Bulls n Bears Daily Market Commentary : 18 September 2018

Tue Sep 18 21:58:28 CAT 2018

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Bulls n Bears Daily Market Commentary : 18 September 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $1,279,187.08 with foreign buys at $28,771.49 and foreign
sales were $196,336.78. Total trades were 91.

The All Share index recovered by 0.32 points to close at 114.81 points. OLD
MUTUAL LIMITED  added another $0.0888 to close at $5.3000, EDGARS  rose by
$0.0148 to end at $0.0888 and CBZ  went up by a further $0.0100 to settle at
$0.1600. AMALGAMATED REGIONAL TRADING  traded higher at $0.0720 following a
$0.0099 gain and BARCLAYS (BARC.zw) gained $0.0088 to $0.0700.

In the negative SEEDCO  was down by $0.0347 to $1.9639, INNSCOR  lost
$0.0195 to settle $1.3805 and DELTA  traded lower at $2.1978 following a
$0.0056 loss.  AXIA  also decreased by $0.0001 to close at $0.2700.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Uganda

Uganda to require telecoms firms to list on local bourse

(Reuters) - Uganda will introduce a requirement for all telecoms firms to
list shares on the local bourse as a condition for obtaining a licence to
operate in the country, a government statement said on Tuesday.

The statement on resolutions agreed at a cabinet meeting said the move would
“help mitigate capital flight, among other benefits.”

Outlining a series of changes for the telecoms industry, the statement also
said the cabinet agreed at a meeting on Monday to renew the operating
licence of the local unit of South African telecom company MTN Group.

However, it was not immediately clear whether that was conditional on the
new requirements for operators.

The new policy will also bar operators from selling their allocated spectrum
in any merger or acquisition deal.

Under the new plans, customers will also be allowed to switch providers
without changing their numbers. Currently, this is not possible in the
country, and customers have long complained this effectively tied them to a
provider.

MTN Uganda is the east African country’s biggest telecoms firm with more
than 10 million subscribers and competes with a local unit of India’s Bharti
Airtel, as well as smaller companies.

MTN launched in Uganda in 1998 after acquiring a 20-year operating licence
which was due to expire this year.

The sector regulator, the Uganda Communications Commission (UCC), has been
reviewing its application for a 10-year extension since last year.

Last month, the UCC told Reuters it was asking MTN to agree to list its
shares on the local stock exchange as a condition for the renewal.

In a statement emailed to Reuters, MTN said it was yet to receive a formal
communication on the extension of its license and was also not aware whether
the renewal would require a listing.

MTN Uganda has faced criticism on social media platforms such as Twitter and
Facebook from some subscribers about data bundles getting used up quickly
and the firm not responding to complaints.

Uganda’s telecoms sector has expanded rapidly over the last decade, but
analysts say a new tax on social media use could reverse some of those gains
by hitting investment. 

South Africa

South Africa's rand gains as dollar falters, stocks flat

(Reuters) - South Africa’s rand gained on Tuesday as broad dollar weakness
supported investor appetite for riskier assets after Washington imposed
additional tariffs on Chinese imports and Beijing retaliated, escalating a
trade dispute between the world’s two largest economies.

Stocks ended flat, weighed down by market heavyweight Naspers.

At 1520 GMT, the rand traded at 14.8300 per dollar, 0.65 percent stronger
than its close on Monday.

Trade-war tensions intensified after U.S. President Donald Trump imposed
additional 10 percent tariffs on about $200 billion worth of Chinese imports
on Monday. In retaliation, China said on Tuesday it will levy tariffs on
about $60 billion worth of U.S. goods.

August consumer price inflation data is due out at 0800 GMT on Wednesday,
while the central bank will announce its interest rates decision on
Thursday.

All but one of the economists polled by Reuters last week predicted that the
central bank would leave its main lending rate at 6.5 percent, as it weighs
economic weakness against a pickup in inflation.

In fixed income, the yield on the benchmark government paper due in 2026
ended 4 basis points lower at 9.21 percent, reflecting firmer bond prices.

On the bourse, the broader all share index was up 0.15 percent at 56,381
points while the blue chip Top-40 index was largely unchanged at 50,220
points.

Shares in Naspers fell 0.83 percent to 1,654 rand ($111.52).

The technology firm unveiled plans on Monday to spin off and list separately
its pay-TV unit in a move aimed at narrowing a discount between its market
value and the value of its stake in Chinese Tencent.

       <mailto:info at bulls.co.zw> 

America

Stocks rise as no harm seen in trade row, dollar steady

(Reuters) - Global equity markets gained on Tuesday as the latest
tit-for-tat U.S.-Chinese trade dispute was seen as barely denting world
growth, while U.S. Treasury yields rose in anticipation the Federal Reserve
will hike interest rates this year and next.

China said it will levy tariffs on about $60 billion worth of U.S. goods, as
previously planned, but cut the level of tariffs it will collect. On Monday,
U.S. President Donald Trump said 10-percent tariffs on $200 billion of
Chinese products will take effect on Sept. 24, reaching 25 percent by
year-end.

MSCI’s gauge of stocks across the globe gained 0.43 percent and the
pan-European FTSEurofirst 300 index rose 0.02 percent. Wall Street was
higher.

