Bulls n Bears Daily Market Commentary : 25 April 2018

Wed Apr 25 16:11:32 CAT 2018

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Bulls n Bears Daily Market Commentary : 25 April 2018

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Zimbabwe Stock Exchange Update

Market Turnover $1,164,404.47 with foreign buys at $118,543.13 and foreign
sales were $511,697.55. Total trades were 91.

The All Share index’s bullish trend continued unabated following a 0.68
points gain to close at 97.50 points. DELTA  was $0.0414 solid at $1.9864,
INNSCOR  gained $0.0173 to trade at $1.0100 and OLD MUTUAL moved up $0.0100
to close at $5.7100. Other notable gains were in OK ZIMBABWE  which rose by
$0.0071 to close at $0.1775, SIMBISA  marched on $0.0040 to settle at
$0.4270 and AXIA  increased $0.0020 to close at $0.2475.

HIPPO  led the shakers  as it fell $0.0064 to close at $1.6711, NAMPAK
dropped  $0.0050 to $0.1600, ECONET was $0.0027 softer at $0.8998 and
MASHONALAND HOLDINGS shed $0.0005 to close at $0.0245.

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Global Currencies & Equity Markets

Kenya

Kenyan shilling holds steady against end month demand

(Reuters) - Kenyan shilling was firm against the dollar on Wednesday with
inflows from offshore investors subduing end month demand from the energy
sector, traders said. 

At 0730 GMT, commercial banks quoted the shilling at 99.90/100.00 per
dollar, unchanged from Tuesday's close. 

Uganda

Ugandan shilling stable, expected to ease due to demand from manufacturers

(Reuters) - The Ugandan shilling was slightly changed on Wednesday and was
expected to weaken due to strong dollar demand from commercial banks and
manufacturing companies. 

At 1032 GMT, commercial banks quoted the shilling at 3,700/3,710, weaker
than Tuesday's close of 3,695/3,705.

America

Dollar steady, rally slows as equities slide on higher yields

(Reuters) - The dollar was steady on Wednesday, just below a four-month high
reached after the U.S. 10-year bond yield hit 3 percent for the first time
since early 2014, as a slide in Wall Street stocks slowed the pace of the
greenback rally.

The dollar index against a basket of six major currencies was little changed
at 90.824 following a rise overnight to a four-month top of 91.016.

The greenback had risen without pause through much of the past week as
U.S.-China trade conflict woes receded and allowed the market to turn its
attention back to dollar-supportive fundamentals, notably the surge by U.S.
yields.

But the 10-year Treasury yield reached the 3 percent threshold for the first
time in more than four years overnight and triggered a slide on Wall Street,
which in turn weighed on the dollar.

The U.S. currency was a shade higher at 108.935 yen. It pulled back from a
2-1/2-month high of 109.200 set the previous day when the S&P 500 and the
Dow posted their biggest declines since April 6.

While the weakening by equities was supportive for the yen, often sought
when stocks fall due to its perceived safe-haven status, analysts said the
dollar was still likely headed for further gains in the longer term.

The spreads between U.S. yields and those of its European and Japanese
counterparts have widened significantly amid diverging monetary policy
expectations.

This week the gap between U.S. and German 10-year government bond yields has
hit its widest in 29 years and the U.S.-Japanese 10-year yield spread
reached its broadest in nearly 11 years.

The 10-year Treasury yield rose to 3 percent on Tuesday, reflecting the
durability of the U.S. economic expansion. Accelerating inflation and
concerns about increasing debt supply have also driven yields higher.

Wall Street dropped sharply on Tuesday as warnings by bellwether companies
of higher costs stemming from the surge in yields reverberated.

The pound was 0.05 percent higher at $1.3989, crawling away from a one-month
low of $1.3919 plumbed on Tuesday.

The Australian dollar traded at $0.7596 following a descent to a four-month
trough of $0.7576 the previous day.

The New Zealand dollar extended losses and dipped to $0.7105 , its weakest
since Jan. 4.

