Bulls n Bears Daily Market Commentary : 11 February 2019

Tue Feb 12 06:13:34 CAT 2019

 <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 : 11 February 2019

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover $3,180,722.94 with foreign buys at $318,411.36 and foreign
sales were $45,145.39. Total trades were 105.

The All Share index opened in the negative losing 0.47 points   to close at
154.61 points. PADENGA   led the shakers with a $0.0553 loss to close at
$1.0547, FIRST MUTUAL PROPERTIES   dropped $0.0110 to $0.0640 and OLD MUTUAL
LIMITED   lost $0.0075 to end at $9.4966. CASSAVA SMARTECH   also decreased
by $0.0052 to settle at $1.4851 and ECONET   traded $0.0028 lower at
$1.4872.

Losses were offset by gains in TURNALL   which added $0.0046 to $0.0550,
MASHONALAND HOLDINGS   increased by $0.0020 to $0.0400 and POWERSPEED
traded $0.0010 stronger at $0.1750. DAIRIBORD   also increased by $0.0005 to
$0.1565 whilst FIRST CAPITAL BANK   and SEEDCO  each inched up $0.0002 to
close at $0.0654 and $2.0000 respectively.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Zimbabwe

Zimbabwe To Continue Using The Multicurrency System, Says RBZ Whilst
Dismissing Tendai Biti’s Claim

The Reserve Bank of Zimbabwe has put to rest Tendai Biti’s claim that the
government is going to introduce a new currency this week. The former
Finance Minister’s claim gained the ire of many people who were accusing the
government of trying to make the situation worse for them by demonetizing
their bond notes and RTGS balances. In its Twitter post the, Central Bank
said:

The Reserve Bank of Zimbabwe would like to urge members of the public to
dismiss, with utmost contempt, claims being circulated on social media
regarding the introduction of a new Zimbabwe currency. The country shall
continue to use the multi-currency system. Members of the public should not
be misled by such counterproductive fake news.

Egypt

Egypt sells $1.014 billion in one-year dollar T-bills - central bank

(Reuters) - Egypt sold $1.014 billion worth of one-year dollar-denominated
treasury bills at an average yield of 3.797 percent on Monday, the central
bank said.

The auction will be settled on Tuesday when dollar T-bills worth $1.075
billion are due to mature.

Egypt sold $854 million in dollar-denominated bills at an average yield of
3.797 percent in a similar auction on Jan. 6.

Officials say they are trying to diversify the country’s sources of foreign
debt and lengthen its average maturity.

       <mailto:info at bulls.co.zw> 

Asia

Asian stocks edge up, US futures rise on hope for no US govt shutdown

(Reuters) - Asian shares edged up on Tuesday as investors hoped a new round
of U.S.-China trade talks would help to resolve a dispute that’s dented
global growth and some corporate earnings.

Improving market sentiment was news that U.S. lawmakers reached a tentative
deal on border security funding that would avert another partial government
shutdown due to start on Saturday. The S&P 500 e-mini futures were up more
than 0.5 percent..

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.3
percent.

The Shanghai Composite Index rose 0.6 percent, South Korea’s KOSPI climbed
0.4 percent and Australian shares were up 0.4 percent.

Japan’s Nikkei advanced 2 percent after a market holiday on Monday, lifted
by a weaker yen.

U.S. and Chinese officials expressed hopes the new round of talks, which
began in Beijing on Monday, would bring them closer to easing their
months-long trade war.

Beijing and Washington are trying to hammer out a deal before a March 1
deadline, without which U.S. tariffs on $200 billion worth of Chinese
imports are scheduled to increase to 25 percent from 10 percent.

The trade dispute has already started to impact global growth, hitting
businesses confidence, factory activity and disrupting supply chains. The
worry is that a protracted Sino-U.S. tariff row could severely hurt
corporate earnings globally.

Analysts are now expecting U.S. corporate earnings for the current quarter
to drop 0.2 percent from last year, which would be the first contraction
since the second quarter of 2016.

In the currency market, the dollar held firm, having gained for eight
straight sessions against a basket of six major currencies until Monday, its
longest rally in two years.

Although the Federal Reserve’s dovish turn dented the dollar earlier this
year, some analysts noted the U.S. currency still has the highest yield
among major peers and that the Fed continues to shrink its balance sheet.

Growing evidence of a loss of momentum in the global economy has also lifted
the U.S. currency, most recently led by the European Commission’s downgrade
of growth in Europe, making the dollar a better investment option by
default.

The dollar’s index rose to its highest levels in almost three months to
971.123 on Monday. It last stood at 97.042.

In contrast, the euro dropped to as low as $1.1267, its weakest in 2-1/2
months, and last traded at $1.1285.

The dollar popped up to a six-week high of 110.55 yen .

Oil prices ticked up after falls on Monday as traders weigh support from
OPEC-led supply restraint and a slowdown in the global economy.

U.S. crude futures traded at $52.56 per barrel, up 0.3 percent. Brent crude
rose 0.6 percent to $61.87 per barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

London zinc drops to 2-week low on U.S.-China trade woes

(Reuters) - London zinc lost more ground on Tuesday, falling for a third
consecutive session to its lowest in more than two weeks on concerns over
U.S.-China trade dispute and slowing global economic growth. 

