Bulls n Bears Daily Market Commentary : 21 March 2018

Wed Mar 21 16:51:28 CAT 2018

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Bulls n Bears Daily Market Commentary : 21 March 2018

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Zimbabwe Stock Exchange Update

Market Turnover $831,566.76 with foreign buys at $331,483.47 and foreign
sales were $143,172.64. Total trades were 82.

The All Share index was 0.02 points marginally lower at 86.48 points as
mobile giant ECONET lost $0.0096 to close at $0.6704. Heavyweights DELTA  ,
NATFOODS , RIOZIM and SEEDCO traded unchanged at $1.5800, $5.4000, $1.2050
and $1.9500 in that sequence.

Gains were seen in FIDELITY LIFE which gained $0.0160 to close at $0.0960,
SIMBISA rose by $0.0100 to $0.3400 and OLD MUTUAL was $0.0086 firmer at
$5.4744.  AXIA  improved by $0.0031 to end at $0.2001 while BINDURA closed
at $0.0325 after gaining $0.0025.

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Global Currencies & Equity Markets

Kenya

Kenyan shilling gains ground; dollar demand low

(Reuters) - The Kenyan shilling strengthened against the dollar on Wednesday
helped by thin demand and positive market sentiment following a boost to
central bank foreign currency reserves by proceeds from a Eurobond sale,
traders said.

At 1000 GMT, commercial banks quoted the shilling at 101.00/20 per dollar,
compared with 101.15/35 at Tuesday's close.

Uganda

Uganda shilling inches down due to demand for dollars

(Reuters) - The Uganda shilling        was edged down on Wednesday mainly
due to demand for hard currency from commercial banks and some merchandise
importers.   

At 1128 GMT, commercial banks quoted the shilling at 3,660/3,670, compared
with Tuesday's close of 3,655/3,665.

America

Stocks heal after FANG bite, Fed bets lift dollar

(Reuters) - A worldwide selloff of internet stocks caused by reports of
industrial-scale misuse of Facebook data began to ease on Tuesday, while the
dollar was flying ahead of what is expected to be the first of at least
three U.S. rate hikes this year.

Wall Street opened almost flat with Facebook inching down 0.3 percent after
its near 7 percent drop on Monday while the rest of the so-called FANGs —
Amazon, Netflix and Google parent Alphabet — all nudged modestly higher.

Europe’s tech stocks were also back to level pegging after an early 0.3
percent dip, on the ripple effect of the reports that Facebook had allowed
improper access to some 50 million of its users data.

There were other tech problems too. An accident involving an Uber test car
on Monday which resulted in the first fatality involving a fully autonomous
vehicle further weighed on Silicon Valley sentiment.

Shares in European chipmakers had also faced pressure, while Germany’s SAP
declined 0.5 percent, hit by a knock-on effect from U.S. business software
peer Oracle, whose quarterly revenue missed analysts’ estimates.

The currency market was focused on other things namely the dollar as it
climbed to a one-week high against the Japanese yen as traders limbered up
for the start of a two-day Fed Reserve meeting.

With a quarter point hike — its sixth since the Fed began raising interest
rates in late 2015 — baked into market prices, major currencies were largely
moving in ranges though.

Markets expect at least two more rate hikes after Wednesday for the
remainder of the year, although analysts acknowledged that the central
bank’s ‘dot plot’ could potentially points to as many as four.

Along with some expectations of a more confident sounding Fed, a sharp drop
in a confidence survey among German investors also weighed on the euro which
was down 0.5 percent and buying $1.227.

The ZEW research institute said its monthly survey showed economic sentiment
among investors dropped to 5.1, its lowest reading in a year and a half,
from 17.8 in the previous month. The consensus forecast in a Reuters poll
was for 13.0.

TRADE TENSIONS

In addition, the potential for a trade war cast a shadow over export
currencies after U.S. President Trump imposed tariffs on steel and aluminum.

The Trump administration is also expected to unveil up to $60 billion in new
tariffs on Chinese imports by Friday, targeting technology,
telecommunications and intellectual property, two officials briefed on the
matter said Monday.

U.S. businesses were alarmed with several large U.S. retail companies,
including Wal-Mart Inc and Target Corp , on Monday urging Trump not to
impose massive tariffs on goods imported from China.

Back in Europe, the UK’s FTSE 100 index slightly outperformed the broader
European market, up 0.4 percent, as investors cheered a transition deal
reached between Britain and the European Union on Monday.

The British pound just below $1.40 and 1.14 euro again having had a bumper
day on Monday.

The Fed bets kept long-term U.S. bond yields nudging higher with short-dated
yields up too.

The yield on 10-year Treasuries was up at almost 2.89 percent, 6 basis
points below the four-year high of 2.957 percent touched a month ago.
Two-year notes hit a 9 1/2-year high of 2.33 percent.

Analysts are betting the Fed will bump up its policy interest rates to
1.50-1.75 percent from the current 1.25-1.50 percent.

The dollar was also higher against the yen at 106.46 per dollar, with
Japanese traders also wary of any new developments in a cronyism scandal
that has eroded support for Japanese Prime Minister Shinzo Abe.

