Bulls n Bears Daily Market Commentary : 10 May 2018

Thu May 10 16:50:53 CAT 2018

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Bulls n Bears Daily Market Commentary : 10 May 2018

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Zimbabwe Stock Exchange Update

Market Turnover $1,297,257.74 with foreign buys at $409,909.48 and foreign
sales were $286,579.90. Total trades were 74.

The All Share index gained a further  0.39 points  to close at 103.17
points. SEEDCO  led the movers with a $0.0984 gain to close at $2.0484 , OLD
MUTUAL added $0.0698 to close at $6.7021 and MEIKLES was up $0.0085 to close
at $0.3700. UNIFREIGHT also  went up by $0.0029 to  $0.0175 and BARCLAYS
increased by $0.0016 to close at $0.0520. 

In the negative ECONET  lost $0.0026 to close at $0.8949 , RIOZIM was down
$0.0049 to close at $1.2400 and DAIRIBORD traded $0.0010 lower at $0.1620.

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Global Currencies & Equity Markets

Kenya Shilling seen on back foot, Zambian Kwacha firm

(Reuters) - Kenya’s shilling is likely to come under pressure next week but
Zambia’s currency is expected to hold firm.

KENYA

The Kenyan shilling could weaken in the coming week due to excess shilling
liquidity in the money market, increasing demand for dollars, traders said.

Commercial banks quoted the shilling at 100.45/55 per dollar, compared with
100.25/45 at last Thursday’s close.

ZAMBIA

The kwacha is likely to hold firm in the coming week due to reduced demand
for dollars and hard currency conversions to pay taxes.

On Thursday, commercial banks quoted the currency of Africa’s No.2 copper
producer at 9.8250 per dollar from a close of 9.93000 a week ago.

TANZANIA

The Tanzanian shilling is expected to trade in a tight range or it could
appreciate slightly against the U.S. dollar in coming days, buoyed by
subdued demand for greenbacks from importers.

Commercial banks quoted the shilling at 2,276/2,286 to the dollar on
Thursday, stronger than 2,283/2,288 a week ago.

GHANA

Ghana’s cedi is seen stable on conclusion of the government’s Eurobond deal
on Thursday, strengthened by a drop in annual inflation to a single digit,
analysts and traders said.

The cedi, like other emerging country currencies, has been under pressure in
the past week as the dollar is propped up by U.S. treasury yields. It was
trading at 4.54 to the dollar by mid-morning on Thursday, compared to 4.52 a
week ago. “We could see a comparatively stable pair in anticipation of new
Eurobond inflows, backed by positive sentiments following a first-time
single digit inflation in April,” said currency analyst Joseph Biggles
Amponsah. 

America

Dollar near 4-1/2-month peak as rate advantage in spotlight

(Reuters) - The dollar held firm on Thursday after the 10-year U.S. bond
yield popped above the psychologically important 3 percent mark and
investors looked to U.S. consumer price data later in the day that could
show an acceleration in inflation.

The dollar index stood little changed against a basket of six major
currencies at 93.02 after hitting a 4-1/2-month high of 93.42, extending its
gains from its April low to 4.7 percent.

U.S. consumer price data due at 1230 GMT is expected to show that annual
core CPI inflation rose to 2.2 percent in April, which would be the highest
in more than a year, from 2.1 percent in March.

U.S. producer price inflation on Wednesday was slightly weaker than
expected, however, this had little impact on market sentiment.

The 10-year U.S. bond yield rose above 3 percent on Wednesday, edging near
its 2014 peak of 3.041 percent. It last stood at 2.988 percent.

The dollar stood little changed at 109.73 yen, but remained close to its
three-month high of 110.05 yen touched on May 2.

The euro hit a 4-1/2-month low of $1.1823 on Wednesday, having fallen in six
of the last seven sessions. It last traded at $1.1863. The British pound
hovered above Monday’s four-month low as traders expect the Bank of England
to keep rates on hold at its meeting later in the day.

A recent run of weak UK economic data and renewed worries about Brexit have
led markets to price out the possibility of a rate hike this month.

The pound last stood flat at $1.3561, not far from $1.3485 touched on
Monday.

The New Zealand dollar shed as much as 1.1 percent to a five-month low of
$0.6916 after the Reserve Bank of New Zealand (RBNZ) held interest rates
steady and said the next move in rates could just as easily be a cut as a
hike.

The Malaysian ringgit fell 2.4 percent in the non-deliverable forward
market, its biggest daily fall in a year and a half, after Malaysia’s ruling
coalition that has dominated the country for six decades was unexpectedly
voted out of power.

