Bulls n Bears Daily Market Commentary : 27 April 2018

Fri Apr 27 15:52:41 CAT 2018

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Bulls n Bears Daily Market Commentary : 27 April 2018

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Zimbabwe Stock Exchange Update

Market Turnover $1,623,574.37 with foreign buys at $814,107.86 and foreign
sales were $197,866.50. Total trades were 55.

The All Share index closed the week slightly higher at 98.26 points
following a 0.14 points gain. PPC winning streak continued as it added a
further $0.0500 to close at $1.1000, SIMBISA   improved by $0.0122 to trade
at $0.4550 and OLD MUTUAL  inched up by $0.0094 to settle at $5.7194. HIPPO
ended $0.0080 higher at $1.6791 and DELTA  went up $0.0052 to close at
$2.0126.

Two counters lost ground, BRITISH AMERICAN TOBACCO  shed $0.4290 to $19.0422
and AXIA  dropped $0.0030 to trade at $0.2445.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Kenya

Kenyan shilling weakens due to dollar demand from oil importers

(Reuters) - The Kenyan shilling weakened against the dollar on Friday due to
increased dollar  demand from oil importers to meet and month obligations,
traders said.

At 1027 GMT, Commercial banks quoted the shilling at 100.30/40 per dollar,
compared with 100.25/45 at Thursday's close. 

Uganda

Uganda shilling stable, charity flows offer support

(Reuters) - The Ugandan shilling        was unchanged on Friday, drawing
support from some inflows from charities looking to pay end of month
salaries and meet other operational costs. 

At 1023 GMT commercial banks quoted the shilling at 3,705/3,715, same level
as Thursday's close. 

America

Dollar set for best weekly gain since November 2016 on yield bets

LONDON (Reuters) - The dollar edged higher on Friday and is on track to post
its best weekly performance in more than 1-1/2 years as a spike in U.S.
Treasury yields prompted some investors to unwind some short bets against
the dollar, especially against some emerging market currencies.

FILE PHOTO: U.S. dollar and Euro bank notes are photographed in Frankfurt,
Germany, in this illustration picture taken May 7, 2017. REUTERS/Kai
Pfaffenbach/Illustration/File Photo

Against a basket of rivals, the dollar rose 0.2 percent to 91.71, its
highest level since Jan 12. For the week, it has gained more than 1.5
percent and is on track to post its best weekly performance since late
November 2016.

While the dollar has ignored yield differentials for more than a year with
investors preferring to give greater weight to the momentum of economic
recovery in other major economies, notably Europe, this week’s spike of
ten-year U.S. Treasury yields above the 3 percent mark forced investors to
acknowledge the widening yield differentials favoring the greenback.

Benchmark ten-year U.S. Treasury yields surged past the 3 percent mark
earlier this week before peaking out at 3.03 percent on Wednesday.
Short-dated U.S. yields hit a more than a decade high of 2.51 percent on
Wednesday.

The rise in U.S. Treasury yields has unnerved some currency bears who had
piled multi-year short bets against the dollar on expectations the world’s
biggest economy was in the late stages of an economic expansion which might
force the central bank to slow the pace of its policy tightening.

Speculators’ net dollar short position in currency futures in Chicago, a
closely-watched indicator on market positioning, had hit a 6-1/2-year high,
suggesting some short-covering will be due.

In Japan, the Japanese yen was little changed after the central bank’s
policy decision at which it kept settings unchanged.

In the BOJ’s first policy meeting under the new leadership, the central bank
dropped a reference to inflation reaching its two percent goal in about two
years, however, few see policy implications from this shift in
communication.

The dollar changed hands at 109.17 yen, having risen to a 2-1/2-month high
of 109.49 yen earlier in the week. So far this week, it has gained 1.4
percent.

The euro, in which speculators held record long position, fell to $1.20965
in the previous session, its lowest level since Jan. 12. It last stood at
$1.2112, and is down 1.4 percent on the week.            

Commodities Markets

Gold gains but remains vulnerable after Korean leaders meet

(Reuters) - Gold edged higher on Friday but is likely to revisit five-week
lows after the prospect of a  Korean denuclearisation deal eroded bullion's
safe-haven appeal.

The leaders of South and North Korea embraced after pledging on Friday to
work for the "complete denuclearisation of the Korean peninsula".

Spot gold        was up 0.1 percent at $1,318.52 an ounce by 1245 GMT, not
far from a low of $1,315.06 hit in the previous session, its weakest since
March 21.

The metal was on track to finish the week down more than 1 percent for its
second consecutive weekly decline and the biggest weekly drop in four.    

U.S. gold futures         added 0.1 percent to $1,319.40.

Adding to the pressure on gold, the dollar was firmer, bond yields higher
and spot gold slipped below its 100-day moving average, he said.

The dollar hit a 3-1/2-month high against a basket of currencies        on
higher U.S. yields while the euro was hampered by a dovish tone from the
European Central Bank.       

On Wednesday the benchmark 10-year Treasury yield             reached its
highest since January 2014 at 3.035 percent.      

A rise in U.S. bond yields pressures gold by reducing the attractiveness of
non-yielding bullion, which is priced in dollars.

Silver        rose 0.3 percent to $16.53 an ounce. It is down more than 3
percent this week, the biggest weekly drop since since the week ending Feb.
2.

Platinum        dipped by 0.1 percent to $905.49 an ounce after touching
$900.50, its weakest since Dec. 18. 

Palladium        eased by 0.5 percent to $979.60 an ounce. It has rallied
nearly 10 percent since U.S. sanctions were imposed on Russian entities on
April 6. Russia is the world's

biggest producer of palladium. 

The spread between platinum and palladium has widened to $75 from about $50
over the past three days.

Rusal's Swedish aluminium smelter working on restoring power market

(Reuters) - Europe’s leading power market Nord Pool is working to find a
solution to restore access to Rusal’s Swedish aluminium smelter after it was
suspended from trading in the wake of U.S. sanctions on the Russian company.

Nord Pool suspended Rusal’s Kubal smelter last week from trading on its
exchange.

The suspension had been due to a violation of Nord Pool’s rule book, which
operates independently of any U.S. sanctions on Rusal, she added.

Details of the violation could not be provided due to “the commercial nature
of this relationship”, Nord Pool added.

The Kubal smelter in Sweden is Rusal’s only primary metal production
facility outside of Russia. It produced 123,000 tonnes of aluminium metal
last year, or 3 percent of Rusal’s total.

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
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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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