Bulls n Bears Daily Market Commentary : 06 February 2019

Thu Feb 7 06:02:27 CAT 2019

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Bulls n Bears Daily Market Commentary : 06 February 2019

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Zimbabwe Stock Exchange Update

Market Turnover $4,201,077.60 with foreign buys at $2,027,234.00 and foreign
sales were $986,096.01. Total trades were 149.

The All Share index retreated by 0.70 points  to close at 157.63 points. OLD
MUTUAL LIMITED  led the shakers with a $0.5034 loss to close at $9.4864, PPC
went down by $0.0999 to $1.8001 and CASSAVA SMARTECH   traded $0.0221 weaker
at $1.4707. ECONET also decreased by $0.0098 to end at $1.4850 and OK
ZIMBABWE  lost $0.0095 to close at $1.4850.

Four counters gained ground as SIMBISA   added $0.0500 to settle at $0.8000,
ZB FINANCIAL HOLDINGS  put on $0.0375 to close at $0.3925 and AFRICAN SUN
traded $0.0100 stronger at $0.1500. UNIFREIGHT   increased by  $0.0096 to
close at $0.0576.

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  Global Currencies & Equity Markets

South Africa

South African rand falls on firm dollar, stocks up

(Reuters) - South Africa’s rand fell on Wednesday, in line with broad
weakness in emerging market currencies, as the dollar settled near a
two-week high after U.S. President Donald Trump’s State of the Union speech
failed to surprise currency traders.

Stocks closed higher, with miners among the biggest gainers.

At 1515 GMT, the rand was 0.93 percent weaker at 13.5075 per dollar compared
with a close of 13.3825 in New York on Tuesday.

With activity in currency markets remaining subdued following holidays in
Asia, the rand struggled to find takers as investors awaited South African
President Cyril Ramaphosa’s state of the nation speech on Thursday and the
annual budget later in the month.

A Reuters poll this week found the rand was likely to lose about half of the
7 percent gains made against the greenback since the start of the year over
the next 12 months, pressured by fiscal constraints and weak growth.

Government bonds also weakened, with the yield on the benchmark government
issue due in 2026 closing 6 basis points higher at 8.65 percent.

On the bourse, the Johannesburg Stock Exchange’s top-40 index closed at
48,318 points, an increase of 0.67 percent, while the broader all-share
index climbed 0.67 percent to 54,574 points.

Harmony Gold rose 7 percent despite easing gold prices, while Royal Bafokeng
Platinum and Lonmin both gained more than 3 percent.

Meanwhile, shares in paper and pulp maker Sappi fell more than 5 percent
after it released a trading update showing an increase in net debt in the
first quarter of the year, even though it continued to grow profit in a
difficult environment. 

Uganda

Ugandan shilling strengthens against the dollar

(Reuters) - The Ugandan shilling        firmed on Wednesday on the back of
some inflows from exporters of farm commodities like coffee and cotton.  

At 0926 GMT, commercial banks quoted the shilling at  3,665/3,675, stronger
than Tuesday's close of 3,675/3,685. 

       <mailto:info at bulls.co.zw> 

Asia

Asian shares doze in data lull, NZ$ takes a dive

(Reuters) - Asian share markets were in a muted mood on Thursday and looked
set for a sleepy session with China still on holiday and no major economic
data on the diary.

MSCI’s broadest index of Asia-Pacific shares outside Japan was little moved
in early trade after ending almost unchanged on Wednesday.

Japan’s Nikkei dipped 0.2 percent, while E-Mini futures for the S&P 500 were
off 0.06 percent in very thin trade.

Wall Street had already snoozed through a subdued session, though
disappointing revenue forecasts hammered shares of the major videogame
makers.

Electronic Arts Inc tumbled 13.3 percent and Activision Blizzard Inc sank
10.1 percent.

The Dow fell 0.08 percent, while the S&P 500 lost 0.22 percent and the
Nasdaq 0.36 percent.

Markets are still waiting on developments in the Sino-U.S. trade dispute
after President Donald Trump offered little new to chew on in his State of
the Union speech.

U.S. Treasury Secretary Steven Mnuchin said on Wednesday that he and other
U.S. officials will travel to Beijing next week for trade talks, aiming to
clinch a deal to avert a March 2 increase in U.S. tariffs on Chinese goods.

WE’RE ALL DOVES NOW

In currency markets, the early mover was the New Zealand dollar which slid
after local data showed unemployment, job gains and wages growth all missed
forecasts.

The kiwi slid to $0.6772, losing 1.6 percent in the past 24 hours, as
investors narrowed the odds on a cut in interest rates. Bonds rallied hard,
with two-year yields dropping 7 basis points to 1.67 percent, well below the
1.75 percent cash rate.

The Reserve Bank of New Zealand holds its first policy meeting of the year
next week and markets are wagering it will take a dovish stance.

