Bulls n Bears Daily Market Commentary : 12 March 2018

Tue Mar 13 08:55:42 CAT 2018

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Bulls n Bears Daily Market Commentary : 12 March 2018

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Zimbabwe Stock Exchange Update

Market Turnover $619,625.91 with foreign buys at $384,399 and foreign sales
were $135,576.52. Total trades were 27.

The All Share index rebounded 0.18 points  to settle at 86.43 points.
BRITISH AMERICAN TOBACCO went up by $0.2500 to close at $20.0000, ECONET
added $0.0100 to end at $0.6800 whilst AXIA  rose by $0.0050 to $0.1800.

FIRST MUTUAL HOLDINGS was the only counter in the negative losing $0.0095 to
close at $0.1600 while heavyweights NATFOODS , OLD MUTUAL  and SEEDCO
traded unchanged at $5.4000, $5.4200 and $1.9500 respectively.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Uganda

Ugandan shilling unchanged, pending taxes crimp dollar demand

(Reuters) - The Ugandan shilling was unchanged on Monday helped by low
dollar demand due to companies preparing to pay taxes, traders said. 

At 0948 GMT, commercial banks quoted the shilling at 3,650/3,660, the same
level as Friday's close.

South Africa

South Africa's rand steady, stocks set to open higher

(Reuters) - South Africa’s rand steadied against the dollar early on Monday,

holding on to gains made in the previous session after disappointing U.S.
wage growth pared bets the 

Federal Reserve would accelerate its pace of interest rate increases this
year.

* At 0645 GMT, the rand traded at 11.8175 per dollar, not far off its New
York close of 11.82000 on 

Friday.

* The currency is expected to take cues from overseas trends in the absence
of domestic drivers.

* Stocks were set to open higher at 0700 GMT, with the JSE securities
exchange’s Top-40 futures index 

up 0.77 percent.

* In fixed income, the yield for the benchmark government bond due in 2026
was down one basis point 

to 8.065 percent, reflecting firmer bond prices. 

Europe

Euro gains, dollar drops, as risk appetite revives

(Reuters) - The euro gained on Monday and the dollar dropped as last week’s
strong U.S. jobs numbers and receding fears over a trade war helped a
rebound in risk appetite, with higher yielding currencies also performing
well.

With little crucial economic data due in Europe, traders will focus on a
meeting of the euro zone finance ministers on Monday for any comments on
trade protectionism after President Donald Trump’s decision to impose some
tariffs.

While the euro fell last week as the European Central Bank gave a
more-dovish-than-expected meeting, traders have pushed the euro higher as
they bet investors will continue to put more money into a region where the
economies are booming.

The euro rose to $1.2328, up 0.2 percent. The single currency, after a
strong start to 2018, remains below the three-year peak hit in February of
$1.2556.

The dollar, which has tended to fall when risk appetite is rising, meanwhile
fell. The greenback against a basket of currencies dropped 0.1 percent.

The strong U.S. job growth data released on Friday was counterbalanced by
slower increases in wages, resulting in money market traders sticking to
bets that the Fed would raise interest rates three times this year, with
only around a one-in-four chance seen for a fourth rate hike in 2018.

Higher-yielding currencies like the Australian and New Zealand dollars also
rose, while sterling gained 0.2 percent to trade at $1.3871.

The yen, which tends to perform well when markets are anxious, gained as
traders eyed a suspected Japan cronyism scandal involving the sale of
state-owned land for its impact.

The name of Japanese Prime Minister Shinzo Abe’s wife was removed from
documents regarding the issue, media said on Monday, as pressure mounted on
the premier and his ally Finance Minister Taro Aso over a possible cover-up.

Market participants said the political developments in Japan helped temper
gains in Japanese equities and lent some support to the yen.

The dollar eased 0.3 percent to 106.51 yen, edging away from a one-week high
of 107.05 yen set on Friday.

The dollar had risen against the yen last week as risk appetite improved on
hopes for a breakthrough in the standoff over North Korea’s nuclear weapons
programme.

The greenback also gained ground against the yen last week as fears of a
global trade war receded.

Commodities Markets

Aluminium slips ahead of Chinese smelter restarts

(Reuters) - Aluminium prices fell on Monday, three days before the end of
winter 

output curbs in top producer China, as investors worried that supplies are
too plentiful to keep prices 

near six-year highs.

