Bulls n Bears Daily Market Commentary : 27 September 2018

Fri Sep 28 09:24:30 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 : 27 September 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $1,720,603.22 with foreign buys at $5,554.40 and foreign
sales were $138,079.49. Total trades were 120.

The All Share index added another 0.49 points  to close the day at 113.18
points. MEIKLES  led the movers with a $0.0400 gain to close at $0.4000,
ECONET  increased further by $0.0228 to $1.1897 and NATFOODS  traded $0.0200
higher at $5.6500. DELTA  moved up by $0.0140 to trade at $2.1251 and
TURNALL  moved up by $0.0037 to end at $0.0241.

Gains were partially offset by losses in SEEDCO which lost $0.0396 to
$1.8600, INNSCOR traded $0.0187 weaker at $1.3613 and PROPLASTICS  decreased
by $0.0100 to settle at $0.1100. TSL  also traded $0.0025 lower at $0.4000
and POWERSPEED  lost $0.0001 to close at $0.1499.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Zambian Kwacha seen gaining, other African currencies mostly stable

(Reuters) - The Zambian currency is expected to recover slightly next week
after hitting its lowest level since November 2015, while the currencies of
Kenya, Ghana and Uganda are expected to remain stable.

ZAMBIA

The kwacha is likely to reverse some of its recent losses next week on
improved dollar supply from corporates selling hard currency to settle month
end obligations and pay taxes.

At 1000 GMT on Thursday, commercial banks quoted the currency of Africa’s
No.2 copper producer at 12.1500 per dollar, its weakest level this year,
from 11.5000 a week ago.

KENYA

The Kenyan shilling is expected to trade in a narrow range against the
dollar as market players weigh the effects of recent tax hikes on inflation
after the central bank maintained its policy rate at 9 percent, traders
said.

Commercial banks quoted the shilling at 100.90/101.00 per dollar, the same
as last Thursday’s close.

“The petroleum tax is just a few days old, it’s the follow through that
markets will be watching. The next MPC will be more crucial,” said a senior
trader from a commercial bank.

GHANA

Ghana’s cedi is seen unchanged against the dollar on matching dollar inflows
and corporate demand amid regular central bank greenback sales, analysts
said.

The local currency has been under pressure this week, touching new lows of
4.995 to the dollar on Wednesday. It was trading at 4.985 to the greenback
by mid morning on Thursday, compared to 4.975 a week ago.

The pair will is likely to remain below 5.00 in the week ahead, influenced
by stable demand and improvement in supply, currency analyst Raphael Adubila
said.

UGANDA

The Uganda shilling is expected to be broadly stable over coming days,
propped up by inflows from non-governmental organisations and some commodity
exporters.

At 0723 GMT commercial banks quoted the shilling at 3,815, unchanged from
last Thursday’s close.

NIGERIA

Nigeria’s naira is expected to fall next week owing to tight dollar
liquidity on the currency market, as foreign investors exit bond and equity
markets and a U.S. central bank rate hike triggers capital reversals,
traders said.

Most traders were quoting the naira at 365 per dollar for investors. The
naira eased to 364.25 on Thursday, weaker than 363.50 earlier this week.

Traders said the outlook for the naira was weak due to low dollar liquidity
in the face of rapidly declining foreign reserves. Nigerian dollar reserves
fell 3.4 percent in the month to $44.5 billion by Sept. 25, central bank
data showed.

       <mailto:info at bulls.co.zw> 

Britain

Britain's FTSE steadies near 3-week highs; Boohoo jumps

(Reuters) - Britain’s top stock index held near a three-week high on
Wednesday as investors took profits from a recent rally in oil majors after
crude prices hit a four-year peak, while retailer Boohoo jumped after a
strong set of earnings.

The FTSE 100 ended 0.1 percent up, as European markets edged higher ahead of
a widely expected rate hike from the U.S. Federal Reserve later on
Wednesday.

Boohoo shares jumped 11 percent after the fashion retailer raised its
full-year sales forecast and first half profit increased 22 percent.

Miners Randgold Resources and Fresnillo were among the leading FTSE losers,
both down 2.5 and 3.6 percent respectively, while oil majors Shell and BP
also lost ground.

Mid-cap Indivior declined 16 percent after the drugmaker revised its
full-year earnings guidance as it sharply lowered its revenue expectation
for opioid addiction drug Sublocade.

AA fell 13 percent after the roadside recovery and insurance group said
extreme weather had raised its costs and hit first-half core profit.

Concerns about the progress of Brexit negotiations dogged sentiment with
British carmakers triggering some contingency plans by certifying models in
Europe.

British stocks, however, remained supported among value-hunters because of
their relatively cheap valuations compared to other major equity markets.

At around 4 percent, Britain offers a higher dividend yield than markets
such as Europe and the United States.

On a valuation basis, the 12-month forward price-earnings multiple is 13
percent below global equities while the price-to-book ratio for the index is
about a fifth below its long term average, according to Thomson Reuters
data.

As few as 630 UK-based finance jobs have been shifted or created overseas
with just six months to go before Brexit, a far lower total than banks said
could move after Britain’s surprise 2016 vote to leave the European Union,
according to a Reuters survey. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold tumbles from trading range as dollar soars

(Reuters) - Gold prices fell on Thursday and broke below their recent
trading range around $1,190-$1,210 an ounce after the U.S. dollar surged,
making bullion more expensive for buyers using other currencies.

The dollar was on track for its biggest one-day gain in more than a month
after data underlined the strength of the U.S. economy and Italian political
turmoil weakened the euro.

The data came a day after the U.S. Federal Reserve raised interest rates and
said it planned four more increases by the end of next year and another in
2020.

