Bulls n Bears Daily Market Commentary : 01 April 2019

Tue Apr 2 06:24:10 CAT 2019

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Bulls n Bears Daily Market Commentary : 01 April 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$14,239,822.97 with foreign buys at RTGS$1,090,220.52
and foreign sales were RTGS$202,761.57. Total trades were 74.

The All Share index opened the week firmer after consolidating Friday’s
gains with another 0.97 points   increase to close at 122.63 points.
Insurance giant OLD MUTUAL LIMITED   led the movers with a $0.1749 gain to
settle at $8.1529, CASSAVA SMARTECH  rose by $0.0622 to $1.0625 whilst OK
ZIMBABWE   and FBC HOLDINGS   both traded $0.0025 stronger to close at
$0.2060 and $0.3400 respectively. The other counter to gain ground was
SEEDCO INTERNATIONAL LIMITED   which recovered $0.0025 to end at $1.3050.

Three counters traded in the negative; ECONET  dropped $0.0307 to close at
$1.0526, SIMBISA  eased $0.0167 to $0.6433 and INNSCOR   was $0.0057 weaker
at $1.3125.

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  Global Currencies & Equity Markets

South Africa

South African rand reaches week high as Moody's delays decision

(Reuters) - South Africa’s rand gained on Monday after Moody’s delayed its
credit rating decision while Chinese stocks, boosted by positive
manufacturing data, helped lift local shares.

Markets had been on edge on Friday over the impending ratings review, with
many analysts expecting Moody’s to cut Pretoria’s debt to “junk status” from
Baa3 in the wake of power-utility Eskom’s nationwide rolling blackouts.

Such a downgrade would likely mean an outflow of billions of dollars, with
big pension funds and other investors forced to sell their South African
bonds.

At 1650 GMT the rand had strengthened 2.14 percent to 14.2000 to the dollar,
its firmest level since March 22.

The Johannesburg Stock Exchange (JSE) ended higher, with the Top-40 rising
by 1.2 percent while the wider All-share index rose 1.15 percent.

Bank shares led the way with the banking index up 3.73 percent, with ABSA
climbing 4.54 percent to 159.00 rand, FirstRand gained 2.92 percent to 64.80
and Standard Bank closed up 4.48 percent to 193.53 rand.

Bond prices also rose, with the yield on the benchmark 10-year bond dipping
2.5 basis points to 8.47 percent.

Kenya

Kenyan shilling holds steady as debt inflows offer support

(Reuters) - The Kenyan shilling held steady against the dollar on Monday due
to inflows from investors abroad into local government debt, traders said,
offsetting pressure from ample liquidity in the money markets. 

At 0855 GMT, commercial banks quoted the shilling at 100.75/95 per dollar,
the same as Friday's close. 

       <mailto:info at bulls.co.zw> 

Asia

Asian shares rise to 7-month high on U.S., China manufacturing rebound

(Reuters) - Asia shares extended their rally on Tuesday as factory activity
surveys from China and the United States boosted investor confidence,
triggering the largest one-day sell-off in the U.S. Treasury market in
nearly three months.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent
to a seven-month high after rallying more than one percent in the previous
session.

Australian shares gained 0.8 percent while Japan’s Nikkei advanced 0.4
percent, extending its gains for a third session.

Wall Street shares jumped on Monday, with the S&P 500 and Dow Jones
Industrial Average both rising more than one percent, with the Dow lifted by
sharp gains in Caterpillar Inc and Boeing Co.

Investors cheered U.S. data overnight showing improvements in manufacturing
activity last month and construction spending for February, which
overshadowed an unexpected drop in retail sales.

The upbeat readings added to earlier data showing China’s manufacturing
sector surprisingly returned to growth for the first time in four months in
March in a sign government stimulus steps were starting to be felt.

The rare bright news for the global economy comes in the wake of persistent
worries over cooling demand across the world, with the Sino-U.S. tariff
dispute, slowing trade and corporate profits prompting investors to dump
risk assets over the past several months.

The encouraging data on manufacturing activity in the world’s two biggest
economies led to a wobbly start to the U.S. bond market, with the U.S.
benchmark 10-year Treasury note yields booking their largest single-day jump
since Jan. 4.

The U.S. 10-year Treasury yield overnight jumped to a more than one-week
high of 2.502 percent, moving off a 15-month low of 2.340 percent touched on
March 25.

The rise pushed the yield curve between three-month U.S. Treasury bills and
10-year notes further into positive territory, after being inverted for a
week until last Friday.

BREXIT CHAOS

In the currency market, sterling took a knock after British lawmakers came
no nearer to resolving the chaos surrounding the country’s departure from
the European Union.

The British parliament failed on Monday to find a majority of its own for
any alternative to Prime Minister Theresa May’s divorce deal.