An alliance of opposition parties led by former Prime Minister Mahathir
Mohamad clinched the simple majority required to rule.

Financial markets have so far showed muted response to reports of skirmishes
between Israel and Syria, though some market players said they warrant more
caution.

Israel launched dozens of rockets into Syria early on Thursday, destroying a
radar installation and hitting an ammunitions dump, Syrian state media
reported while Israel’s military said Iranian forces in Syria had shelled
one of its outposts in the Israel-occupied Golan Heights.

That took place amid rising expectations of a regional flare-up after U.S.
President Donald Trump’s announcement on Tuesday that Washington would pull
out of a nuclear deal with Iran.

Commodities Markets

Aluminium weighed down by options activity, copper gains

(Reuters) - Aluminium fell on Thursday after three sessions of gains,
pressured by trade selling and bearish options activity, while copper gained
on lower inventories and speculative buying.

Benchmark aluminium on the London Metal Exchange fell 1.8 percent to $2,325
a tonne in official open outcry trading.

Aluminium had gained about $200 at this week’s highs since touching a low of
$2,175 on April 24.

Also weighing on aluminium was trade selling, Alastair Munro of broker Marex
Spectron said in a note.

* CHINESE DATA: Supporting metals prices was data showing China’s producer
inflation picked up for the first time in seven months in April, suggesting
its industrial demand remains resilient even as trade tensions ratchet up
with the United States.

* COPPER: Three-month LME copper on the London Metal Exchange traded 1.2
percent higher at $6,890.50 a tonne in official rings, having closed 1
percent higher in the previous session.

Copper was potentially forming a bullish inverse head and shoulders pattern
on the charts, Torlizzi said. “I will be a big buyer of copper if it breaks
above $6,930, the right shoulder of the pattern.”

* COPPER PREMIUMS: The Yangshan copper premium SMM-CUYP-CN was holding
strong at $81.50 a tonne, up from $79 last week and $71.50 in January,
according to Shanghai Metals Market.

* INVENTORIES: On-warrant copper stocks MCUSTX-TOTAL in LME-registered
warehouses - metal not earmarked for delivery - fell another 9,575 tonnes to
230,575, their lowest since late January and down 29 percent in the last
three weeks.

* ZINC: LME zinc, untraded in official activity, was bid up 0.3 percent at
$3,085, but Simona Gambarini, commodities economist at Capital Economics,
expects prices to lose ground.

* PRICES: Nickel traded down 0.6 percent at $13,840, lead was bid up 0.5
percent at $2,305 and tin dropped 2.0 percent to $20,680.

Gold firms as dollar rally pauses, geopolitical tensions simmer

(Reuters) - Gold rose on Thursday as the dollar edged away from 2018 highs
after weaker than forecast U.S. inflation data and as simmering tensions
between the United States and Iran lent the precious metal further support.

The dollar slipped from a 4-1/2 month peak after U.S. data showed the
consumer price index rose 0.2 percent in April versus forecasts for a 0.3
percent increase. A weaker dollar makes

dollar-priced gold cheaper for non-U.S. investors.       

Also helping gold, viewed as a safe-haven investment, was U.S. President
Donald Trump's move on Tuesday to withdraw from a nuclear accord with Iran,
raising the risk of conlfict in the

Middle East.           

Israel said on Thursday that it had attacked nearly all of Iran's military
infrastructure in Syria after Tehran fired rockets at Israeli-held territory
for the first time.

Turner added, however, that the dollar was the main driver for gold and he
expects the precious metal to come under pressure in the near term, with the
dollar extending its rally.

Spot gold        rose by 0.6 percent to $1,319.66 an ounce by 1237 GMT. U.S.
gold futures         for June delivery were also up 0.6 percent at
$1,321.40.

Capping the precious metal's gains was evidence of risk appetite, with
global equities hitting a three-week high as rising oil prices gave energy
companies a shot in the arm that

countered the effects of increased political uncertainty.

North American gold-backed exchange-traded funds registered inflows in April
at their highest level since September 2017, with safe-haven purchases
ushered in by a trade stand-off

between the United States and China, Syria tensions and worries about
possible U.S. sanctions on Russia.

Spot gold looks neutral in a range of $1,302-$1,317 an ounce, said Reuters
technical analyst Wang Tao.              

In other precious metals, silver        gained 0.6 percent  to $16.59 an
ounce after hitting a two-week high at $16.62 in the previous session.

Platinum        rose 0.9 percent to $918.20 while palladium   edged up by
0.1 percent to $975.72.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

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
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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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