Bulls n Bears Daily Market Commentary : 31 May 2018

Thu May 31 16:05:01 CAT 2018

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Bulls n Bears Daily Market Commentary : 31 May 2018

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Zimbabwe Stock Exchange Update

Market Turnover $3,555,891.87 with foreign buys at $373,749.75 and foreign
sales were nil. Total trades were 61.

The All Share index went up by a further 1.17 points  to settle at 108.30
points. SEEDCO  jumped up by $0.2506 to close at $2.7500, ECONET  put on
$0.0488 to trade at $0.9488 and  DELTA  shifted up by $0.0126 to end at
$2.0700. TURNALL HOLDINGS  rose by $0.0010 to close at $0.0105 and OK
ZIMBABWE  closed at $0.2200 following a $0.0007 increase.

Losses were seen in OLD MUTUAL  which shed $0.3565 to end at $7.5000,  HIPPO
VALLEY was down by $0.0975 to $1.5025 while MEIKLES  came off $0.0095 to
close at $0.3600. STAR AFRICA  was $0.0002 lower at $0.0196.

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Global Currencies & Equity Markets

Kenyan, Zambian currencies to make gains, Uganda's to weaken

(Reuters) - The Kenyan shilling and Zambia’s kwacha are set to make gains
against the dollar, while the currencies of Tanzania and Ghana are forecast
to remain stable.

KENYA

The Kenyan shilling is expected to strengthen in the coming week due to
decreased demand for dollars from routine buyers, traders said.

Commercial banks quoted the shilling at 101.30/50 per dollar on Thursday,
from a close of 101.00/20 a week ago.

TANZANIA

The Tanzanian shilling is expected to trade in a tight range in the coming
week due to a balance between demand for dollars and supply in the market,
traders said.

Commercial banks quoted the shilling at 2,276/2,286 to the dollar on
Thursday, compared with 2,282/2,287 a week ago.

GHANA

Ghana’s cedi is seen stable within its current range, with dollar inflows
matching demand by local businesses, analysts said.

The local unit, which was fairly stable in the first quarter, came under
pressure this month, touching 4.7 to the dollar by mid-morning on Thursday,
from 4.64 a week ago and down around 3 percent since January.

UGANDA

The Uganda shilling may weaken past a psychological level of 3,800 over the
next one week, if the central bank does not intervene to soak up soaring
demand for dollars from manufacturing and energy importers.

At 1125 GMT, commercial banks quoted the shilling at 3,770/3,780, weaker
than last Thursday’s close of 3,735/3,745. The shilling has been posting
losses over the last few days.

ZAMBIA

The kwacha is likely to hold on to its gains next week as exporters sell
dollars in anticipation of further appreciation by the local currency.

On Thursday, commercial banks quoted the currency of Africa’s No.2 copper
producer at 10.3100 per dollar from a close of 10.3700 a week earlier. “In
the week ahead, we could also see some panic selling of dollars for fear of
being left behind, which will give the local unit some much-needed support,”
the local branch of South Africa’s First National Bank (FNB) said in a note.

Europe

Stocks, euro, Italian bonds make second day of gains

(Reuters) - World stocks, the euro and Italian bonds all made a second day
of gains on Thursday, after renewed efforts from politicians in Rome to form
a government and data from China had pointed to its giant economy performing
well.

The moves meant Milan’s bourse was 0.7 percent higher, Britain’s FTSE and
France’s CAC added 0.2-0.4 percent though Germany’s DAX stalled after a
report that President Donald Trump aims to push German carmakers out of the
United States.

Wall Street looked set for a flat start New York meaning it was the euro and
the bloc’s bond markets that continued to make the most significant moves.

Italy’s 2-year government bond yield, which has been the focus of a selloff,
was down as much as 95 basis points at just over 1 percent, while the euro
climbed to $1.1690 after its biggest jump since early January on Wednesday.

Rome’s benchmark 10-year bond yield was down 33 bps at 2.68 percent too and
the closely watched Italy/Germany 10-year bond yield spread tightened to 248
bps, as much as 22 bps tighter than the previous day’s close.

Asia’s mood overnight had been lifted by data showing growth by China’s vast
manufacturing sector accelerated strongly and well above forecasts in May to
an eight-month high.

It gave bluechip Chinese shares their best day since August 2016 with gains
of just over 2 percent.

