Bulls n Bears Daily Market Commentary : 16 October 2018

Wed Oct 17 07:55:54 CAT 2018

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Bulls n Bears Daily Market Commentary : 16 October 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $9,985,038.17 with foreign buys at $618,420.89 and foreign
sales were $1,845,337.28. Total trades were 361.

The All Share index lost 1.73 points  to close at 169.87 points in largely
mixed trading session. BRITISH AMERICAN TOBACCO came off $1.819 to trade at
$37.7810, OLD MUTUAL  retreated by $0.8407 to close at $7.3593 and the
cement maker PPC traded $0.2894 lower at $1.5000. Other losses were in
NATFOODS which shed $0.2000 to $6.50 and DELTA   dropped $0.1916 to settle
at $3.2009.

The losses were partially offset by gains in ECONET which went up by $0.1615
to close at $2.4415, SEEDCO  added $0.0321 to close at $2.5321  and ZB
FINANCIAL HOLDINGS  increased by $0.0300 to trade at $0.3300. INNSCOR  added
$0.0299 to close at $1.7474 and SIMBISA traded $0.0250 higher at $0.7600.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South Africa's rand firms as investors chase riskier assets, stocks up

(Reuters) - South Africa’s rand firmed against a softer dollar on Tuesday,
its strongest since the start of the month, in line with other
emerging-market currencies which have slowly restored gains after recent
sharp losses.

Stocks tracked global markets higher with banks leading gains aided by the
stronger local currency.

At 1550 GMT the rand was 1.36 percent stronger at 14.1750 per dollar, up
from a session best of 14.1450.

The rand has gained more than 1 percent since October 1, as the U.S. dollar
index dropped to more than two-week lows on Tuesday.

The delayed decision of the Moody’s ratings review buoyed the rand to its
strongest in a week on Monday, as it is now only expected after the medium
term budget policy statement (MTBPS) next week, Dondo Mogajane, the director
general of the National Treasury said on Tuesday.

Moody’s rates South Africa’s foreign and local currency debt on their lowest
investment grade rung of Baa3, with a stable outlook.

Government bonds were weaker, with the yield on the benchmark paper due in
2026 up 0.5 basis points to 9.165 percent.

In equities, the blue chip top-40 index rose 1.54 percent to 47,007 points.
The all share index was 1.48 percent firmer at 53,241 points.

Global markets were calmer, with emerging markets taking a breather from the
risk-off sentiment on expectations that Saudi Arabia will acknowledge the
death of a missing journalist.

Banks were 3.74 percent higher on the back of a stronger rand, led by
FirstRand which jumped 4.74 percent to 63.70 rand.

Kenya

Kenyan shilling firm on investor inflows

(Reuters) - The Kenyan shilling firmed against the dollar on Tuesday,
supported by inflows from offshore investors buying government debt, traders
said.  

At 0933 GMT, commercial banks quoted the shilling at 100.80/90 per dollar,
compared with 100.90/101.00 at Monday's close. 

       <mailto:info at bulls.co.zw> 

Asia

Asia shares echo Wall St cheer, China more muted

(Reuters) - Asian equities got some welcome relief on Wednesday after upbeat
U.S. earnings reports drove a rebound on Wall Street and helped restore a
little faith in emerging market stocks and currencies.

Japan’s Nikkei galloped out of the gates with a rise of 1.7 percent, but
still has a way to go to recoup the past week’s losses.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.7 percent
and South Korea 1.2 percent, while spreadbetters pointed to opening gains
for the major European bourses.

Chinese blue chips, however, lagged with a gain of only 0.2 percent and
threatened to sour the mood.

On Wall Street, the three major indexes had tallied their biggest one-day
percentage gains since March. The Dow jumped 2.17 percent, while the S&P 500
climbed 2.15 percent and the Nasdaq 2.89 percent.

Netflix Inc shot 12 percent higher after the close as its results far
outstripped market expectations with 7 million streaming customers added.

