Bulls n Bears Daily Market Commentary : 05 March 2018

Tue Mar 6 11:39:41 CAT 2018

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Bulls n Bears Daily Market Commentary : 05 March 2018

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Zimbabwe Stock Exchange Update

Market Turnover $2,488,535.89 with foreign buys at $1,523,920.25 and foreign
sales were $744,468.68. Total trades were 70.

The All Share index opened the week lower at 86.71 points after losing 0.55
points . BRITISH AMERICAN TOBACCO  lost a further $2.3138 to close at
$20.0000, PADENGA shed $0.0093 to close at $0.4200 while DELTA  came off
$0.0069 to $1.5600. POWERSPEED went down by $0.0064 to close at $0.0686, CBZ
HOLDINGS eased $0.0021 to trade at $0.1029 and ECONET closed at $0.6779
following a $0.0018 loss.

Trading in the positive two counters gained ground; BARCLAYS added $0.0075
to end at $0.0505 and INNSCOR put on $0.0006 to settle at $0.9214.

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Global Currencies & Equity Markets

Egypt

Egypt targets budget deficit of 8.5-8.8 pct/GDP in 2018-19 -minister

(Reuters) - Egypt targets a budget deficit of between 8.5 and 8.8 percent of
gross domestic product for the 2018-19 fiscal year that begins in July,
Finance Minister Amr El Garhy said on Monday.

Garhy also said Egypt’s GDP growth would reach 5.5 percent in the upcoming
fiscal year. 

Nigeria

Nigeria's trade account turns positive in 2017 after recession

(Reuters) - Nigeria’s trade account turned positive in 2017 as a rise in oil
exports outweighed imports after dollar shortages frustrated transactions,
the National Bureau of Statistics (NBS) said.

The balance of trade last year was 4.03 trillion naira ($13.2 billion). The
net trade balance stood at minus 290 billion naira for 2016.

The rise boosts Nigeria’s ambition to promote exports to support its fragile
economy and earn foreign exchange while reducing imports. Its 2017 gross
domestic product rose 0.8 percent to emerge from Nigeria’s first recession
in 25 years.

Nigeria, which faced a currency crisis in 2016 as oil revenues fell, has
been trying to diversify its economy away from oil, boost local production
and generate non-oil exports. But it needs to build infrastructure such as
roads and rails to help boost non-oil exports.

The NBS said oil and gas exports accounted for more than 93 percent of
exports in the fourth quarter, with cocoa bean exports, largely to the
Netherlands, Malaysia and Indonesia, making up 0.37 percent.

Nigeria’s manufacturing capacity is limited, so it imports most of what it
consumes. Fourth-quarter imports dipped 8.5 percent from the previous year
to 2.11 trillion naira, the statistics bureau said.

But exports more than compensated, jumping 31.3 percent in the fourth
quarter from a year earlier to 3.91 trillion naira, the NBS said.

The trade balance for fourth quarter more than doubled to 1.8 trillion naira
from a year earlier. ($1 = 305.85 naira) 

America

Stocks, dollar tumble as Trump sparks global trade war fears

(Reuters) - The spectre of a global trade war sent world stocks tumbling
towards a 2.5 percent weekly loss on Friday, and left bruised investors
reaching for the traditional antidotes - government bonds, gold and the
Japanese yen.

The falls came after U.S. President Donald Trump said the United States
would impose tariffs of 25 percent on imported steel and 10 percent on
aluminium, sparking concerns of retaliatory moves from major trade partners
China, Europe and neighbouring Canada.

Europe’s STOXX 600 index fell over 1.5 percent led by a near 5 percent slump
from world’s biggest steelmaker ArcelorMittal SA and 2.5 - 6 percent drops
from the region’s carmakers worried that they might be next.

Wall Street futures were also pointing lower for what would be a fourth
straight day and another difficult week for the benchmark S&P 500, Dow Jones
Industrial and Nasdaq indexes.

