Bulls n Bears Daily Market Commentary : 04 September 2018

Wed Sep 5 08:43:42 CAT 2018

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Bulls n Bears Daily Market Commentary : 04 September 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $2,831,000.76 with foreign buys at $62,456.08 and foreign
sales were $1,734,292.71. Total trades were 92.

The All Share index retreated 1.58 points to settle at 116.49 points. SEEDCO
lost a hefty $0.3799 to close at $2.2000, INNSCOR  lost $0.0553 to $1.4122
while  ECONET shed $0.0266 to trade at $1.2221. OK ZIMBABWE lost $0.0140 to
end at $0.2205.

Gains were seen in OLD MUTUAL  which added $0.0479 to close at $5.6522 and
. DELTA advanced by $0.0121 to $2.2605. RIOZIM  rose by $0.0100 to close at
$1.4000, AFRICAN SUN   gained $0.0098 to end at $0.0800 while ZIMPAPERS was
$0.0024 stronger at $0.0180.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South African rand plunges on recession shock, stocks falter

(Reuters) - South Africa’s rand fell as much as three percent on Tuesday as
the economy slipped into a technical recession in the second quarter and
missed economists’ expectations.

At 1600 GMT, the rand traded 2.82 percent weaker at 15.3000 versus the
dollar.

The economy contracted by 0.7 percent in the second quarter, pushing the
country into recession after a revised 2.6 percent contraction in the first
quarter, data from Statistics South Africa showed.

The contraction was contrary to a Reuters poll of economists predicting a
0.6 percent expansion.

Bonds were also weaker, with the yield on the benchmark government debt due
in 2026 up 20.5 basis points to 9,21 percent, its highest since June 20,
while sovereign dollar bonds sold off across the curve.

On the bourse, the blue chip Top-40 index fell 1.42 percent to 51,691 points
while the All-Share index was down 1.4 percent to 57,892 points.

The biggest faller was telecommunications operator MTN Group’s., whose
shares plunged 17.05 percent to close at 72 rand after it reported it had
been slapped with a $2 billion tax bill by Nigerian authorities.

Further losses were seen in Aspen Pharmacare, Africa’s biggest drugmaker,
which was down 7.49 percent to 270.86 rand. It flagged lower revenue for the
second half of its financial year, impacted by the stronger rand.

Uganda

Ugandan shilling weaker on uptick in interbank dollar demand

(Reuters) - The Ugandan shilling weakened on Tuesday on the back of an
uptick in demand for hard currency mainly in the interbank market.

At 1137 GMT, commercial banks quoted the shilling at 3,770/3,780, compared
with Monday’s close of 3,773.

       <mailto:info at bulls.co.zw> 

America

Stocks fall, dollar supported as trade woes in spotlight

(Reuters) - Stock markets in Asia tracked their global peers lower while the
safe-haven dollar hovered near a two-week high on Wednesday as heightened
worries over international trade conflicts curbed investor appetite for
riskier assets.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.5
percent.

The Shanghai Composite Index retreated 0.4 percent.

Australian stocks lost 0.75 percent, South Korea’s KOSPI dropped 0.1 percent
and Japan’s Nikkei shed 0.35 percent.

U.S. stocks had slipped on Tuesday as a drop in heavyweights Facebook and
Nike added to worries over trade negotiations between the United States and
other major economies.

MSCI’s gauge of stocks across the globe shed about 0.5 percent the previous
day.

Discussions between the United States and Canada were expected to resume on
Wednesday after the last round ended on Friday with no deal to revamp the
North American Free Trade Agreement (NAFTA), cooling investor confidence.

Keeping investors nervous is the threat of fresh U.S tariffs on another $200
billion worth of Chinese goods that could take effect after a public comment
period ends on Thursday.

Emerging markets stocks and currencies faced their latest round of pressure
with news that South Africa had slipped into recession and concerns brewing
about inflation in Turkey.

Argentina’s peso finished the day down over 2 percent on Tuesday. The peso
fell although U.S. President Donald Trump voiced support for Argentine
President Mauricio Macri and his efforts to win IMF financing in the wake of
a deepening economic crisis.

