Bulls n Bears Daily Market Commentary : 06 September 2018

Thu Sep 6 19:57:54 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 : 06 September 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $9,066,917.83 with foreign buys at $4,817,134.18 and foreign
sales were $3,690,527.00. Total trades were 200.

The All Share index rebounded 2.06 points  to close at 118.42 points as
heavyweights gained ground. OLD MUTUAL rose by $0.1308 to trade at $5.8404,
DELTA  rose by $0.1289 to $2.3914 and INNSCOR  went up by $0.0300 to end at
$1.4500. FBC HOLDINGS LIMITED gained $0.0214 to close at $0.2414 while OK
ZIMBABWE  was $0.0185 higher at $0.2400.

BRITISH AMERICAN TOBACCO  lost a hefty $1.0000 to trade at $27.0000, SEEDCO
shed $0.0200 to settle at $2.1800 while STARAFRICACORPORATION came off
$0.0020 to close at $0.0080. FIRST MUTUAL HOLDINGS  was $0.0005 weaker at
$0.1645.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Uganda

Ugandan shilling a touch firmer on charity dollar flows

(Reuters) - The Ugandan shilling was a touch firmer on Thursday, mainly
drawing support from hard currency inflows from non-governmental
organisations, traders said.

At 0924 GMT, commercial banks quoted the shilling at 3,772/3,782, stronger
than Wednesday’s close 3,780/3,790.

South  Africa

Rand firms after South African current account narrows sharply

(Reuters) - The South African rand firmed on Thursday after data showed the
country’s current account deficit was narrowing more than expected and as
other emerging market currencies picked up.

At 1545 GMT the rand was 0.78 percent stronger at 15.3150 to the dollar,
after hitting a high of 15.2425 earlier in the session.

The current account deficit narrowed to 3.3 percent of GDP in the second
quarter, from a revised 4.6 percent of GDP in the first quarter. A Reuters
poll had forecast a deficit of 3.4 percent of GDP.

Moody’s on Thursday cut its 2018 economic growth forecast for South Africa
to between 0.7 and 1 percent, from 1.6 percent, and will review its credit
rating on the country in October.

The yield on South Africa’s benchmark government bond maturing in 2026 rose
1 basis point to 9.2 percent, reflecting weaker bond prices.

On the stock market, banks rebounded after being hit by data on Tuesday that
showed South Africa had tipped into recession.

The banking index rose by 2.7 percent.

That helped the blue chip top 40 index rise 0.12 percent to 50,893 while the
all-share index edged up just 0.05 percent to 57,131 points.

FirstRand, South Africa’s largest lender, closed 3.9 percent higher after it
beat estimates with a 12 percent rise in annual profit on Thursday, helped
by income and deposit fees.

South Africa’s biggest insurer Sanlam was up 0.17 percent after reporting a
10 percent rise in half-year profit as a stronger showing at its offshore
businesses offset a weak performance at home.

       <mailto:info at bulls.co.zw> 

America

World stocks fall for fifth straight day on trade fears

(Reuters) - World shares fell for a fifth straight day on Thursday as
investors braced for another escalation in a trade war between the United
States and China, while emerging-market currencies paused near 15-month
lows.

The MSCI All-Country World Index, which tracks shares in 47 countries, was
down 0.1 percent. Stocks in Europe opened lower, with the pan-European STOXX
600 index losing 0.1 percent.

Wall Street was set to open lower.

The main worry for investors was the end of a public consultation period on
Thursday for U.S. President Donald Trump’s plan to impose tariffs on an
additional $200 billion of Chinese goods.

Trump said on Wednesday trade talks with China would continue but the United
States was not yet ready to come to an agreement.

Earlier in Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan
dropped more than 1 percent to a one-year trough of 515.24 points. It was
last down 0.7 percent.

Japan’s Nikkei slipped 0.4 percent and Australian shares dropped 1.1
percent. China’s blue-chip index fell 1.1 percent, Hong Kong’s Hang Seng
index 1 percent.

Further weighing on sentiment, data out earlier showed German industrial
orders fell unexpectedly in July, another sign that factories in Europe’s
largest economy are feeling the bite of protectionist trade politics.

Investors are also watching for developments as the United States and Canada
resume talks about revamping the North American Free Trade Agreement. Canada
insisted there was room to salvage the pact despite few signs a deal was
imminent .

The dollar, considered a safe haven at times of turmoil because of its
status as the world’s reserve currency, has generally benefited from the
trade conflicts. It has gained 8 percent since the end of March, with
currencies in emerging markets taking a hammering.

But measured against a basket of currencies, the dollar retreated from the
two-week highs it reached earlier this week to stand 0.1 percent lower at
95.09.

The euro was a tad stronger at $1.1628.

Sterling held on to gains made on Wednesday as investors positioned for a
favourable Brexit outcome. It was last up 0.1 percent at $1.2920.

Emerging markets have been hit by the financial crises in Argentina and
Turkey. In Indonesia, the central bank has had to intervene several times in
recent weeks to stem the rupiah’s slide.

