Bulls n Bears Daily Market Commentary : 19 September 2018

Wed Sep 19 20:18:19 CAT 2018

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Bulls n Bears Daily Market Commentary : 19 September 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $3,948,537.63 with foreign buys at $2,814,591.99 and foreign
sales were $2,762,316.58. Total trades were 132.

The All Share index dropped by 1.30 points to close at 113.51 points. DELTA
led the losers with a $0.0929 loss to trade at $2.1049, TSL  decreased by
$0.0475 to settle at $0.4025 and STAR AFRICA CORPORATION traded lower at
$0.0064 after dropping $0.0016. BARCLAYS  also went down by $0.0009 to trade
at $0.0691 and INNSCOR was down by $0.0005 to end at $1.3800.

In the positive PPC was up by $0.0975 to trade at $1.0975, MEIKLES  added
$0.0100 to $0.3600 and DAWN PROPERTIES  increased by $0.0030 to settle at
$0.0240. ECONET  traded $0.0025 higher at $1.1980 and CBZ   gained $0.0015
to settle at $0.1615.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Egypt

Egypt to sell around $5 billion in foreign currency bonds in coming months -
finance minister

(Reuters) - Egypt’s plans to sell around $5 billion in foreign currency
bonds in the coming months, the country’s finance minister said on
Wednesday.

Zambia

Zambian Kwacha falls over size of country's debt, aid freeze

(Reuters) - Zambia’s kwacha lost more than 1 percent on Wednesday, hit by
investor worries about the size of nation’s debt and an aid freeze by
Britain and Finland over suspicion that social welfare funds may have been
misused.

The currency of Africa’s No.2 copper producer fell as much as 1.6 percent to
11.1800 per dollar on Wednesday from a close of 11.0000 per dollar on
Tuesday, Reuters data showed.

Zambia’s external debt rose to $9.37 billion by the end of June from $8.7
billion in December, the finance ministry said in August, a week after the
International Monetary Fund (IMF) raised concerns over country’s high
borrowing.

Britain and Finland have frozen funding to Zambia on suspicion that $4
million they channelled into a social welfare scheme may have been misused,
the Zambian presidency said on Tuesday.

       <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 and zinc jump as U.S.-China trade tariffs undershoot expectations

(Reuters) - Copper jumped to its highest in three weeks on Wednesday,
boosted by a weaker dollar after a new round of U.S.-China trade tariffs
proved not as costly as expected.

China will levy tariffs on about $60 billion worth of U.S. goods in
retaliation for U.S. tariffs on $200 billion worth of Chinese goods.
Washington’s new duties, however, were set at 10 percent for now, rising to
25 percent by the end of the year, rather than starting immediately at 25
percent.

Benchmark copper on the London Metal Exchange (LME) surged to its highest
since Aug. 29 at $6,145 a tonne, ending 0.6 percent higher at $6,121.

Zinc, meanwhile, closed 3 percent higher at $2,434 per tonne, its biggest
advance in over a month.

Base metals prices have slid this year, largely because of fears the
U.S.-China trade dispute could choke global economic growth and sap demand.

TRADE TENSIONS: China is not afraid of “extreme measures” the United States
is taking in their trade war and will use the dispute as an opportunity to
replace imports, promote localisation and accelerate development of
high-tech products, state media said.

OTHER ASSETS: The dollar index eased by 0.2 percent while risky assets such
as global equities advanced.

COPPER AND ZINC STOCKS: On-warrant stocks of copper MCUSTX-TOTAL rose to
152,750 tonnes but are still down 55 percent from the 2018 peak touched in
March. Zinc stocks MZNSTX-TOTAL on the LME are near their lowest since
April, whereas ShFE zinc inventories ZN-STX-SGH remain barely above a decade
low.

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.

LEAD STOCKS: On-warrant stocks of lead available to the market in
LME-registered warehouses jumped 18,850 tonnes, or 39 percent, to 67,125
tonnes. This lifted on-warrant stocks from their lowest levels since January
2009. MPBSTX-TOTAL

LEAD PRICES: LME lead fell 2.4 percent to $2,025 a tonne, clocking its first
decline in six sessions.

PRICES: Aluminium ended down 0.4 percent to $2,026 a tonne, tin finished 0.5
percent lower at $18,870 and nickel rose 0.8 percent to $12,500.

Rusal postpones start of aluminium production at Taishet smelter - ministry

(Reuters) - The start of aluminium production at Russia’s Taishet aluminium
smelter, a project of sanctions-hit Rusal, has been postponed until after
2020, Russia’s economy ministry said in materials prepared for a government
meeting.

Rusal, which was targeted by U.S. sanctions in April, previously planned to
build the first line of the Siberian smelter, with an annual capacity of
430,000 tonnes, by 2020.

Rusal, the world’s No.2 aluminium producer after China’s Hongqiao, declined
comment.

Russian power company Rushydro, Rusal’s potential partner in the Taishet
project, did not reply to a request for comment. Rushydro said previously
that its plans to join the project had been complicated by the U.S.
sanctions.

The United States imposed sanctions on several Russian businessmen,
including Rusal’s co-owner Oleg Deripaska, and some of the companies they
control in April, in response to what it termed “malign activities” by
Russia.

Rusal started work on the Taishet project in 2006. The project was
mothballed in 2009 due to weak aluminium prices, but dusted off last year as
prices recovered. In April, Rushydro’s board approved the move to join the
project with total investments seen at around $1 billion.

Rusal’s other Siberian smelter - Boguchansk - plans to launch new capacity
after expansion in 2019, the economy ministry added. Rusal plans to double
Boguchansk’s capacity from the current 150,000 tonnes.

Rusal’s Armenian foil-rolling plant, Armenal, has started cutting production
due to the U.S. sanctions, a source at the plant and a source close to Rusal
said on Tuesday.

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

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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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