Argentine Economy Minister Nicolas Dujovne met International Monetary Fund
(IMF) chief Christine Lagarde in Washington on Tuesday and both said they
were working together to improve a $50 billion standby finance deal agreed
with the IMF’s executive board in June.

With investors avoiding emerging market currencies, the dollar was supported
thanks to its safe-haven appeal.

The greenback extended its overnight rise against the yen to touch a near
one-week high of 111.71 yen.

The dollar index, which measures the greenback against a basket of six
currencies, was a touch lower at 95.360 but in close reach of a two-week
high of 95.737 set on Tuesday.

The euro was 0.15 percent higher at $1.1599 following a loss of 0.35 percent
on Tuesday.

The dollar had also drawn strength on Tuesday from upbeat U.S. indicators
supporting the case for further interest rate hikes by the Federal Reserve.

Data on Tuesday showed U.S. manufacturing activity accelerated to more than
a 14-year high in August, boosted by a surge in new orders.

The Australian dollar was up 0.4 percent at $0.7204 following
stronger-than-expected domestic second quarter GDP data. The Aussie managed
to pull away from $0.7157, its lowest since May 2016 plumbed on Tuesday.

China’s yuan was a shade firmer in onshore trading at 6.8469 per dollar
after losing 0.25 percent the previous day.

Crude oil prices dipped, weighed by a stronger dollar which tends to burden
non-U.S. buyers of dollar-denominated commodities.

Brent crude futures were down 0.2 percent at $78.03 per barrel after
brushing a three-month peak of $79.72 on Tuesday. U.S. crude futures were
down 0.6 percent at $69.46 per barrel.

Oil prices partly reversed a strong jump from the previous day, as the
impact of a tropical storm on U.S. Gulf coast production was not as strong
as initially expected.

Prices jumped the previous day as dozens of U.S. oil and gas platforms in
the Gulf of Mexico were shut in anticipation of tropical storm Gordon
hitting the region.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Shanghai copper slumps to 14-month low amid trade tensions

(Reuters) - Shanghai copper hit its lowest in more than a year overnight and
was down for a fifth straight day on Wednesday, tracking a 2.6 percent drop
in London copper as U.S.-China trade tensions continued to weigh on metal
prices.

Open interest in Shanghai copper, a measure of market liquidity, on Tuesday
hit its highest since July 18, as futures  brokerages added a total of 3,047
lots to their short positionson the October contract. Shorts outnumber longs
on every contract until at least January.

The Shanghai copper futures curve remains in backwardation till January, a
sign of higher immediate demand, with China  copper premiums SMM-CUYP-CN
still near a 22-month high.    

All other Shanghai base metals dropped with the exception of tin, which eked
out a 0.5 percent rise.    

    FUNDAMENTALS

* SHFE COPPER: The most-traded October copper contract on the Shanghai
Futures Exchange fell as much as 2 percent in the night session to 47,040
yuan ($6,881.72) a tonne, its lowest since June 2017. It was trading down
1.4 percent at 47,320 yuan a tonne by the mid-session interval.

* LME COPPER: Three-month copper on the London Metal  Exchange snapped a
five-day losing streak to trade up 0.5 percent at $5,844 a tonne, as of 0400
GMT, as the dollar index edged down from a two-week high, making metals
slightly cheaper for holders of other currencies.

* OTHER METALS: Shanghai nickel dropped 2.1  percent, after hitting its
lowest since April 24 overnight,while zinc, which is down 17.3 percent
year-to-date, lost 2.2 percent and lead slumped 1.7 percent.

* WAREHOUSING: Some warehouse firms want the London Metal Exchange to change
its rules for delivering material so as to allow longer queues and boost
revenues undermined by falling

stocks, sources familiar with the matter said. 

* ALUMINA: A vote by striking workers at Alcoa's giant west Australian
operations will close on Thursday, with the union anticipating a strong "no"
vote that could prolong the four-week old strike.

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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