Bulls n Bears Daily Market Commentary : 17 May 2018

Thu May 17 16:41:35 CAT 2018

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Bulls n Bears Daily Market Commentary : 17 May 2018

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Zimbabwe Stock Exchange Update

Market Turnover $4,271,238.10 with foreign buys at $2,401,678.86 and foreign
sales were $1,782,088.85. Total trades were 146.

The All Share index gained 0.42 points  to close at 104.78 points. OLD
MUTUAL continued its upward trend as it strengthened further by $0.2099 to
close at $7.7015, SEEDCO  added $0.0405 to settle at $2.2995 and DAIRIBORD
was up by $0.0116 to close at $0.1816. Other gains were in MEIKLES which
added $0.0100 to trade at $0.3800, INNSCOR moved up $0.0051 to $1.2980 and
BINDURA was $0.0032 higher at $0.0500.

Two property counters lost ground; FIRST MUTUAL PROPERTIES shed $0.0030 to
close at $0.0400 and  DAWN slipped $0.0009 to close at $0.00121.        

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Global Currencies & Equity Markets

Uganda

Ugandan shilling holds steady as importers stand on sidelines

(Reuters) - The Uganda shilling        was stable on Thursday, thanks to
thin demand from importers who expect the shilling to strengthen in the days
ahead.  

At 1013 GMT, commercial banks quoted the shilling at 3,710/3,720, same level
as Wednesday's close. 

Kenya

Kenyan shilling holds steady against the dollar

(Reuters) - The Kenyan shilling was stable on Thursday due to inflows from
portfolio investors balancing out demand from oil importers, traders said.

At 1028 GMT, commercial banks quoted the shilling at 100.45/55 per dollar,
the same as Wednesday's close.

America

Dollar index at five-month high as euro slips on Italian woes

(Reuters) - The dollar added to recentgains against a basket of currencies
on Wednesday to touch afive-month high, supported by relatively robust U.S.
economicdata in recent days, while the euro was hit by reports that alikely
future Italian government would seek debt forgivenessfrom European
creditors.

The dollar index .DXY , which measures the greenbackagainst a basket of six
other currencies, was up 0.19 percent at93.393, after rising as high as
93.632, its highest since Dec.19.

The greenback has risen about 1.7 percent this month,boosted by a view that
the Federal Reserve will outpace mostmajor central banks in policy
normalization.

U.S. factory output rose in April, although new estimates ofmanufacturing
and overall industrial production showed lessgrowth in prior months than
initially believed. urn:newsml:reuters.com:*:nFOMGGEE1P

The U.S. currency got a boost on Tuesday when strong U.S.consumer spending
numbers sent 10-year Treasury yields US10YT=RR surging to a seven-year peak
of 3.095 percent.

On Wednesday, the move in the greenback was largely drivenby news out of
Europe, said Alfonso Esparza, senior currencyanalyst at OANDA in Toronto.

The euro was 0.3 percent lower against the greenback at$1.1801, its lowest
since December, after reports that Italy'santi-establishment 5-Star Movement
and anti-immigrant League mayask the European Central Bank to forgive 250
billion euros ($294billion) of debt. urn:newsml:reuters.com:*:nL5N1SMA1R

The euro was 0.31 percent lower against the Swiss franc,after dropping to a
five-week low of 1.1772 francsEURCHF= .The Swiss franc typically attracts
capital in times ofuncertainty.

Euro zone inflation slowed in April, European statisticsagency Eurostat said
on Wednesday, confirming an earlier flashestimate and adding to the headache
of European Central Bankpolicy makers seeking to phase out monetary
stimulus. urn:newsml:reuters.com:*:nL5N1SN2MW

Against the yen, the dollar was down 0.11 percent at 110.22yen, but still
close to the highest it has been since earlyFebruary.

