Bulls n Bears Daily Market Commentary : 01 February 2019

Fri Feb 1 18:14:09 CAT 2019

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Bulls n Bears Daily Market Commentary : 01 February 2019

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Zimbabwe Stock Exchange Update

Market Turnover $2,695,097.36 with foreign buys at $1,118,827.80 and foreign
sales were $5,650.00. Total trades were 81.

The All Share index closed the week in the positive after gaining 0.31
points  to close at 157.85 points. PPC added $0.3000 to settle at $2.1000,
OLD MUTUAL LIMITED  increased by $0.0546 to close at $10.0000 and DELTA
traded $0.0344 stronger at $3.1975. POWERSPEED also gained $0.0290 to
$0.1740 and OK ZIMBABWE was $0.0102 firmer at $0.3002.

Gains were offset by losses in DAIRIBORD  which lost $0.0167 to settle at
$0.1233, CASSAVA SMARTECH dropped $0.0087 to close at $1.4983 and  AFRICAN
SUN  decreased by $0.0079 to close $0.1321. ECONET  also eased $0.0057 to
$1.5000 and STAR AFRICA  traded $0.0002 lower at $0.0110.

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  Global Currencies & Equity Markets

South Africa

South African rand backtracks after Fed surge, stocks down

(Reuters) - The South African rand weakened on Friday, retreating from a
near six-month high, as weak economic data at home and shrinking factory
activity in China dampened risk demand.

Stocks fell, tracking a slump in global shares after the disappointing China
data.

At 1524 GMT the rand was 0.74 percent weaker at 13.3450 per dollar, slipping
back from Thursday’s close of 13.2475 - it’s firmest level since Aug. 8.

The currency surged earlier in the week after the U.S. Federal Reserve kept
lending rates unchanged and hinted it would hold off on raising interest
rates, fuelling global demand for risk assets.

A survey showed on Friday that South Africa’s factory activity fell in
January, led by slumps in new orders and business activity, while new
vehicles sales for the month also declined, signalling the economy remains
subdued.

In China, factory activity shrank by the most in almost three years in
January as new orders slumped further and output fell, a private survey
showed, reinforcing fears a slowdown in the world’s second-largest economy
is deepening.

In fixed income, the yield on the benchmark South African 10-year bond rose
2.5 basis points to 8.615 percent.

On the stock market, the Top-40 index fell 0.54 percent to 47,697 points
while the broader all-share was down 0.42 percent to 53,930.

Bourse heavyweight Naspers was the biggest loser on the blue-chip index,
falling 3.1 percent to 2,945 rand.

Shares that gained included ArcelorMittal South Africa Ltd , jumping nearly
7 percent after the company said it was likely to swing to a full-year
profit. 

Kenya

Kenyan shilling firms against the dollar

(Reuters) - The Kenyan shilling firmed against the dollar on Friday due to
dollar inflows from diaspora remittances and portfolio investors buying
government debt amid reduced dollar demand from the energy and manufacturing
sector, traders said.

At 0717 GMT, commercial banks quoted the shilling at 100.55/75 per dollar,
compared with 100.65/85 at Thursday’s close.

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Emerging markets pull in $51.1 bln in January, highest in 12 mths - IIF

(Reuters) - Emerging market stocks and bonds enjoyed their best month of
inflows in a year in January, raking in $51.1 billion, the Institute of
International Finance (IIF) said on Friday.

Emerging bonds saw net ‘non-resident’ buying of $33 billion over the month
following a $5.4 billion reading in December, thanks to investors piling
into Asia and Latin American bonds, IIF said.

Stocks across developing nations pulled in $18 billion in January, $9.2
billion of which went into China, it added.

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Commodities Markets

Aluminium drops on Hongqiao restarts; weak Chinese data weighs

(Reuters) - Aluminium dropped on Friday on worries about excess supply after
the top producer said it would resume some output, while some base metals
were weighed down by weak Chinese factory data.

Other metals climbed, however, such as zinc, which hit the highest level in
nearly seven months.

China Hongqiao Group, the world’s top aluminium smelter, said it would
gradually restart production after the expiration of some
government-mandated output curbs.

Benchmark aluminium on the London Metal Exchange was down 0.6 percent at
$1,898.50 a tonne by 1500 GMT.

* CHINA PMI: China’s factory activity shrank by the most in almost three
years in January as new orders slumped further and output fell, a private
survey showed, reinforcing fears a slowdown in the world’s second-largest
economy is deepening.

* COPPER: Three-month LME copper slipped 0.3 percent at $6,152 a tonne,
having hit a seven-week high in the previous session. The metal, widely used
in manufacturing and construction, was heading for a weekly rise of about 1
percent.

* COPPER: Top copper miner Codelco said it had struck a contract deal with
the union of supervisors at its Gabriela Mistral mine in northern Chile,
averting the threat of a strike.

* TRADE TALKS: U.S. President Donald Trump said he would meet China’s Xi
Jinping soon to try to seal a comprehensive trade deal, citing substantial
progress.

* ZINC/NICKEL: Steel-linked zinc and nickel were the only LME metals in
positive territory, taking heart after prices of steel-making raw materials
in China climbed to multi-month peaks on Friday, buoyed by supply disruption
issues.

* LME zinc, mainly used to galvanise steel, gained 0.9 percent to $2,743 a
tonne, the highest since July 9 last year, amid tight LME inventories, which
have more than halved over the last five months.

* Nickel, largely used for making stainless steel, added 1 percent to
$12,600 a tonne.

* PRICES: Lead shed 0.2 percent to $2,107 a tonne, while tin added 0.1
percent to $20,875.

Asia Gold-Chinese demand jumps; Indian buyers hold off with eye on budget

(Reuters) - Demand for physical gold gathered pace in top consumer China
ahead of the Lunar New Year holiday, while activity was muted in India as
jewellers held off on purchases in anticipation of the country’s budget
presentation on Friday.

Gold is considered a popular gift during the Asian holiday, which falls
during the first week of February.

Premiums of $10-$12 an ounce were charged in China, up from last week’s
$9.50-$11.50 range, traders said.

Seasonal factors have pushed up demand in China, said Samson Li, a Hong
Kong-based precious metals analyst at Refinitiv GFMS, adding prices could
dip post the holiday season.

The holiday also pushed up retail buying of gold and silver in Singapore,
with premiums of 60 cents to 80 cents being charged against the 60 cents-70
cents previously.

However, rising gold prices kept wholesale demand in check, traders said.

Global benchmark gold prices registered a fourth straight monthly gain in
January.

Demand in Hong Kong, however, was subdued with premiums of 60 cents-$1
charged over the benchmark, as a weaker Hong Kong dollar made gold more
expensive for local buyers, traders said.

In India, dealers were offering a discount of up to $2 an ounce over
official domestic prices on Friday, down from $4 on Monday, and compared
with last week’s $5 discount range. The domestic price includes a 10 percent
import tax.

Retail demand was also weak as prices held near their highest in more than
five years, he added.

India’s bullion industry has been urging a tax reduction to combat
smuggling, which has increased since the country raised the import duty to
10 percent in August 2013 to narrow its current account deficit.

However, the interim budget presented by the Indian government on Friday did
not include a change in the duty.

In Japan, gold was sold at a discount, of about 50 cents, for the first time
in about 20 weeks as prices rose, a Tokyo-based trader said.

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

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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
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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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