Among the major commodities, oil prices jumped in line with the dollar and
as investors remained wary of growing crude supply although tensions between
Saudi Arabia and Iran provided some support.

Brent crude futures traded at $67.21 a barrel. U.S. West Texas Intermediate
(WTI) futures were $63.20a barrel.

Commodities Markets

Gold rebounds from three-week lows ahead of Fed rate outlook

(Reuters) - Gold recovered from a  three-week low as the dollar eased on
profit-taking ahead of the U.S. Federal Reserve's meeting later on
Wednesday, which could provide further clues on the pace of expected
interest rate increases.

With a rate rise of 25 basis points seen as a done deal, investors will be
on the lookout for whether the Fed forecasts four increases in 2018, one
more than previously forecast.

Spot gold        was up 0.4 percent at $1,315.71 an ounce at 1111 GMT,
having dropped as low as $1,306.91 in the previous session.

U.S. gold futures         for April delivery rose 0.3 percent to $1,315.40. 

Economics commodities economist Simona Gambarini.     The dollar index
, which measures the greenback against a basket of six major currencies,
slipped 0.3 percent to

90.135 after climbing to its highest since March 1 in the previous session.

A weaker greenback makes dollar-denominated assets such as gold cheaper for
holders of other currencies.

The Fed will make an announcement on interest rates at 1800 GMT on Wednesday
and new Fed Chairman Jerome Powell will hold his first news conference at
1830 GMT.

The expectations for a faster pace of U.S. rate hikes have caused gold to
fall 4 percent from a 1-1/2 year high reached in January.

Higher U.S. interest rates typically reduce demand for non-yielding bullion,
though analysts said that the possibility of an escalation in geopolitical
tensions could cushion gold.

U.S. President Donald Trump is expected to unveil up to $60 billion in
import duties on Chinese goods by Friday, following on from tariffs he
imposed this month on imported steel and

aluminium.             

Investors are worried that Trump's actions could escalate into a trade war
if China and other countries retaliate, threatening global growth.

Among other precious metals, silver        added 0.5 percent to $16.29 an
ounce while platinum        was up 0.5 percent at $944.90 and palladium
rose 0.2 percent to $980.50.

Copper slips to 3-month low ahead of Fed policy statement

(Reuters) - Copper slid to three-month lows on Wednesday along with zinc and
aluminium as expectations for another U.S. interest rate hike and worries
over the prospect of a global trade war stoked concerns over the demand
outlook for industrial metals.

Copper, chiefly used in construction, is down for a fifth session on the
London Metal Exchange, ahead of the Federal Reserve’s decision on U.S.
interest rates later.

Markets are expecting the Fed to announce a quarter-point hike after
European markets close, but are awaiting guidance on whether three or four
are planned for 2018 as a whole.

Traders are also bracing for further news from the United States on trade,
with U.S. President Donald Trump expected to announce up to $60 billion in
new tariffs on Chinese imports by the end of the week.

* LME COPPER: Three-month copper on the London Metal Exchange was down 0.6
percent in official midday trading at $6,712 a tonne, having earlier touched
a three-month low of $6,702.

* FINANCIAL MARKETS: European stocks eased and the dollar retreated from
three-week highs as investors marked time before a likely hike in U.S.
interest rates.

* COPPER SURPLUS: The global world refined copper market showed a 17,000
tonnes surplus in December, compared with a 41,000 tonnes deficit in
November, the International Copper Study Group said in its monthly bulletin.

* LOS PELAMBRES: Workers at Antofagasta PLC’s Los Pelambres copper mine in
Chile have opted to extend a period of government mediation in an effort to
reach agreement on a new labour contract, an industry group said.

* ALUMINIUM PRICES: LME aluminium slid to its lowest since mid-December at
$2,062.50 a tonne. Untraded in official rings, it was last bid at $2,078 a
tonne, up 0.1 percent.

* ALUMINIUM: Global primary aluminium output excluding China dipped to 2.009
million tonnes in February from a revised 2.221 million tonnes in January,
International Aluminium Institute (IAI) data showed on Tuesday.

* OTHER METALS: Nickel was down 0.9 percent at $13,325 a tonne in official
trading. The other base metals were untraded in official rings. LME zinc was
last bid up 0.7 percent at $3,225 a tonne, off an earlier three-month low of
$3,183, while lead was 1 percent higher at $2,375 a tonne and tin was down
0.1 percent at $20,650.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

NicozDiamond

finals and analysts briefing

7th Floor Auditorium, Insurance Centre, 30 Samora Machel Avenue

20/03/2018 12pm

Old Mutual Zim

analysts briefing

Stewart Room, Meikles

20/03/2018 2pm

Simbisa

EGM

Royal Harare Golf Club

21/03/2018 9am

Zimplow

final dividend 0.13c per share record

23/03/2018 

TSL

AGM

28 Simon Mazorodze Road, Southerton

27/03/2018 12pm

Willdale

AGM

19.5km peg, Lomagundi Road, Mount Hampden

29/03/2018 11am

Good Friday

30/03/2018 

Easter Monday

02/04/2018

Zimbabwe

Independence Day

Zimbabwe

18/04/2018

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
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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