Bulls n Bears Daily Market Commentary : 24 April 2018

Tue Apr 24 16:21:33 CAT 2018

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Bulls n Bears Daily Market Commentary : 24 April 2018

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover $329,901.42 with foreign buys at $101,779.99 and foreign
sales were nil. Total trades were 31.

The All Share index extended further gains by adding 1.08 points  to close
at 96.82 points.  Tobbaco giant BRITISH AMERICAN TOBACCO  ended $2.0960
higher at $19.4712, DELTA   added $0.0250 to close at $1.9450, SIMBISA
improved by $0.0189 to $0.4230 and PADENGA   increased by $0.0165 to trade
at $0.4500. INNSCOR  was up $0.0104 at $0.9927 whilst MEIKLES  gained
$0.0083 to trade at $0.2983.

ECONET was the only counter which traded in the negative territory after
dropping $0.0006 to trade at $0.9025. <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Kenya

Kenyan shilling holds steady against the dollar

(Reuters) - The Kenyan shilling held steady against the dollar on Tuesday
with inflows from foreign construction companies selling dollars matching
demand from merchant importers, traders said. 

At 0700 GMT, commercial banks quoted the shilling at 99.90/100.00, unchanged
from Monday's close. 

Uganda

Ugandan shilling unchanged as charity flows meet subdued demand

(Reuters) - The Ugandan shilling        was unchanged on Tuesday as dollar
inflows from charities and commodity exporters met with subdued appetite
from importers. 

At 1052 GMT commercial banks quoted the shilling at 3,695/3,705, the same
level as Monday's close.

America

Dollar scales 3-month high as U.S. 10-year bond yield nears 3 pct

(Reuters) - The dollar set a three-month high against a basket of currencies
on Tuesday, having gained a boost as the U.S. 10-year Treasury yield climbed
toward the psychologically key 3 percent level.

The U.S. 10-year Treasury yield hit its highest in more than four years at
2.998 percent on Monday, driven by worries about the growing supply of
government debt and inflationary pressures from rising oil prices.

The U.S. 10-year bond yield later backed off that level and stood at 2.964
percent in Tuesday’s Asian trade.

Yields have also risen at the short end of the curve, with the U.S. 2-year
yield having reached a high of 2.483 percent this week, the highest since
September 2008.

As a result, U.S.-Japan and U.S.-German yield differentials have recently
widened in the dollar’s favour, leaving the yen and the euro lower.

The dollar’s index against a basket of six major peers rose to as high as
91.076, its strongest since Jan. 12. The dollar index was last steady on the
day at 90.929.

The dollar set a two-month high of 108.87 yen and last stood at 108.82 yen,
up 0.1 percent on the day.

On Monday, the dollar had surged nearly 1 percent for its biggest daily
percentage rise in almost a month, gaining added steam after breaching the
108 yen level.

The yen, a safe haven currency that tends to rise in times of economic
uncertainty but weakens when investor confidence returns, has come under
pressure in recent sessions as worries over geopolitical risks and global
trade tensions eased.

U.S. Treasury Secretary Steven Mnuchin said on Saturday he may travel to
China, a move that could ease tensions between the world’s two largest
economies.

The euro held steady at $1.2209, having pared its losses after falling to
$1.2185 earlier on Tuesday, the lowest for the common currency since March
1.

The rise in U.S. bond yields has dented emerging market currencies and bond
markets, including those in Asia.

Higher U.S. yields can put pressure on the currencies of emerging market
countries that run current account deficits such as Indonesia and India,
said Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui
Banking Corporation in Singapore.

Although its moves were subdued on Tuesday, the Indonesian rupiah briefly
touched a two-year low of 13,898 per dollar.

In one-month non-deliverable forwards (NDFs), the rupiah hit a two-year low
of 14,105 per dollar before regaining its footing.

Market participants said foreign investors may have been buying the dollar
against the rupiah via NDFs in recent trading sessions to hedge against the
risk of further dollar appreciation. 

