Bulls n Bears Daily Market Commentary : 02 October 2018

Wed Oct 3 09:02:38 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 : 02 October 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $4,361,193.27 with foreign buys at $212,572.66 and foreign
sales were $2,740,356.70. Total trades were 180.

The All Share index increased by a hefty 5.91 points  to close at 122.07
points in a trading session mainly dominated by movers in heavy weight
counters. Telecomms giant ECONET   added  $0.2479 to close at $1.5529 and
OLD MUTUAL was $0.1172 stronger at $5.4672. MEIKLES and TSL  both increased
by $0.0500 to settle at $0.4500 apiece. DELTA  also traded $0.0481 higher at
$2.2505 and PADENGA  was up $0.0464 to $0.6664.

CBZ  was the only lame duck as it lost $0.0020 to settle at $0.1480.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Zimbabwe

Zimbabwe sees faster GDP growth but budget deficit could hobble economy

(Reuters) - Zimbabwe’s economy is likely to grow more than 5 percent in
2018, rather than the earlier estimate of 4.5 percent, but a widening budget
deficit risks destabilising the financial sector and the whole economy, the
finance minister said on Monday.

Rebuilding the troubled economy is the biggest challenge to President
Emmerson Mnangagwa, who was re-elected in a disputed vote in July and is
seeking to pivot away from some of the disastrous policies of his
predecessor Robert Mugabe.

New Finance Minister Mthuli Ncube said the economy would grow faster than
initially expected on the back of strong performances in agriculture and
mining, the latter of which is the biggest contributor to Zimbabwe’s export
earnings.

Ncube, however, said he was worried by the build-up in inflationary
pressures.

Reserve Bank governor John Mangudya had earlier said in his first
post-election statement that rebalancing the economy would require “painful
measures” but that growth was on the up.

Harare-based economist John Roberston called the new growth projection “very
extravagant” and said the government had not presented plans to cut a wage
bill taking more than 90 percent of the national budget.

Ncube said the budget deficit, estimated at 16 percent of GDP this year, had
led to the rise of government domestic debt from $275 million in 2012 to
$9.5 billion currently.

The debt is being financed through Treasury Bills and an overdraft facility
at the central bank, which has increased the stock of government paper to 35
percent of GDP.

Ncube said he would cut the government’s central bank overdraft, which is
three times the lawful limit, and introduce public auctions for Treasury
Bills to increase transparency.

With immediate effect, banks would introduce separate local and foreign
currency bank accounts and foreign truckers will now pay for fuel in foreign
currency, as part of measures to ease an acute shortage of U.S. dollars
since the country dumped its own currency in 2009, Mangudya said.

Mnangagwa has made sweeping changes to his cabinet and the civil service
since his election. But the election was marred by procedural lapses and a
crackdown against opposition supporters, which curbed some investor hopes
for more predictable and business-friendly policies.

Zimbabwe has cleared its IMF arrears and next week will present its plans to
clear arrears to the World Bank, Africa Development Bank and European
Investment Bank. Investors are trickling back as the country shakes off the
pariah status it acquired under Mugabe’s nearly four decades of rule. 

Uganda

Uganda shilling a touch stronger on thinning corporate demand

(Reuters) - The Ugandan shilling strengthened marginally on Tuesday as
demand from bulk hard currency buyers in manufacturing, telecoms and energy
sectors ebbed.

At 1215 GMT commercial banks quoted the shilling at 3,815/3,825, stronger
than Monday’s 3,820/3,830.

       <mailto:info at bulls.co.zw> 

Tunisia

IMF calls for further Tunisian interest rate rise to curb inflation

(Reuters) - The International Monetary Fund (IMF) has called for further
monetary tightening by Tunisia to tackle the North African country’s record
levels of inflation.

Tunisia’s inflation rate stabilised at 7.5 percent in August, unchanged from
July, after hitting 7.8 percent in June.

The country’s central bank expects the rate will be at 7.8 percent this year
and fall to 7 percent next year.

In June, the central bank raised its key interest rate by 100 basis points
to 6.75 percent, the second hike in three months, to tackle inflation which
had reached its highest level since 1990.

On Friday, the IMF approved the payment of a $247 million loan tranche to
Tunisia, the fifth under a programme which is tied to economic reforms aimed
at keeping Tunisia’s deficit under control. The approval will open the way
for Tunisia to sell $1 billion worth bonds this month.

The rate rises have not been popular in Tunisia, where the UTICA business
union said they hit the competitiveness of companies and impeded the
investment needed to create jobs.

