Bulls n Bears Daily Market Commentary : 01 March 2018

Thu Mar 1 15:59:14 CAT 2018

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Bulls n Bears Daily Market Commentary : 01 March 2018

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Zimbabwe Stock Exchange Update

Market Turnover $731,715.69 with foreign buys at $198,322.86 and foreign
sales were $188,662.50. Total trades were 46.

The All Share index retreated 0.17 points to close at 87.86 points as three
counters lost ground. SIMBISA led the losers with a $0.0100 loss to close at
$0.3900, ECONET shed $0.0073 to $0.6800 while AXIA was down by $0.0050 to
end at $0.1750.

Trading in the positive; OLD MUTUAL added $0.0149 to close at $5.3249 and
MEIKLES rose by $0.0050 to $0.3050 whilst  PADENGA closed at $0.4398
following a $0.0023 increase. PPC   went up by $0.0019 to close at $0.8725,
PROPLASTICS put on $0.0010 to trade at $0.0730 while BARCLAYS inched up
$0.0002 to end at $0.0432. 

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Kenya

Kenya shilling stable, horticulture export flows help

(Reuters) - The Kenyan shilling was stable against the dollar on Thursday
supported by healthy hard currency inflows from horticulture exports. 

At 0618 GMT, commercial banks quoted the shilling at 101.30/40 per dollar,
unchanged from Wednesday's close.

Uganda

Ugandan shilling stable, expected to firm due low importer demand

(Reuters) - The Ugandan shilling was steady on Thursday and was expected to
firm due to low importer demand for dollars, traders said.  

At 0834 GMT commercial banks quoted the shilling at 3,640/3,650, unchanged
from Wednesday's close. 

America

Dollar underpinned by Powell, euro at 5-week low vs dollar

(Reuters) - The dollar held firm on Thursday, drawing support after the
Federal Reserve’s new chief Jerome Powell struck an optimistic tone on the
U.S. economy in a boost to rate hawks that sent global stocks tumbling.

In contrast, benign inflation data in the euro zone dented expectations that
the European Central Bank will dial back its stimulus, slamming the euro to
five-week lows against the dollar and a six-month nadir against the yen.

The dollar index rose to a five-week high of 90.746, as Powell’s optimism on
the U.S. economy suggested the Fed is going to raise interest rates four
times this year, one more than what markets had expected.

On the other hand, ECB president Mario Draghi said on Monday slack in the
euro zone economy may be bigger than previously estimated.

The euro dropped to $1.21835, its lowest since Jan. 18. Against the yen, the
single currency fell to 129.86 yen , its weakest since early September and
down 5.6 percent from its 2-1/2-year high hit just a month ago.

Euro zone inflation slowed to a 14-month low in February, data showed on
Wednesday, underscoring why the ECB remains cautious about removing stimulus
despite growth exceeding expectations.

Inflation in the 19 countries sharing the euro slowed to 1.2 percent from
1.3 percent in January, in line with expectations but far from the ECB’s
long elusive target of almost 2 percent.

The euro was also hurt by political uncertainties as Italians are preparing
to vote in a national election on Sunday, while the leading political
parties in Germany decide on a coalition deal that would secure Angela
Merkel a fourth term as chancellor.

The British pound was pressured by renewed worries over Brexit after British
Prime Minister Theresa May said the EU’s draft legal text published on
Wednesday would undermine Britain and threaten its constitutional integrity.

The pound fell to $1.3743, its lowest level since mid-January. The euro
firmed to 0.88625 pound, having risen almost 1 percent from this week’s low
of 0.8772 touched on Monday.

Still, some say the dollar could falter again given that any support for the
currency from higher interest rates - the main driver of its gains until
early 2017 - has been tenuous.

In fact, the dollar index fell almost 10 percent last year, the biggest fall
in more than a decade even though no other major central banks raised
interest rates other than the Fed, which not only hiked rates three times
but also started trimming down its balance sheet.

