Bulls n Bears Daily Market Commentary : 03 September 2018

Mon Sep 3 19:22:38 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 : 03 September 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $2,160,757.98 with foreign buys at $1,144,445.36 and foreign
sales were $501,730.48. Total trades were 43.

The All Share index continued in the upward trend gaining 0.74 points to
settle at 118.07 points. OLD MUTUAL  put on a further $0.0999 to end at
$5.6043, DELTA  rose by $0.0466 to $2.2484 whilst MASIMBA  and NMBZ HOLDINGS
LIMITED  were each $0.0050 higher to close at $0.0600 and $0.1270. ECONET
put on $0.0031 to settle at $1.2487 while  SIMBISA   closed at $0.4800
following a $0.0024 increase. 

PADENGA was the only lame duck losing $0.0067 to trade at $0.6500.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Ghana

Ghana considering $50 bln century bond, president says

(Reuters) - Ghana may issue a 100-year $50 billion bond as part of a
long-term industrialisation plan that aims to wean the West African country
off aid, its president said during a meeting with Chinese President Xi
Jinping.

The government, in power since January 2017, has said it needs about $2
billion a year for infrastructure spending. Ghana, which exports cocoa, gold
and oil, is in its final year of a $918 million IMF credit programme.

President Nana Akufo-Addo said during a meeting with Xi in Beijing on
Sunday: “The Ministry of Finance and economists in Ghana are looking at
floating a $50 billion century bond. This will provide us with the resources
to finance our infrastructural and industrial development.”

The announcement drew scepticism in financial markets, with analysts
expressing doubts over Ghana’s capacity to undertake such a transaction.

Deputy Finance Finister Charles Adu Boahen told Reuters discussions on the
bond were at an early stage and that the plan was to raise the amount over a
period and possibly in different currencies based on investor appetite and
planned uses.

Ghana, which exports cocoa, gold and oil, is in its final year of a $918
million deal with the International Monetary Fund to narrow its deficit,
spur growth and cut debt, which ratings agency Moody’s estimates will rise
above 70 percent of gross domestic product by December.

Akufo-Addo’s delegation also finalised a deal with Sinohydro Corp Ltd to
provide $2 billion for government road and railway projects in exchange for
refined Ghanaian bauxite, Nkrumah said.

The two countries also finalised a deal between China Harbour Engineering
Company and Africa-focused private equity firm Helios on building a $350
million liquefied natural gas terminal in Ghana’s eastern Tema port. 

South Africa

South Africa's rand weaker on EM sell-off, stocks flat

(Reuters) - South Africa’s rand was more than one percent lower on Monday as
global emerging markets remained on the back foot, while stocks were flat in
tandem with global markets.

At 1613 GMT the rand was 1.12 percent weaker at 14.8550 per dollar, after
hitting a low of 14.9400.

Turkey triggered a sell-off in emerging market currencies as risk aversion
gripped emerging markets.

Turkey’s central bank signalled on Monday it could take action, seen as
presaging an interest rate increase at the bank’s next meeting on Sept. 13.
Analysts said the central bank may have inadvertently set financial markets
up for disappointment if it doesn’t deliver a hefty increase.

Bonds were also weaker, with the yield up on the benchmark government debt
due in 2026 down 5 basis points to 9,005 percent.

A holiday in the United States muted trading activity in South African
markets, analysts said.

On the bourse, the Johannesburg all-share index rose marginally by 0.7
percent to 58,711 points while the blue chip top-40 index was up 0.05
percent to 52,435 points.

“It is the beginning of a new month and we very often get fresh money coming
into the fund managers. This could be pushing the market slightly higher but
volumes are still thin,” said Greg Davies, trader at Cratos Capital.

Hotel and casino group Sun International closed up 7.10 percent after
stronger than expected half-year profits.

Weighing on further gains, market heavyweight Naspers fell 1.86 percent to
2,200 rand as Chinese technology giant Tencent, in which Naspers has a 31
percent stake, extended its losses to 2.12 percent after the government on
Friday intensified crackdown on online gaming. 

       <mailto:info at bulls.co.zw> 

America

Dollar holds firm on escalating global trade tensions

(Reuters) - The dollar held firm on Monday, benefiting from its status as a
safe haven as investors took the impasse in U.S.-Canada trade negotiations
as a bad sign for the even trickier talks between the United States and
China.

The dollar index against a basket of six currencies inched a tad higher to
95.163 as of 0325 GMT on Monday, building on gains made during the past two
sessions.

On Saturday, U.S. President Donald Trump said there was no need to keep
Canada in the North American Free Trade Agreement and warned Congress not to
meddle with the trade talks or he would terminate the trilateral trade pact
altogether.

Trump on Friday had notified Congress of his intent to sign a bilateral deal
with Mexico after talks between Washington and Ottawa soured.

Fears of a prolonged trade war were heightened last week after Bloomberg
News reported that Trump has told his aides he is ready to impose tariffs on
an additional $200 billion worth of imports from China as soon as a public
comment period on the plan ends on Thursday. In that

In an interview with Bloomberg, Trump also threatened to withdraw from the
World Trade Organization if “they don’t shape up,” a move that could
undermine one of the foundations of the modern global trading system.

The euro was down about 0.1 percent at $1.1597 as of 0330 GMT, extending its
slide of the past two sessions.

The yen advanced nearly 0.2 percent to 110.915 yen. The Japanese currency,
which like the dollar is a perceived safe haven, moved closer to a
1-1/2-week high of 110.685 reached on Friday.

