Bulls n Bears Daily Market Commentary : 12 September 2018

Thu Sep 13 07:51:26 CAT 2018

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Bulls n Bears Daily Market Commentary : 12 September 2018

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Zimbabwe Stock Exchange Update

Market Turnover $2,798,848.30 with foreign buys at $794,056.45 and foreign
sales were $201,654.26. Total trades were 135.

The All Share index continued on the downward trend after dropping 1.31
points  to close at 118.06 points. OLD MUTUAL  led the losers with a $0.2249
loss to settle at $5.7852, DELTA   went further down by $0.0860 to end at
$2.3500 and MEIKLES  was $0.0500 lower at $0.3500. Cement maker PPC
decreased by $0.0050 to $1.0950 and SIMBISA  was $0.0045 weaker at $0.4755.

Trading in the positive was MASIMBA which added $0.0105 to close at $0.0731
whilst DAIRIBORD and NAMPAK  both increased by $0.0050 to settle at $0.1500
and $0.1800 respectively. DAWN PROPERTIES  put on $0.0040 to close at
$0.0240 and PROPLASTICS   was $0.0035 higher at $0.1105.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South Africa's rand firmer on positive retail data; stocks fall

(Reuters) - South Africa’s rand firmed in late afternoon deals on Wednesday
as stronger retail sales data dimmed the spotlight on economic growth
concerns, while stocks followed global equities down.

At 1520 GMT, the rand was 0.81 percent stronger at 14.9425 against the
dollar.

Retail sales rose 1.3 percent year-on-year in July after increasing by a
revised 1.8 percent in June, official data showed.

The economy slid into recession in the second quarter, weighed down largely
by weak consumer spending.

On the bourse, the blue chip top 40 index shed 0.45 percent to 49,815 points
while the all share index fell by 0.40 percent to 55,952 points.

President Donald Trump said on Tuesday the United States was taking a tough
stance with China, cementing expectations that new levies on Chinese exports
will soon be announced and putting pressure on global markets.

South Africa’s business confidence fell in August to 90.5 from 94.7 in July,
a survey showed on Wednesday following the country’s slide into recession
last week.

Dairy company Clover Industries closed down 0.75 percent after reporting
that normalised annual profit, which excluded 439 million rand ($29.25
million) in impairment, had more than tripled.

In fixed income, government bonds were slightly stronger, with the yield on
the benchmark paper due in 2026 ZAR186= falling 2.5 basis points to 9.170
percent. 

Uganda

Uganda's shilling edges down against the dollar

(Reuters) - The Ugandan shilling        inched down on Wednesday due to an
uptick in demand for dollars on the interbank market.  

At 1135 GMT, commercial banks quoted the shilling at 3,795/3,805 from
Tuesday's close of 3,790/3,800.

       <mailto:info at bulls.co.zw> 

Europe

EU must grasp world role as U.S. retreats, Juncker says

(Reuters) - The European Union must flex its muscles as a world power, EU
chief executive Jean-Claude Juncker said on Wednesday, as he spoke
critically of U.S. President Donald Trump’s retreat from international
engagement.

In his annual State of the Union address to the European Parliament in
Strasbourg, Juncker, who is entering his final year as president of the
European Commission, urged EU states to bridge angry divisions over budgets,
immigration and other issues in order to capitalise on a chance to shape the
world.

Some proposals to strengthen the EU’s effectiveness face an uphill battle
against member state opposition, notably scrapping national vetoes in some
foreign policy areas, such as where economic pressure from the likes of
Russia or China on certain EU countries has blocked EU sanctions to defend
human rights.

In repeating his support for deeper economic integration, he also pushed the
idea that the euro should challenge the dollar as the world’s leading
currency, calling it “absurd” that the EU pays for most of its energy in the
U.S. currency despite buying it mainly from the likes of Russia and the Gulf
states. He said airlines should also buy planes priced in euros not dollars.

Juncker renewed calls for states to push ahead in developing an EU defence
capability independent of the U.S.-led NATO alliance and to embrace Africa
through investment and a sweeping new free trade area — part of a strategy
to curb the flow of poor African migrants which has set EU governments at
each other’s throats and fuelled a sharp rise in anti-EU nationalism.

EU DIVISIONS

Without naming Hungarian Prime Minister Viktor Orban, Juncker blasted EU
leaders who sought to undermine democracy and the rule of law and rejected
complaints from lawmakers that the Commission has been lenient toward
Hungary, Poland and other eastern states.

Later on Wednesday, the European Parliament voted to sanction Hungary for
flouting EU rules on democracy, civil rights and corruption in an
unprecedented step that could lead to a suspension of Budapest’s EU voting
rights.

At the same time, the Commission put forward a plan to get even tougher on
illegal economic migrants whose arrival has so angered Orban and others.

However, the idea of a fully federal European Border and Coast Guard, with
its own 10,000-strong uniformed force run from Brussels may hit national
resistance.

With an eye on elections next May to the European Parliament, Juncker
proposed new vigilance, and penalties, for attempts to manipulate voters. As
the centenary nears of the end of World War One, he recalled how Europeans
were taken totally by surprise by its outbreak and urged more respect for
the EU as a force for peace against nationalistic “poison and deceit”.

