Bulls n Bears Daily Market Commentary : 05 April 2018

Thu Apr 5 15:52:16 CAT 2018

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Bulls n Bears Daily Market Commentary : 05 April 2018

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Zimbabwe Stock Exchange Update

Market Turnover $1,818,193.26 with foreign buys at $1,255,160.90 and foreign
sales were $448,061.51. Total trades were 56.

The All Share index gained a further 0.04 points to settle at 87.21 points.
DAIRIBOARD added $0.0050 to close at $0.1200, SIMBISA  was up by $0.0040 to
end at $0.3590 and DELTA   rose $0.0002 to trade at $1.6005.

OLD MUTUAL  was the only lame duck closing at $5.6208 after a $0.0088 loss.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Zimbabwe

Zim Should Adopt The South Africa Rand To Stabilise The Economy: Minister
Mukupe

Deputy Minister of Finance and Economic Planning, Terrence Mukupe has said
that Zimbabwe should adopt the South African Rand as its official currency.
Mukupe said that this would help to stabilise the economy and ease the cash
shortages. However, Mukupe admitted that Zimbabwe would find it very
difficult to join the Rand Monetary Union due to the fact that it did not
have its own currency. to Said Mukupe,

It’s a good thing to join the Rand Monetary Union as a temporary measure,
the same way we adopted the bond notes to stabilise the economy.

The problem why we can’t join the rand union. it’s not that we don’t want.
but what people forget is that you can’t join without your own currency.
Because you come up with your own currency then they determine how much of
your it you have in circulation. Then the amount of money you have in
circulation is then somehow backed by the rand and the South African rand
can then come into your country and float freely.

That it means is that as a country you now have access to deeper financial
markets in South Africa such as bond markets which we don’t have here.

The Rand Monetary Union is made up of South Africa, Lesotho, Namibia and
Swaziland. There have been numerous calls by various sectors for the
government to adopt the Rand in order to make Zimbabwean industry more
competitive.--thezimbabwemail.com

Kenyan shilling, Zambia's kwacha to firm, Nigeria's naira to hold steady

(Reuters) - Kenya’s shilling and the Zambian kwacha are expected to firm on
the back of increased demand for local currency, while the Nigerian naira
and Ghana’s cedi are set to hold steady.

NIGERIA

The naira is likely to remain stable, a day after the central bank
maintained its tight policy on interest rates to support currency, traders
said.

The central bank on Wednesday kept interest rates on hold at 14 percent, a
level it has retained for over a year to curb inflation and prop up the
naira. The bank has also been mopping up naira liquidity to curb speculation
on the currency.

On the official market, the naira was quoted at around 305.60, supported by
the central bank. It traded at 360 per dollar for investors.

KENYA

The shilling is expected to strengthen against the dollar in the coming
week, on the back of increased interbank borrowing of local currency to meet
the credit reserve ratio.

On Thursday, commercial banks quoted the shilling at 100.95/101.15 per
dollar, compared with 100.80/101.00 a week ago.

GHANA

Ghana’s cedi is seen stable on sufficient dollar inflows, with the Bank of
Ghana’s set to launch weekly sales to match corporate demand, analysts said.

On Thursday, it was trading at 4.4450 to the dollar at 1045 GMT on Thursday,
compared to 4.4190 a week ago.

UGANDA

Uganda’s shilling is expected to trade in a narrow range, awaiting a cue
from a central bank key rate decision, although moderate weakening is
likely.

At 0932 GMT, commercial banks quoted the shilling at 3,690/3,700, weaker
than last Thursday’s closing level of 3,685/3,695.

ZAMBIA

The kwacha is expected to continue trading on the front foot next week,
propped by hard currency conversions by companies preparing to pay taxes due
by April 15.

At 1030 GMT on Thursday, commercial banks quoted the currency at 9.3700 per
dollar from a close of 9.400 a week ago.

America

Dollar Pushes Higher on Hopes for Trade Compromise

Investing.com - The dollar pushed higher against a basket of the other major
currencies on Thursday amid hopes that the U.S. and China will reach a
compromise to overcome rising trade tensions.

The U.S. dollar index, which measures the greenback’s strength against a
trade-weighted basket of six major currencies, was up 0.16% to 89.92 by
02:35 AM ET (06:35 AM GMT).

The dollar gained ground against the safe haven yen, with USD/JPY rising
0.19% to 106.98, pulling further way from the previous session’s low of
105.98.

The safe haven yen, which tends to be sought out by investors during times
of political or economic uncertainty had rallied Wednesday after China
announced a fresh wave of tariffs on U.S. imports, in retaliation to a Trump
administration plan to impose tariffs on Chinese products.

