Bulls n Bears Daily Market Commentary : 26 April 2018

Thu Apr 26 16:05:42 CAT 2018

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Bulls n Bears Daily Market Commentary : 26 April 2018

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Zimbabwe Stock Exchange Update

Market Turnover $755,056.17 with foreign buys at $273,009.23 and foreign
sales were $226,139.79. Total trades were 62.

The All Share index gained 0.62 points  to close at 98.12 points. Cement
maker PPC and INNSCOR both closed at $1.0500 after adding $0.0689 and
$0.0400 respectively. DELTA   improved further by $0.0210 to close at
$2.0074, SIMBISA was up by $0.0158 to $0.4428 and PADENGA  was $0.0031
firmer at $0.4550.

CAFCA  retreated by $0.0500 to settle at $0.5500, ECONET  slipped a marginal
$0.0016 to settle at $0.8982 and WILLDALE shed $0.0010 to close at $0.0050.
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Global Currencies & Equity Markets

Uganda currency seen on back foot, Kenya and Zambia's range-bound

(Reuters) - The Ugandan currency is likely to come under pressure in the
coming week while those of Kenya and Zambia are expected to remain
range-bound.

UGANDA

The Ugandan shilling is seen weaker next week undercut by demand from
commercial banks and importers looking to cover short positions amid ebbing
confidence in the local currency.

Commercial banks quoted the shilling at 3,705/3,715, weaker than last
Thursday’s close of 3,695/3,705.

David Bagambe, trader at Diamond Trust Bank said some commercial banks and
importers will be rushing to cover short positions.

KENYA

The Kenyan shilling is seen trading in a tight range in the coming week
supported by inflows from offshore investors with end month demand posing a
depreciation risk, traders said.

Commercial banks quoted the shilling at 99.90/100.00, compared with
100.05/25 at last Thursday’s close.

ZAMBIA

The kwacha is expected to remain range-bound in the coming week due to
rising dollar demand from importers even as supply from from companies
settling month end dues increases.

At 1115 GMT on Thursday, commercial banks quoted the currency of Africa’s
second-largest copper producer at 9.7000 per dollar, down from 9.5700 where
it closed a week ago.

America

Stronger dollar traps gold near five-week lows

(Reuters) - Gold prices hovered near  five-week lows on Thursday as higher
U.S. bond yields and a stronger dollar dampened interest in bullion.  

Worries about growing supply of U.S. government debt and  inflationary
pressures from rising oil prices this week pushed U.S. 10-year bond yields
above 3 percent for the first time in

four years.                  

That has reduced the attraction of non-yielding gold and helped to thrust
the dollar to its strongest since January, making bullion more expensive for
users of other currencies. 

Spot gold        was up 0.1 percent at $1,324.12 an ounce by 1310 GMT. On
Wednesday gold touched its lowest since March 21 at $1,318.51. 

U.S. gold futures         were up 0.2 percent at $1,325.10.  

Interest from physical buyers and technical support at gold's 100-day moving
average of $1,319.55 was helping to prevent further falls. 

It is supported by geopolitical uncertainty, which has fuelled demand for
gold as a safe haven, but prevented from moving higher by fears of rising
U.S. interest rates that would

push up bond yields and strengthen the dollar. 

U.S. GDP and inflation data on Friday could give new direction to prices,
said Mitsubishi analyst Jonathan Butler. 

Stronger than expected economic growth or inflation would hurt gold by
bolstering expectations of more rapid increases to interest rates. 

Investors were also watching the European Central Bank on Thursday for clues
on when it will signal an end-date for its 2.55 trillion euro ($3.2
trillion) asset-buying programme.

Analysts and traders polled by Reuters this month said that gold would
average $1,334 an ounce this year and $1,352 an ounce next year, barely
shifting from its current price.             

They expected silver       , which was up 0.2 percent at $16.55 an ounce on
Thursday, to fare better, averaging $17.28 an ounce this year and $18 next
year. 

In other precious metals, platinum        was up 0.3 percent at $906.30 and
palladium        slipped 0.3 percent to $973.97. 

Analysts and traders polled by Reuters expected average prices of both
metals to be higher this year and next.

Commodities Markets

Zinc slips as inventories climb; aluminium extends fall

(Reuters) - Zinc prices were pushed lower on Thursday by rising inventories
while aluminium extended losses as investors priced in a loosening of U.S.
sanctions affecting giant Russian producer Rusal.

Zinc stocks in warehouses certified by the London Metal Exchange
MZNSTX-TOTAL have jumped 26 percent this week after rising by a further
18,675 tonnes on Thursday.

The amount of cancelled inventory — stock earmarked for delivery — was very
low at 5.4 percent, LME data showed.

In February Zinc touched its highest in more than a decade at $3,595.50 a
tonne on supply concerns after closures and suspensions of big mines in
recent years, but many operations have resumed production.

Benchmark LME zinc fell 1 percent to $3,104 a tonne in official open-outcry
trading, having dropped by 2.4 percent on Wednesday.

* CHINA ZINC: Shanghai zinc was the biggest loser in the base metals
complex, closing 3 percent down at 23,685 yuan a tonne.

* LME ALUMINIUM: Three-month LME aluminium, untraded in official rings, was
bid down 1.8 percent at $2,205.50 as investors continued to liquidate after
the extension this week of the deadline for compliance with U.S. sanctions
on Rusal , one of the world’s biggest aluminium producers.

The metal is down about 18 percent from the $2,718 seven-year high hit on
April 19 after the original sanctions announcement raised concern over
potential aluminium shortages.

* LONG POSITION: The speculative long position in LME aluminium was
estimated to have retreated to 21 percent of open interest by Tuesday’s
close, down from 26 percent a day earlier, Alastair Munro at broker Marex
Spectron said in a note.

* ALUMINIUM PREMIUM: The U.S aluminium premium on Comex was at 21.4 cents
per pound ($472 a tonne) on Wednesday, down from the three-year high of 22.1
cents hit on April 11.

* DOLLAR: Most other base metals also traded lower, with strength in the
dollar making metals more expensive for holders of other currencies.

* PRICES: LME copper was bid down 1.1 percent at $6,928 a tonne in official
activity, lead traded up 0.1 percent at $2,308, nickel dropped 1 percent to
$14,000 and tin firmed by 0.2 percent to $21,300.

* For the top stories in metals and other news, click or ($1 = 6.3224
Chinese yuan renminbi)

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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