Bulls n Bears Daily Market Commentary : 09 January 2019

Thu Jan 10 06:50:38 CAT 2019

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Bulls n Bears Daily Market Commentary : 09 January 2019

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Zimbabwe Stock Exchange Update

Market Turnover $5,224,266.19 with foreign buys at $2,536,751.00 and foreign
sales were $849,365.09. Total trades were 87.

The All Share index went further down by 0.07 points  to close at 142.25
points. PPC  lost $0.0799 to $1.8001, DELTA  dropped $0.0465 to end at
$2.8035 and OK ZIMBABWE  traded $0.0199 lower at $0.2700.  ECONET  also
decreased by $0.0075 to $1.3642 and FIRST MUTUAL PROPERTIES  was $0.0031
weaker at $0.0671.  

Trading in the positive was OLD MUTUAL LIMITED  which added $0.2845 to
$7.2935, PADENGA  gained $0.0475 to end at $0.9000 and CASSAVA SMARTECH
traded $0.0140 higher at $1.3415. GETBUCKS   also incresead by $0.0100 to
$0.0800 and AXIA  was $0.0025 firmer at $0.4200.

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  Global Currencies & Equity Markets

Kenya

Kenyan shilling firm against the dollar

(Reuters) - The Kenyan shilling was firm against the dollar on Wednesday
helped by inflows from offshore investors buying government debt amid high
liquidity in the local money market, traders said.

At 0845 GMT, commercial banks quoted the shilling at 101.80/102.00 per
dollar, compared with 101.85/102.05 at Tuesday's close.    

South Africa

South Africa's rand, stocks gain on U.S.-China trade deal optimism

(Reuters) - South Africa’s rand and stocks gained on Wednesday, in line with
other emerging markets as hopes the United States and China could reach a
trade deal boosted risk sentiment.

At 1511 GMT, the rand traded at 13.8700 versus the greenback, 0.7 percent
firmer than its previous close.

Stocks were broadly in the black, helping the country’s benchmark index end
the session more than 2 percent higher.

The rand’s gains were linked to growing optimism that the world’s two
largest economies will strike a deal to avoid an all-out confrontation that
would severely disrupt global trade, said Halen Bothma, a market analyst at
ETM in Johannesburg.

“Market is still very much interested in a few big themes, one is the Fed,
one is trade talks between China and the U.S. and the third, I would say, is
global growth,” he said.

Officials of the United States and China continued trade talks in Beijing
for an unscheduled third day, amid signs of progress on issues including
purchases of U.S. farm and energy commodities as well as increased access to
China’s markets.

On the bourse, the JSE Top-40 index ended 2.2 percent higher at 47,140 and
the broader All-share index picked up 2.03 percent to 53,222.

In fixed income, government bonds also firmed, with the yield on the
benchmark instrument maturing in 2026 down 1 basis point to 8.750 percent. 

       <mailto:info at bulls.co.zw> 

Asia

Asia shares check rally as US-China trade talks, Fed policy in focus

(Reuters) - Asian shares took a breather on Thursday after an extended
rally, as markets awaited more news on U.S.-China trade talks that have
raised hopes of a deal to avert an all-out trade war between the economic
giants.

MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.2 percent,
reversing course after briefly touching a near four-week high early in the
session.

Australian shares eased 0.3 percent, while Japan’s Nikkei was down 1.4
percent by the midday break.

Hong Kong’s Hang Seng was off nearly half a percent, while China’s blue-chip
CSI 300 lost 0.1 percent.

Wall Street’s S&P 500 rose 0.41 percent on Wednesday, extending its gains
from 20-month lows touched around Christmas to more than 10 percent.

Delegations from China and the United States ended three days of trade talks
in Beijing on Wednesday in the first face-to-face negotiations since both
sides agreed a 90-day truce in a trade war that has disrupted the flow of
hundreds of billions of dollars of goods.

China’s commerce ministry said on Thursday that the talks with the United
States this week were extensive, and helped establish a foundation for the
resolution of each others’ concerns.

