks fall

(Reuters) - South Africa’s rand firmed against a softer dollar on Thursday,
in line with emerging markets and a fall in bond yields, as dovish comments
from U.S. Federal Reserve Chairman Jerome Powell boosted demand for riskier
assets.

Stocks were weighed down by market heavyweight Naspers and losses in
so-called rand hedges - dual-listed shares that normally benefit when the
rand weakens.

At 1453 GMT, the rand was trading at 13.6250 per dollar, 1.16 percent firmer
than its New York close of 13.7850. The currency touched an intraday best of
13.6100.

Comments from Powell that U.S. interest rates were “just below” neutral put
the dollar on the back foot. nL4N1Y437X]

The rand hit near 4-month highs, shrugging off data showing that credit
demand growth had slowed in October.

The market is closely watching a meeting between U.S. President Donald Trump
and Chinese leader Xi Jinping at the G20 summit on Saturday at which the
leaders are expected to discuss trade.

Bonds also firmed, with the yield on the benchmark bond due in 2026 down 14
basis points to 8.900 percent.

In equities, the All Share index was down 0.30 percent at 51,737 points,
while the blue chip Top 40 index fell 0.21 percent to 45,703 points.

Naspers slipped by 2.57 percent to 2,820 rand after Hong Kong technology
giant Tencent, in which it has 31 percent stake, closed lower along with
Asian markets.

Rand hedges such as luxury retailer Richemont slid 1.30 percent to 90.80
rand, weighed down by a firmer local currency.

       <mailto:info at bulls.co.zw> 

Asia

Asian shares soften as investors look to G20 summit

(Reuters) - Share markets ticked slightly lower in early Asian trade on
Friday as investors await a closely watched meeting between the Chinese and
U.S. presidents in Argentina this weekend for signs of a trade war detente.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1
percent. In Japan, the Nikkei was up 0.2 percent.

The mostly muted market moves followed a mixed day on Wall Street, where
stocks swung between losses and gains to ultimately end lower, amid
conflicting signals on the outlook for trade talks.

The Dow Jones Industrial Average fell 0.11 percent, to 25,338.84, the S&P
500 lost 0.22 percent to 2,737.8 and the Nasdaq Composite dropped 0.25
percent to 7,273.08 at Thursday’s close.

U.S. stock market futures pointed to more weakness on Friday, with S&P
e-mini futures ticking down 0.14 percent to 2,740.5.

Investors are waiting for a meeting between Chinese President Xi Jinping and
U.S. President Donald Trump, at which the leaders are expected to discuss
the countries’ bruising trade war.

Adding to apprehension ahead of the weekend meeting were comments from a
U.S. official, who said White House trade adviser Peter Navarro, who has
advocated a tougher trade stance with China, would attend.

Mixed signals from Washington about the prospects for a rapprochement with
China on trade have led many investors to sit on the sidelines.

Defying the subdued mood, Australian shares were 1.1 percent weaker, dragged
lower by maker Coca-Cola Amatil Ltd , which fell 12.1 percent on a weak
outlook for 2019.

Global investors also remain hesitant to shift positions significantly as
they seek clarity on Federal Reserve policy direction.

Minutes of the latest Fed policy meeting showed that almost all officials
agreed another interest rate increase was “likely to be warranted fairly
soon,” but opened debate on when to pause further hikes and how to relay
those plans to the public.

The minutes follow comments from Federal Chairman Jerome Powell earlier this
week that some took as indicating a dovish shift.

The yield on two-year U.S. Treasury notes, seen as sensitive to expectations
of higher Fed fund rates, was at 2.8066 percent on Friday, down from a U.S.
close of 2.813 percent.

Benchmark 10-year Treasury notes yielded 3.0261 percent, compared with a
U.S. close of 3.035 percent on Thursday.

The dollar dropped 0.08 percent against the yen to 113.38 , while the euro
was flat at $1.1391.

In commodities markets, U.S. crude prices retreated after rising on news
that Russia is increasingly convinced it needs to reduce oil output along
with the Organization of the Petroleum Exporting Countries (OPEC). OPEC and
its allies are meeting in Vienna on Dec. 6-7.