The dollar and U.S. Treasury yields both fell as they appeared to push aside
considerations of inflation, a major theme that spooked financial markets
over the last month.

Ten-year U.S. Treasuries yields dipped to 2.8024 percent, hitting its lowest
level in three weeks and further extending the distance from its four-year
peak of 2.957 percent touched on Feb 21.

The dollar fell across the board including to more than one year low against
the yen at 105.54.

Europe’s market moves compounded what was already a fragile mood ahead of a
crunch few days of politics.

Britain’s under-fire Prime Minister Theresa May will flesh out her Brexit
plans later, while Germany will find out if it finally has a coalition
government on Sunday with Italy also holding delicately-poised elections
that day.

Combined with the simmering trade war nerves it was unsurprising then that
safe-haven demand was on the rise.

German Bunds - Europe’s credit market benchmark - saw their yields fall to a
five-week low of 0.618 percent as Italy’s BTP yields dropped to a two-week
low of 2.008 percent.

STEEL BUCKLES

The trade nerves had dominated Asian market moves.

Japan’s Nikkei tumbled 2.5 percent to end the week down 3.3, while MSCI’s
broadest index of Asia-Pacific shares excluding Japan dropped 0.9 percent to
take its losses for the week to 2.1 percent.

Steelmakers were hit the hardest there too with South Korea’s Posco down 3.3
percent and Japan’s Nippon Steel off 3.8 percent.

Toyota Motor shares skidded 2.4 percent too after the automaker had said the
planned tariffs would substantially raise the production costs and therefore
prices of cars and trucks sold in America.

On Thursday on Wall Street, the S&P 500 had lost 36.16 points, or 1.33
percent, to 2,677.67, coming a day after a another heavy sell on worries the
Federal Reserve might increase it interest rates more than expected this
year.

The anxiety over tit-for-tat trade tariff moves was underscored by Canada’s
quick response, with officials in Ottawa saying they will retaliate. China
and the EU both followed, saying that they will safeguard their interests.

The concerns also eclipsed upbeat U.S. economic data including a 14-year
high in manufacturing figures and a 48-year low in the number of Americans
filing for unemployment benefits.

In the currency market, the dollar’s retreat saw the euro jump back to
$1.2273, after having hit a seven-week low of $1.21545 on Thursday.

The yen had got an additional boost when Bank of Japan Governor Haruhiko
Kuroda said he would mull an exit from the BOJ’s current stimulus regime if
the central bank’s 2 percent inflation target is achieved in 2019.

The dollar index is down 2.1 percent this year, dogged by suspicions that
the Trump administration prefers a weaker dollar to help narrow the United
States’ yawning trade deficit.

Worries that Trump’s big tax cuts and spending plans will ramp up fiscal
deficits to the extent that they undermine confidence in U.S. debt have also
hurt the greenback though it had been on the rise again in recent weeks.

Oil prices were also under pressure, having fallen more than 1 percent the
previous day on trade friction fears.

U.S. crude was little changed in European trade at $60.88 per barrel, having
fallen to two-week low of $60.18 on Thursday. It is down 3.7 percent so far
this week.

Brent futures traded at $63.74 per barrel having hit a two-week low of
$63.19.

Commodities Markets

Gold steady amid concerns over trade war, dollar caps gains

(Reuters) - Gold touched a near one-week high on Monday as investors opted
for safe-haven assets on political uncertainty in Italy and fears of a
potential escalation of a simmering global trade war but a stronger dollar
kept gains in check.

Gold is often seen as an alternative investment during times of geopolitical
and financial uncertainty, benefiting along with other haven assets such as
the Japanese yen and U.S. Treasuries while stocks tend to trend lower.

Spot gold        was up 0.1 percent at $1,323.25 per ounce by 1222 GMT after
touching its highest since Feb. 27 at $1,327.86.

U.S. gold futures         for April delivery rose 0.1 percent to $1,324.40
per ounce. 

