Bulls n Bears Daily Market Commentary : 23 April 2018

Tue Apr 24 08:24:22 CAT 2018

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Bulls n Bears Daily Market Commentary : 23 April 2018

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Zimbabwe Stock Exchange Update

Market Turnover $5,319,869.01 with foreign buys at $3,871,624.43 and foreign
sales were $1,188,496.44. Total trades were 74.

The All Share index opened the week on a higher note after adding 0.30
points  to close at 95.74 points. Heavyweight counters’ bullish trend
continued as BRITISH AMERICAN TOBACCO  added $0.3752 to close at $17.3752,
HIPPO VALLEY  moved up $0.0275 to trade at $1.6775 and AXIA was up by
$0.0140 to close at $0.2455. Other gains were in PADENGA  which increased
$0.0100 to settle at $0.4335, DAIRIBORD  ended $0.0075 higher at $0.1300 and
ECONET  added $0.0021 to $0.9031.

On the downside, MEIKLES traded $0.0100 lower at $0.2900 and
STARAFRICACORPORATION  dropped $0.0020 to close at $0.0170.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Uganda

Ugandan shilling unchanged, dollar demand from importers weak

(Reuters) - The Uganda shilling        was unchanged on Monday, on the back
of weak appetite for hard currency from both commercial banks and importers
like telecoms, fuel firms and manufacturers. 

At 0935 GMT commercial banks quoted the shilling at 3,695/3,705, unchanged
from Friday's close. 

Kenya

Kenyan shilling firm, may ease due to importer demand

(Reuters) - The Kenyan shilling was firm against the dollar on Monday due to
horticulture inflows but was expected to ease due to increased importer
demand after the shilling strengthened to its highest level since July 2015
on Friday, traders said.

At 1311 GMT, commercial banks quoted the shilling at 99.80/100.00 to the
dollar, compared with Friday's close of 99.95/100.05. 

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

Aluminium prices extend fall after U.S. reprieve for Rusal

(Reuters) - Aluminium prices continued to retrace recent gains on Tuesday
after Washington gave U.S. customers of United Company Rusal more time to
comply with sanctions on the Russian producer. 

The sanctions, announced on April 6, last week drove prices for the metal to
their highest since mid-2011 on fears that the global market could face
shortages.

But the U.S. Treasury Department on Monday gave Americans until Oct. 23,
instead of June 5, to wind down business with Rusal and said it would
consider lifting the sanctions if

Rusal's major shareholder, Russian tycoon Oleg Deripaska, ceded control of
the company.

    FUNDAMENTALS

* LME ALUMINIUM: Three-month aluminium on the London Metal Exchange was down
1.3 percent at $2,266 a tonne by 0344 GMT. It fell by as much as 3.1 percent
earlier in the session to $2,223, its lowest since April 12, and slid by 7
percent on Monday in its biggest one-day drop in eight years.

* SHFE ALUMINIUM: The most-traded June aluminium contract on the Shanghai
Futures Exchange was down 2.8 percent at 14,515 yuan ($2,299) a tonne by the
mid-session interval. 

* INSIGHT: In December, as news reports emerged about potential new U.S.
sanctions against Russia, aluminium magnate Deripaska instructed advisers to
draw up contingency plans,

according to people close to the businessman and his firms.

* NICKEL: The Philippines is planning to limit the amount of land that
miners can develop at any one time to boost environmental rehabilitation, a
move that miners say may cut

output of nickel ore in last year's top supplier to China.

* CHILE: Chilean industrial conglomerate Empresas Copec SA said on Monday it
had reached an agreement with Peru's Minsur S.A. to buy a 40-percent stake
in a holding company that owns a Peruvian copper mine project for $168.5
million.

    MARKETS NEWS 

* Asian stocks slipped and the U.S. dollar advanced on Tuesday, as a deluge
of U.S. government debt this week and the spectre of inflation and a higher
fiscal deficit drove U.S. borrowing costs to near four-year highs.    

Asian stocks bounce; dollar, oil near recent highs

(Reuters) - Asian stocks bounced from near two-week lows on Tuesday as
investors paused for breath following the heavy selling of recent sessions
and waited to see if the dollar’s rally was sustainable.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.2 percent
higher, having hit its lowest level since April 9 following two straight
days of declines. Japan’s Nikkei rose 0.7 percent, helped by a decline yen
which supports exporting firms.

Chinese shares climbed about 2 percent , while Hong Kong’s Hang Seng index
added 1 percent.

U.S. bond prices rebounded too, capping four days of falls that sent 10-year
Treasury yields closer to the key psychological barrier of 3 percent - a
level not seen since early 2014.

The U.S. dollar, which has risen in the past five sessions against a basket
of major currencies, also took a breather to camp near a four-month peak.

The bond market is bracing for combined sales of $96 billion in
coupon-bearing Treasuries this week on greater government borrowing
following a massive tax overhaul last year and a two-year budget agreement
reached in February.

Inflation worries are also mounting as oil and commodity prices have been
rising in recent weeks.

Market gauge of investors’ inflation expectations such as the 5-year forward
inflation swap and 10-year breakeven yield have hit their highest levels in
many months.

Investors are thus concerned U.S. inflation, long subdued since the
financial crisis a decade ago, could gain momentum as President Donald
Trump’s tax cuts this year could stimulate an economy already near or at
full employment.

That could prompt the U.S. Federal Reserve to raise rates more than three
times this year, practically ending a decade-long liquidity party.

U.S. stocks were little changed on Monday as bond yield worries offset
optimism on corporate earnings.

Analysts expect earnings growth at S&P 500 companies of nearly 20 percent in
the first quarter, the strongest showing in seven years, according to
Thomson Reuters data.

Of around 18 percent of the companies in the S&P 500 that have already
reported, 78.2 percent beat consensus estimates.

METALS AND CURRENCIES

In currencies, the dollar was a shade firmer at 108.75 yen after jumping
almost 1 percent on Monday to its highest in ten weeks.

The greenback also strengthened against emerging market currencies, hitting
three-month highs against the South African rand and a 1-1/2-year top
against the Brazilian real .

The euro held at $1.2210 after hitting its lowest since March 1 when Trump
unveiled tariffs on imported steel and aluminium.

In commodities, aluminium extended losses after plunging 7 percent on
Monday, its biggest one-day drop in eight years.

Three-month aluminium on the London Metal Exchange last stood at $2,272 per
tonne after the United States extended the deadline for sanctions on Russian
aluminium producer Rusal .

The metal had rallied to its highest since mid-2011 last week at $2,718 a
tonne on fears of a global shortage as a result of the U.S. sanctions.

Oil prices held near 3-1/2-year peaks supported by production cuts by oil
producing countries and wariness about geopolitical risks in the face of
Washington’s threat to scupper a nuclear deal with Iran.

Analysts see further gains in oil.

U.S. West Texas Intermediate crude futures rose 30 cents to $68.95 per
barrel, not far from last week’s high of $69.56 while Brent crude futures
added 24 cents to $74.95 after having hit 3-1/2-year highs of $75.20.

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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