Bulls n Bears Daily Market Commentary : 29 January 2019

Tue Jan 29 21:08:25 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 : 29 January 2019

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover $1,994,482.72 with foreign buys at $761,151.35 and foreign
sales were $526,038.36. Total trades were 115.

The All Share index retreated by 1.12 points to close at 157.42 points.
SEEDCO INTERNATIONAL  led the shakers with a $0.2500 loss to $1.7500, RIOZIM
dropped $0.0400 to end at $1.8500 and ECONET  was $0.0254 lower at $1.5002.
DELTA  also decreased by  $0.0246 to $3.1254 and CASSAVA SMARTECH   traded
$0.0125 down at $1.5374.

Losses were partially offset by  gains in FIRST MUTUAL LIMITED   which added
$0.0150 to $0.1400, ZIMPAPERS   was $0.0082 stronger at $0.0490 and BINDURA
put on $0.0051 to $0.0799. FIRST CAPITAL BANK  also traded $0.0038 firmer at
$0.0709 and PADENGA   increased by $0.0034 to settle at $1.0534.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Uganda

Ugandan shilling firmer on offshore investor flows

(Reuters) - The Uganda shilling was a little firmer on Tuesday, helped by
inflows of hard currency from offshore investors looking to buy government
debt.

At 0900 GMT commercial banks quoted the shilling at 3,665/3,675, a touch
stronger than Monday’s close of 3,670/3,680.

Kenya

Kenyan shilling weakens due to end month dollar demand

(Reuters) - The Kenyan shilling weakened against the dollar on Tuesday due
to end month demand from oil and merchandise importers exceeding dollar
inflows from diaspora remittances, traders said.

At 0800 GMT, commercial banks quoted the shilling at 100.75/95 per dollar,
compared with 100.65/85 at Monday’s close. 

       <mailto:info at bulls.co.zw> 

Asia

Asia shares slip as China's Huawei in legal hot water; focus on Sino-U.S.
talks

(Reuters) - Asian shares stumbled on Tuesday and the dollar hovered near
two-week lows as prospects for a long-awaited Sino-U.S. trade deal were
dealt another blow after the United States levelled sweeping criminal
charges against China’s telecom giant Huawei.

The mood was expected to be subdued elsewhere with spreadbetters suggesting
a tentative start for Europe while futures for the S&P 500, Dow and Nasdaq
were each off 0.2 percent.

In Asia, the losses were led by Australia and New Zealand, with their
benchmark indices down 0.5 percent and 1.2 percent respectively.

Chinese shares opened in the red, then recovered in the afternoon.
Shanghai’s SSE Composite was up 0.1 percent while the blue-chip index
climbed 0.4 percent.

Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan was
still down 0.2 percent even after recouping some of its earlier losses.

Japan’s Nikkei, down about 1 percent almost all day, turned around to end
0.1 percent higher.

Despite the late uptick in share prices, the mood was still gloomy after the
U.S. Justice Department unsealed indictments against China’s top telecom
equipment maker, Huawei Technologies Co Ltd, accusing it of bank and wire
fraud to evade Iran sanctions and conspiring to steal trade secrets from
T-Mobile US Inc.

The jolt threatens to undermine prospects for a trade deal between the
economic giants as markets nervously await a round of trade talks with
Chinese Vice Premier Liu He set to meet U.S. officials on Wednesday and
Thursday.

Further complicating matters, China triggered the legal process on Monday
for the World Trade Organization to hear Beijing’s challenge to U.S.
tariffs, and berated the United States for blocking the appointment of
judges who could rule on it.

Souring U.S.-China relations roiled global markets for much of last year,
and have kept investors on the back foot this month. The trade war’s
broadening impact on world growth is one reason the U.S. Federal Reserve has
signalled it will be patient on policy after raising rates four times in
2018.

Indeed, many economists, including the International Monetary Fund, have cut
their forecasts for global growth this year, citing the U.S.-China trade
war.