Commodities Markets

Gold firms after 3-day slide as dollar stabilises

(Reuters) - Gold firmed after three days of losses on Tuesday as the dollar
stabilised off an earlier three-month peak and a rise in U.S. Treasury
yields stalled, with lower prices tempting some buyers back to the market.

Gold has slid nearly 2 percent in the last three trading sessions as a rally
in U.S. yields towards the 3 percent mark pushed the dollar index to its
highest since mid-January, making

the metal more attractive to price-sensitive buyers.       

It also suffers from rising yields in its own right, as these lift the
opportunity cost of holding non-interest bearing assets like bullion. 

Spot gold        was up 0.1 percent at $1,325.81 an ounce at 1142 GMT, while
U.S. gold futures        for June delivery were up $3.70 an ounce at
$1,327.70.

Gold is often seen as a safe store of value in times of elevated
geopolitical or financial risk.  

It has benefited in recent weeks from concerns over the U.S.-China trade
dispute, sanctions on Russia and unrest in the Middle East, but has been
kept in check by the prospect of

further interest rate hikes from the Federal Reserve. 

The dollar took a breather on Monday after its recent march  higher as U.S.
yields retreated, while European stocks roseanother 0.2 percent.

Autocatalyst metal palladium        was down another 1 percent at $968.25 an
ounce, having plunged 5 percent on Monday after the U.S. gave American
customers of Russia's biggest

aluminium producer Rusal more time to comply with sanctions.

Rusal owns a 28 percent stake in Norilsk Nickel          , the world's
biggest palladium producer.  

Platinum        was 0.5 percent lower at $916.50 an ounce, while silver
was up 0.7 percent at $16.64 an ounce after falling over 3 percent in the
previous session.

Aluminium extends price fall on U.S. sanctions reprieve

(Reuters) - Aluminium hit its lowest in nearly two weeks on Tuesday,
extending declines from the previous day after Washington gave U.S.
companies more time to comply with sanctions on Russian producer Rusal and
hinted at further sanctions relief.

The U.S. Treasury Department gave Americans until Oct. 23, instead of June
5, to wind down business with Rusal and said it would consider lifting
sanctions if Russian tycoon Oleg Deripaska ceded control of the company.

Aluminium rallied to its highest since mid-2011 last week on fears that the
global market could face shortages because of the sanctions on Rusal, a
company that last year accounted for more than 6 percent of global aluminium
output.

* LME ALUMINIUM: Three-month aluminium on the London Metal Exchange traded
down 3.2 percent in official midday rings at $2,221 a tonne, having touched
$2,213, its lowest since April 12. The price had dropped by 7.1 percent on
Monday in its biggest one-day decline in eight years.

* ALUMINIUM PREMIUMS: “This (U.S. sanctions reprieve) certainly removed some
of the acute tightness from the aluminium market, however ... raw material
constraint persists,” said BMO Capital Markets in a note. The U.S aluminium
premium on Comex was at a three-year high of 21.5 cents per pound ($474 a
tonne) on Monday.

* ALUMINIUM DEMAND: Consumption of aluminium in China, the world’s top user,
will increase by 7-9 percent this year and next, an executive at Aluminum
Corp of China (Chalco) said on Tuesday.

* NICKEL PRICE: Nickel traded 0.2 percent up at $14,290 a tonne after a 3.8
percent fall on Monday. The metal hit a three-year high on April 19 on fears
that sanctions might be extended to major producer Nornickel, a company
linked with both Rusal and Deripaska.

* NICKEL EXPORTS: The Philippines’ top nickel ore producer, Nickel Asia
Corp, said its 2018 export plans remain unchanged despite the government’s
intention to limit mining areas.

* OTHER METALS: Copper traded 1.2 percent up in rings at $7,028 a tonne,
zinc was last bid up 1 percent at $3,261, lead was bid up 1.5 percent at
$2,354 and tin traded 0.4 percent down at $20,975.

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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