Sterling was last down 0.25 percent at $1.3073, not far from last month’s
nadir of $1.2945.

The euro struggled near a three-week low of $1.1198 brushed early on
Tuesday, and was last trading down a tenth of a percent at $1.1204.

Against the Japanese yen, the dollar was down a tad at 111.33 yen, but 1.5
percent above its 1-1/2-month low of 109.70 touched on March 25.

Oil prices hovered near their four-month peaks, after two key benchmarks
booked their largest first-quarter gains in nearly a decade on positive
signs for the global economy and tighter supplies.

U.S. crude futures traded at $61.92 per barrel, up half a percent on the
day. Brent futures were up 0.4 percent at $69.28 a barrel.

Gold was 0.15 percent higher at $1,289.10.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper eases amid rising dollar, Peru mine offer

(Reuters) - Copper and most other base metals fell on Tuesday as the U.S.
dollar edged higher and as supply concerns from a copper mine in Peru eased
slightly.

The Peruvian government offered a deal to indigenous protesters to lift
their blockade at the Las Bambas copper mine owned by China’s MMG Ltd, but a
decision is pending agreement among the indigenous community.

Indigenous protesters have blocked roads to the mine since early February,
demanding compensation from MMG for using a stretch of road on their
farmland. Las Bambas produces about 2 percent of global copper output.

The dollar hit a two-week high against the yen, as ebbing concerns about the
global economy pushed U.S. bond yields up from 15-month troughs.

A rise in the U.S. dollar makes dollar-denominated metal contracts more
expensive to import.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange dipped 0.1 percent to
$6,467.5 a tonne by 0131 GMT, while the most-traded copper contract on the
Shanghai Futures Exchange fell 0.1 percent to 49,240 yuan ($7,338.08) a
tonne.

* Benchmark aluminium fell 0.1 percent while Shanghai aluminium lost 0.3
percent, while zinc, lead and tin contracts on both exchanges also
decreased. Nickel bucked the trend, rising 0.3 percent in London and 0.5
percent in Shanghai.

* Russian aluminium giant Rusal has resumed supplies to the U.S. market and
aims to win back customers it lost due to sanctions by about September when
the industry seals supply contracts for 2020, its chief executive said.

* China’s Ganfeng Lithium Co said on Monday it would spend $160 million to
boost its ownership stake in an Argentina lithium project with Lithium
Americas Corp, part of a plan to solidify its access to the white metal used
to make electric vehicle batteries.

* Australian cobalt developer Jervois Mining said it would buy out
Canada-based Ecobalt Solutions Inc, for C$57.6 million ($43.3 million), to
expand its geographical footprint into the United States.

* Japan’s second-largest copper smelter, Sumitomo Metal Mining Co Ltd, said
it planned to produce 420,000 tonnes of refined copper in the 2019/20
financial year that started this month, down 7.7 percent from a year
earlier.

* Steel consumption in the Philippines is likely to rise by 5-6 percent this
year to a record 11.1 million tonnes as the country’s economy continues to
grow, the head of an industry group told Reuters on Monday.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Asia shares extended their rally as factory activity surveys from China
and the United States boosted investor confidence, triggering the largest
one-day sell-off in the U.S. Treasury market in nearly three months.

China aluminium firm Zhongwang to invest $3.1 bln in Henan production base

* Aluminium product manufacturer China Zhongwang Holdings will invest 21
billion yuan ($3.13 billion) in a deep-processing plant in Luoyang in
central China’s Henan province, the local government-run Luoyang Daily
reported on Monday.

* The plant will have annual output capacity of 1 million tonnes of
extrusions, including automotive body parts and aluminium furniture
initially, and is targeting annual sales revenue of over 41 billion yuan,
the newspaper said.

* A spokeswoman for Zhongwang confirmed the planned investment, which she
said would come in stages, and production capacity, but said it was too
early to give a timeframe for the start of the project. ($1 = 6.7108 Chinese
yuan renminbi) 

Russia's Rusal resumes aluminium supplies to American market

(Reuters) - Russian aluminium giant Rusal has resumed supplies to the
American market and aims to win back customers it lost due to U.S. sanctions
by about September when the sector signs its supply contracts for 2020, its
chief executive, Evgenii Nikitin said.

Last autumn, Rusal, the world’s largest aluminium producer outside China,
missed the traditional window for contracting sales for this year as it was
still negotiating with the U.S. Treasury Department to be removed from a
sanctions list. 

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

Zimbabwe 

Independence Day

Zimbabwe

18 Apr 2019 

Good Friday

19 Apr 2019

Easter Saturday

20 Apr 2019

Easter Sunday

21 Apr 2019

Easter Monday

22 Apr 2019

Workers Day

01 May  2019

Africa Day

25 May 2019

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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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