Japan's economy contracted more than expected at the startof this year,
suggesting growth has peaked after the best run ofexpansion in decades,
unwelcome news for a government strugglingto get traction for its
reflationary policies. urn:newsml:reuters.com:*:nL3N1SM38M

Sterling fell towards its lowest point of the year againstthe dollar and was
down 0.18 percent on the day, amid freshworries about Britain's Brexit
negotiations and relativelymodest UK wage growth.
urn:newsml:reuters.com:*:nL5N1SN2SZ

Commodities Markets

Gold slides to fresh 2018 low as dollar strengthens

(Reuters) - Gold slid to a fresh low for the year on Thursday as another
rise in U.S. bond yields and concerns over political risk in Italy held the
dollar index near its 2018 peak.

he precious metal has fallen more than 2 percent this week on gains in the
U.S. currency and a rise in U.S. 10-year Treasury yields to seven-year
highs. Higher yields increase the

opportunity cost of holding non-yielding assets such as bullion.

Spot gold        was down 0.2 percent at $1,288.25 an ounce by 1145 GMT, off
an earlier 4-1/2 month low of $1,285.41 an ounce. U.S. gold futures
for June delivery were down

$4.00 at $1,287.50. 

The dollar has climbed nearly 4 percent this quarter on expectations that
the Federal Reserve will lift U.S. interest rates further this year to curb
inflation, at a time when other

central banks are still keeping monetary policy loose.       

The euro remains under pressure, hovering near a five-month low on concerns
that political developments in Italy could cause wider disruption in the
common currency bloc.             

Political uncertainty arising out of North Korea after Pyongyang threatened
to pull out of a meeting with the United States was likely to limit downside
for gold, analysts said. But

that was not enough to offset dollar strength.              

>From a technical perspective, gold prices were looking vulnerable to further
losses after breaking below key chart levels this week, according to
analysts who study past price

moves to determine the future direction of trade.

Among other precious metals, silver        was up 0.3 percent at $16.40 an
ounce, having touched its lowest in two weeks at $16.17 in the previous
session.

Platinum     was down 0.2 percent at $885.60 an ounce, off an earlier
five-month low of $880.50, while palladium        was 0.2 percent lower at
$981.80 an ounce.

Aluminium falls on inventory rise, Rusal uncertainty

(Reuters) - Aluminium prices slipped on Thursday after inventories
increased, showing availability of supplies that could fill a gap if U.S.
sanctions on Rusal are not lifted.

On-warrant aluminium stocks in warehouses certified by the London Metal
Exchange - inventories that are not earmarked for delivery - surged by
153,075 tonnes or 18 percent on Wednesday, LME data showed on Thursday
MALSTX-TOTAL.

Up to Wednesday, on-warrant aluminium stocks had declined 15 percent since
April 6, when the United States imposed sanctions on Russia’s Rusal, the
biggest aluminium producer outside of China, as people built up supplies for
an expected shortfall.

Slightly more than two weeks later, Washington eased the sanctions and held
out the possibility of cancelling them. “The big topic is still whether the
sanctions will be lifted or not and the market’s nervousness is reflected in
the fact that it moves so sharply on items like today’s (inventory move).”

Benchmark LME aluminium failed to trade in official open outcry activity and
was bid down 2.4 percent at $2,260 a tonne, having tilted into negative
territory after the LME stocks data was released.

* CHALCO: Aluminum Corp of China Ltd, or Chalco, plans to export
30,000-50,000 tonnes of alumina in May, the company’s president said.

* COPPER: Three-month LME copper traded 0.6 percent higher at $6,866 a tonne
in official rings.

* CHINA COPPER: China’s refined copper output in April jumped 12.3 percent
compared to same period last year to 778,000 tonnes, data showed.

* NICKEL: LME nickel climbed 0.8 percent to $14,585 a tonne in official
trading. It is the best performing LME metal this year with gains of about
15 percent, but Commerzbank was cautious about further gains due to an
extended net long speculative position.

* BULL CYCLE: Metals markets are moving into a new bull cycle that will be
longer and shallower than the last, driven by rising inflation and dispersed
demand growth, panelists said at the LME week Asia conference in Hong Kong.

* PRICES: Zinc was bid down 0.4 percent to $3,062 a tonne in official rings;
lead edged down 0.04 percent to trade at $2,340; and tin traded down 0.8
percent at $20,555.

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
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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