U.S. rate rises tend to boost the dollar and hurt gold prices. They also
push up U.S. bond yields, reducing the attraction of non-yielding bullion.

Spot gold was down 0.7 percent at $1,185.51 an ounce at 1405 GMT after
hitting its lowest since Aug. 24 at $1,182.85. It was nearing August’s
19-month low of $1,159.96.

The move below $1,190 triggered some pre-set sell orders, Saxo Bank’s Hansen
said. “There’s a risk that momentum players will take it even lower.”

U.S. gold futures were down 0.8 percent at $1,190.10.

Technical Fibonacci support was at $1,185.30, ScotiaMocatta analysts said.

Gold is down more than 13 percent from an April high, largely because of the
stronger dollar, which has been boosted by a vibrant U.S. economy and fears
of a global trade war.

But prices may be close to bottom, said Commerzbank analyst Carsten Menke.

Investors have largely priced in rate rises, and speculators who have built
the largest net short position on record in Comex gold have little room to
drive gold further down by expanding bets on lower prices, he said.

Gold has traditionally been seen as a safe investment in times of economic
or political turmoil, but this position has been usurped this year by the
dollar.

Palladium was up 0.6 percent at $1,072.70 an ounce after touching an
eight-month high of $1,084.10.

Silver fell 0.4 percent to $14.24 and platinum was down 1.4 percent at
$809.49.

Italy budget uncertainty returns to haunt Europe

(Reuters) - Europe’s share markets and the euro both took a tumble on
Thursday as reports that Italy’s long-awaited budget was facing a delay
compounded an already groggy global mood after the third U.S. interest rate
rise of the year.

Italy’s main Milan bourse slumped as much as 2 percent with the country’s
big banks down even more as the country’s borrowing costs also hit a
three-week high in the government bond markets.

Investors have been anxious about Italy’s budget which some fear could lead
to a blowout of the country’s deficit, and put the coalition government on a
collision course with the European Union.

Rome confirmed that a cabinet meeting over budget targets was still planned
for later, dismissing an earlier report in the Corriere della Sera newspaper
that it could be delayed.

But it couldn’t soothe the markets, especially after the economy ministry
was forced to deny its chief Giovanni Tria, an academic who doesn’t belong
to any one party, had threatened to resign.

The strains weighed on the rest of Europe too, with the STOXX 600 still in
the red despite an attempted rebound and the euro down 0.25 percent in the
currency markets having skidded all the way down to $1.17.

That fall also gave the dollar a boost after it had only managed a lazy gain
after the Federal Reserve hiked U.S. interest rates on Wednesday by another
25 basis points to a range of 2 percent to 2.25 percent.

The dollar index which measures the greenback against a basket of
currencies, was last up 0.4 percent to 94.529.

The index had scaled a 13-month high in mid-August, drawing safe-haven
demand as trade tensions buffeted riskier emerging market currencies. The
index has since fallen about 2.8 percent though as investors have become
more nuanced in their views.

Fed ratesetters still see another rate hike in December, three more next
year, and one increase in 2020.

Wall Street futures pointed to a broadly steady start having largely
expected the move with traders also getting the taste for Apple again after
JP Morgan started coverage of the iPhone giant with an “overweight” buy
rating.

OIL PRESSURE

The Australian dollar seen as a barometer of global investor risk appetite
and Chinese demand, fell 0.4 percent to $0.7226, its lowest since Sept. 19
and not far off its 2-1/2 year lows of $0.7085 hit earlier this month.

Overnight, MSCI’s index of Asia-Pacific shares outside Japan had ended
lower. There were, however, pockets of resilience such as South Korea’s
Kospi, which hit three-month highs, as it resumed trade after a three-day
public holiday.

Japan’s Nikkei briefly touched an eight-month high too as signs that the
United States may not impose further tariffs on Japanese automotive products
for now lifted carmakers, though the index eventually ended down 1 percent.

With the Fed’s steady message still fresh in the mind 10-year U.S.
Treasuries yields fell to 3.05 percent, from Tuesday’s four-month high of
3.113 percent when traders had been expecting a more hawkish signal for the
U.S. central bank.

FOMC members did drop a description of its policy stance as “accommodative”,
but Fed Chairman Jerome Powell then downplayed the significance of the
change at a news conference saying rates were still generally accommodative.

Falling Treasury yields were good news for emerging markets. Plenty of EM
currencies were firmer despite the dollar’s broader gains against the likes
of the euro.

Turkey’s lira was back up to 6 per dollar for the first time in almost two
week despite data showing that confidence among businesses had seen its
biggest month on month slump in a almost decade.

EM currencies have been pressured for months by concerns that higher U.S.
yields would encourage investors to move funds out of those economies back
into the U.S. That’s on top of worries over the U.S.-China trade feud.

Indeed, the Philippino finance minister warned the world will be in “deep
kimchi” if the current trade war drags on. The country’s central bank raised
its rates for a fourth straight meeting on Thursday in an effort to stem the
slide in its currency.

Rising oil prices are another major pressure point for energy importers and
they gained again ahead of U.S. sanctions coming into force on Iranian
exports due in November.

Global benchmark Brent was 0.7 percent at $81.88 per barrel, near the
four-year high of $82.55 set on Tuesday. West Texas Intermediate (WTI) crude
futures gained 1 percent to $72.34 a barrel.

“The real big impact is the fuel price...that is what is really worrying
me,” Philippines finance minister Carlos Dominguez 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
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/20180928/c92a2650/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/20180928/c92a2650/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/20180928/c92a2650/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/20180928/c92a2650/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/20180928/c92a2650/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/20180928/c92a2650/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/20180928/c92a2650/attachment-0011.jpg>