China has limited retaliatory levers it can pull on the tariff front, said
Anthony Saglimbene, global market strategist at Ameriprise Financial
Services in Troy, Michigan.

The United States took 300 consumer products off its original list of
products to receive tariff hikes, which will blunt the impact on the
consumer, Saglimbene said.

Dutch bank ING estimated that 2.5 percent of world trade was now affected by
the tariffs and it will be 4 percent if Trump carries out threats to put
levies on all Chinese imports.

The Dow Jones Industrial Average rose 80.49 points, or 0.31 percent, to
26,142.61. The S&P 500 gained 13.49 points, or 0.47 percent, to 2,902.29 and
the Nasdaq Composite added 66.75 points, or 0.85 percent, to 7,962.55.

Overnight in Japan, the Nikkei in Tokyo ended 1.4 percent higher and MSCI’s
24-country emerging market index was up for the fourth day in the last five.

Despite all the noise, the widely-tracked dollar currency index rose 0.03
percent, with the euro was up 0.06 percent to $1.169.

The Japanese yen weakened 0.45 percent versus the greenback at 112.37 per
dollar.

U.S. benchmark 10-year and 30-year yields both climbed to fresh four-month
peaks as investors continued to price in more interest rate increases by the
Fed this year and next.

Benchmark 10-year notes fell 8/32 in price to lift its yield to 3.031
percent.

In Europe, Italian government bond yields fell sharply on growing optimism
that Italy’s new coalition budget will respect European Union rules on
fiscal discipline.

Two- and five-year yields fell as much as 15 basis points to their lowest
levels since July, while yields on short-dated top-rated German debt rose to
four-month highs.

Oil rose more than $1 a barrel on signs the Organization of the Petroleum
Exporting Countries would not be prepared to raise output to address
shrinking supplies from Iran, and as Saudi Arabia signalled it was in no
rush to bring prices down.

U.S. crude rose 84 cents to $69.75 per barrel and Brent was last up 83 cents
at $78.88 per barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper rebounds, shrugs off deepening U.S.-China trade row

(Reuters) - Copper prices rallied on Tuesday as investors shrugged off new
tit-for-tat tariffs by China and the United States to send stock markets
higher and the dollar lower.

Fears that a U.S.-China trade war would dampen demand for commodities have
pushed industrial metals sharply lower in recent months, with copper down 17
percent from a June high.

But with investors already braced for tariffs, copper was supported by the
unexpected resilience of global share prices and non-U.S. currencies and
expectations that stimulus in China, the largest metals consumer, will
underpin demand. {FRX/]

LME COPPER: Benchmark copper on the London Metal Exchange closed up 2.4
percent at $6,087 a tonne after touching a 14-month low of $5,733 last
month.

TECHNICALS: Copper broke above its recent downtrend line coming in at around
$6,040.

TRADE WAR: China said it would levy tariffs on about $60 billion worth of
U.S. goods after President Donald Trump said he was imposing 10 percent
tariffs on about $200 billion worth of Chinese imports and threatened duties
on about $267 billion more.

RARE EARTHS: The tariffs did not include rare earth elements.

GLOBAL MARKETS: Global share markets rose, with China’s blue-chip CSI300
index adding 2 percent thanks to a rally in infrastructure stocks.

DOLLAR: The dollar meanwhile hit its weakest since late July against a
basket of major peers, supporting dollar-priced metals by making them
cheaper for buyers with other currencies. China’s yuan was steady against
the greenback.

PERU: MMG revised guidance for 2018 copper concentrate production at its Las
Bambas mine in Peru to 375,000-395,000 tonnes from 410,000-430,000 tonnes.

ZINC: LME zinc closed up 1.3 percent at $2,349 a tonne, rebounding from
Monday’s near 2-year low but butting up against its downtrend line at around
$2,380.

DEFICIT: The global zinc market deficit deepened to 32,500 tonnes in July
from 14,200 tonnes in June, data from the International Lead and Zinc Study
Group (ILZSG) showed.

SPREAD: The premium of three-month LME zinc over the cash contract MZN0-3 at
$23 was the highest since April last year.

OTHER METALS: LME aluminium finished up 0.2 percent at $2,035 a tonne,
nickel ended 1.1 percent higher at $12,400, lead gained 0.1 percent to
$2,074.50 and tin closed down 0.3 percent at $18,975.

Eldorado Gold seeks $877 mln compensation from Greece for permit delays

(Reuters) - Eldorado Gold said on Tuesday it would seek a compensation of
750 million euros ($877.35 million)from Greece for damages suffered by the
Canadian miner due to delays in the issuance of permits for its Skouries
project.

The differences between Eldorado and the government over the miner’s plans
to produce gold and other metals in the northern Greek region of Halkidiki
have dragged on for years, mainly over environmental regulations.

Eldorado has blamed Greece for long delays in issuing necessary permits,
while Athens says the company has submitted a deficient plan to build a
metallurgical plant that will process ores mined in Skouries and Olympias.

Eldorado froze investment and suspended operations at its Skouries project
last November, citing years of permit delays. ($1 = 0.8548 euros)

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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