Bulls n Bears Daily Market Commentary : 19 April 2018

Thu Apr 19 14:46:27 CAT 2018

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Bulls n Bears Daily Market Commentary : 19 April 2018

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Zimbabwe Stock Exchange Update

Market Turnover $1,784,581.15 with foreign buys at $1,236,578.92 and foreign
sales were $269,742.02. Total trades were 69.

The All Share index continued in the upward trend gaining 1.38 points  to
settle at 94.61 points. DELTA   added $0.0657 to end at $1.8777, ECONET
advanced by $0.0305 to close at $0.9001 while OLD MUTUAL  was $0.0200 firmer
at $5.7000. PADENGA went up by $0.0075 to $0.4175, BARCLAYS   put on $0.0019
to close at $0.0459 and INNSCOR  closed at $0.9785 following an increase of
$0.0010.

Losses were seen in FIRST MUTUAL PROPERTIES  which shed $0.0063 to close at
$0.0435, AXIA  dropped $0.0046 to $0.2310, MEIKLES   came off $0.0017 to end
at $0.2900. AFRICAN SUN  was  $0.0005 weaker at $0.0370.

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Global Currencies & Equity Markets

Kenya

Kenyan shilling steady; to ease due to increased importer demand

(Reuters) - The Kenyan shilling held steady against the dollar on Thursday
and was expected to weaken due to increased demand from oil and other
merchant importers, traders said. 

At 0800 GMT, commercial banks quoted the shilling at 100.40/50 per dollar,
the same as Wednesday's close. The shilling hit 100.20 to the dollar on
Tuesday, its highest level

in nearly two years, earlier this week. 

Uganda

Uganda's shilling holds steady against the dollar

(Reuters) - The Ugandan shilling was stable on Thursday traders said it
could come under pressure from expected demand for dollars from importers
across a range of sectors.

At 0929 GMT, commercial banks quoted the shilling at 3,690/3,700, the same
level as Wednesday’s close.   

America

Dollar rises as risk appetite returns, investors turn to data

(Reuters) - The U.S. dollar rose on Wednesday from a three-week low after
trade war concerns waned and firm U.S. economic data boosted the greenback
against the yen and ushered in renewed risk appetite.

U.S. markets were buoyed by strong corporate earnings and that helped
European equities on Wednesday as investors focused on economic data and put
to one side worries about a global trade war.

Markets in Asia picked up on a positive finish in the United States and were
helped by China’s decision to cut bank reserve requirements by 100 basis
points for some commercial banks. U.S. stock futures were 0.2 percent up in
early London trade.

The dollar index against a group of six major currencies gained 0.1 percent
to 89.621.

Investors are focusing on CPI inflation data from the United Kingdom and the
euro zone later on Wednesday for signs of the viability of further central
bank monetary tightening.

The dollar has found support from economic indicators recently as perceived
political risks recede, with Western strikes on Syria not expected to
escalate.

The dollar rose 0.3 percent to 107.280 yen buoyed as improving risk appetite
reduced demand for its Japanese peer, a currency often sought in times of
market turmoil and political tensions.

But caution over U.S.-China trade tensions continued to linger in the
background, confining currencies to narrow ranges.

The euro was down 0.1 percent at $1.2359.

The common currency rose to a three-week high of $1.2414 on Wednesday but
slipped on a ZEW research institute survey showing German investor morale
reached its lowest since November 2012.

The pound was effectively flat at $1.4283 after it was nudged away from a
post-Brexit referendum 22-month high of $1.4377 on Tuesday by
weaker-than-expected British wage data.

Markets were still pricing in a more than even chance the Bank of England
will hike interest rates in May, expectations of which have helped sterling
advance aggressively this month.

The Canadian dollar was up 0.2 percent at C$1.2581 per dollar and in reach
of a seven-week high set the previous day ahead of the Bank of Canada’s
interest rate decision later on Wednesday.

While the BoC is not expected to raise rates this time, expectations have
risen that the central bank will tighten policy as early as next month given
strong data. Investors will be looking for any hints that could reinforce
such views.

Elsewhere, the Swiss franc fell to its lowest versus the euro since the
Swiss National Bank scrapped its currency peg in January 2015.

Commodities Markets

Commodities rollercoaster on $100 oil talk, sanctions stress

(Reuters) - Talk that Saudi Arabia has its sights on $80-$100 a barrel oil
again and of more U.S. sanctions on Russia ignited a rally in commodities
and resource stocks on Thursday, though the potential boost to inflation hit
fixed-income assets.

It was set to be the strongest day for the commodity complex in eight months
as Brent crude futures climbed past $74 a barrel after a near 3 percent jump
overnight.

The surge came on a Reuters report that OPEC’s new price hawk Saudi Arabia
would be happy for crude to rise to $80 or even $100, a sign Riyadh will
seek no changes to a supply-cutting deal even though the agreement’s
original target is now within sight.

The leap in oil combined with fears that sanctions on Russia could hit
supplies of other commodities to light a fire under the entire sector.
Nickel jumped the most in 6-1/2 years on talk Nornickel - the world’s
second-biggest producer of the metal - could be impacted.

