Bulls n Bears Daily Market Commentary : 13 September 2018

Thu Sep 13 21:24:49 CAT 2018

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Bulls n Bears Daily Market Commentary : 13 September 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $2,505,905.39 with foreign buys at $1,094,095.80 and foreign
sales were $602,369.69. Total trades were 107.

The All Share index went down by 0.91 points   to close at 117.15 points as
heavyweight counters lost ground. Cement maker PPC  lost $0.0985 to close at
$0.9965, OLD MUTUAL   was $0.0794 lower at $5.7058 and  DELTA  decreased by
$0.0589 to $2.2911. SIMBISA   dropped $0.0055 to trade at $0.4700 and SEEDCO
traded $0.0025 weaker at $2.1475.  

Losses were partially offset by gains in CBZ   which added $0.0007  to trade
at $0.1500 whilst MASHONALAND HOLDINGS   and ZPI  both increased by $0.0001
to trade at $0.0261 and $0.0171 respectively.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Kenya, Uganda, Zambia currencies seen weaker

(Reuters) - The currencies of Kenya, Zambia and Uganda are likely to weaken
next week partly due to rising demand for dollars, debt repayments concerns
and subdued risk appetite as emerging markets economic woes persist.

KENYA

The Kenyan shilling could weaken in the coming week due to increased demand
for dollars from importers and banks after an International Monetary Fund
(IMF) standby arrangement expired, traders said.

Commercial banks quoted the shilling at 100.96/101.16 per dollar, compared
with 100.65/85 at last Thursday’s close.

The $989.8 million standby arrangement had been secured to cushion the
economy in case of unforeseen external shocks but it expired this week.

UGANDA

The Uganda shilling is seen weakening over the coming days, with banks
scrambling to build positions as confidence in the local currency wears thin
after crossing the psychological level of 3,800.

At 0916 GMT commercial banks quoted the shilling at 3,800/3,810, weaker than
last Thursday’s close of 3,765/3,775.

Inflows were tight, Bukenya also said, adding that meant any steep surge in
demand was likely to trigger faster depreciation of the local unit.

ZAMBIA

The kwacha is seen remaining on the backfoot in the coming week as investors
continued to fret over the size of country’s debt and the falling copper
prices.

The currency of Africa’s second-largest copper producer was at 10.3750 per
dollar, compared a close of 10.2800 a week ago.

The IMF is concerned over high borrowing by Africa’s second largest copper
producer, which is seeking a $1.3 billion loan from the global lender. 

       <mailto:info at bulls.co.zw> 

Asia

Hopes for reduced U.S-China trade tensions lift Asian shares

(Reuters) - Asian shares advanced on Thursday on news the Trump
administration has reached out to China for a new round of trade talks,
which raised hopes for a deal easing the bitter tariff dispute between the
world’s two biggest economies.

Despite Asia’s gains, spreadbetters expected European stocks to dip, with
Britain’s FTSE seen opening 0.1 percent lower, Germany’s DAX losing 0.24
percent and France’s CAC slipping 0.3 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6 percent,
a day after it hit 14-month lows.

Early in the day, China’s A-shares shot up 1.2 percent on hopes for reduced
trade tensions, then most of that gain was erase, but in the afternoon the
index rose again, leaving it up 0.6 percent.

Japan’s Nikkei gained 1.0 percent. On Wall Street, the S&P 500 was up 0.04
percent on Wednesday.

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

Trump’s tariffs have escalated far beyond what business groups once imagined
as the administration prepares to activate duties on $200 billion worth of
Chinese goods, hitting a broad array of internet technology products and
consumer goods from handbags to bicycles to furniture.

“Public support for Trump has fallen in recent weeks, with Democrats seen
likely to capture the House of Representatives. He probably needs some sort
of achievements on trade ahead of the mid-term elections,” said Mutsumi
Kagawa, chief global strategist at Rakuten Securities in Tokyo.

However, many market players remained cautious.

