Bulls n Bears Daily Market Commentary : 24 January 2019

Fri Jan 25 07:39:39 CAT 2019

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Bulls n Bears Daily Market Commentary : 24 January 2019

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Zimbabwe Stock Exchange Update

Market Turnover $4,405,681.90 with foreign buys at $493,951.30 and foreign
sales were $686,557.60. Total trades were 149.

The All Share index recovered 0.62 points  to close at 159.86 points.
INNSCOR   led the movers with a $0.0500 gain to close at $2.1000, PADENGA
added $0.0481 to $1.0500 and ECONET  was $0.0302 to settle at $1.5936. OLD
MUTUAL LIMITED   recovered $0.0174 to $9.0164 and MASIMBA   traded $0.0054
firmer at $0.0810.

Four counters lost ground as CBZ   dropped $0.0163 to end at $0.1600,
CASSAVA SMARTECH   was $0.0081 down at $1.5520 and OK ZIMBABWE   traded
$0.0041 lower at $0.3205. DELTA   went further down by $0.0007 to close at
$3.1993.

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  Global Currencies & Equity Markets

Kenya

Kenyan shilling gains supported by remittances, investors buying debt

(Reuters) - The Kenyan shilling gained against the dollar on Thursday
supported by inflows from  diaspora remittances and offshore investors
buying governmentdebt and stocks at the Nairobi Securities Exchange amid
muted demand from oil importers, traders said. 

At 0734 GMT, commercial banks quoted the shilling at 101.20/40 per dollar,
compared with 101.35/55 at Wednesday's close. 

Tunisia

Tunisia's foreign currency reserves rise after Saudi loan

(Reuters) - Tunisia’s foreign reserves have risen since it agreed a $500
million loan from Saudi Arabia last week and are now enough to pay for 91
days of imports, official data showed on Wednesday, up from a previous level
of 80 days.

The North African country’s economy has been in crisis since the toppling of
autocrat Zine al-Abidine Ben Ali in 2011, with unemployment and inflation
shooting up. It has struggled with tough economic reforms to reduce public
spending.

Central bank figures showed that Tunisia’s foreign exchange reserves now
stand at 15.096 billion dinar ($4.99 billion).

The government said last week that Finance Minister Ridha Chalgoum had
signed in Riyadh a $500 million loan with a low interest rate. He gave no
further details.

Last month, Prime Minister Youssef Chaded said after a visit to Riyadh that
Saudi Arabia had pledged financial aid worth about $830 million, of which
$500 million would be used to finance the budget. ($1 = 3.0247 Tunisian
dinars) 

       <mailto:info at bulls.co.zw> 

Asia

Asia stocks firm, euro sags after dovish ECB

(Reuters) - Asian stocks rose across the board on Friday, buoyed by gains in
U.S. technology shares while investors awaited several key events next week
including U.S.-China trade talks.

The euro struggled near a six-week low versus the dollar following
dovish-sounding comments from European Central Bank President Mario Draghi,
who expressed concerns about the euro zone economy.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.95
percent to scale its highest since Dec. 4.

The index was headed for a gain of 0.6 percent this week, with strong
corporate earnings helping somewhat to counter growing concerns over slowing
global economic growth.

The Shanghai Composite Index rose 0.6 percent.

Tech-heavy South Korean shares added 0.9 percent. Australian stocks climbed
0.8 percent, lifted by higher prices of commodities such as iron ore and
crude oil.

Japan’s Nikkei advanced 1.4 percent with technology companies boosted by a
surge in their U.S. peers.

Maekawa added that a recovery in the global cyclical chip sector is taken as
a silver-lining amid concerns about a global economic slowdown.

A synchronised global economic slowdown is under way and any escalation in
the U.S.-China trade war would trigger a sharper downturn, according to the
latest Reuters polls of hundreds of economists from around the world.

Chinese Vice Premier Liu He will visit the United States on Jan. 30 and 31
for the next round of trade negotiations with Washington.

The two sides are “miles and miles” from resolving trade issues but there is
a fair chance they will get a deal, U.S. Commerce Secretary Wilbur Ross said
on Thursday.

The British parliament will debate and vote on Prime Minister Theresa May’s
Brexit “plan B” on Jan. 29, and the U.S. Federal Reserve concludes a two-day
policy setting meeting on Jan. 30.

The Nasdaq had risen roughly 0.7 percent on Thursday thanks to a rally by
chipmakers, while the S&P 500 edged higher and the Dow closed nominally
lower as anxiety about slowing global growth and the Sino-U.S. trade dispute
undercut a spate of strong earnings.

In currency markets, the euro was a shade firmer at $1.1316 but still in
close reach of a six-week trough of $1.1289 plumbed overnight. The euro was
down 0.4 percent this week.

The single currency slid after ECB President Draghi acknowledged on Thursday
that economic growth in the euro zone was likely to be weaker than earlier
expected due to the fall-out from factors ranging from China’s slowdown to
Brexit.