It noted that investors were pricing in a 1 percent contraction in global
earnings per share (EPS) this year. “This would be the worst year-on-year
percentage change in EPS since 2015” even though economic growth is likely
to be much higher this year than seen in 2015, the note said.

WARNING BELLS

Markets will have more catalysts this week with over 100 of the S&P500
companies reporting results, including Amazon , Apple and Facebook.

Overnight on Wall Street, the Dow and S&P 500 each closed down 0.8 percent
and the Nasdaq was off more than 1 percent.

The losses came as shares of Caterpillar and Nvidia Corp nosedived after the
two manufacturers joined a growing list of companies cautioning about the
crippling effects of softening Chinese demand.

Worryingly, earnings at China’s industrial firms too shrank in December,
pointing to more troubles for the country’s vast manufacturing sector
already struggling with a decline in orders, job layoffs and factory
closures.

Slowdown fears slugged the U.S. dollar, which faltered to its lowest in two
weeks on Monday. The dollar index, which measures the greenback against a
basket of major currencies, was last at 95.733.

Against the safe haven Japanese yen, the dollar was down at 109.32, on track
for a third straight session of losses.

The downbeat global growth impulse mean investors will look for further
confirmation the Fed will pause its rate-hike cycle at a two-day policy
meeting ending Wednesday.

Elsewhere, sterling dithered against the dollar ahead of voting in Britain’s
parliament on Tuesday that aims to break the Brexit deadlock. It was last at
$1.3152.

Oil bounced after hefty overnight losses. U.S. crude was last up 35 cents at
$52.34 a barrel while Brent gained 37 cents to $60.30.

U.S. gold futures hovered near seven-month highs at $1,302.2 per ounce. Spot
gold was last at 1,304.19 after breaking above a key psychological barrier
of $1,300 an ounce on Friday.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold hits seven-month high, stocks mixed amid trade caution, results

(Reuters) - Gold hit an eight-month high while world stock markets were
mixed ahead of further U.S.-Sino trade talks, a raft of technology company
results starting with Apple later on Tuesday and an impending Federal
Reserve decision on interest rates.

The U.S. dollar was little changed and oil prices rose after Washington
slapped sanctions on Venezuela’ state-owned oil firm in a bid to curb its
crude exports as traders prepared for major events such as a key Brexit vote
later in the day.

Investors expect the U.S. Fed to adopt a more cautious stance when
policymakers release a statement on Wednesday after a two-day meeting. U.S.
economic data that came in softer than expected in December and a sharp
downturn in financial markets are expected to keep the Fed from raising
rates.

Equity markets in Europe rose as investors bid up stocks considered safer
during times of economic uncertainty, such as utilities. However, a gauge of
global stock performance edged lower as stocks on Wall Street fell amid a
ream of mixed earnings reports and caution due to the U.S.-China trade spat.

MSCI’s gauge of stocks across the globe shed 0.04 percent, while the
FTSEurofirst 300 index of leading regional shares rose 0.9 percent.

The Dow Jones Industrial Average rose 12.11 points, or 0.05 percent, to
24,540.33. The S&P 500 lost 8.26 points, or 0.31 percent, to 2,635.59 and
the Nasdaq Composite dropped 59.69 points, or 0.84 percent, to 7,026.00.

The information glut this week will make it hard for people to come to a
conclusion but the trade talks with China, which begin on Wednesday, are the
overriding issue for the world economy, said David Kelly, chief global
strategist at JPMorgan Funds in New York.

What Washington, and possibly Beijing, fail to understand is that the
uncertainty about trade is slowing the global economy, which will show up in
East Asian PMI manufacturing data for January to be released on Thursday,
Kelly said.

Tensions were high after U.S. officials announced criminal charges against
China’s telecom giant Huawei for violating U.S. sanctions against Iran.

For Asia, the blow was cushioned by promises of more Chinese stimulus but
Beijing had berated Washington for blocking tactics in its World Trade
Organization appeal against U.S. tariffs.