He spoke of regret at Britain’s impending withdrawal from the bloc which
will mark his five-year mandate and warned Prime Minister Theresa May that
the EU would not compromise its single market to let London pick and choose
which rules to obey.

But as negotiators struggle to overcome problems about the future of the
land border on the island of Ireland, Juncker also pledged that Britain
would remain a very close partner.

In the parliamentary debate which followed his hour-long address, Nigel
Farage, of the UK Independence Party, accused him of failing to acknowledge
the arrival of eurosceptics in government in Italy and a “populist revolt”
across Europe that he said would resist Juncker’s aim to centralise more
power.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper rallies after U.S. invites China to restart trade talks

(Reuters) - Shanghai copper prices rose sharply to a near two-week high in
early trade on Thursday after a U.S. official said Washington had invited
Beijing to restart talks aimed at resolving their trade dispute.

The United States and China have so far imposed tariffs on  $50 billion of
each other's goods in a spat that has left themarket fearing demand for
industrial metals will weaken.

    FUNDAMENTALS

* SHFE COPPER: The most-traded November copper contract on the Shanghai
Futures Exchange rose as much as 2.1 percent to 48,560 yuan ($7,098.17) a
tonne, its highest since Aug. 21, and stood at 48,440 yuan as of 0127 GMT. 

* LME COPPER: Three-month copper on the London Metal  Exchange gained 0.1
percent to $6,004 a tonne, afterhitting its highest in more than a week in
the previous session, when it closed up 2.4 percent.

* TRADE: The Trump administration has invited Chinese officials to restart
trade talks, the White House's top economic adviser said on Wednesday, as
Washington prepares to escalate

the U.S.-China trade war with tariffs on $200 billion worth of Chinese
goods.

* NICKEL/ZINC: Shanghai nickel and zinc were the other big gainers, rising
as much as 3.1 percent and 2.3 percent, respectively, after big jumps in
London on Wednesday.

* NICKEL: Slower production increases in leading supplier  Indonesia and
continued growth in stainless steel demand areforecast to extend a supply
shortage in the global nickel market, supporting price gains through 2019.

* BROKER: Chinese conglomerate Fosun International Ltd is in discussions to
buy British-based commodities broker Marex Spectron, two industry sources
said. 

* DRC: Democratic Republic of Congo's mines minister said on Wednesday that
a new mining code signed into law in March that hikes royalties and taxes
cannot be called into question.

Gold near 1-wk highs as Sino-U.S. trade talk hopes hurt dollar

(Reuters) - Gold prices held steady on Thursday after hitting more than
one-week highs the session before, with hopes for a new round of U.S.-China
trade talks weighing on the dollar.

A report that the Trump administration has reached out to China for trade
talks raised hopes of a subtle shift in Washington’s policy.

FUNDAMENTALS

* Spot gold was firm at $1,205.66 an ounce at 0055 GMT, after hitting its
highest since Aug. 31 at $1,208.48 on Wednesday.

* U.S. gold futures were also mostly steady at $1,211.10 an ounce.

* Senior U.S. officials led by Treasury Secretary Steven Mnuchin recently
sent an invitation to their Chinese counterparts, including Vice Premier Liu
He, to hold another bilateral trade meeting.

* The outreach comes as more than 85 U.S. industry groups launched a
coalition on Wednesday to take a fight public against President Donald
Trump’s trade tariffs.

* The months-long trade rift between U.S. and China has prompted investors
to buy the U.S. dollar in the belief that the United States has less to lose
from the dispute, making dollar-priced gold more expensive for non-U.S.
buyers.

* The dollar index against a basket of six major currencies stood little
changed at 94.806 after declining about 0.5 percent the previous day.

* Meanwhile, expectations that the U.S. Federal Reserve will raise interest
rates in September has made some investors cautious on gold.

* Higher rates increase bond yields, making non-yielding bullion less
attractive, and tend to boost the dollar.

* Barrick Gold Corp will eliminate the executive role of Chief Innovation
Officer as part of a broad decentralization push, the company said on
Wednesday, adding that it would continue to work on innovation and
productivity improvements.

* Canadian miner New Gold Inc is exploring a sale as it grapples with
ballooning development costs and operating challenges at its new mine,
people familiar with the situation told Reuters.

* Chinese conglomerate Fosun International Ltd is in discussions to buy
British-based commodities broker Marex Spectron, two industry sources said.

* Canada’s Yamana Gold Inc said on Wednesday Argentina’s proposal to impose
new tax on exports could hurt its cash flow despite the company taking steps
to mitigate the impact.

* Polyus, Russia’s largest gold producer, is on track to boost production to
2.8 million troy ounces and to reduce its capital expenditure in 2019, its
Chief Executive Pavel Grachev told Reuters.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Hippo

AGM

Meikles

26/09/2018 12PM

Bindura

AGM

Chapman Golf Club, Eastlea

27/09/2018 9AM

CBZH

interim dividend of 0.5c per share record date

28/09/2018

Hippo

final dividend of 2c per share record date

28/09/2018

Star Africa

AGM

45 Douglas Road, Workington

28/09/2018 11AM

 <mailto:info at bulls.co.zw> 

DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
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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
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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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