Germany has dropped its economic growth forecast for 2019 to 1.0 percent
from 1.8 percent due to slower global economic growth and uncertainty about
Britain’s exit from the European Union, the Handelsblatt newspaper reported
on Thursday.

The ECB had left its policy stance unchanged as expected on Thursday and
Draghi’s downbeat comments added to speculation that the central bank will
hold back on interest rate hikes that some market watchers had expected in
October.

The pound was up 0.4 percent at $1.3109 after brushing a two-month high of
$1.3130, lifted after The Sun reported on Thursday that Northern Ireland’s
Democratic Unionist Party has privately decided to back Prime Minister May’s
Brexit deal next week if it includes a clear time limit to the Irish
backstop.

The dollar nudged up 0.1 percent to 109.74 yen and on track to end the week
little changed.

The benchmark 10-year U.S. Treasury note yield was slightly higher at 2.724
percent after dropping to a one-week low as concerns over slowing global
growth supported safe-haven government debt.

Crude oil extended gains after rallying the previous day as the United
States threatened sanctions on Venezuela’s crude exports as the country
descended further into political and economic turmoil.

U.S. crude oil futures were up 1.3 percent at $53.82 per barrel after
gaining 1 percent on Thursday.

 <mailto:info at bulls.co.zw> 

Commodities Markets

China's Dec U.S. scrap copper imports climb for first time in months

(Reuters) - China’s imports of scrap copper from the United States rose in
December from the previous month, customs data showed, snapping six straight
months of decline as buyers scooped up cargoes before tighter restrictions
on scrap took effect for 2019.

Arrivals of U.S. scrap copper into China last month stood at 5,236 tonnes,
according to data released by the General Administration of Customs on
Friday. That was up 14.3 percent from 4,580 tonnes in November, but was
still less than one-tenth of the 60,440 tonnes imported in December 2017.

Shipments were 351,517 tonnes for the full year, down 34.3 percent from
535,371 tonnes in 2017.

Scrap material from key supplier the United States has been subject to a
25-percent import tariff in China since August as part of a tit-for-tat
trade row, making imports much more expensive.

China’s U.S. scrap copper purchases have since fallen sharply, with imports
from Japan, up 49.2 percent year-on-year to 441,186 tonnes in 2018,
partially filling the void. Japan was China’s top supplier of scrap copper
last year, the data showed, ahead of the United States and Hong Kong.

China has gradually been clamping down on broader waste metal imports for
environmental reasons, with cargoes of Category 7 scrap copper such as
coiled copper cable and waste motors completely off-limits from 2019.

Ahead of the ban, China’s total scrap copper imports in December reached
their highest in a year.

That jump came due to “the desire to preempt future controls”, China scrap
veteran Michael Lion, president of Lion Consulting Asia, said before the
origin data was released.

Meanwhile, imports of U.S. copper concentrate, also subject to a 25-percent
tariff in China since August, fell 32 percent to 294,400 tonnes last year
and were at zero in December. The United States was China’s eighth-biggest
copper concentrate supplier in 2017.

Shipments of U.S. scrap aluminium, which were hit with total Chinese tariffs
of 50 percent last year, managed to hold up much better, falling by a
relatively modest 16.9 percent to 513,850 tonnes in 2018. December imports
were down 38 percent year-on-year at 39,923 tonnes.

London copper rises after miner forecasts lower output

(Reuters) - London copper prices edged up inearly Asian trade on Friday,
clawing back some of the previous  session's losses after the world's
second-biggest copper miner forecast a drop in output in 2019.

Copper remains on course to shed 1.9 percent in London this week on fears
China's slowing economy will reduce demand. That would mark its steepest
weekly drop since the week ended Dec. 21.

    FUNDAMENTALS

* LME COPPER: Three-month copper on the London Metal Exchange had inched up
0.3 percent to $5,939.50 a tonne as of 0201 GMT, after closing down 0.5
percent in the previous session. The most-traded March copper contract on
the Shanghai Futures Exchange was down 0.1 percent at 47,340 yuan
($6,974.79) a tonne.

* FREEPORT: Freeport McMoRan Inc shares slid 9 percent on Thursday after the
world's second-largest copper miner posted lower-than-expected quarterly
profit and forecast a

drop in 2019 production. 

* U.S. COPPER: Once seen as a laggard in the global mining industry, U.S.
copper deposits have quietly drawn more than $1.1 billion in investments
from small and large miners alike as

Tesla and other electric carmakers scramble for more of the red metal.

* ANGLO: Anglo American said its copper output had reached a five-year high
and its overall output for the last quarter of 2018 had risen 7 percent
following operational changes that boosted efficiency.

* SQM: Chile's SQM late on Wednesday told Chilean regulators that it had
taken measures to safeguard its corporate secrets just weeks after top
competitor Tianqi purchased a coveted

quarter stake in the top lithium miner.

* COLUMN: Global aluminium production growth brakes sharply in 2018: Andy
Home    

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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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
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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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