Indonesia’s benchmark stock index was last up nearly 1.6 percent while the
rupiah also gained a tad.

MSCI’s index of emerging market currencies, which had earlier paused near
15-month lows, was up 0.1 percent on the day after two straight days of
heavy declines.

But analysts warned of further losses because investors were no longer
looking at Argentina, Turkey and South Africa as isolated cases. They were
fretting over the impact of rising U.S. inflation and interest rates on
heavily indebted economies.

The emerging market equity index has been crunched in the past month or so,
falling for six consecutive sessions and down more than 3 percent this week.

A range of factors have hit the stocks: policy tightening by the U.S.
Federal Reserve, the crises in Turkey and Argentina, the Sino-U.S. trade war
and broader concerns about China’s economy.

In commodities, oil prices rose, encouraged by a weaker dollar and evidence
of strong U.S. fuel demand. U.S. crude rose 0.1 percent to $68.79 a barrel.
Brent was last up 0.3 percent at $77.50.

Gold was stronger with spot gold up 0.8 percent at $1,205.87 an ounce.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Rusal's August aluminium exports up 7 percent from July - Ifax

(Reuters) - Russian aluminium producer Rusal , under U.S. sanctions since
April, increased its aluminium exports by 7 percent in August compared to
the previous month, Interfax news agency said.

Rusal, the world’s second-largest aluminium producer, saw its exports and
supply chain crippled after Washington put the company and co-owner Oleg
Deripaska on a blacklist, seeking to punish Russia for alleged meddling in
U.S. elections.

U.S. customers must wind down business with the company by Oct. 23,
according to the sanctions.

But aluminium shipments continue in the meantime and Rusal exported 281,000
tonnes last month, Interfax said, citing data from Russian Railways, the
state company that operates Russia’s vast railway network.

Between January and August, Rusal’s aluminium exports totalled 1.81 million
tonnes, up 18 percent compared to the same period the previous year,
Interfax said, citing the data.

Rusal contested the numbers.

Rusal declined to provide its own figures on aluminium exports for August.

Interfax gave no further details about its data. The data probably refers to
deliveries of aluminium from Rusal’s plants by rail to port stations, a
source close to Rusal said earlier, indicating that the figures do not
explain whether the aluminium subsequently crossed the border or was
stockpiled near it.

Last year, Rusal, in which Deripaska’s En+ is a controlling shareholder,
sold 3.95 million tonnes of aluminium, of which 42 percent was shipped to
Europe. 

Short-covering by funds fuels copper rally

(Reuters) - Copper prices rose on Thursday due to funds covering short
positions and recent dollar weakness, but significant gains are unlikely due
to an escalating trade dispute between the United States and China.

Benchmark copper on the London Metal Exchange ended up 0.9 percent at
$5,927.5 a tonne in official rings.

That is a recovery from the 14-month low of $5,773 a tonne hit on August 15
for the metal used in the power and construction industries, but prices are
still down about 20 percent since a 4-1/2 year high of $7,348 hit in June.

DOLLAR: A lower U.S. currency makes dollar-denominated metals cheaper for
holders of other currencies, which could boost demand. This relationship is
used by funds to generate buy and sell signals from numerical models.

TRADE: U.S. President Donald Trump has said he is prepared to quickly ramp
up a trade war with China and has told aides he is ready to impose tariffs
on $200 billion more on Chinese imports as soon as a public comment period
on the plan ends.

The world’s two largest economies have already applied tariffs to $50
billion of each other’s goods in a tit-for-tat trade war. Talks aimed at
easing tensions ended last week without a major breakthrough.

DEMAND: China is the world’s largest copper consumer, accounting for nearly
half of global demand estimated at around 24 million tonnes this year. The
U.S. accounts for about eight percent of global demand.

China is also the world’s largest consumer of other industrial metals such
as aluminium, zinc, lead and nickel.

PERFORMANCE: “Base metals were among the worst performers in the commodity
space as growing U.S.-China trade tensions along with signs of slowing
growth in China took a toll,” said INTL FCStone analyst Edward Meir.

ALUMINIUM: Prices of the metal used in transport and packaging are to an
extent supported by worries about supplies due U.S. sanctions on Russian
aluminium producer Rusal and higher input costs.

ALUMINA: “Higher cost aluminium smelters have been under pressure as prices
of the key raw materials alumina and thermal coal have rallied - alumina and
power account for 80 percent of operating costs,” BoA Merrill Lynch analysts
said in a note.

PRICES: Aluminium was down 1.3 percent at $2,040 a tonne, zinc gained 0.9
percent to $2,441, lead slipped 0.7 percent to $2,035, tin gained 0.1
percent to $18,850 and nickel was little changed at $12,445.

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/20180906/35b8f98a/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/20180906/35b8f98a/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/20180906/35b8f98a/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/20180906/35b8f98a/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/20180906/35b8f98a/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/20180906/35b8f98a/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/20180906/35b8f98a/attachment-0011.jpg>