Aluminium prices reached their highest since 2011, its raw material alumina
touching an all-time peak before retreating when Russia floated the idea of
a temporary nationalisation of sanctions-hit giant Rusal.

Such increases, if sustained though, could fuel inflationary pressures and
investors hedged by selling sovereign bonds.

Yields on U.S. two-year Treasuries stood at levels last visited in 2008 at
2.43 percent and 10-year German yields went above 0.57 percent for the first
time in almost a month.

ENERGY BOOST

OPEC and its partners next meet formally on June 22 but a ministerial
monitoring panel will gather in Jeddah, Saudi Arabia, on Friday and are
expected to make noises about the broader supply and demand in the oil
market.

Resource stocks were the big winners from Thursday’s romp higher in prices.
Chinese blue chips ended up 1.1 percent and MSCI’s broadest index of
Asia-Pacific shares outside Japan added 0.9 percent, with energy up more
than 2.6 percent.

Japan’s Nikkei faded late in the day to end up 0.15 percent, but basic
materials and utilities both climbed more than 2 percent.

Industrial and commodities-focused stocks also led the pack in Europe though
the pan-regional STOXX 600 showed signs of fatigue after a two-day rally
that had taken it to a six-week high.

The bullish sentiment in markets comes amid wider optimism about economic
growth. The global economy is expected to expand this year at its fastest
pace since 2010, the latest Reuters polls of over 500 economists worldwide
suggest, but trade protectionism could quickly slow it down.

Investors were also relieved that no new U.S. demands on trade came out of a
summit between Japanese Prime Minister Shinzo Abe and U.S. President Donald
Trump.

E-Mini futures for the S&P 500 were pointing to a broadly steady start in
New York later where traders were already digesting the latest flurry of
earnings including from Blackstone and Philip Morris.

Wall Street had also seen hefty gains in the energy and industrial indexes
late on Wednesday, though that was offset by softness in sectors such as
consumer staples and financials.

IBM’s 7.5 percent drop was the biggest drag on the S&P after the technology
company’s quarterly profit margins missed Wall Street targets.

DOLLAR DITHERS

In currency markets, the U.S. dollar remained rangebound - its index barely
budged at 89.59. It gained a touch on the yen to 107.46 yen, but stayed
short of recent peaks at 107.78.

The euro hovered at $1.2373, within striking distance of the week’s top of
$1.2413, while Turkey’s lira shuffled back having had its best day in more
than a year on Wednesday after President Tayyip Erdogan declared early
elections.

“The conventional wisdom is that (political) stability, even if it is not
the form that you might choose, allows investment flows to continue.” said
Tom Clarke, a cross-asset co-portfolio manager at William Blair Funds.

The strength in commodity prices helped the Australian dollar easily weather
unexpectedly soft jobs data, with employment rising by a meagre 4,900 in
March.

Figures out from New Zealand had also showed annual inflation there had
slowed to just 1.1 percent in the first quarter, underlining expectations
that interest rates would remain at record lows for many more months to
come.

A soft Swiss franc stayed near the 1.20 to the euro mark it used to be
capped at by the country’s central bank, while the recently-revitalised
pound held its ground despite weak British retail sales data.

Oil and aluminium take Oslo to new record

(Reuters) - * Norwegian shares traded up on Thursday * Oslo’s benchmark
index rose 0.4 pct, or 3.2 points, to 852.5 points and was up by 4.3 pct
year-to-date. Intra-day high of 856.88 points is all-time record high * The
broader Oslo All Share Index was up 0.3 percent * Brent crude futures, a
trigger for the oil heavy Oslo Bourse, rose $0.48 to $73.96 a barrel, the
highest since late 2014 * Oil related firms TGS, DNO, Aker Solutions, Subsea
7, Aker BP and PGS rose from 1.1 to 2.9 pct * Statoil trade down 0.4 pct *
Norwegian oil directorate says Norway’s oil production was 5 pct below
forecast in March

* Among other big firms on the Oslo Bourse, Telenor rose 0.38 pct and DNB
rose 0.81 pct * Turnover at the Oslo Bourse was 2.7 billion Norwegian crowns
and most traded shares were Norsk Hydro, Statoil and Norwegian Air * Shares
of aluminium maker Norsk Hydro ASA were up 1.3 pct to NOK 54.68 * Aluminium
prices rose further on supply restrictions * Norsk Hydro peer Alcoa reported
Q1 numbers above forecast

* Shares of Seadrill Ltd were up 26.21 pct to NOK 2.56, down from intra-day
high of NOK 2.95, the second day of sharp gains following a U.S. court’s
approval of a debt restructuring on Tuesday * Europris ASA rose 4.44 pct
after stronger than expected Q1 figures * Significant declines: Asetek A/S
-3.48 pct, Nordic Nanovector ASA -2.90 pct and Atea ASA -2.65 pct * Abroad
European shares rose 0.09 pct, Japan’s main share index Nikkei ended up 0.15
pct, while in China Shanghai index was up 0.85 pct and Dow Jones index in
the United States -0.16 pct on Wednesday

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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