The pound lost about 0.3 percent to $1.2928 after the EU’s chief Brexit
negotiator Michel Barnier warned he is strongly opposed to the U.K.
government’s so-called Chequers proposals on future trade.

Sterling, which has come off from a four-week peak of $1.3043 hit on
Thursday, dipped as low as $1.2892 before retracing some losses as optimism
over Brexit faded.

The Australian dollar was 0.1 percent lower at $0.7187 on trade worries and
weak retail sales figures. The Aussie recouped some losses after dipping to
a fresh 20-month low of $0.71655 during the day.

China’s offshore yuan traded in a tight range, weakening somewhat to 6.8478
yuan per dollar.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Nickel slides to seven-month low on concern over tariffs and China

(Reuters) - Nickel sank to its lowest in more than seven months on Monday,
weighed down by worries about China’s economy, escalating trade tensions and
weak steel prices.

Manufacturing activity in China, the world’s biggest consumer of industrial
metals, grew last month at its slowest rate in more than a year, with export
orders shrinking for a fifth month and employers cutting more staff, the
Caixin/Markit Manufacturing Purchasing Managers’ Index showed.

Also weighing on nickel, mainly used to make stainless steel, was another
fall in construction steel rebar prices in Shanghai after their weakest
weekly performance since late March.

Benchmark nickel on the London Metal Exchange tumbled to $12,695 a tonne,
its lowest since Jan. 23, before recovering to $12,790 by the close of
open-outcry trading. That represented a decline of 0.1 percent, adding to
Friday’s 3.7 percent fall.

* COPPER: LME copper slipped to its weakest since Aug. 23 at $5,950.50 a
tonne before paring losses to end at $5,967, down 0.1 percent. Prices on
Friday fell 1.5 percent to take August’s decline to 5.5 percent. It was the
biggest monthly drop in two years and the third monthly fall in a row.

* TRADE DISPUTES: Historically, a 1 percentage point decline in global trade
growth has reduced copper prices by about 4 percent, analyst Michael Widmer
at Bank of America Merrill Lynch said in a note.

“If global trade growth fell from April’s 4.4 percent YoY to the 2015/16
average of 1.7 percent, copper prices could correct by 10.8 percent YoY to
$5,400/t.”

* ZINC: Three-month zinc rose 0.2 percent to finish at $2,463 a tonne. “We
note the sharp rise in reported Shanghai zinc CIF premiums from $160/tonne
to $230,” Alastair Munro, of broker Marex Spectron, said in a note.

* LEAD: LME lead was the strongest performer, climbing 2.1 percent to close
at $2,121 a tonne as inventories continued to fall. It touched an intraday
peak of $2,131.50, the strongest since Aug. 9.

On-warrant LME lead stocks MPBSTX-TOTAL fell by 1,050 tonnes to 59,050
tonnes, the lowest level since June 2013, data showed on Monday.

* PRICES: Aluminium shed 1.3 percent to $2,097 a tonne and tin dropped 0.8
percent to $18,840.

Gold edges lower as trade tensions weigh

(Reuters) - Gold prices eased slightly on Monday as the dollar held near a
one-week high on worries over an escalation in trade conflicts between the
United States and other countries.

A firmer U.S. currency makes dollar-priced gold more expensive for holders
of other currencies, potentially sapping consumption. Safe-haven demand for
gold has this year been overshadowed by the metal’s relationship with the
greenback.

U.S. President Donald Trump said on Saturday that there was no need to keep
Canada in the North American Free Trade Agreement and warned Congress not to
meddle with negotiations or he would terminate the trilateral pact, which
also includes Mexico.

Meanwhile, Bloomberg News reported that Trump was prepared to ramp up a
trade war with China and had told aides he was ready to impose tariffs on
$200 billion more in Chinese imports as soon as a public comment period on
the plan ends on Thursday.

Gold prices are down about 8 percent this year against a backdrop of rising
U.S. interest rates, trade disputes and the Turkish currency crisis, with
investors parking their money in the dollar.

Spot gold was down 0.1 percent at $1,199.56 an ounce at 1350 GMT, having
touched an intraday low of $1,195.36.

U.S. gold futures were flat at $1,206.70 an ounce.

The dollar index, which measures the greenback against a basket of
currencies, was barely changed at 95.171.

If gold recovers to $1,210 there is a good chance of further rebounds to
$1,230, said ActivTrades chief analyst Carlo Alberto De Casa. But a decline
below $1,200 would see prices test $1,180 and the following support placed
at $1,160, he added.

There was some indication that the bearish sentiment in the market has
started to shift slightly, with net short positions in COMEX gold contracts
in the week to Aug. 28 showing a decline for the first time in more than a
month.

U.S. economic data this week, including a manufacturing survey on Tuesday
and an employment report on Friday, could influence gold’s moves as
investors look for clues on the pace of U.S. interest rate increases.

Meanwhile, liquidations continued in SPDR Gold, the world’s largest
gold-backed exchange-traded fund. Holdings have fallen by more than 13
percent since peaking in late April.

Spot silver was flat at $14.50 an ounce after touching its lowest in more
than two weeks at $14.37.

Platinum rose 0.5 percent to $786.50 an ounce, while palladium fell 0.5
percent to $976.25 after hitting a 10-week high on Friday at $984.97. 

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/20180903/8af23d14/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/20180903/8af23d14/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 31067 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180903/8af23d14/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29401 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180903/8af23d14/attachment-0008.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/20180903/8af23d14/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 159128 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180903/8af23d14/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180903/8af23d14/attachment-0011.jpg>