But trade tensions eased after President Donald Trump's economic adviser
Larry Kudlow said proposed tariffs on China may not actually take effect and
added that there is not a trade war between the U.S. and China.

Market sentiment was also helped by hopes that the U.S. could reach a deal
with Canada and Mexico over the North American Free Trade Agreement.

Investors were turning their attention to the latest U.S. employment report
and comments by Federal Reserve Chairman Jerome Powell on Friday, which
could help determine the direction of the dollar.

Signs of increasing wage growth could underline the case for the Fed to
raise interest rates at a faster pace. Expectations of rising rates tend to
boost the dollar by making the currency more attractive to yield-seeking
investors.

The euro was a touch lower against the dollar, with EUR/USD dipping 0.11% to
1.2264.

The pound was also slightly lower against the U.S. currency, with GBP/USD
edging down 0.1% to 1.4067.

Commodities Markets

Copper climbs 1 pct as U.S.-China trade fears ease

(Reuters) - Copper rose 1 percent on Thursday as fading concerns over the
prospect of a trade war between China and the United States sparked a bounce
in cyclical assets such as stocks and industrial metals.

Stock markets rebounded from the previous session’s two-month low after the
United States indicated it was willing to negotiate a resolution to the
trade spat between the world’s two biggest economies.

Investors had sought nominally safer assets earlier this week after a U.S.
proposal for tariffs on $50 billion in Chinese goods prompted Beijing to
respond that it would target key American imports in retaliation.

Copper remains undervalued given its underlying fundamentals, he added.
“From the data I’ve received there is still no real shortage in the copper
market, but given the projections for this year and next, it appears to be
heading for a deficit,” he said.

* COPPER: London Metal Exchange copper was untraded in official midday
rings, and was last bid at $6,795 a tonne, up 1.1 percent. The metal is
recovering from a three-month low of $6,532 a tonne hit on March 23.

* FINANCIAL MARKETS: World stocks rose as investors dipped back into riskier
assets after signs that Sino-U.S. trade tensions are easing, while the
recovery in equities helped lift the dollar index to a two-week high.

* SHFE: The Shanghai Futures Exchange was closed on Thursday and Friday for
China’s national Tomb Sweeping Day holiday. “Since Chinese markets will be
closed for the rest of the week because of the Qingming festival, impetus
for the metals markets will come only from the U.S.,” Commerzbank said in a
note.

* ALUMINIUM: Shanghai Futures Exchange (ShFE) aluminium stocks fell for the
first time in more than nine months, giving the market faint hopes of a
drawdown on record inventories of the metal in China, the world’s biggest
aluminium producer and consumer.

* ALUMINIUM PRICES: LME aluminium was down 0.1 percent in official midday
trading at $1,990 a tonne.

* ZINC STOCKS: Headline zinc inventories in LME warehouses fell 2,175 tonnes
to 207,325 tonnes, exchange data showed, but on-warrant stocks - those not
earmarked for delivery and therefore available to the market - surged 16
percent to 166,650 tonnes, their highest since mid March.

* ZINC PRICES: LME zinc was untraded in official rings, and was last bid 0.8
percent lower at $3,231 a tonne.

* OTHER METALS: LME lead was also untraded in official rings, and was last
bid 0.5 percent higher at $2,383 a tonne. Nickel was up 1.5 percent at
$13,350 a tonne in official trading, while tin was 0.6 percent higher at
$21,025 a tonne.

China seeks WTO dispute resolution with U.S. over steel, aluminum tariffs

(Reuters) - China’s commerce ministry said on Thursday it has initiated a
World Trade Organization (WTO) dispute resolution procedure over U.S.
tariffs on its import of steel and aluminum.

The move follows a back and forth dispute between the two countries over
free trade, that has escalated from an investigation by the United States
into China’s intellectual property practices to imposing tariffs on imports.

The Ministry of Commerce said the U.S. measures against its steel and
aluminum were not for maintaining national security, but rather were in aid
of trade protectionism.

The ministry said in a statement posted on its website the U.S. action were
a “serious violation of the non-discrimination principle of the multilateral
trading system”, and violated its tariff-reduction commitments under the
WTO.

After the United States failed to negotiate compensation, China had to
initiate the dispute settlement procedure to defend its rights and
interests, the ministry said.

The U.S. Trade Representative’s office said earlier that the tariffs were
put in place on national security grounds and objections were “baseless”.

WTO rules include an exemption for measures related to national security.

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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