Bulls n Bears Daily Market Commentary : 22 March 2018

Fri Mar 23 09:24:02 CAT 2018

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Bulls n Bears Daily Market Commentary : 22 March 2018

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover $268,759.10 with foreign buys at $164,654.62 and foreign
sales were $11,020.00. Total trades were 31.

The All Share index rebounded by 0.13 points to close at 86.61 points. CAFCA
jumped up by $0.0700 to close at $0.5500, OLD MUTUAL put on $0.0356 to close
at $5.5100 while INNSCOR added $0.0125 to end at $0.9504. CBZ HOLDINGS was
$0.0060 stronger at $0.1100.

However, AMALGAMATED REGIONAL TRADING shed $0.0016 to trade at $0.0434 and
ECONET eased $0.0004 to end at $0.6700.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Uganda

Ugandan shilling edges down due to demand for dollars

(Reuters) - The Ugandan shilling        inched down on Thursday, undercut by
strong demand for dollars from firms in the manufacturing and energy
sectors. 

At 0937 GMT, commercial banks quoted the shilling at 3,658/3,668, weaker
than Wednesday's close of 3,655/3,665. 

South Africa

South African rand slightly firms ahead of Moody's review decision

(Reuters) - South Africa’s rand firmed slightly against the dollar early on
Friday in volatile trade as investors awaited Moody’s sovereign credit
rating announcement due later in the day.

* At 0630 GMT, the rand traded at 11.8175 per dollar, 0.34 percent firmer
than its overnight close.

* Rating agency Moody’s is set to announce whether it will downgrade South
Africa’s sovereign credit. It is the only major ratings agency still rating
South African debt as investment grade.

* Moody’s rates the South Africa’s foreign and local currency debt on their
lowest investment grade rung of Baa3.

* A downgrade to junk by Moody’s would see South Africa removed from Citi’s
influential World Government Bond Index, and could trigger up to 100 billion
rand ($8.46 billion) in selling by foreign investors.

* In fixed income, the yield for the benchmark government bond due in 2026
was up one basis point at 8.02 percent. ($1 = 11.8164 rand) 

America

Stocks tumble, bonds and yen gain as trade war fears drive rush to safety

(Reuters) - The rumblings of a global trade war shook stock and currency
markets on Friday after U.S. President Donald Trump announced long-promised
tariffs on Chinese goods and Beijing pledged to fight any such war to the
end.

Spreadbetters expected European stocks to open lower, with Britain’s FTSE
losing 0.9 percent, Germany’s DAX falling 1.6 percent and France’s CAC
shedding 1.5 percent.

S&P futures were down 0.6 percent, suggesting a weaker open on Wall Street
later in the day.

Trump signed a presidential memorandum on Thursday that could impose tariffs
on up to $60 billion of imports from China, although they have a 30-day
consultation period, raising the chance that final measures could be watered
down.

Investors fear that the U.S. measures could escalate into a trade war, with
potentially dire consequences for the global economy.

Beijing urged the United States on Friday to “pull back from the brink”.

China unveiled its own plans on Friday to impose tariffs on up to $3 billion
of U.S. imports in retaliation against U.S. tariffs on Chinese steel and
aluminium products.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2.5 percent
as stocks across the region dropped. For the week, the index recoiled over 4
percent.

Shanghai shares were down 3.8 percent.

Japan’s Nikkei dropped 4.5 percent.

Australian stocks lost 1.9 percent, Hong Kong’s Hang Seng was down 3.1
percent, Taiwan shares slid 1.6 percent and South Korea’s KOSPI retreated
almost 3 percent.

Setting a downbeat tone for Asia, the Dow on Thursday shed 2.9 percent, the
S&P 500 dropped 2.5 percent and the Nasdaq fell 2.4 percent.

As equities took a beating, the yen, often sought in times of market
turmoil, rallied against the dollar.

The greenback fell roughly 0.5 percent to as low as 104.635 yen, its weakest
since November 2016. The dollar was down more than 1 percent on the week.

The euro was 0.3 percent higher at $1.2334.

The dollar index against a basket of six major currencies slipped 0.3
percent to 89.615. It has lost roughly 0.7 percent this week, weighed down
by a steady decline in U.S. Treasury yields.

Yield on the benchmark 10-year Treasury fell 7.5 basis points overnight as
bond prices rose on jitters gripping the broader financial markets.

The yield fell further on Friday to 2.792 percent, its lowest in six weeks.

The 10-year Japanese government bond (JAB) yield dipped to a four-month
trough of 0.020 percent.

In commodities, oil prices recouped overnight losses after Saudi Arabia said
that OPEC and Russian-led production curbs introduced in 2017 will need to
be extended into 2019.

U.S. crude futures were up 1.1 percent at $64.99 per barrel after losing 1.3
percent on Thursday and Brent gained 0.9 percent to $69.53.

Safe-haven spot gold rose to $1,339.12 an ounce, highest since March 7.

Other commodities did not fare as well amid the trade war fears, with copper
on the London Metal Exchange falling to a three-month low of $6,628.00 per
tonne.

Iron ore futures on China’s Dalian Commodity Exchange lost more than 5
percent. 

Commodities Markets

Base metals slip on fears of U.S.-China trade spat

(Reuters) - Base metals in Shanghai and London fell on Friday on fears that
an escalating trade spat between China and the United States, the world's
top two economies, could derail global growth and damage demand.

China urged the United States on Friday to "pull back from the brink" as
U.S. President Donald Trump's plans for tariffs on up to $60 billion in
Chinese goods brought the world's two

largest economies closer to a trade war.

In London, copper and aluminium hit the weakest since mid- December, while
in Shanghai, copper prices retreated towards levels not seen since mid-2017.
Seasonally building inventories

and deteriorating chart signals pointed to more downside near term.

     FUNDAMENTALS

* COPPER: London Metal Exchange copper was down 0.8 percent at $6,639.50 a
tonne, as of 0620 GMT, having plumbed its weakest since mid-December. Prices
extended a 1.4 percent fall from the previous session, breaking the 200-day
moving average for the first time in around 18 months. 

* Shanghai Futures Exchange copper tumbled 2.4 percent to 49,740 yuan
($7,862.29) a tonne, having struck the weakest since July 2017.

* TRUMP: U.S. President Donald Trump signed a presidential memorandum on
Thursday that could impose tariffs on up to $60 billion of imports from
China.

* CHINA: China's commerce ministry said on Friday that the country was
planning measures against up to $3 billion of U.S. imports to balance U.S.
tariffs against Chinese steel and

aluminium.

* STEEL: A sell-off in steel spilled into inputs nickel and zinc. Shanghai
rebar tumbled near 7 percent, while Shfe nickel  slid near 4 percent. LME
nickel fell 1.4 percent, adding to the 2 percent loss from the previous
session.

* ALUMINIUM: Shfe aluminium sank to its weakest since October 2016, hammered
by concerns of rising China supply now pollution-linked output curbs have
expired as well as U.S.

trade tensions. LME aluminium held at three-month lows, having broken below
the 200DMA mid-month.

* SCRAP: China's waste plastic imports dried up almost entirely in February
and scrap metal imports fell by 38.5 percent year on year as the country
enforced its clampdown on

foreign waste, customs data showed on Friday.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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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