However, there were few concrete details on the meetings in Beijing, which
were not at a ministerial level, so were not expected to produce a deal to
end the trade war.

Risk assets extended a days-long rally overnight after minutes from the
Fed’s December meeting showed that many policymakers were of the opinion
they could be patient about future monetary tightening, and a few did not
support the central bank’s rate increase last month.

Not helping sentiment were figures out of China showing the country’s
consumer prices and factory-gate inflation both rose less than expected in
December, with the latter rising at the slowest pace in over two years.

Besides the dovish slant from the minutes, a clutch of Fed officials also
said on Wednesday they will wait to deliver more interest rate hikes so the
central bank can further assess growing risks to an otherwise solid U.S.
economic outlook.

The rally has gained traction since last Friday, when Federal Reserve
Chairman Jerome Powell said he was aware of risks to the economy and would
be patient and flexible in policy decisions this year.

E-Mini futures for the S&P 500 were last down about half a percent.

OIL EASES, DOLLAR PRESSURED

Oil also caught investors’ attention after U.S. crude and Brent jumped
overnight, helped by optimism over easing Sino-U.S. trade tensions, while
OPEC-led crude output cuts also provided support.

U.S. West Texas Intermediate crude futures on Wednesday gained almost 5.2
percent, while Brent crude futures were up more than 4.6 percent. The sharp
gains extended a rally that has pushed futures up about 14 percent this
year.

Both crude futures gave up some of their recent gains on Thursday. U.S.
crude was last trading 55 cents lower at $51.81 a barrel, down 1.05 percent.
Brent lost 50 cents to $60.94, off 0.81 percent.

Pepperstone’s Weston said he viewed more gains in oil prices as a key driver
for any further rise in risk appetite.

If U.S. crude futures can break through the $55 level, “you’re going to see
real yields probably lower. That’s really good for the cost of money and
taking some further headwinds out of the U.S. dollar,” he said.

U.S. Treasury yields last stood at 2.696 percent, down from 2.710 percent at
the U.S. close on Wednesday.

The dollar remained on the defensive after hitting its lowest level since
mid-October amid the signs Fed policymakers are becoming more cautious about
future rate hikes and as investors unwound safe-haven bets due to optimism
over the trade talks.

The greenback was down a tenth of a percent against the euro at $1.1553. The
single currency gained 0.9 percent against the dollar during the previous
session, its biggest one-day gain since late June.

Against a basket of six major rivals, the dollar briefly dipped to 95.082,
its lowest since Oct. 17, and was last down 0.1 percent.

The dollar lost nearly 0.2 percent against the yen, a safe-haven currency
that’s often preferred by traders during times of market and economic
stress.

The Canadian dollar retreated in line with oil prices, and last traded down
0.2 percent at C$1.3237. It had risen to a five-week high during the
previous session.

The Bank of Canada held interest rates steady as expected on Wednesday but
said more increases would be necessary even though low oil prices and a weak
housing market will harm the economy in the short term.

In commodity markets, spot gold was 0.2 percent higher at $1,295.40, trading
not far off a near seven-month peak of $1.298,60 scaled on Friday. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper steady as Sino-U.S. trade talks rally fades

(Reuters) - London copper was little changed in early Asian trade on
Thursday as the red metal sought to cling on to gains made from optimism
over the latest round of U.S.-China trade talks in Beijing.     

FUNDAMENTALS

* LME COPPER: Three-month copper on the London Metal Exchange         was
flat at $5,956 a tonne, as of 0200 GMT,  after ending 0.9 percent higher on
Wednesday. The most-traded

March copper contract on the Shanghai Futures Exchange          edged down
0.1 percent to 47,500 yuan ($6,974.01) a tonne. 

* TRADE: China's commerce ministry said on Thursday trade talks with the
United States this week were extensive anddetailed, and established a
foundation for the resolution of

each others' concerns.             

