Bulls n Bears Daily Market Commentary : 06 March 2018

Wed Mar 7 08:21:44 CAT 2018

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Bulls n Bears Daily Market Commentary : 06 March 2018

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Zimbabwe Stock Exchange Update

Market Turnover $5,112,202.71 with foreign buys at $4,356,927.10 and foreign
sales were $2,179,805.54. Total trades were 111.

The All Share index inched down 0.01 points to end at 86.70 points as four
counters lost ground. MEIKLES dropped $0.0200 to close at $0.2800, BINDURA
came off $0.0055 to $0.0275 while TSL  went down by $0.0006 to close at
$0.3990. PADENGA  was $0.0002 lower at $0.4198.

Gains were seen in PPC which rose by $0.0200 to $0.9200, INNSCOR put on
$0.0085 to settle at $0.9299 and OLD MUTUAL was $0.0053 stronger at $5.4053.
ECONET added $0.0021 to close at $0.6800 whilst EDGARS and FBC HOLDINGS both
gained $0.0005 to close at $0.0455 and $0.2005 respectively.

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Global Currencies & Equity Markets

Uganda

Uganda shilling edges down on higher demand for dollars

(Reuters) - The Ugandan shilling weakened on Tuesday, undermined by a
rebound in demand for hard currency from manufacturing and energy sectors.

At 0905 GMT, commercial banks quoted the shilling at 3,645/3,655, slightly
down from Monday’s close of 3,640/3,650.

Kenya

Kenyan shilling unchanged against the dollar

(Reuters) - The Kenyan shilling was unchanged against the dollar on Tuesday
due to low demand, traders said. 

At 0818 GMT, commercial banks quoted the shilling at 101.20/40 per dollar,
the same as Monday's close. 

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

Surging stocks push zinc to 10-week low, copper rebounds

(Reuters) - Copper prices rose by the most in almost a month on Tuesday,
helped by a weaker dollar and expectations of strong demand in China, while
zinc touched its lowest since December after an increase in stocks calmed
fears about availability.

Benchmark copper on the London Metal Exchange traded 1.4 percent higher at
$7,004 a tonne in official rings, up from a three-week low on Monday and on
track for the biggest gain since Feb. 14.

Burgering said the metal, used in power and construction, would likely
finish the year around $7,100-$7,150 a tonne. In December it touched a
four-year high of $7,312.50.

COPPER TECHNICALS: Copper rose above its technically important 100-day
moving average at $6,968.

CHINA ECONOMY: Data in the next few weeks in China, the world’s biggest
metals consumer, is expected to show growth was mostly stable at the start
of the year as exports picked up and factory activity remained largely
resilient.

DOLLAR: The U.S. dollar weakened, helping push up dollar-denominated metals
by making them cheaper for users of other currencies.

ZINC: LME zinc traded up 1 percent at $3,328 a tonne after touching $3,272,
the lowest since Dec. 28, following a surge in exchange inventories.

STOCKS: On-warrant stocks available to the market in LME-registered
warehouses have risen by 111 percent in two days to 177,000 tonnes, reducing
fears of supply shortages that drove zinc, used to galvanize steel, to a
10-1/2-year high last month.

Inventories in Shanghai Futures Exchange warehouses have also doubled to
150,000 tonnes this year. ZN-STX-SGH

SPREADS: The premium for cash zinc over the three-month contract fell to
$2.25 from $50 late last month, signalling greater availability of metal.
MZN0-3

POSITIONING: Investors were reducing bets on higher prices, with the net
long position in LME zinc down to 5.4 percent of active contracts from 29
percent on Feb. 1, brokers Marex Spectron said.

CHINA ALUMINIUM: LME aluminium traded up 0.4 percent at $2,153 a tonne after
an official in top producer China said the country would continue to cut
aluminium capacity this year.

SPREADS: The price of cash aluminium has fallen below the three-month price,
suggesting that traders see ample supply. MAL0-3

OTHER METALS: LME nickel traded up 1.1 percent at $13,575 a tonne, lead
gained 0.5 percent to $2,438 and tin traded down 0.4 percent at $21,455.

Asian gold-backed ETFs grow by nearly 10 pct in February -WGC

(Reuters) - Asian gold-backed exchange-traded funds (ETFs) added more tonnes
in February than North America and Europe, reversing its 2017 trend of
having more flows out, the World Gold Council said on Tuesday.

Asian-listed gold ETFs added 7.9 tonnes worth $318.1 million. This was an
8.3 percent increase from January.

North American gold-backed ETFs lost 5.1 tonnes worth $196.2 million,
following the price of gold, Perlaky said. This was a 0.37 percent loss of
its total assets under management.

Gold prices dropped 2 percent in February, as the U.S. dollar strengthened
and the new U.S. Federal Reserve chairman fueled views that the U.S. central
bank would raise rates four times this year rather than three.

A stronger dollar makes dollar-priced gold costlier for investors using
other currencies, while higher U.S. interest rates make non-yielding gold
less attractive.

Gold-backed ETFs in Europe lost 7.3 tonnes, worth $240.6 million. This was a
0.57 percent loss of total assets under management.

North America still led the pack with total assets under management in
February worth $53.4 billion. Europe had $42.4 billion, while Asia had $3.8
billion.

After losing 5.1 tonnes valued at $146 million, global gold-backed ETFs
collectively held 2,393.4 tonnes worth $101.4 billion by the end of
February.

In January, North American gold-backed ETFs added more tonnes than those of
Asia and Europe combined, accounting for more than half of global net
inflows, the World Gold Council said last month.

The spike then was a function of gold prices extending their late-2017 rally
into January on the back of a weak greenback. Gold prices had increased
close to four percent in January. 

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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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
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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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