Still, any serious signs of easing in trade tensions should benefit shares
in China and other Asian courtiers the most given they have borne the brunt
of U.S. protectionist moves. The trade tensions have hammered global riskier
assets over the past few months as policymakers and investors worried about
the hit to the world economy.

MSCI’s broad emerging markets index has fallen more than 20 percent from its
peak in January, entering bear market territory.

That is the highest levels since the 1970s, according to Thomson Reuters
Datastream.

In the currency market, the dollar eased a little on the trade talk hopes as
well as on soft U.S. wholesale price data, which undermined the case for a
faster pace of policy tightening by the Federal Reserve.

U.S. producer prices unexpectedly fell in August, recording their first drop
in 1-1/2 years and denting talk of accelerating inflation following Friday’s
strong wage data.

The euro traded at $1.1624, extending its gain this week to 0.6 percent. The
yen weakened 0.2 percent on Thursday to 111.47 per dollar on easing trade
worries.

Sterling held near a six-week high of $1.3087 as Brexit-supporting lawmakers
in British Prime Minister Theresa May’s party publicly pledged support for
her to stay in power.

The European Central Bank and the Bank of England hold policy meetings on
Thursday, but both are widely expected to leave interest rates unchanged.

Perhaps attracting more attention is a policy meeting by the Turkish central
bank, which is expected to raise interest rates to shore up its battered
lira.

The lira has lost more than 40 percent of its value against the dollar this
year, hit by worries over President Tayyip Erdogan’s grip on monetary policy
and by a diplomatic spat between Ankara and Washington.

The lira crisis has spread to some other emerging market countries with weak
economic fundamentals such as sizable current account deficits.

The lira traded at 6.3700 per dollar, up about 0.7 percent on the week and
well off its record low of 7.240 reached one month ago.

Oil prices fell, reversing some of the strong gains from the previous
session, as economic concerns raised doubts about fuel demand growth.

Brent futures hit $80 per barrel on Wednesday but eased in Asia to $79.31,
down 0.5 percent on the day.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold slips amid hopes for new U.S.-Chinese talks

(Reuters) - Gold prices slid on Thursday as investors purchased riskier
assets instead of seeking a safe haven in gold, amid hopes for a new round
of U.S.-China trade talks.

Spot gold declined 0.3 percent to $1,202.30 per ounce by 1:34 p.m. EDT (1734
GMT), after earlier hitting its highest level since Aug. 28 at $1,212.49.
Bullion gained 0.7 percent in the previous session in its biggest single-day
rise since Aug. 24.

U.S. gold futures for December delivery settled down $2.70, or 0.2 percent,
at $1,208.20 per ounce.

The dollar index declined against a basket of major currencies after data
showed U.S. consumer prices increased less than expected in August, paring
traders’ outlook that domestic inflation is accelerating.

A weaker dollar typically makes dollar-priced gold less expensive for
holders of other currencies, but the correlation broke on Thursday.

The CPI data came after soft U.S. wholesale price data undermined the case
for a faster pace of policy tightening by the Fed. The U.S. central bank is
widely expected to raise benchmark interest rates at its September meeting.

Higher rates make gold less attractive since it does not pay interest and
costs to store and insure.

In trade talks, senior U.S. officials sent an invitation to their Chinese
counterparts to hold another bilateral trade meeting, raising speculation
about a subtle shift in Washington’s policy.

The months-long trade rift between Washington and Beijing has prompted
investors to buy the U.S. dollar in the belief that the United States has
less to lose from the dispute. This has driven investors toward record short
positions in Comex gold and heavy liquidations in gold exchange-traded
funds.

But on Thursday, possible progress in the trade rift pressured the U.S.
dollar, traders said.

Gold prices have fallen nearly 12 percent since a peak in April amid
intensifying global trade tensions and under pressure from rising U.S.
interest rates.

Meanwhile, spot silver was flat at $14.21 per ounce, earlier touching
$14.34, a nine-day high. Platinum increased 0.3 percent to $800.74, after
touching a one-month high of $812.30. Palladium gained 0.9 percent to
$983.50 per ounce. 

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
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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