Amid the uncertainty, safe-haven gold broke through $1,310 an ounce to reach
its highest since May last year.

Oil price gains were capped by abundant supply and signs of a slowing
Chinese economy. Brent crude oil futures surged 1.94 percent to $61.09 a
barrel while U.S. West Texas Intermediate (WTI) crude futures gained 2.44
percent to $53.26.

Market participants will have catalysts for trading all week, with more than
one-fifth of companies on the benchmark S&P 500 index reporting results,
including Amazon, Microsoft and Facebook.

Apple, which issued a profit warning this month due to weak demand from
China, is due to report after the market closes.

U.S. Treasury yields fell across maturities as investors anticipated strong
demand for $78 billion of new issues on sale later in the day and on data
showing U.S. consumer confidence at its lowest since July 2017.

Benchmark 10-year U.S. Treasury notes rose 6/32 in price to push their yield
down to 2.7241 percent.

The dollar index rose 0.07 percent, with the euro down 0.12 percent to
$1.1419. The Japanese yen firmed 0.03 percent versus the greenback at 109.32
per dollar.

Aluminium gains as traders eye falling stocks, China stimulus

(Reuters) - Aluminium prices rose on Tuesday as investors saw the previous
session’s 2.8 percent drop as overdone given falling stockpiles and efforts
by top consumer China to stimulate growth.

The United States said on Monday it would lift sanctions on aluminium
Russian producer Rusal, while the London Metal Exchange (LME) said it would
resume accepting all Rusal metal into its warehouses.

While the move means unsold Rusal material could hit the market, balances
are tightening overall, as reflected by falling stocks. Investors are also
counting on more stimulus from China after the Chinese New Year break in
February.

Aluminium stocks in LME approved warehouses stand at 1.3 million, near their
lowest since May 2018, while stocks in Shanghai Futures Exchange (ShFE)
warehouses are at 690,000 tonnes, down 30 percent since last May.

Oliver Nugent, commodity strategist at Citi, said China had cut three
million tonnes of aluminium capacity last year and stocks were now being
drawn, adding that demand would likely improve after the Chinese new year
thanks to stimulus measures from Beijing.

* LME ALUMINIUM: Three-month LME aluminium ended up 1.5 percent at $1,894 a
tonne, bringing gains for the year to around 2.5 percent. Aluminium ended
2018 down 18.6 percent on bets the Rusal sanctions would be lifted and on
U.S.-China trade tensions.

* OPEN INTEREST: Indicating potential short covering ahead, aluminium
exhibits the largest short in the base metals complex, equivalent to 22
percent of open interest, according to broker Marex Spectron.

* CHINA-GROWTH: China on Tuesday unveiled measures aimed at spurring sales
of items ranging from cars and appliances to information services, as the
world’s second-largest economy grows at its slowest pace in nearly 30 years.

* ALUMINIUM DEFICIT: “We remain of the view that, with the market in heavy
deficit and demand set to improve, the skew of price risk into mid-year is
to the upside,” BMO Capital Markets said in a note.

* U.S.-CHINA: The United States on Monday announced criminal charges against
Chinese telecoms giant Huawei, escalating tensions with Beijing just days
before trade talks between the two countries.

* CHINA-POLL: Activity in China’s vast manufacturing sector likely shrank
for the second straight month in January.

* POLAND COPPER: Nine miners are missing after an earth tremor struck KGHM
Polska Miedz’s mine near the Polish town of Rudna.

* OTHER METALS: Copper ended up 0.8 percent at $6,050 a tonne, zinc ended
down 0.9 percent at $2,656, lead closed down 0.1 percent at $2,075, tin
closed up 0.1 percent at $20,675 while nickel closed up 2.5 percent at
$12,120, having hit its highest since last October.

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

 <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/20190129/ab4411ea/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/20190129/ab4411ea/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/20190129/ab4411ea/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/20190129/ab4411ea/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/20190129/ab4411ea/attachment-0007.jpg>