Bulls n Bears Daily Market Commentary : 10 April 2018

Tue Apr 10 16:02:14 CAT 2018

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Bulls n Bears Daily Market Commentary : 10 April 2018

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover $1,941,491.48 with foreign buys at $475,626.17 and foreign
sales were $436,699.08. Total trades were 62.

The All Share index gained a further 0.60 points  to settle at 88.44 in
trading dominated with movers. OLD MUTUAL  was up by $0.0300 to close at
$5.6500, DELTA  went up by $0.0194 to end at $1.6251 and  ECONET  was
$0.0123 firmer at $0.7123. AXIA and NMB HOLDINGS each rose by $0.0100 to
$0.2100 and $0.1100 respectively while INNSCOR  was $0.0025 higher at
$0.9700.

There were no trades in the negative territory whilst heavyweights HIPPO ,
NATFOODS   and SEEDCO  traded unchanged at $1.6800, $5.4000, and $1.9500 in
that order.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Kenya

Kenyan shilling firm, supported by tight liquidity

(Reuters) - The Kenyan shilling was in a firm position against the dollar on
Tuesday supported by tight liquidity in the money market and thin demand
from oil importers, traders said.  

At 1000 GMT, commercial banks quoted the shilling at 100.90/101.00 per
dollar, the same as Monday's close. 

Uganda

Uganda shilling stable as commodity flows offer support

(Reuters) - The Uganda shilling        was stable on Tuesday on the back of
some hard currency inflows from exporters of commodities like coffee and
tea. 

At 0952 GMT, commercial banks quoted the shilling at 3,690/3,700, unchanged
from Monday's closing level. 

China

Stocks gain as Xi calms U.S.-China trade fears; rouble tanks

LONDON, April 10 (Reuters) - Global equity markets rallied and the Japanese
yen fell on Tuesday as Chinese President Xi Jinping’s promise to cut import
tariffs eased investor concerns about an escalating U.S.-China trade row.

Russian assets extended Monday’s slide as investors digested the new round
of U.S. sanctions targeting the country’s tycoons. The rouble plunged more
than 4 percent against the dollar to its lowest since late-2016.

Speaking at the Boao Forum for Asia in Hainan province, Xi vowed to open
China’s economy further, protect intellectual property of foreign firms and
he criticised a “Cold War mentality” as obsolete, in his first public
comments since the trade dispute with U.S. President Donald Trump’s
administration erupted.

Xi’s comments prompted a largely positive reaction in financial markets,
which have been rattled over the past week on fears the tit-for-tat
U.S.-China tariffs will escalate into a full-scale trade war that would
threaten global growth.

European markets followed Asia with solid gains. Germany’s DAX rose 0.8
percent, France’s CAC 40 0.51 percent and Britain’s FTSE 100 0.59 percent.

The U.S. S&P 500 E-mini futures gained 1.15 percent, suggesting U.S. shares
would open positively.

The MSCI World Index rose 0.34 percent.

Oil markets rose sharply on hopes that the trade dispute may be resolved
without greater damage to the global economy. Brent crude futures climbed
more 2 percent to $70.12.

After trading flat for most of the day, the euro surged when European
Central Bank policymaker Ewald Nowotny told Reuters that the central bank
could stagger the process of raising euro zone interest rates by first
lifting its sub-zero deposit rate back toward positive territory.

The euro rose 0.4 percent to $1.2378 and left the dollar down across most
major currencies aside from the Japanese yen.

The yen, which traditionally rises in times of market stress, fell versus
both the dollar and euro. The dollar rose to as high as 107.245 before
giving up some of those gains.

Safe haven bond prices including 10-year Treasuries initially dropped as
risk appetite recovered.

Gold rose 0.2 percent.

The Australian dollar, which has fallen in recent weeks because of the
economy’s exposure to global trade flows, gained against the dollar, as did
Asian currencies including the Chinese yuan

“Xi explicitly did not continue the trade war rhetoric so this is going to
be risk-friendly and the market will be relieved,” said Kit Juckes, a macro
strategist at Societe Generale.

RUSSIAN FALLS

Russian financial markets sold off sharply.

The rouble tumbled 4.2 percent, bringing its losses against the dollar since
last Friday to around 10 percent.

Rouble-denominated shares rose 0.8 percent, bouncing off multi-month lows
hit on Monday when the Moscow bourse dropped 8.3 percent

The shares of Rusal, the aluminium giant, which, with its boss Oleg
Deripaska, was highlighted prominently in the sanctions, fell a further 7.5
percent in Hong Kong after slumping 50 percent on Monday.

Its dollar bonds maturing 2022 were trading at record lows around 52 cents,
having lost half their value since the sanctions were announced.

The MSCI Emerging markets index was up 0.63 percent as other larger markets
outside of Russia rallied.

For Reuters Live Markets blog on European and UK stock markets open a news
window on Reuters Eikon by pressing F9 and type in ‘Live Markets’ in the
search bar

Commodities Markets

Aluminium prices extend gains on Rusal sanctions

(Reuters) - Aluminium prices rallied to a five-week high on Tuesday in their
longest winning streak since December as U.S. sanctions on Russian producer
United Company Rusal fuelled concerns over supply.

Benchmark aluminium on the London Metal Exchange rose 0.5 percent to $2,150
per tonne, after earlier touching $2,157.50, its highest since March 5.

The United States imposed major sanctions on Friday against Russian entities
and individuals, including Russian aluminium giant Rusal, in one of
Washington’s most aggressive moves to punish Moscow for its alleged meddling
in the 2016 U.S. election and other “malign activity.”

LME ALUMINIUM: The metal used in beer kegs and aeroplane parts is up about 7
percent so far in London since the sanctions on Rusal were announced on
April 6.

RUSAL: Rusal produced 3.7 million tonnes of aluminium last year, which
according to brokers Argonaut is about 7 percent of the world total. Rusal
says exports to the United States account for over 10 percent of its output.

INVENTORIES: Aluminium stocks in London Metal Exchange approved warehouses
originating from producers in Eastern Europe stood at 450,650 tonnes as of
April 6, data from the exchange showed on Monday. Sources say this category
would mostly be metal produced by Rusal.

On-warrant aluminium stocks fall 24,875 tonnes to 972,000 after fresh
cancellations.

SPREADS: The LME cash to three month contract changed from a contango of
$20.50 on Friday to a backwardation of $16 on Monday, indicating a shortage
of material for immediate delivery. On Tuesday backwardation drifted to
$3.75.

GLENCORE: Swiss-based trader Glencore said on Tuesday it would not “at this
time” be swapping its shares in Rusal for Global Depository Receipts in EN+
due to U.S. sanctions on both firms.

ALUMINIUM: Rio Tinto will be among the biggest winners from the U.S.
sanctions imposed on Rusal as the penalties further shake up the global
metals trade and raise costs for U.S. consumers, industry sources said on
Monday.

OTHER METALS: Copper rose 0.7 percent to $6,878 per tonne, lead fell 0.4
percent to $2,375.50, tin was flat at $21,200, zinc inched 0.4 percent
higher to $3,226 while nickel added 1.1 percent to $13,580.

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
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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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