U.S. President Donald Trump last week announced plans to levy hefty tariffs
on aluminium and steel imports which were followed by threats of retaliation
from the EU and Canada.

In Italy, voters delivered a hung parliament on Sunday and     if early
projections are confirmed, none of Italy's three main groups will be able to
rule alone and there is little prospect

of a return to mainstream, moderate government.                 

The dollar index        gained 0.1 percent, having touched its lowest in
almost a week earlier in the session, putting a cap on gold's gains.        

Gold output from Australia, the world's second-largest producer, may rise to
a record as a stream of new projects comes on line, Australian mining
consultancy Surbiton Associates said

on Sunday.             

The market was anticipating the release of non-farm payrolls on Friday which
will help guide interest rate expectations. 

In other precious metals, silver rose 0.2 percent to $16.52 per ounce.

Hedge funds and money managers increased their net short position in silver
contracts to a record high in the week to Feb. 27, U.S. Commodity Futures
Trading Commission (CFTC) data

showed on Friday, while cutting net long positions in gold.

Platinum  , used to reduce emissions in diesel cars, inched up 0.4 percent
to $966.20 per ounce, while palladium slipped 0.3 percent to $988.55. 

Putting pressure on platinum group metals (PGMs) was data that showed car
sales in the United States were lower in February and the mayor of Rome said
it would ban diesel cars by

2024, MKS SA senior precious metals dealer Alex Thorndike said.

Zinc hits 2018 low as stocks jump, U.S. tariffs loom

(Reuters) - Zinc slid to its lowest this year on Monday, falling for a fifth
straight session as inventories surged and concerns about proposed U.S.
trade tariffs weighed on metals used in steel manufacturing.

Zinc, which is most commonly used to galvanise steel, has fallen nearly 8
percent since hitting its highest in more than a decade last month, at
$3,595.50 a tonne.

It came under pressure last week along with aluminium and fellow steel
component nickel after U.S. President Donald Trump announced plans to impose
hefty tariffs on imported steel and aluminium to protect U.S. producers.

* ZINC PRICES: London Metal Exchange zinc was down 1.6 percent at $3,300.50
a tonne in official midday trading, having slid 4.2 percent last week in its
biggest weekly loss in three months. Earlier, it hit a low for the year of
$3,287.50.

* ZINC INVENTORIES: Zinc stocks held in London Metal Exchange warehouses
MZN-STOCKS surged 59 percent on Monday to 209,050 tonnes, while on-warrant
levels nearly doubled to 162,825 tonnes.

* NICKEL, ALUMINIUM: Other metals potentially affected by the tariffs,
nickel and aluminium, were also under pressure. Neither traded in official
rings, but nickel was last bid 0.7 percent lower at $13,350 a tonne, while
aluminium was last bid at $2,140 a tonne, down 0.4 percent.

* ALUMINIUM: Some Chinese aluminium producers that shut smelters during a
winter crackdown on pollution may not reopen this spring once output curbs
are lifted.

* CURVE: LME aluminium spreads showed easing in supply tightness mid-year
when more China production is expected to come online. CMAL0-3 CMALT-0

* COPPER: LME copper was down 0.2 percent at $6,885 a tonne in official
trading. Prices are expected to recover as manufacturing demand cranks up
into the seasonally strongest second quarter.

* CHINA ECONOMY: China aims to expand its economy by around 6.5 percent this
year, the same as in 2017, while pressing ahead with its campaign to reduce
risks in the financial system, Premier Li Keqiang said Monday.

* COPPER: Hedge funds and money managers cut their net long positions in
COMEX gold and copper contracts in the week to Feb. 27, U.S. Commodity
Futures Trading Commission data showed on Friday.

* OTHER METALS: LME lead was down 0.5 percent at $2,435 a tonne in official
trading, while tin was up 0.3 percent at $21,530 a tonne.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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

DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
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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
the securities of more established companies. Neither Faith Capital nor any
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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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