The blockbuster outcome sent shares of Alphabet Inc , Facebook Inc and
Amazon.com Inc up about 1 percent in extended trade.

The four make up the so-called FANG group of high-growth companies that in
recent months has lost some of its momentum following market-leading gains
in recent years.

The U.S. economic news was also robust, notably a sharp rise in job openings
to a fresh all-time high.

MY BIGGEST THREAT

All this cheer favoured beaten-down currencies in emerging markets while
taking some steam out of the safe-haven yen. The MSCI Emerging Market
Currency Index rose for a third straight session.

The latest survey of global fund managers by BofA Merrill Lynch found they
saw emerging market currencies as the most undervalued ever against the U.S.
dollar.

The dollar itself was up on the yen at 112.35 but flat on the euro at
$1.1570. Against a basket of currencies, the dollar idled at 95.123 having
touched a two-week trough overnight.

Not helping the dollar was fresh criticism of the Federal Reserve from U.S.
President Donald Trump, who told Fox Business Network: “My biggest threat is
the Fed.”

Trump has recently castigated the central bank for raising interest rates.

Minutes of the last Fed meeting are due out later Wednesday and expected to
show policy makers remain committed to further gradual tightening.

In commodity markets, gold held at $1,221.11 and just short of recent
11-week highs.

Oil prices edged up as industry data showed a surprise decline in U.S. crude
inventories. There was also a risk that crude supply from the Middle East
could be disrupted by looming U.S. sanctions on Iran and growing tensions
with top exporter Saudi Arabia.

U.S. crude rose 9 cents to $72.01, while Brent crude added 4 cents to $81.45
a barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Shanghai copper slips for 2nd day on lukewarm trade

(Reuters) - Shanghai copper extended losses into a second session on
Wednesday, curbed by tepid spot trading amid increasing stockpiles at the
futures exchange.

Stocks of cash-settled copper futures warrants in China increased for a
fourth straight session on Tuesday, adding 2,887 tonnes to 58,230 tonnes,
according data from the Shanghai Futures Exchange (ShFE).

Open interest of the most active Shanghai copper futures, the number of
outstanding contracts held by traders and a gauge of liquidity, fell to
165,308 lots on Wednesday, the lowest since Sept.4. One lot equals 5 tonnes.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange slid 0.4 percent to $6,210
a tonne by 0250 GMT, and the copper contract for November delivery on the
ShFE dipped 0.6 percent to 50,190 yuan ($7,250.38) a tonne.

* TRADE: Chinese exporters are mostly confident they can weather a trade war
with the United States, but worry about collateral damage it might cause
throughout the global economy, according to a Reuters poll of participants
at China’s largest trade fair.

* CHINA DEBT: Off-balance-sheet borrowings by Chinese local governments
could be as high as 40 trillion yuan ($5.78 trillion) and amount to “a debt
iceberg with titanic credit risks”, S&P Global Ratings said in a report on
Tuesday.

* BHP: The world’s biggest miner, BHP, said on Wednesday its first-quarter
iron ore production rose 8 percent on strong Chinese demand for high-grade
ore, but cut its fiscal 2019 guidance for copper production, citing outages
at key mines.

* COPPER PROJECT: Chile’s state copper miner, Codelco, has submitted an
environmental impact assessment of its plans to overhaul its aging Salvador
deposit that would sharply increase its production and extend its life by 40
years.

* COPPER TAX: Zambia’s proposed mining tax increases will hit mineral
exploration and production in Africa’s second biggest copper producer, said
companies involved in exploration.

* For the top stories in metals and other news, click or

MARKETS NEWS:

* Asian equities got some much needed relief on Wednesday after upbeat U.S.
earnings reports drove a rebound on Wall Street and helped restore a little
confidence in emerging market stocks and currencies.

ARBS ($1 = 6.9224 Chinese yuan) 

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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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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