* GRASBERG: Copper concentrate exports from Indonesia's Grasberg mine, the
world's second-largest copper mine, areforecast to plunge this year because
of a lag in output as

operations move from open pit to underground mining, a government official
said on Wednesday.             

* OTHER METALS: The base complex was mixed, with London nickel         down
0.1 percent and zinc         losing 0.4 percent. LME aluminium
climbed 0.1 percent and tin

       , which rose above $20,000 for the first time in over six months on
Wednesday, added another 0.2 percent to $20,100 a tonne, its highest since
June 26, on concerns of tight supply. 

* ALUMINA: Norwegian aluminium-maker Norsk Hydro          aims to resume
full production at its Alunorte alumina plant in Brazil within weeks or
months, although the process still

remains uncertain, Chief Executive Svein Richard Brandtzaeg told Reuters.

* BATTERIES: South Korea's LG Chem             said on Thursday it plans to
invest a total of 1.2 trillion won ($1.07 billion) to expand its two battery
plants in China by 2020 in a bid to meet rising global demand.             

Stocks boosted by U.S.-China trade hope, oil prices soar

(Reuters) - Stocks around the world extended recent gains and oil prices
jumped on Wednesday on optimism the United States and China may be inching
toward a trade deal, soothing fears of an all-out trade war and its possible
impact on global growth.

Heightened risk appetite boosted U.S. Treasury yields to the highest this
year, while the U.S. dollar extended losses after minutes from a Dec. 18-19
Federal Reserve policy meeting showed many Fed policymakers said the central
bank could be patient on future rate hikes.

Delegations from China and the U.S. ended talks in Beijing on Wednesday amid
signs of progress on issues including purchases of U.S. farm and energy
commodities and increased access to China’s markets.

China has pledged to purchase “a substantial amount” of agricultural, energy
and manufactured goods and services from the United States, the U.S. Trade
Representative’s office said on Wednesday.

MSCI’s all-country index climbed 1.03 percent for a fourth day of gains.

That added to advances since last week in equity markets around the world,
following a strong U.S. employment report and comments from the Federal
Reserve chief that calmed worries U.S. interest rate hikes would hurt
growth.

A range of Fed policymakers said last month they could be patient about
future interest rate increases and a few did not support the central bank’s
rate increase that month, minutes from their Dec. 18-19 policy meeting
showed.

On Wednesday, a clutch of Fed officials said they would be cautious about
any further increases in interest rates so the central bank could assess
growing risks to an otherwise-solid U.S. economic outlook.

The U.S. stock market was supported by advances by technology and other
trade-sensitive sectors. The benchmark S&P 500 index is up by about 10
percent from 20-month lows hit around Christmas.

The Dow Jones Industrial Average rose 91.67 points, or 0.39 percent, to
close at 23,879.12, the S&P 500 gained 10.55 points, or 0.41 percent, to end
at 2,584.96 and the Nasdaq Composite added 60.08 points, or 0.87 percent, to
finish at 6,957.08.

The pan-European STOXX 600 benchmark closed up 0.53 percent, its highest
close in nearly four weeks.

Oil prices jumped, helped by the hopes of easing trade tensions between
China and the U.S., while OPEC-led crude output cuts also provided support.

Brent crude futures rose $2.72 to settle at $61.44 a barrel, a 4.6 percent
gain. U.S. West Texas Intermediate (WTI) crude futures rose $2.58 to settle
at $52.36 a barrel, a 5.2 percent gain.

The dollar tumbled to its lowest level since October after the Fed expressed
caution about future rate hikes, and as investors reduced safe-haven bets
due to optimism about U.S.-China trade talks.

U.S. Treasury yields climbed to the highest this year, helped by improved
risk appetite, but retreated following dovish commentary from Fed speakers
and a strong 10-year note auction.

Benchmark 10-year notes were last down 2/32 in price to yield 2.7225 percent
after earlier rising to 2.747 percent, the highest since Dec. 28.

Gold prices rose on Wednesday, with spot gold up 0.68 percent to $1,293.65
per ounce. 

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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