Its neighbour, the Reserve Bank of Australia (RBA), caused ripples on
Wednesday when it tempered a long-standing tightening bias and indicated the
next move in rates could just as well be down as up.

The Aussie dollar duly dived 1.8 percent to stand at $0.7110 and gave a
broad fillip to the U.S. dollar.

The dollar index has now risen for five straight sessions to reach 96.400,
recovering almost all the losses suffered after the Federal Reserve all but
abandoned plans for more rate hikes.

Less lucky was the euro, which was dragged back to $1.1366 in the wake of a
dismal reading on German industrial output.

The dollar could make no headway on the yen, which benefited from its own
safe-haven status, and idled at 109.93.

It broad gains still put pressure on gold, which eased to $1,306.84 per
ounce, slipping further from last week’s top of $1,326.30.

Oil prices were underpinned by signs of strong U.S. demand for distillate
products and tightening global crude supply.

Brent crude futures gained 71 cents higher on Wednesday to settle at $62.69
and were yet to trade. U.S. crude eased 6 cents in Asia to $53.95 a barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

London nickel extends fall after hitting 4-mth high

(Reuters) - London nickel inched lower on Thursday, extending its pullback
from a more than four-month peak reached the day before on concerns that a
force majeure by Brazil’s Vale on some iron ore contracts could lead to
restrictions in its nickel supply.

FUNDAMENTALS

* NICKEL: Three-month nickel on the London Metal Exchange dropped 0.3
percent to $12,880 a tonne by 0142 GMT, extending losses from the previous
session.

* LME Nickel ended 0.9 percent lower at $12,925 per tonne on Wednesday,
after it touched $13,350, its highest since Aug. 31, as the dollar firmed.

* TRADE TALKS: U.S. Treasury Secretary Steven Mnuchin said on Wednesday that
he and other U.S. officials will travel to Beijing next week for trade
talks, aiming to clinch a deal to avert a March 2 increase in U.S. tariffs
on Chinese goods.

* VALE: The Brazilian state of Minas Gerais cancelled Vale SA’s licence to
operate a dam at one of its largest mines, the company said on Wednesday,
following the collapse of another dam in the state that killed an estimated
300 people.

* Three-month LME copper slid 0.6 percent to $6,238.5 a tonne.

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

MARKETS NEWS

* Asian share markets were in a muted mood on Thursday and looked set for a
sleepy session with China still on holiday and no major economic data on the
diary.

Gold prices hold near 1-week lows on stronger dollar

(Reuters) - Gold on Thursday held near one-week lows touched in the previous
session amid a stronger dollar, but worries over slowing global economic
growth and the spectre of another U.S. government shutdown kept the
safe-haven metal above the key $1,300-level.

FUNDAMENTALS

* Spot gold was steady at $1,306.81 per ounce at 0050 GMT. Prices fell 0.7
percent in the previous session in their biggest one-day drop since Jan. 18,
at one point touching their lowest since Jan. 29 at $1,305.30.

* U.S. gold futures were down 0.3 percent at $1,310.70.

* Wall Street’s benchmark S&P 500 slipped amid concerns over growth,
disappointing earnings reports and another possible U.S. government shutdown
in the wake of President Donald Trump’s State of the Union address.

* Australia’s central bank was the latest to signal policy easing in the
face of economic headwinds. Last week, the U.S. Federal Reserve said it
would be patient on further rate hikes, while the European Central Bank
sounded less certain that it would start tightening policy later this year.

* The Bank of England looks set to trim its forecasts for Britain’s already
sluggish growth on Thursday, reflecting the approach of a still uncertain
Brexit in just 50 days’ time and a slowdown in many of the world’s big
economies.

* The dollar index, a gauge of its value versus six major peers, was
hovering close to its two-week high in early Asian trade.

* A stronger greenback makes dollar-denominated gold more expensive for
holders of other currencies.

* Liquidity in gold markets is expected to remain light in Asian hours with
China closed for the Lunar New Year holiday this week.

* U.S. Treasury Secretary Steven Mnuchin said in an interview with CNBC on
Wednesday that he and other U.S. officials will travel to Beijing next week
for trade talks with Chinese officials.

* U.S. Fed Chairman Jerome Powell will testify before the House Financial
Services Committee on Feb. 27, the committee’s Democratic chairwoman said in
a statement on Wednesday.

* Holdings of SPDR Gold Trust, the world’s largest gold-backed
exchange-traded fund, declined 0.25 percent to 809.76 tonnes on Wednesday
from Tuesday. Holdings have fallen for a fourth straight session.

* Venezuelan President Nicolas Maduro’s government last year sold 73 tonnes
of gold to Turkey and the United Arab Emirates without the required approval
of the opposition-led National Assembly, an opposition legislator said on
Wednesday. 

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
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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