Bulls n Bears Daily Market Commentary : 26 March 2018

Mon Mar 26 18:14:13 CAT 2018

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Bulls n Bears Daily Market Commentary : 26 March 2018

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Zimbabwe Stock Exchange Update

Market Turnover $5,100,429.33 with foreign buys at $4,288,072.21 and foreign
sales were $929,634.95. Total trades were 56.

The All Share index went up a further 0.05 points to close at 86.92 points.
CAFCA put on $0.0500 to close at $0.6000, SIMBISA added $0.0103 to close at
$0.3503 and PPC rose by $0.0100 to end at $0.9625. INNSCOR increased by
$0.0028 to $0.9578, ECONET advanced by $0.0025 to close at $0.6725 whilst
DELTA was $0.0018 firmer at $1.5819.

However, OLD MUTUAL shed $0.0105 to trade at $5.5500, ZIMRE HOLDINGS LIMITED
eased $0.0049 to $0.0250 while  FBC HOLDINGS LIMITED lost $0.0022 to close
at $0.2025. NTS  slipped by $0.0005 to settle at $0.0110 while CBZ HOLDINGS
and MEIKLES both came off $0.0004 to close at $0.1096 and $0.3196
respectively.

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Global Currencies & Equity Markets

Uganda

Uganda shilling weakens on dividend payments, offshore demand

(Reuters) - The Ugandan shilling weakened on Monday on the back of a surge
in demand fuelled by offshore investors cutting positions in local debt and
some firms preparing to pay dividends for 2017.

At 0811 GMT commercial banks quoted the shilling at 3,685/3,695, weaker than
Friday’s close of 3,665/3,675.

Ghana

Ghana central bank cuts policy rate to 18 pct

(Reuters) - Ghana’s central bank cut its benchmark interest rate by 200
basis points to 18 percent on Monday, saying its medium-term inflation
target was on course, Governor Ernest Addison told a news conference in the
capital Accra.

Ghana is in its final year of a $918 million credit deal with the
International Monetary Fund to narrow deficit, debt and inflation. Monday’s
cut adds to 750 basis points by the regulator in the past year to also
foster growth.

The regulator had forecast consumer inflation to ease to 8 percent, plus or
minus two percentage points by the second quarter of 2018. Annual inflation
stood at 10.6 percent in February.

The major commodity exporter’s public debt stood at $32.5 billion at end of
December, representing 69.8 percent of GDP, while its gross international
reserves amounted to $6.9 billion or 3.8 months of imports cover at the end
of February.

The central bank last week appointed accounting firm KPMG as administrator
for Unibank to save it from imminent collapse and prevent depositors’
funds.{nL8N1R2692].

Addison told reporters on Monday the administrator was assessing the
distressed bank’s books adding that the move would further boost credibility
and confidence in Ghana’s financial sector.     

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

Gold steady as spectre of global trade war recedes

(Reuters) - Gold prices were steady on Monday after hitting their highest in
five weeks as the market weighed an easing of global trade tensions against
support from tempered expectations of U.S. interest rate increases.

Spot gold        was up 0.1 percent to $1,347.86 per ounce by 1218 GMT,
after hitting its loftiest since Feb. 19 at $1,350.76. 

U.S. gold futures         for April delivery shed 0.1 percent to $1,348.20
per ounce. 

The United States and South Korea agreed to revise a trade pact criticised
by U.S. President Donald Trump, Seoul said, with U.S. automakers winning
improved market access and Korean

steelmakers hit with quotas but avoiding hefty tariffs.

The Wall Street Journal, meanwhile, reported that the United States and
China had started negotiating to improve U.S. access to Chinese markets.

Analysts said gold continued to be supported by last week's statement from
the U.S. Federal Reserve which forecast at least two more hikes for 2018.
Many had expected three more increases.

Gold is sought as a store of value in times of political and financial
uncertainty. 

The dollar index       , which measures the greenback against six major
currencies, was down 0.2 percent at its lowest since Feb. 20.

Meanwhile, investors continued to monitor other developments such as Trump's
appointment of John Bolton as national security adviser and fresh tensions
between Saudi Arabia and Yemen's Houthi militia.             

The appointment of Bolton, who has previously advocated using military force
against North Korea and Iran, last week provoked strong reactions worldwide.

Speculators cut their net long positions in gold in the week to March 20 by
23,822 contracts to 121,838 contracts, U.S. 

Commodity Futures Trading Commission data showed on Friday.

Among other precious metals, silver        climbed 0.7 percent to $16.64 per
ounce; platinum        rose 0.7 percent to $953.30 per ounce.

Palladium        gained 0.2 percent to $978.70 per ounce.  

Copper slides to 3-1/2 month low as inventories jump

(Reuters) - Copper slid to its lowest since early December on Monday,
weighed down by a sharp rise in stockpiles and simmering concerns over the
outlook for U.S.-China trade relations.

U.S. President Donald Trump signed a memorandum on Friday that could impose
up to $60 billion in import tariffs on Chinese goods. That sparked a sharp
drop in stocks, with the Dow Jones Industrial Average falling more than 400
points.

Reports that talks have begun to improve U.S. access to Chinese markets
helped to allay fears over a potential trade war on Monday, leading to a
bounce in equities and an upturn across most other base metals. However,
concerns linger that growth, and consequently metals demand, may be hit.

* LME COPPER: London Metal Exchange copper was down 0.2 percent at $6,649 a
tonne at 1445 GMT. It touched a low of $6,532, its weakest since early
December, in earlier trade.

* COPPER STOCKS: Copper inventories in LME warehouses MCUSTOX-TOTAL rose
35,000 tonnes to 352,750 tonnes, exchange data showed on Monday. On-warrant
stocks have nearly doubled this year and are now at their most elevated
since Sept. 2016.

* COPPER TECHNICALS: LME copper closed below the 200-day moving average on
Friday, sending a “sell” signal to momentum-following funds.

* COPPER POSITIONING: Open interest in LME copper, a measure of activity in
the global contract, fell to its lowest in more than two years last week. In
Shanghai, however, open interest has jumped since mid-January to three-year
highs, suggesting large short positions have been building in China.

* SPECULATORS: Hedge funds and money managers cut their net long positions
in COMEX copper contracts in the week to March 20, the latest regulatory
data showed.

* CHINA IMPORTS: China’s refined copper imports fell 1.8 pct in February to
229,611 tonnes, Chinese customs data showed on Monday. Primary aluminium
imports slid 47 percent, while zinc imports jumped 151 percent.

* ALUMINIUM PRICES: LME aluminium was up 0.3 percent at $2,057 a tonne.

* OTHER METALS: LME zinc was up 1.6 percent at $3,268.50, while lead was up
1.5 percent at $2,377 a tonne. Nickel was up 0.3 percent at $12,990 a tonne,
and tin was 0.6 percent higher at $20,900 a tonne. 

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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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