The dollar index is still down 1.5 percent this year, dogged by suspicions
that the Trump Administration prefers a weaker dollar to mend its bulging
trade deficit, and worries its big tax cuts and spending plans may boost
fiscal deficits to an extent that they undermine confidence in U.S. debt.

The yen eased about 0.1 percent in Asia on Thursday to 106.80 per dollar,
still maintaining slim gains for the week.

On top of safety bids stemming from wobbly share prices, the yen also got a
boost from the previous day’s Bank of Japan bond-buying operations, where
the central bank trimmed the amount of its buying in super-long Japanese
government bonds.

Repatriation of funds by corporates ahead of Japan’s financial year-end on
March 31 also rendered additional help.

The Australian dollar hit a two-month trough versus the dollar and a
nine-month low versus the yen after data on Australian business investment
showed a 0.2 percent dip for the December quarter, missing forecasts for a
0.9 percent increase.

The Australian dollar traded 0.5 percent down at $0.7726, having briefly
fallen to as low as $0.7717.

The U.S. 10-year yield surpassed the 10-year Australian bond yield late last
month.

Commodities Markets

Trump says U.S. steel, aluminum sectors 'decimated' by unfair trade

(Reuters) - U.S. President Donald Trump said on Thursday the U.S. steel and
aluminum industries “have been decimated by unfair trade and bad policy,”
adding in his tweet that they need “free, fair and smart trade.”

Several top U.S. steel and aluminum executives have been invited to the
White House on Thursday for what could be a major trade announcement,
according to two people familiar with the meeting. Trump has vowed to take
steps to crack down on imports of steel and aluminum and has been
considering imposing hefty tariffs on imports of the metals from China and
other countries.

Lead hits 2-1/2 month low on firm dollar and weak shares

(Reuters) - Lead prices touched their lowest in 2-1/2 months on Thursday,
with other industrial metals also slumping under pressure from a stronger
dollar and risk-off sentiment that also hit global equities.

World stock markets fell for the third day running while the dollar rose to
six-week highs against a basket of currencies before the second leg of U.S.
Federal Reserve chief Jerome Powell’s testimony to lawmakers later on
Thursday.

A stronger dollar makes metals more expensive for holders of other
currencies.

The downtrend is likely to last for another week or so and there would soon
be opportunities to go long again, he said.

* LEAD: Benchmark lead on the London Metal Exchange was down 1.9 percent at
$2,455.50 a tonne by 1123 GMT, its weakest since Dec. 11. Lead was the
biggest LME faller on Wednesday, retreating by 2.9 percent after LME
inventories jumped by 12 percent.

* CHINA: The market largely shrugged off positive data from the private
Caixin/Markit Manufacturing Purchasing Managers’ Index for February, which
beat expectations to reach its highest in six months. A day earlier China’s
official factory activity reading raised concerns of a sharper than expected
slowdown.

* NICKEL: LME nickel was the biggest decliner on the LME on Thursday,
falling 2.2 percent to $13,495 a tonne. “A stainless steel inventory
overhang contributes to bearish (Chinese) onshore sentiment,” Marex
Spectron’s Alastair Munro said in a note.

* COPPER: Three-month LME copper shed 0.7 percent to $6,882 a tonne, its
weakest since Feb. 13.

* COPPER MINE: News of additional supply weighed on copper. The Oyu Tolgoi
mine in Mongolia will lift force majeure effective March 1 and is expected
to make up any sales-related effects over the next few quarters.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Powerspeed

AGM

Boardroom, Gate 1, Powerspeed Complex, Corner Cripps Road and Kelvin Road
North, Graniteside

01 Mar 2018 11am

Proplastics

final dividend of 0.26c record date

02 Mar 2018

Simbisa Brands Limited

EGM

SAZ Building Northend Close, Northridge Park, Borrowdale

09 Mar 2018 8:15am

CFI

AGM

Farm & City Boardroom, 1st Floor, Farm & City Complex, 1 Wayne Street

12 Mar 2018 11am

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been compiled from sources believed to be reliable, but no representation or
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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
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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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