Hong Kong’s Hang Seng rose over 1 percent too and MSCI’s broadest index of
Asia-Pacific shares outside Japan made 0.8 percent as it clambered off near
two-month lows.

Tokyo’s Nikkei meanwhile added 0.8 percent, helped by a settling of the yen
which has been drawing in buyers during the recent rise in Italian and euro
zone uncertainty.

The euro’s rise came as two polls in Italy showed 60-72 percent of
respondents wanted the country to remain part of the euro. The prospect that
populist parties there could push to leave the currency is the big concern
for financial markets.

French inflation data also rose to its highest level since August 2012
coming a day after Germany’s figure had also past the European Central
Bank’s target of just under 2 percent after hitting its highest in more than
a year.

KOREA SUMMIT

U.S. markets were gearing up for a blizzard of data, including the Federal
Reserve’s favoured gauge of inflation - core personal consumption
expenditures. The Fed holds its next meeting in mid-June and is expected to
edge up rates again.

The dollar index which measures it against a basket of six other major world
currencies dipped 0.3 percent to 93.830 having surged to a near seven-month
peak of 95.025 on Tuesday amid the Italy troubles.

U.S. Treasury yields moved up from April lows hit this week to 2.87 percent,
though there were a number of geopolitical events to navigate.

U.S. Secretary of State Mike Pompeo and high-ranking North Korean official
Kim Yong Chol will hold a second day of meetings in New York later as they
try to set the stage for an historic summit between their two leaders next
month.

China meanwhile had lashed out on Wednesday at renewed threats from the
White House on trade, warning that it was ready to fight back if Washington
was looking for a trade war, days ahead of a planned visit by U.S. Commerce
Secretary Wilbur Ross.

In commodity markets, copper did not get its normal lift from the upbeat
China data while crude oil prices also eased after rallying overnight.

U.S. crude futures fell 0.3 percent to $68 a barrel after gaining 2.2
percent on Wednesday when Russia’s central bank expressed caution on plans
to boost oil supply.

Prices had fallen to a six-week low of $65.80 a barrel on Tuesday amid
concerns that Saudi Arabia and Russia might increase their output.

Brent crude lost 0.35 percent to $77.23 a barrel after jumping 2.8 percent
on Wednesday, while gold climbed above $1,300 an ounce with a 0.4 percent
rise.

Turkey’s lira and Argentina’s peso were being buffeted again. Both have been
slammed this month by a mix problematic politics, high deficits and higher
inflation. The peso has plunged over 17 percent while the lira has slumped
almost 10 percent.

Commodities Markets

Congo copper production in Q1 rises 8 pct; cobalt output up 34 pct

(Reuters) - * Democratic Republic of Congo produced 296,717 tonnes of copper
in the first quarter of 2018, up 8.2 percent over the same period last year,
the central bank said in a report on Thursday.

* Cobalt production in the first quarter of 2018 rose 34.4 percent to 23,921
tonnes, the bank said.

* Gold production in the first quarter of 2018 rose 9.7 percent to 8,549
kilograms, the bank said.

* Congo is Africa’s top copper producer and the world’s leading miner of
cobalt, a key ingredient in batteries for electric cars and other
electronics. 

Russian January gold output at 15.67 tonnes - finmin

(Reuters) - Russia produced 15.67 tonnes of gold in January, up from 14.16
tonnes in the same period in 2017, the finance ministry said on Thursday.

Production for the period included 12.26 tonnes of mined gold compared with
10.58 tonnes a year ago, the ministry said.

Silver production totalled 97.92 tonnes in January, up from 57.16 tonnes in
the same period of 2017. 

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Masimba

AGM

Head Office , 44 Tilbury Road, Willowvale

31/05/2018 13.30pm

Edgars

AGM

Edgars Training Auditorium, 1st Floor, LAPF House, 8th Ave/Jason Moyo St,
Bulawayo

07/06/2018 9am

Turnall

AGM

Jacaranda Room, Rainbow Towers

07/06/2018 9am

FMHL

AGM

Royal Harare Golf Club

11/06/2018 2:30pm

RioZim

AGM

Head Office, 1 Kenilworth Road, Highlands

21/06/2018 10:30am

Zimbabwe

Heroes’ Day

Zimbabwe

13/08/2018

Zimbabwe

Defence Forces Day

Zimbabwe

14/08/2018

The Harare Agricultural Show

The Harare Agricultural Show

The Harare Agricultural Show

August 27- September 1

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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