Benchmark aluminium on the London Metal Exchange (LME) traded down 0.1
percent at $2,118 a tonne in  official rings. Prices have slipped around 7.5
percent from a high in early January.

Aluminium on the Shanghai Futures Exchange (ShFE) closed at the lowest in 14
months.

Prices have been pressured by sharp increases in stocks in ShFE and LME
warehouses, despite 

restrictions on Chinese smelter production from Nov. 15 to March 15.
AL-STX-SGH MALSTX-TOTAL

Industry sources say there may be only a limited restart by these smelters
from March 15 because prices 

are not high enough for some to break even.

Any increase in output could drive prices lower.

But he said prices on the LME would likely rise again later in the year
because of a persistent shortage of 

metal outside China.

ALUMINIUM SPREADS: The price of cash aluminium has fallen below the
three-month price, suggesting 

greater nearby availability of metal and taking pressure off prices. MAL0-3

PREMIUMS: Some Japanese aluminium buyers have agreed to pay some global
producers a premium of 

$129 per tonne for shipments in the April to June quarter, the highest in
three years.

COPPER: LME copper traded down 0.9 percent at $6,897 a tonne after a
10,000-tonne rise in stocks in 

LME-registered warehouses to 321,125 tonnes suggested ample supply of the
metal. Prices remain near 

4-year highs hit in December. MCUSTX-TOTAL

STRIKE: Workers at Antofagasta’s Los Pelambres copper mine in Chile rejected
an offer for a new labour 

contract, paving the way for a strike.

Los Pelambres produced around 350,000 tonnes of copper last year. The
potential strike revived 

concerns that labour disputes will disrupt production this year, supporting
prices.

POSITIONING: Speculators reduced bets on higher prices, with the net long in
Comex copper falling to 

the lowest since November 2016.

CHINA FUNDS: Two Chinese brokerages with the largest long positions in ShFE
copper for delivery in May 

and June sharply scaled back their positions, exchange data showed.

NICKEL: Nickel did not trade but was bid down 0.8 percent at $13,750. Prices
jumped 4.4 percent on 

Friday after the number of cancelled warrants in LME warehouses - metal
earmarked for deilvery and 

unavailable to the market - increased to 38 percent of total warrants from
30 percent. MNISTX-TOTAL

OTHER METALS: LME zinc was bid down 0.6 percent at $3,259 a tonne, lead
traded 1.4 percent lower at 

$2,343 and tin traded down 0.1 percent at $21,355.

Oil producer Norway starts wage talks to avert widespread strikes

(Reuters) - Norwegian employers and labour unions embarked on four weeks’ of
wage 

talks on Monday to stave off widespread strikes that risk impacting output
in western Europe’s biggest 

crude producer.

Unlike most years, in which wages are set on an industry-by-industry basis
to reduce complexity, the 

2018 round rolls a majority of private sector firms into a single
negotiation in a bid to resolve a stand-off 

over pension reform.

While employers are willing to discuss an increase in inflation-adjusted
pay, it will be more difficult to 

meet demands for better pensions and change in travel-related compensation,
Confederation of 

Norwegian Enterprise (NHO) Chief Executive Kristin Skogen Lund told
reporters.

If initial talks break down, a state-appointed mediator will attempt to
broker a deal in the final days 

leading up to an April 7 deadline, after which most workers are allowed to
go on strike unless an 

agreement is found.

A few days in advance, Labour unions must name the companies that would be
hit in a first wave of 

industrial action, making it difficult to predict how extensive an initial
walk-out could be.

While Norway’s production of oil and natural gas is unlikely to be targeted
from the start since the 

contract for rig workers’ is valid until June, unions may still hit the
sector by shutting down yards and 

other suppliers.

Onshore processing and export facilities for natural gas are also at risk of
strike, unions said, while 

offshore oil production workers could become involved in any extended
strike.

Western Europe’s largest producer of oil and gas pumps about two million
barrels of crude, condensate 

and natural gas liquids (NGL) per day, while its output of natural gas
stands at around 320 million cubic 

metres per day.

Norway’s last major strike by oil workers took place in 2012 and lasted for
16 days before the 

government intervened to force an end to the conflict, citing vital national
interests.

Top companies that could be affected by the talks include consumer goods
maker Orkla, fertiliser maker 

Yara , metals producer Hydro and oil services companies Aker Solutions and
Kvaerner.

Also at risk are major oil firms including Statoil, Aker BP, Lundin
Petroleum and Shell . 

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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
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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