Bulls n Bears Daily Market Commentary : 04 April 2018

Wed Apr 4 16:27:02 CAT 2018

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Bulls n Bears Daily Market Commentary : 04 April 2018

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover $15,269,309.31 with foreign buys at $149,077.47 and foreign
sales were $81,546.61. Total trades were 47.

The All Share index went up by 0.17 points   to settle at 87.17 points.
There was a large transaction on NAMPAK while DELTA  gained $0.0125 to close
at $1.6000 and OLD MUTUAL  was up by $0.0096 to close at $5.6296.

NAMPAK  shed $0.0001 to end at $0.1649 while ECONET  , INNSCOR  , RIOZIM
and SEEDCO  traded unchanged at $0.6700, $0.9700, $1.2075 and 1.9500 in that
order.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South African rand weakens as global trade tensions sap risk appetite

(Reuters) - South Africa’s rand weakened against the dollar early on
Wednesday as U.S.-China trade tensions sparked market fears that the
standoff between the world’s two largest economies could spiral into a trade
war which could crush global growth.

* At 0631 GMT, the rand traded at 11.8600 per dollar, 0.3 percent weaker
than its overnight close.

* U.S. President Donald Trump administration announced 25 percent tariffs on
$50 billion of annual imports from China, covering around 1,300 industrial
technology, transport and medical products. China’s commerce ministry
immediately warned it was preparing countermeasures of equal intensity.

* “Global trade tensions continue to weigh on risk appetite, and until
common ground is found safe-haven demand would remain as the best form of
defence,” Nedbank analysts wrote in a note.

* In fixed income, the yield for the benchmark government bond was up 1.5
basis points to 8.03 percent. 

Uganda

Ugandan shilling stable, dollar demand seen rising

(Reuters) - The Ugandan shilling        was broadly stable on Wednesday
although traders expected it to come under pressure from higher demand for
dollars from commercial banks and importers.   

At 0834 GMT, commercial banks quoted the shilling at 3,687/3,697, barely
changed from Tuesday's close of 3,685/3,695.

China

Yen Gains Against Dollar Amid Global Trade Uncertainty

Investing.com - The dollar slipped against the yen in Asia on Wednesday
morning amid intensifying trade disputes between the U.S. and China which
could hurt the global economy. In addition, the Aussie performed the best in
the morning session thanks to the bullish retails sales data.

The U.S. dollar index that tracks the greenback against a basket of six
major currencies last stood at 89.76 at 11:15PM ET (03:15 GMT), down 0.10%.
It dropped from an overnight high at 89.92 to below the 89.80 level.

Tensions continued after the U.S. proposed imposing 25% tariffs on nearly
$50 billion worth of made-in-China products - around 1,300 industrial
technology, transport and medical products to be particular.

In response, the Chinese embassy in Washington said in a statement that “the
Chinese side will resort to the WTO dispute settlement mechanism and take
corresponding measures of equal scale and strength against U.S. products in
accordance with Chinese law.”

More directional drivers for the dollar this week will be the U.S. payrolls
data and comments by Federal Reserve Chairman Jerome Powell.

In China, the People’s Bank of China set the fix rate of yuan against the
dollar at 6.2926 versus the previous day’s 6.2833. The USD/CNY pair edged up
0.06% to trade at 6.2931.

The USD/JPY pair eased 0.10% to 106.50. The pair saw bulls overall, climbing
up from below the 106 mark since Tuesday morning. In times of economic
uncertainty, the safe-haven yen attracts demand. And on the other side, the
yen weakens on improving risk appetite as investors turn to riskier assets.

The AUD/USD pair surged 0.29% to trade at 0.7707. The Aussie was sent higher
on Wednesday morning by the bullish February retail sales data that came in
better than expected at 0.6%, beating the estimated 0.3%.--www.investing.com

Commodities Markets

Gold hits 1-week high as dollar dips, U.S.-China trade tensions escalate

(Reuters) - Gold hit a one-week high on Wednesday as the dollar dipped
versus the yen and share markets faltered after China retaliated in kind to
a U.S. move to slap tariffs on $50 billion worth of its imports, raising
trade war jitters.

