Bulls n Bears Daily Market Commentary : 05 February 2019

Wed Feb 6 06:07:05 CAT 2019

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Bulls n Bears Daily Market Commentary : 05 February 2019

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Zimbabwe Stock Exchange Update

Market Turnover $3,863,514.99 with foreign buys at $1,749,302.11 and foreign
sales were $1,776,205.70. Total trades were 104.

The All Share index went further up by 0.35 points   to close at 158.33
points. TSL  added $0.0900 to close at $0.7000, DAIRIBORD  gained $0.0245 to
settle at $0.1550 whilst AFRICAN SUN   was $0.0100 stronger at $0.1400.
PROPLASTICS  also increased by $0.0100 to $0.2100 and INNSCOR  put on
$0.0043 to close at $2.1043.

Trading in the negative was HIPPO VALLEY ESTATES  which retreated by $0.0361
to end at $1.7139, OLD MUTUAL LIMITED   dropped  $0.0098 to $9.9898 and
ECONET (ECO.zw) traded $0.0051 lower at $1.4948. CASSAVA SMARTECH   also
lost $0.0026 to settle at $1.4928.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South African rand steady before Trump State of the Union address, stocks up

(Reuters) - South Africa’s rand steadied against the dollar in late
afternoon trade on Tuesday as traders awaited U.S. President Donald Trump’s
State of the Union address which could hint at progress in U.S.-China trade
talks.

At 1527 GMT, the rand was at 13.4300 per dollar, not far off its close of
13.4200 on Monday.

The currency had earlier in the day touched a session best of 13.3400, as
hopes for progress in the U.S.-China trade dispute fuelled a recovery in
investors’ appetite for risk taking, before giving up the gains in late
trade.

After racing to a six-month high of 13.2350 last Thursday after the U.S.
Federal Reserve’s caution boosted risk appetite, the rand has since eased as
investors locked in gains and awaited the next driving force on the index.

Investors shifted their focus to President Donald Trump’s State of the Union
address at 0200 GMT on Wednesday.

South African focused investors are also waiting for President Cyril
Ramaphosa’s state of the nation address on Thursday, where he is expected to
give an update on the economy and plans to shore up cash-strapped state
companies.

Government bonds closed firmer, with the yield on the benchmark 10-year bond
down 5 basis points to 8.59 percent.

Stocks recovered after a difficult trading period on Monday, with the
Johannesburg Stock Exchange’s Top-40 index up 1.73 percent to 47,999 points,
and the broader all-share index up 1.53 percent to 54,209 points.

The consumer-facing firms that stocked the bottom of the index on Monday
also rebounded, aside from Standard Bank , which was the only faller on the
blue-chip index, down 0.79 percent.

The all-share index was led upwards by paper and plastics packaging maker
Mpact, which issued a trading statement predicting significantly higher
underlying earnings per share for the year to Dec. 2018, lifting its shares
by over 12 percent. 

Uganda

Ugandan shilling unchanged on slumping demand

(Reuters) - The Ugandan shilling traded stable on Tuesday on the back of
lacklustre appetite for hard currency from both merchandise importers and
players in the interbank market.

At 0804 GMT commercial banks quoted the shilling at 3,680/3,690, same level
as Monday’s close.

       <mailto:info at bulls.co.zw> 

Asia

Asian shares mark time before Trump speech

(Reuters) - Asian shares started cautiously on Wednesday as investors waited
to see if U.S. President Donald Trump drops any hints of progress on tariffs
in his State of the Union speech.

MSCI’s broadest index of Asia-Pacific shares outside Japan was flat with
China and several other markets in the region still closed for the Lunar New
Year holiday. Japan’s Nikkei edged up 0.3 percent, while E-Mini futures for
the S&P 500 barely budged.

Dow Jones reported on Tuesday that U.S. Treasury Secretary Steve Mnuchin and
Trade Representative Robert Lighthizer plan to hold talks in Beijing early
next week, citing an unidentified senior administration official.

Trump was expected to challenge Democrats to approve funding for his
long-sought border wall but stopped short of declaring a national emergency
over it, at least for now. The speech starts at 2100 ET (0200 GMT).

Investors are also interested in any detail on a long-touted plan for
infrastructure spending, which has yet to get a single road or bridge built.

Wall Street had already racked up gains courtesy of strong corporate results
from Europe and the U.S., including a blockbuster from Estée Lauder Cos Inc.

The Dow ended Tuesday up 0.68 percent, while the S&P 500 gained 0.47 percent
and the Nasdaq 0.74 percent.

Treasury bonds also bounced, helped by data showing a surprisingly soft U.S.
service sector index of 56.7, with new orders falling to a one-year low.

A LENGTHY PAUSE

The Federal Reserve should leave interest rates where they are until the
U.S. economic outlook is clearer, Dallas Fed President Robert Kaplan said on
Tuesday, a process that could take several more months.

