Bulls n Bears Daily Market Commentary : 02 April 2019

Wed Apr 3 07:12:40 CAT 2019

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Bulls n Bears Daily Market Commentary : 02 April 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$2,269,822.09 with foreign buys at RTGS$320,299.52 and
foreign sales were RTGS$418,228.86. Total trades were 71.

The All Share index continues in the positive trend after adding 1.63 points
to close at 124.26 points. Gains were recorded in ECONET  which recovered
$0.0471 to $1.0997, CASSAVA SMARTECH   added another $0.0382 to close at
$1.1007 and DELTA   traded $0.0115 stronger at $2.2625. FBC HOLDINGS  and
AFRICAN SUN  both rose by  $0.0100 each to settle at $0.3500 and $0.1600
respectively.

Gains were partially offset by losses in PPC   which dropped $0.0500 to
$1.2700, SIMBISA  eased $0.0135 to end at $0.6298 and OLD MUTUAL LIMITED
retreated $0.0063 to $8.1466. CBZ  also decreased by $0.0050 to end at
$0.1600.

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  Global Currencies & Equity Markets

South Africa

South Africa's rand weakens as Moody's relief rally fades

(Reuters) - South Africa’s rand weakened against a firmer U.S. dollar in
afternoon trade on Tuesday, retreating from a one-month high hit earlier in
the session after Moody’s rating action relief.

Stocks were little changed as investors digested Moody’s update, with the
Johannesburg All-Share index hovering over the red side at some point before
closing up slightly.

At 1553 GMT the rand was 0.72 percent weaker at 14.2675 per dollar compared
to its close of 14.1650 in New York on Monday.

The currency had reached a session high of 14.0750 earlier, its strongest
level since March 1, after Moody’s said South Africa’s sovereign credit
rating was still investment grade, several days after the ratings agency
delayed a review of the country’s creditworthiness.

Moody’s is the last of the big three ratings agencies to give South Africa
an investment-grade rating, so markets are sensitive to any pronouncement it
makes on the fiscal and economic strength of Africa’s most industrialised
economy.

But the gains were erased as traders took a detailed look at Moody’s report,
with a firmer dollar after robust U.S. economic data also hurting the
currency.

Bonds also weakened, with the yield on benchmark government paper due in
2026 adding 2.5 basis points to close at 8.52 percent.

In the equities market, stocks changed little, with the All-Share index up
0.08 percent to 57,158 points, while the Top-40 index rose 0.14 percent to
50,952 points.

Gold stocks capped further gains, as gold prices held near a four-week low
as robust economic data from the United States and China boosted demand for
the dollar and riskier assets. 

Uganda

Uganda shilling little-changed against the dollar amid limited appetite

(Reuters) - The Uganda shilling was little-changed on Tuesday, amid limited
appetite for hard currency from both importers and commercial banks.

At 1034 GMT commercial banks quoted the shilling at 3,712/3,722, a notch
weaker than Monday’s close of 3,708/3,718.

       <mailto:info at bulls.co.zw> 

Asia

Asian shares scale 7-month highs; oil nears $70 on tight supply

(Reuters) - Asian shares rose to seven-month highs on Wednesday as investors
lapped up signs of progress in U.S.-China trade talks and brisk economic
data, while oil approached the key $70 per barrel mark.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.5
percent around 0310 GMT, after earlier touching its highest level since late
August.

The index has risen nearly 3 percent since Thursday following reports of
progress in trade talks between the United States and China, as well as
reassuring factory activity data from China and the U.S.

The run of gains for stock markets worldwide has also pushed MSCI’s key
gauge of global equities to a six-month high. The global index was up 0.2
percent on Wednesday morning.

Hopes for a deal to end the trade war between the world’s two largest
economies were fanned by fresh comments from White House economic adviser
Larry Kudlow that Washington expects “to make more headway” in talks this
week.

Even so, analysts struggled to point to a clear catalyst for the extended
rally in equities.

Australian shares were up 0.5 percent, and Japan’s Nikkei stock index added
0.8 percent. Chinese blue-chips were flat, while Hong Kong’s Hang Seng index
added 0.7 percent.

On Tuesday, the Dow Jones Industrial Average fell 0.3 percent to 26,179.13
points, the S&P 500 was flat and the Nasdaq Composite added 0.25 percent to
7,848.69.

But after a brief consolidation in risk sentiment, U.S. Treasury yields were
once again ticking higher.

Benchmark 10-year Treasury notes yielded 2.5027 percent, up from a U.S.
close of 2.479 percent on Tuesday, and the two-year yield touched 2.3240
percent compared with a U.S. close of 2.308 percent.

Oil prices also stood near multi-month highs amid concerns about supply,
with Brent crude rising as much as 0.72 percent to $69.87 per barrel, its
highest since November and near the psychologically important level of $70
per barrel.

It was last up 0.55 percent at $69.75. U.S. West Texas Intermediate (WTI)
crude rose 0.42 percent to $62.84 per barrel.

