Bulls n Bears Daily Market Commentary : 22 October 2018

Tue Oct 23 07:21:33 CAT 2018

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Bulls n Bears Daily Market Commentary : 22 October 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $3,145,727.40 with foreign buys at $1,839,711.06 and foreign
sales were $2,064,141.88. Total trades were 124.

The All Share index opened the week in green after gaining 1.18 points  to
close at 182.11 points. SEEDCO INTERNATIONAL  added another $0.2100 to close
$1.2600, INNSCOR  increased by $0.1847 to end at $1.9872 and PPC was up by
$0.0300 to settle at $1.5503. AFRICAN SUN  also gained $0.0200 to $0.1600
and OK ZIMBABWE  was $0.0033 higher at $0.3348.

Trading in the negative was OLD MUTUAL which dropped $0.0635 to $8.1543,
FBCH   traded $0.0393 weaker at $0.3107 and FIRST MUTUAL HOLDINGS  decreased
by $0.0223 to settle at $0.2200. DELTA  also dropped $0.0131 to $3.5369 and
AXIA was $0.0077 down at $0.4422.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South Africa's rand, stocks swept up in EM rally

(Reuters) - South Africa’s rand and shares firmed on Monday as emerging
markets were boosted by hopes of more economic stimulus from China.

At 1530 GMT the rand was 0.83 percent firmer at 14.2800 per dollar, a little
softer than a session-best 14.2575 that brought key resistance mark within
touching distance.

Promises of tax cuts and coordinated official statements of support for
stock markets in the world’s second-largest economy saw Chinese shares stage
their biggest one-day surge in three years, pulling other emerging markets
higher.

South Africa’s new finance Minister Tito Mboweni delivers his maiden budget
on Wednesday amid a backdrop of recession, ballooning debt and high
unemployment.

A lingering emerging market selloff fuelled by political ructions in places
like Turkey and Brazil also threatens to overshadow what is seen as a
showcase event for President Cyril Ramaphosa economic recovery plan.

In bonds, the yield on the benchmark government bond due in 2026 was down
4.5 basis points to 9.155 percent.

The Johannesburg All-Share index rose 0.21 percent to 52,204 points, while
the Top-40 index strengthened 0.3 percent to 46,034 points.

A rise in China’s technology giant Tencent equates to a rise in market
heavy-weight Naspers, which owns 31 percent of Tencent.

The e-commerce and pay-TV group closed 3.20 percent higher to 2,810 rand.

Platinum miner Lonmin rose 2.27 percent to 10.34 rand after it said it
signed a $200 million metal purchase agreement, which will provide it better
liquidity as it awaits the closure of Sibanye-Stillwater’s takeover of the
company.

Uganda

Uganda shilling unchanged as commercial bank, importer demand slumps

(Reuters) - The Ugandan shilling        was unchanged on Monday as demand
for the dollar from commercial banks and merchandise importers slumped,
traders said.  

At 0928 GMT, commercial banks quoted the shilling at 3,755/3,765, same level
as Friday's close. 

       <mailto:info at bulls.co.zw> 

Asia

Asian shares buckle to European woes, Saudi anxieties

(Reuters) - Asian shares fell on Tuesday as earnings season nerves in the
U.S. dented Wall Street, while a cocktail of negative drivers from Saudi
Arabia’s diplomatic isolation to concerns over Italy’s budget and Brexit
talks depressed sentiment.

Selling in the region erased gains made in the previous two sessions’ rally,
which were led by China stimulus hopes, with the MSCI’s broadest index of
Asia-Pacific shares outside Japan dropping 1.3 percent.

South Korea’s Kospi fell as much as 2.5 percent and was on course to hit a
1-1/2-year low. In Japan, the Nikkei fell 2.3 percent.

U.S. stock futures dropped 0.8 percent in early Tuesday trade. On Monday the
S&P 500 lost 0.43 percent as investors kept a wary eye on earnings amid
global growth worries. Enthusiasm over some of the upbeat results was also
tempered by the growing political uncertainty around the world.

U.S. President Donald Trump said on Monday he was not satisfied with what he
had heard from Saudi Arabia about the killing of journalist Jamal Khashoggi
at its consulate in Turkey.