The dollar held up well thanks in part to a retreat in sterling, which hit
two-week lows at $1.2922 after poor survey data and uncertainty about Brexit
talks pushed it below a key market level.

Against a basket of currencies, the dollar was firm at 96.064 and well above
last week’s low of 95.162. It was steady on the yen at 109.94.

The euro slipped to $1.1407 after a survey showed on Tuesday that euro zone
businesses expanded at their slowest pace since mid-2013 at the start of the
year.

The Australian dollar was a rare gainer after the Reserve Bank of Australia
(RBA) sounded less dovish than speculators had wagered on at its first
policy meeting of the year on Tuesday.

Markets are now all ears for a speech by RBA Governor Philip Lowe at 0130
GMT.

In commodity markets, the Wall Street Journal reported Saudi Arabia and its
Persian Gulf allies were proposing a formal partnership with a 10-nation
group led by Russia to try to manage the global oil market, an alliance that
could transform the cartel.

U.S. crude futures rose 15 cents to $53.81 in early trade. Brent had ended
Tuesday down 40 cents at $62.11.

Spot gold held at $1,314.71 per ounce, short of its recent peak at
$1,326.30.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper falls after 2 days of gains, China's growth concerns weigh

(Reuters) - London copper prices edged lower on Wednesday, falling for the
first time in three sessions on concerns over slowing factory activity in
China - the world’s biggest industrial metals consumer.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange slid 0.1 percent to
$6,229.50 a tonne by 0149 GMT.

* 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 that a slowdown in the world’s second-largest
economy is deepening.

* Senior U.S. and Chinese officials are poised to start another round of
trade talks in Beijing next week to push for a deal to protect American
intellectual property and avert a March 2 increase in U.S. tariffs on
Chinese goods, two people familiar with the plans said on Tuesday.

* Trump was expected to challenge Democrats to approve funding for his
long-sought border wall but stopped short of declaring a national emergency
over it, at least for now. The speech starts at 2100 ET (0200 GMT).

* Brazilian miner Vale SA on Tuesday declared force majeure on some iron ore
contracts after a court-ordered halt to a mine responsible for nearly 9
percent of its output following a dam burst which likely killed more than
300 people.

* The force majeure on some iron ore and pellets sales contracts came after
a court on Monday ordered it to stop using eight tailings dams, including
one affecting production of about 30 million tonnes of iron ore output per
year.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Asian shares started cautiously on Wednesday as investors waited to see if
U.S. President Donald Trump drops any hints of progress on tariffs in his
State of the Union speech.

Gold prices hold firm as markets wait for Trump speech

(Reuters) - Gold prices held steady on Wednesday after rising 0.3 percent in
the previous session, with investors looking to U.S. President Donald
Trump’s upcoming State of the Union address for hints on the outlook for
Sino-U.S. trade.

FUNDAMENTALS

* Spot gold was steady at $1,315 per ounce at 0049 GMT. Prices rose about
0.3 percent in the previous session, after falling to their lowest level
since Jan. 29 at $1,308.20 on Monday.

* U.S. gold futures were also steady at $1,319.10 an ounce.

* Trump will ask Congress in his address on Tuesday to pass legislation to
boost the nation’s aging infrastructure, but will not explain how to pay for
it, administration officials said. The speech starts at 0200 GMT.

* Senior U.S. and Chinese officials are poised to start another round of
trade talks in Beijing next week to push for a deal to protect U.S.
intellectual property and avert a March 2 increase in U.S. tariffs on
Chinese goods, two people familiar with the plans said on Tuesday.

* Trump has vowed to increase tariffs on $200 billion worth of Chinese
imports to 25 percent from 10 percent currently if the two sides cannot
reach a deal by 12:01 a.m. (0501 GMT) on March 2.

* The Federal Reserve should leave interest rates where they are until the
U.S. economic outlook is clearer, Dallas Fed President Robert Kaplan said on
Tuesday, a process that in his view could take several more months.

* The U.S. central bank last week kept interest rates steady and promised to
be “patient” before making any future adjustments.

* China’s financial markets are closed all week for the Lunar New Year
holiday.

* Trump and Fed Chairman Jerome Powell dined at the White House on Monday in
their first meeting after months in which Trump lambasted the central bank
for raising interest rates and, in the president’s view, endangering the
economy’s growth.

* Holdings of SPDR Gold Trust, the world’s largest gold-backed
exchange-traded fund, fell 0.18 percent to 811.82 tonnes on Tuesday from
Monday. Holdings have dropped for three straight sessions.

* Equatorial Guinea, known mainly for its oil and gas sector, will
officially launch the country’s first mining licence bid round on April 1,
the mines and oil minister said on Tuesday. 

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
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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
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for guideline purposes only and sourced from third parties.

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