Bulls n Bears Daily Market Commentary : 05 April 2019

Mon Apr 8 07:55:37 CAT 2019

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Bulls n Bears Daily Market Commentary : 05 April 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 4,444,754.16 with foreign buys at RTGS$ 2,657,405.18
and foreign sales were RTGS$ 560,698.62. Total trades were 76.

The All Share index ended the week in green after adding 1.65 points  to
close at 123.16 points.CASSAVA SMARTECH  led the movers with a $0.0639 gain
to close at $1.0641,TSL   added $0.0125 to $0.6125 and SIMBISA  rose by
$0.0114 to settle at $0.6614.AFRICAN SUN  also increased by $0.0100 to
$0.1600 and INNSCOR traded $0.0094 stronger at $1.3394.

Two counters lost ground as AXIA  dropped $0.0006 to $0.3499 and FIRST
CAPITAL BANK  eased $0.0003 to close at $0.0501.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South African rand gains on slow U.S. wage growth, stocks up

(Reuters) - South Africa’s rand firmed on Friday, ending the first week of
the new quarter more than two percent firmer as slow wage growth in the
United States helped maintain demand for emerging currencies.

Stocks gained on the back of a possible trade deal between the U.S. and
China.

At 1530 GMT the rand was 0.32 percent firmer at 14.0675 per dollar from
14.1125 on Thursday.

The currency rallied as far as 14.0200, its best since Feb. 28, shortly
after employment data from the U.S. showed that while jobs increased by
196,000 wage growth had slowed, pushing the dollar lower.

Signs of progress in trade talks between China and the U.S. has bolstered
demand for emerging market currencies in general but the main boost for
South African assets this week came from Moody’s holding the country’s
sovereign rating at investment grade.

The rand’s run towards 14.00 could unlock further gains, analysts said, with
the cluster of stop-loss triggers around the level adding momentum to the
rally before an expected spike in volatility as May 8 national elections
approach.

A Reuters poll taken this week found the rand is likely to remain steady at
14.30 over the next six months.

In equities, the Johannesburg All-Share index gained by the 0.11 percent to
57,776 points, while the Top-40 index rose 0.13 percent to 51,518 points.

The gold index strengthened 1.41 percent, while the platinum basket gained
rose by 1.22 percent.

Sibanye Gold advanced 2.51 percent to 16,35 rand.

Anglo American Platinum climbed 0.9 percent to 795,06 rand.

In fixed income, the benchmark 2026 government bond firmed, with the yield
down 2.5 basis points to 8.51 percent. 

Kenya

Kenyan shilling holds steady against the dollar

(Reuters) - The Kenyan shilling held steady against the dollar on Friday
propped up by diaspora remittances and reduced dollar demand from oil and
merchandise importers, traders said.

At 0800 GMT, commercial banks quoted the shilling at 100.60/80 per dollar,
compared with 100.65/85 at Thursday’s close. 

       <mailto:info at bulls.co.zw> 

Asia

Asia shares at 7-mth peak as China talks stimulus

(Reuters) - Asian shares inched up to seven-month highs on Monday as
investors cheered a rebound in U.S. payrolls and hints of more stimulus in
China, though there was some caution ahead of what is likely to be a tough
U.S. earnings season.

In a document published on the central government’s website late on Sunday,
Beijing said it would step up a policy of targeted cuts to banks’ required
reserve ratios to encourage financing for small and medium-sized businesses.

Chinese blue chips climbed 1.4 percent to territory not visited since March
last year. MSCI’s broadest index of Asia-Pacific shares outside Japan
followed by gaining 0.4 percent to its highest since August.

Japan’s Nikkei also made its high of the year so far and was last up 0.1
percent. E-Mini futures for the S&P 500 were little moved.

On Wall Street, the benchmark S&P 500 closed higher for its seventh trading
day in a row last week, the longest winning streak since October 2017.

However, a test looms as major U.S. banks kick off what analysts expect to
be the first quarter of contracting corporate earnings since 2016.

JPMorgan Chase & Co and Wells Fargo & Co will get the ball rolling on
Friday.

Minutes of the Federal Reserve’s last policy meeting are due out on
Wednesday.

JOBS RELIEF

There was a huge sigh of relief globally on Friday when the U.S. payrolls
report showed a solid 196,000 rise in jobs in March, while annual wage
growth slowed a little to 3.2 percent.

The dollar was flat at 97.329 against a basket of currencies on Monday, but
remained short of the March peak at 97.710 which marks major chart
resistance.

The dollar held its recent gain on the Japanese yen at 111.52, but again
needs to clear the March top of 112.12 to spark a true uptrend.

The euro has been undermined by a string of dismal data out of Europe and
idled at $1.1218 not far from its recent 20-month trough at $1.1174.

Sterling had troubles of its own at $1.3046 as time ticks away to Britain’s
departure from the European Union on April 12, with no deal agreed.

Prime Minister Theresa May must come up with a new plan to secure a delay
from EU leaders at a summit on Wednesday.

In commodity markets, spot gold was a fraction firmer at $1,296.31 per
ounce.

Oil prices rose to their highest levels since Nov. 2018, driven by OPEC’s
ongoing supply cuts and U.S. sanctions against Iran and Venezuela.

U.S. crude was last up 38 cents at $63.46 a barrel, while Brent crude
futures rose 39 cents to $70.73.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper rises on China stimulus hopes as producers meet in Chile

(Reuters) - London copper prices rose as much as 1 percent on Monday,
snapping two days of declines as investors hoped for more stimulus measures
in top metals consumer China and a key copper conference was set to begin in
Chile. 

China said on Sunday it would step up its policy of targeted cuts to banks'
required reserve ratios to encourage financing for small and medium-sized
businesses that play a key role in

economic growth. 

In the peak April-May copper consumption season, short position holders are
"powerless" as it will be impossible to make a case for weak demand over
this period, Chinese brokerage

Jinrui Futures wrote in a note. 

Production growth in China's air conditioning sector, a big consumer of
copper, is set to grow by 7.9 percent this month, it added. 

    FUNDAMENTALS

* COPPER: Three-month copper on the London Metal Exchange  rose as much as 1
percent to $6,466 a tonne and was up 0.7 percent at $6,445.50 a tonne by
0406 GMT. It ended down 0.8 percent in the previous session.

* COPPER: Global copper producers are converging in Chile this week as
tightening supply buoys prices, even as the industry grapples with declining
ore quality, project delays and

worries the U.S-China trade war may hit long-term demand.

* PERU: MMG Ltd said its Las Bambas mine in Peru is expected to restore
normal mining, production and transport operations after an indigenous
village agreed to end a two-month

blockade of the company's copper mine that has supported copper prices.

* SHFE: Shanghai Futures Exchange metals were mixed as trading resumed after
the long weekend in China. ShFE copper  fell 0.5 percent to 49,230 yuan
($7,328.73) a tonne, while aluminium crept up 0.2 percent to 13,820 yuan.

* OTHER METALS: Nickel, lead and zinc  all rose in London, while tin was the
laggard, slipping 0.6 percent to $20,880 a tonne.  

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
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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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