The powerful UGTT union said the increase deepened Tunisia’s economic crisis
and further worsened its purchasing power.

Tunisia has been praised as the only democratic success among the nations
where the “Arab Spring” revolts took place in 2011. But successive
governments have failed to trim its fiscal deficit and create economic
growth.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Perth Mint's Sept gold, silver sales soar

(Reuters) - Sales of gold products by the Perth Mint surged in September to
their highest since January 2017, while silver sales more than doubled from
August to mark an over two-year peak, boosted by lower bullion prices, the
mint said on Wednesday. 

Sales of gold coins and minted bars surged 61 percent from August to 62,552
ounces last month, the mint said in a blog post.

Gold sales in September rose about 35 percent from a year-ago period.

Gold prices dropped 0.8 percent in September, declining for a sixth
consecutive month in their longest losing streak in two decades.

Silver sales soared 151 percent from August to 1,305,600  ounces, their
highest since March 2016. 

>From a year earlier, sales advanced about 87 percent.     Silver prices
inched up 0.7 percent in September, after falling for three straight months,
and marking an over 9 percent decline in the quarter ended September.  

The Perth Mint refines more than 90 percent of newly mined gold in
Australia, the world's second-largest gold producer after China.

Gold prices edged up on Wednesday after gaining over 1 percent in the
previous session, buoyed by safe-haven demand as Italy's budget plan sets it
on course for a potential clash with the European Union.

Gold prices rise as Italy uncertainty boosts safe-haven demand

(Reuters) - Gold prices edged up on Wednesday after gaining over 1 percent
in the previous session, buoyed by safe-haven demand as Italy’s budget plan
sets it on course for a potential clash with the European Union.

FUNDAMENTALS

* Spot gold had risen 0.3 percent to $1,206.09 by 0126 GMT, hovering near a
more than one-week high of $1208.23 touched in the previous session.

* Spot gold rose 1.3 percent on Tuesday in its biggest one-day percentage
gain since Aug. 24.

* U.S. gold futures were up 0.3 percent at $1,210.10 an ounce.

* Asian shares ticked lower and the euro held at six-week lows amid Italy’s
mounting debt and Rome’s budget plan.

* Risk appetite was hit after EU officials expressed concerns about Italy’s
budget plan, which would widen the deficit significantly. The deficit
blowout revived fears of the eurozone debt crisis and put pressure on the
euro.

* Italy’s government has no intention of leaving the euro, Claudio Borghi,
the economics spokesman of the right-wing League, said on Tuesday,
clarifying earlier remarks which had roiled financial markets.

* Italy is totally committed to the euro and any critical comments about the
single currency are individual opinions which have nothing to do with the
government’s policies, Prime Minister Giuseppe Conte said on Tuesday.

* China’s hopes of negotiating a free trade pact with Canada or Mexico were
dealt a sharp setback by a provision deep in the new U.S.-Mexico-Canada
trade agreement that aims to forbid such deals with “non-market” countries,
trade experts said on Tuesday.

* U.S. Federal Reserve Chairman Jerome Powell on Tuesday hailed a
“remarkably positive outlook” for the U.S. economy that he feels is on the
verge of a “historically rare” era of ultra-low unemployment and tame prices
for the foreseeable future.

* The array of trade tariffs and counter measures from other countries could
raise U.S. inflation but there is so far no indication of that happening,
Powell said.

* Holdings in the world’s largest gold-backed exchange-traded fund, SPDR
Gold Trust, fell 0.32 percent to 23,721,571.86 ounces on Tuesday.

* A tie-up between Randgold Resources and Barrick Gold will leave a void in
the London market for investors seeking exposure to gold via companies that
produce the precious metal. DATA/EVENT AHEAD (GMT) 0750 France Markit
services PMI Sep 0755 Germany Markit services PMI Sep

0800 Euro zone Markit services PMI Sep 0900 Euro zone Retail sales Aug 1215
U.S. ADP national employment Sep 1400 U.S. ISM non-manufacturing PMI Sep
2000 U.S. Federal Reserve Chairman Jerome Powell participates in discussion
before The Atlantic Festival in Partnership with The Aspen Institute

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/20181003/026307c2/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/20181003/026307c2/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 29401 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181003/026307c2/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181003/026307c2/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 159128 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181003/026307c2/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image007.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181003/026307c2/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image008.jpg
Type: image/jpeg
Size: 31067 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181003/026307c2/attachment-0011.jpg>