Trump has expressed reluctance to punish the Saudis economically. But while
Saudi Arabia has sought to shield its powerful crown prince from the
killing, many officials have cast doubt on Riyadh’s narrative.

Several countries, including Germany, Britain, France and Turkey, have
pressed Saudi Arabia to provide all the facts.

An immediate market focus is on Turkish President Tayyip Erdogan, who said
he will release information about the investigation in a speech on Tuesday.

Any signs of instability in Saudi Arabia, a major oil producer as well as a
big investor in financial markets, could have wide-ranging repercussions.

In Europe, Italy told the European Commission on Monday it would stick to
its contested 2019 budget plans in defiance of EU fiscal rules.

The European Commision will decide on its response on Tuesday.

The euro traded at $1.1466, having lost 0.44 percent the previous day to
edge near its Oct. 9 low of $1.14325, its lowest level since mid-August.

Although Italian bond prices rose on relief after Moody’s did not slap on a
negative outlook as the market had feared, European stock markets were less
enthused.

France’s CAC closed at the lowest level in more than a year while Italian
shares hit 1-1/2-year lows and Spanish shares ended at their weakest level
since late 2016.

The British pound stood at $1.2965, hovering just above this month’s low of
$1.2922 on fears the Irish border issue and disagreements within Britain’s
ruling Conservatives over Brexit could see Prime Minister Theresa May face a
serious leadership challenge.

The yen eased to 112.82 per dollar, touching its lowest levels in about two
weeks.

The yuan was little changed but stood near Monday’s 21-month low of 6.9445
per dollar in the onshore trade on expectations China will pursue looser
monetary policy to cope with pressure from U.S. President Donald Trump on
tariffs.

Chinese shares also lost steam after two days of strong gains following
guidance from Chinese officials, including Vice Premier Liu He, to major
investors to support the sagging stock market.

Oil prices fell on Tuesday after Saudi Arabia pledged to play a “responsible
role” in energy markets, although sentiment remained nervous in the run-up
to U.S. sanctions against Iran’s crude exports that start next month.

Saudi Arabia has pledged to keep markets supplied despite its increasing
isolation over Khashoggi’s killing, easing fears Riyadh may use oil
production as its diplomatic weapons.

Front-month Brent crude oil futures were at $79.60 a barrel, down 0.3
percent.

U.S. West Texas Intermediate (WTI) crude futures were at $69.22 a barrel,
dropping 0.2 percent.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Oil prices fall as Saudi Arabia pledges to play 'responsible role' in market

(Reuters) - Oil prices fell on Tuesday after Saudi Arabia pledged to play a
“responsible role” in energy markets, although sentiment remained nervous in
the run-up to U.S. sanctions against Iran’s crude exports that start next
month.

Front-month Brent crude oil futures were at $79.52 a barrel at 0318 GMT,
down 31 cents, or 0.4 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $69.16 a barrel,
dropping 20 cents, or 0.3 percent, from their last settlement.

U.S. sanctions against Iran’s oil exports are due to kick off on Nov. 4,
with Washington pressuring governments and companies worldwide to fall in
line and cut imports from the Middle Eastern nation.

Top crude oil exporter Saudi Arabia has pledged to keep markets supplied
despite its increasing isolation over the killing of Saudi journalist Jamal
Khashoggi.

There has been concern that just as markets tighten on the back of the U.S.
sanctions against Iran, Saudi Arabia could cut crude supply in retaliation
for potential sanctions against it over the Khashoggi killing.

Trying to dismiss such worries, Saudi energy minister Khalid al-Falih said
on Monday that “there is no intention” for such action, and that Saudi
Arabia would play a “constructive and responsible role” in world energy
markets.

But not everyone is as bullish. Shipping brokerage Eastport on Tuesday said
crude prices were “widely expected to decline in coming months, as rising
production in the U.S. offsets increasing global demand”.

U.S. crude oil production C-OUT-T-EIA has climbed by almost a third since
mid-2016 to around 11 million barrels per day, and rising drilling activity
points to further increases.

Reflecting a cautious outlook, traders have been curbing their exposure to
oil markets by shutting long positions in crude futures, with fund managers
cutting their combined positions by a total of 187 million barrels in the
last three weeks, according to exchange and regulatory data.

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.

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