Beijing said after Chinese markets had closed that it would impose
additional tariffs on $50 billion worth of U.S. imports ranging from cars,
chemicals and corn to whisky and tobacco.

The dent in risk appetite sucked some strength out of the dollar, making
dollar-priced gold cheaper for non-U.S. investors and increasing the appeal
of gold as a safe haven asset in times of geopolitical or economic turmoil.

But capping gold’s upside were signs of still steady global economic growth,
with a host of manufacturing survey’s (PMIs) in many regions showing some
slowing, but from lofty levels.

Spot gold was up 1 percent at $1,346.01 per ounce as of 1233 GMT, after
falling 0.6 percent the previous session.

U.S. gold futures were up 1 percent at $1,350.50 an ounce.

Investors are looking ahead to U.S. non-farm payrolls on Friday, with
stronger-than-expected data a risk for gold as it will likely support the
dollar and calm fears over growth, even in the face of a potential trade
war.

In other precious metals, spot silver rose 0.6 percent to $16.48 per ounce,
after shedding 1.4 percent on Tuesday.

Platinum was down 0.5 percent at $915.99 an ounce, after falling to as low
as $912 in the previous session, its lowest since late December.

Palladium was down 1 percent at $920.20 an ounce after touching $916, its
lowest since last October. 

Copper eases as U.S-China trade row escalates

(Reuters) - Copper fell the most since early February on Wednesday after
China slapped tariffs on U.S. goods, amid an escalating trade dispute
between the world’s two largest economies.

Benchmark copper on the London Metal Exchange fell 2 percent to $6,662 per
tonne in official trading rings, snapping a four-session winning streak. The
metal used in power and construction was on track for its worst one-day
performance since Feb. 2.

The United States on Tuesday slapped 25 percent tariffs on about $50 billion
worth of goods, including some metals products, aimed at dealing a setback
to China’s efforts to upgrade its manufacturing base.

TRADE: Less than 11 hours after the U.S. tariffs were announced China hit
back on Wednesday, retaliating with a list of similar duties on U.S. imports
including soybeans, planes, cars, whiskey and chemicals.

WTO: China also initiated a World Trade Organization dispute procedure
against the U.S. 301 tariffs investigation.

DOLLAR: The greenback eased against a basket of major currencies on
Wednesday, helping to cap losses in the downbeat metals market.

COPPER INVENTORIES: Total stocks of copper in LME-approved warehouses
MCUSTX-TOTAL eased to 378,075 tonnes but remained near five-year highs
touched last week. Over 80 percent of this total stock was available to the
market.

MARKETS: The speed with which the trade struggle between Washington and
Beijing is ratcheting up led to a sharp selloff in global stock markets and
commodities.

COPPER OUTLOOK: “We expect demand drivers in China to continue to moderate,
as we expect the focus on corporate deleveraging to increase, and real
estate completions to slow,” Canaccord Genuity said in a note.

CHINA ECONOMICS: China, the world’s top metals consumer, saw services sector
growth ease to a four-month low in March, according to the private
Caixin/Markit services purchasing managers’ index (PMI), while its central
bank renewed a pledge to crack down on the unregulated shadow banking
sector.

ALUMINIUM: LME aluminium was the only gainer among the metals, adding 0.9
percent to $1,995 per tonne, after touching its lowest since August in the
previous session, partly due to higher stocks in ShFE warehouses.

OTHER METALS: Zinc, used to galvanise steel, shed 1.32 percent to $3,236 per
tonne, lead fell 0.5 percent to $2,376.50, tin slipped 1.7 percent to
$20,800 and nickel slid 3 percent to $13,080.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Zimbabwe

Independence Day

Zimbabwe

18/04/2018

Workers’ Day

01/05/2018

Africa Day

25/05/2018

Zimbabwe

Heroes’ Day

Zimbabwe

13/08/2018

Zimbabwe

Defence Forces Day

Zimbabwe

14/08/2018

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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