Commodities Markets

Aluminium claws back lost ground after four-day slide

(Reuters) - Aluminium edged higher after four straight days of losses on
Wednesday, but remained down 18 percent from last week’s peak as concerns
eased over the impact of U.S. sanctions on Russian producer United Company
Rusal .

Prices of the metal, used in products from food cans to aeroplane parts,
soared after the sanctions were announced, but fell sharply on Monday as the
United States gave U.S. customers of Rusal more time to comply.

* LME ALUMINIUM: Three-month aluminium on the London Metal Exchange was 0.6
percent higher at $2,240 a tonne in official midday trading. That is still
down by nearly a fifth from the seven-year peak of $2,718 it hit on
Thursday.

* INVENTORIES: Headline stocks aluminium stocks MALSTOCKS-TOTAL in London
Metal Exchange warehouses fell 5,850 tonnes, exchange data showed on
Wednesday. On-warrant inventories - those not earmarked for delivery and
available to the market - rose 3,350 tonnes after five straight days of
declines.

* ALUMINIUM TECHNICALS: LME aluminium may test support at $2,152 a tonne, a
break below which could cause a loss to the next support at $2,078, Reuters
technical analyst Wang Tao said in a report.

* RUSSIA: Russia’s En+ Group, owned by sanctions-hit businessman Oleg
Deripaska, said its chief executive officer and its chief financial officer
resigned on Tuesday, with replacements appointed to both posts.

* ALNORTE: Norsk Hydro ASA has halted alumina output at two of seven
production lines at its Alunorte alumina refinery in Brazil, its CEO said on
Wednesday.

* FINANCIAL MARKETS: The dollar index bounced to its highest since
mid-January on the back of a rally in U.S. Treasury yields. European shares
fell 1 percent.

* NICKEL: Nickel was untraded in official rings, but was last bid up 1.1
percent at $14,140 a tonne, higher for the first time in five days. It fell
sharply from its April 19 peak of $16,690, a three-year high, as fears of
sanctions spreading eased.

* COPPER PRICES: Bellwether industrial metal copper was down 0.2 percent at
$7,000 a tonne in official trading.

* OTHER METALS: LME zinc was down 1.2 percent at $3,174 a tonne in official
midday rings, while tin was up 0.2 percent at $21,150. Lead, untraded in
official rings, was last bid 0.8 percent higher at $2,328 a tonne.

Gold falls on strong dollar and higher U.S. yields

(Reuters) - Gold slumped to a five-week low on Wednesday as the dollar and
U.S. Treasury yields jumped on robust U.S. data and signs of an easing in
the U.S.-China trade conflict.

    The benchmark U.S 10-year Treasury yields rose to 3 percent for the
first time in more than four years, reflecting the durability of the U.S.
economic expansion after U.S. consumer

confidence rebounded in April and new home sales increased more than
expected in March.             

But higher yields on bonds make gold a less attractive investment because it
pays no interest.       

Meanwhile, there was a decline in political risk after the United States
said it would likely reach a trade agreement with China and that officials
from both sides would sit down for

negotiations in a few days.             

Spot gold        was down 0.8 percent at $1,319.90 per ounce, as of 1222
GMT, its lowest since March 21. U.S. gold futures         dropped 0.8
percent to $1,321.50 per ounce.

The dollar index  , which measures the greenback against a basket of
currencies, rose 0.4 percent.       

World stocks were down for the fifth straight session on Wednesday.

In other geopolitical news, North Korean leader Kim Jong Un is due to hold a
summit with South Korean President Moon Jae-In on Friday, and is expected to
meet with Trump in late May or

early June.             

Gold is often seen as an alternative investment during times of political
and financial uncertainty. 

But investor appetite has been climbing as holdings in gold exchange traded
funds (ETFs) rose to the highest since 2013.

In other precious metals, spot silver  dropped 1 percent to $16.54 an ounce,
and platinum        eased 0.8 percent to $918.90 an ounce.

Palladium  fell for a third straight session, down 0.9 percent at $966.10 an
ounce.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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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