News that the United States is considering more sanctions against Iran, the
fourth-largest producer in the Organization of the Petroleum Exporting
Countries (OPEC), and the halting of production at a crude terminal in
Venezuela threatened to squeeze supply and pushed oil prices up on Tuesday.

In currency markets, the pound was about 0.1 percent higher at $1.3139,
having recovered its footing after British Prime Minister Theresa May said
she would seek another delay to Brexit to work out an European Union divorce
deal with opposition Labour leader Jeremy Corbyn.

The dollar strengthened 0.15 percent against the yen to 111.48 and the euro
added 0.17 percent to buy $1.1221.

The dollar index, which tracks the greenback against a basket of six major
rivals, eased 0.16 percent to 97.206.

Cryptocurrency bitcoin, which surged 18.7 percent on Tuesday following a
major order by an anonymous buyer, extended its gains by another 2.6 percent
to $5,027.10.

Gold was flat, with spot gold trading at $1,292.67 per ounce. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper slips as Peru mine blockade seen ending

(Reuters) - Copper prices slipped on Tuesday, under pressure from a stronger
dollar and signs that a blockade of a mine in Peru may end after government
intervention, which eased supply concerns.

The Peruvian government offered a deal to indigenous protesters to lift
their blockade of Chinese miner MMG Ltd’s Las Bambas copper mine in the
Andean region. A decision is pending agreement from the community

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

Benchmark copper ended 0.7 percent lower at $6,426.50 per tonne, its second
straight session of decline as it retreats from a one-week high touched on
Monday.

DOLLAR: Meanwhile, the U.S. dollar rose against a basket of major currencies
following relatively upbeat data from the United States.

A stronger greenback makes dollar-denominated commodities more expensive for
non-U.S. firms, which is a relationship used by funds to generate buy and
sell signals.

INVENTORIES: On-warrant stocks in LME-approved warehouses available to the
market inched down 1,100 tonnes to 143,375 tonnes, but are still up nearly
seven-fold from 21,600 tonnes in February. MCUSTX-TOTAL

STEEL: 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.

ZINC: Korea Zinc Inc and Teck Resources Ltd have agreed annual concentrate
treatment charges of about $245 a tonne, 67 percent higher than last year,
as mine supply ramps up, two industry sources said.

GANFENG LITHIUM: China’s Ganfeng Lithium Co will spend $160 million to boost
its stake in an Argentinian lithium project with Lithium Americas Corp, it
said on Monday, part of a plan to solidify access to the metal used in
electric vehicle batteries.

ALUMINA: Norsk Hydro said it could take months to return its Karmoey
aluminium plant in western Norway to full capacity after a power outage that
cut output by about 10 percent.

OTHER PRICES: LME aluminium fell 0.6 percent to $1,889, zinc slid 2.6
percent to $2,856 in a retreat from nine-month highs, lead fell 1.8 percent
to $1,985, tin slipped 1.3 percent to $21,195 and nickel shed 0.3 percent to
$13,090 per tonne.

Gold inches lower as equities hover near 7-month peak

(Reuters) - Gold prices slipped on Wednesday, after touching their lowest
level in four weeks in the previous session, as equities traded near a
seven-month high, denting bullion’s appeal.

FUNDAMENTALS

* Spot gold dipped 0.1 percent to $1,291.65 per ounce by 0106 GMT, after
touching its lowest since March 7 at $1,284.76 in the previous session.

* U.S. gold futures were flat at $1,295.60 an ounce.

* Asian shares hovered near seven-month highs on Wednesday as global
investors took a breather from a rally boosted by positive U.S. and China
factory activity surveys.

* The dollar was down about 0.1 percent against key rivals, after touching
its highest since March 8 in the previous session.

* New orders for key U.S.-made capital goods slipped in February and
shipments were unchanged, but data for January was revised slightly higher,
which could support views that the manufacturing sector was stabilising.

* British construction activity slowed slightly for the second month in a
row in March, as businesses continued to postpone major building projects
due to Brexit uncertainty, an industry survey showed on Tuesday.

* International Monetary Fund Managing Director Christine Lagarde said on
Tuesday that global growth has lost momentum amid rising trade tensions and
tighter financial conditions, but pauses in rate hikes will help boost
activity in the second half of 2019.

* The United States and China “expect to make more headway” in trade talks
this week, White House economic adviser Larry Kudlow said on Tuesday as the
top U.S. business lobbying group said differences over an enforcement
mechanism and the removal of U.S. tariffs were still obstacles to a deal.

* Prime Minister Theresa May said on Tuesday she would seek another Brexit
delay to agree an EU divorce deal with the opposition Labour leader, a
last-ditch gambit to break an impasse over Britain’s departure that enraged
many in her party.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund,
said its holdings fell 0.6 percent on Tuesday.

DATA AHEAD (GMT) 0800 Euro Zone Markit Composite final PMI (March) 0830 UK
Reserve Assets total (March) 0900 Euro Zone Retail Sales (Feb) 1400 U.S. ISM
Non-manufacturing PMI (March) 

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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