Copper ticked higher after declining for the last three sessions.

U.S. and Chinese officials expressed hopes on Monday that a  new round of
talks would bring them closer to easing theirseven-month trade war, but a
U.S. Navy mission through the

disputed South China Sea cast a shadow over the negotiations in Beijing.

Asian shares barely budged with investors looking to a new round of
Sino-U.S. trade talks as the world's two largest economies try to resolve a
tariff dispute that has put a dent on

global growth and corporate earnings.           

ZINC: Three-month zinc on the London Metal Exchange         was down 0.4
percent at $2,633 a tonne, as of 0259 GMT, after falling earlier in the
session to 2,626.50 a tonne, the weakest since Jan. 25. Prices in Shanghai
dropped 1.2 percent to 21,585 yuan a tonne. 

COPPER: LME copper         rose 0.1 percent to $6,153.50 a tonne and
Shanghai copper          lost 0.1 percent to $48,300 a tonne. 

MISSION: China expressed anger on Monday at the mission through the disputed
South China Sea after U.S. President Donald Trump said last week that he did
not plan to meet with Chinese President Xi Jinping before a March 1 deadline
for a trade deal.

INVESTORS: Chinese investors, returning on Monday after a week-long Lunar
New Year holiday, seemed to focus more on downbeat news rather than optimism
expressed by China about the new round of trade talks with the United
States.

CODELCO: There was further pressure on copper prices after Chilean state
miner Codelco said on Saturday it hoped to restart operations soon at its
Chuquicamata copper mine.             

DOLLAR: The dollar held close to its 2019 high on Tuesday as U.S.-Sino trade
tensions and global growth worries underpinned the greenback's safe-haven
appeal, while the euro and the

British pound were hurt by troubles of their own.     

Gold inches down as trade worries boost dollar

(Reuters) - Gold prices eased on Tuesday as investors sought safety in the
dollar from a long-drawn U.S.-China trade war and its impact on the global
economic growth.

FUNDAMENTALS

* Spot gold was down 0.2 percent at $1,306.51 per ounce, as of 0102 GMT,
after falling 0.4 percent in the previous session.

* U.S. gold futures fell 0.1 percent to $1,310.20 per ounce.

* Investors are now focussed on the new round of trade talks between China
and the United States that started in Beijing on Monday.

* These talks come as the world’s two largest economies try to hammer out a
deal before a March 1 deadline, after which U.S. tariffs on $200 billion
worth of Chinese imports are scheduled to increase to 25 percent from 10
percent.

* Sino-U.S. trade tensions have rattled financial markets since last year
and also boosted the appeal of the U.S. dollar as a safe-haven.

* The dollar index was steady at 97.08, after advancing 0.4 percent in the
previous session in its largest percentage gain since Jan. 24.

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

* Meanwhile, top four Democratic and Republican congressional negotiators on
border security funding resumed talks on Monday, with the possibility of
another partial U.S. government shutdown looming if they fail to reach a
deal by a Friday deadline.

* The British parliament is set to hold a debate on Brexit on Feb. 14 where
Prime Minister Theresa May is seeking changes to her deal with Brussels
after it was rejected by a record majority in parliament last month.

* Italy’s ruling League party has drafted a law proposal which would
eventually allow the government to sell the country’s gold reserves through
a change to the constitution.

* Russia’s central bank will pay less than an industry benchmark for gold
that it buys on the domestic market, it said on Monday.

* Kazakhstan raised its gold holdings by 2.81 tonnes in January, according
to International Monetary Fund data.

* China’s gold reserves were at 59.94 million fine troy ounce at end-January
versus 59.56 million troy ounce at end-December, according to central bank
data.

* Venezuela’s most successful financial operations in recent years have not
taken place on Wall Street, but in primitive gold-mining camps in the
nation’s southern reaches.

* Russia’s largest gold producer, Polyus, on Monday reported a 20 percent
jump in fourth-quarter adjusted net profit to $291 million compared with
last year, lifted by increased production and rising sales of the metal.

* If the adage “follow the money” is to be applied to commodities, then
currently the place looking most attractive to investors is gold mining. 

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

Ariston

AGM

Royal Harare Golf Club

19 Feb 2019 - 2:30pm

Zimbabwe

Robert Mugabe National Youth Day

Zimbabwe

21 Feb 2019

Powerspeed

AGM

Boardroom, Gate 1, Powerspeed Complex, Graniteside

28 Feb 2019 - 11am

Zimbabwe 

Independence Day

Zimbabwe

18 Apr 2019 

Good Friday

19 Apr 2019

Easter Saturday

20 Apr 2019

Easter Sunday

21 Apr 2019

Easter Monday

22 Apr 2019

Workers Day

01 May  2019

Africa Day

25 May 2019

 <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) 2019 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/20190212/923cd1b3/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/20190212/923cd1b3/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 159128 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190212/923cd1b3/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190212/923cd1b3/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190212/923cd1b3/attachment-0007.jpg>