U.S. crude dipped 0.1 percent at $51.41 a barrel.

Spot gold rose 0.06 percent to $1,224.38 per ounce. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Shanghai aluminium slips to fresh 2-yr low as China factory growth stalls

(Reuters) - Chinese aluminium prices sunk to their lowest in more than two
years on Friday and were on course for a third successive monthly drop, as
stalling manufacturing growth compounded plentiful supply amid relatively
lenient winter output curbs.

China's official Purchasing Managers' Index fell to 50 in  November, missing
market expectations and down from 50.2 inOctober. The 50-point mark is
considered neutral territory, indicating no growth in activity or
contraction on a monthly basis.

    FUNDAMENTALS

* ALUMINIUM: The most traded aluminium contract on the Shanghai Futures
Exchange fell as much as 0.6 percent to 13,590 yuan ($1,956.55) a tonne, the
lowest since Oct. 10, 2016, and stood at 13,610 yuan a tonne as of 0152 GMT.
The metal is heading for a 2.8 percent drop in November.

* ALUMINIUM: Norwegian metals maker Norsk Hydro said on Thursday it expects
global primary aluminium demand growth to slow next year, and that the
company was being impacted "heavily" by an output slowdown at a key alumina
plant in Brazil.

* COPPER: Three-month copper on the London Metal Exchange  was flat at
$6,210 a tonne, heading for a monthly rise of 3.6 percent, while the most
traded ShFE copper contract edged

up 0.1 percent to 49,550 yuan a tonne.

* INDONESIA: Indonesian President Joko Widodo called on Thursday for an
"immediate" end to issues holding up thecountry's plans to acquire a
majority stake in Freeport-McMoRan

Inc's giant Grasberg copper mine in Papua.

* CODELCO: Chile's Codelco, the world's largest copper producer, said on
Thursday that mine output fell 3 percent in the first nine months of the
year as ore grades sharply declined, leading to a 12 percent drop in pretax
profit.

* NICKEL: Shanghai nickel was the top performer, seeing over 380,000 lots of
trade and rising by 1.6 percent to 91,070 yuan a tonne. It tracked a 2.4
percent jump in London

nickel in the previous session.

Gold prices flat ahead of Trump-Xi meet at G20 summit

(Reuters) - Gold prices were flat early on Friday as the dollar steadied
ahead of the G20 meet in Argentina this weekend, where U.S. and Chinese
leaders are scheduled to discuss trade matters after months of tensions.

FUNDAMENTALS

* Spot gold was flat at $1,223.77 per ounce at 0126 GMT. Prices had hit a
one-week high of $1,228.96 per ounce on Thursday.

* U.S. gold futures were down 0.2 percent at $1,221.6 per ounce.

* Palladium was up about 0.2 percent at $1,183.20 per ounce after hitting a
record high of $1,190 earlier in the session. The metal was on track to mark
its best month since December 2017.

* The dollar index, which measures the greenback against a basket of six
major currencies, traded marginally higher at 96.79 on Friday.

* Share markets ticked slightly lower in early Asian trade as investors
looked to the G20 summit.

* U.S. President Donald Trump sent mixed signals on Thursday about the
prospects for a trade deal with China, saying an agreement was close but he
was not sure he wanted one, just as he left for Argentina for a meeting with
President Xi Jinping.

* U.S. trade restrictions have hit a total of $369 billion of Chinese
exports this year, much higher than the $278 billion of goods impacted by
tariffs alone, a regular monitoring report of G20 trade restrictions said on
Thursday.

* Almost all Federal Reserve officials at their last meeting agreed another
interest rate increase was “likely to be warranted fairly soon,” but also
opened debate on when to pause further hikes and how to relay those plans to
the public.

* U.S. President Donald Trump on Thursday abruptly cancelled a planned
meeting with Russian President Vladimir Putin in Argentina, registering his
disapproval of Russia’s treatment of Ukraine and casting new uncertainty
over U.S.-Russian ties.

* A group of senior British lawmakers on Thursday put forward an amendment
to block Prime Minister Theresa May’s EU withdrawal deal and to rule out a
no-deal Brexit when it comes before parliament for a crucial vote next
month.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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.

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