Bulls n Bears Daily Market Commentary : 09 April 2019

Wed Apr 10 08:54:30 CAT 2019

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Bulls n Bears Daily Market Commentary : 09 April 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 6,862,916.32 with foreign buys at RTGS$ 5,555,430.30
and foreign sales were RTGS$ 1,640,286.16. Total trades were 131.

The All Share index added another 0.71 points  to close at 124.60 points.
INNSCOR  gained $0.1545 to $1.4974, OLD MUTUAL LIMITED rose by $0.0513 to
close at $8.2662 and SIMBISA  was $0.0475 firmer at $0.7100. PADENGA  also
increased by $0.0379 to settle at $1.0000 and ZIMPLOW  traded $0.0250
stronger at $0.2700. 

Four counters lost ground including NAMPAK  which retreated by $0.0515 to
end at $0.3000, CASSAVA SMARTECH eased $0.0075 to $1.0878 and CBZ   was
$0.0046 down at $0.1754. AMALGAMATED REGIONAL TRADING  weakened by $0.0020
to settle at $0.0900.

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  Global Currencies & Equity Markets

South Africa

South Africa's rand hits near 6-week best as dollar falls, stocks down

(Reuters) - South Africa’s rand firmed on Tuesday, supported by a retreating
dollar, which was shackled by a combination of weak U.S. economic data and
gains in commodity-linked currencies.

At 1501 GMT the rand was 0.73 percent firmer at 14.0275 per dollar, after
touching a near six-week best of 14.0100 earlier in the session.

The dollar slipped against a basket of rival major currencies, its second
day of losses.

BNP Paribas South Africa senior economist Jeff Schultz said easing concerns
about the U.S.-China trade tensions and fewer concerns over a global
economic slowdown had played a part in current rand gains.

With interest rates steady and inflation moderate, the currency offers one
of the most attractive spreads to U.S. dollar and other low yield
currencies, making it a target for carry traders.

Mining and manufacturing production figures on Thursday are the main data
points locally, while investors will also have an eye on the tariff dispute
between Washington and Beijing.

Bonds also firmed, with the yield on the benchmark 10-year bond down 2 basis
points to 8.495 percent.

In stocks, the Johannesburg All-share index slipped 0.25 percent to 57,838
points, while the Top-40 index fell 0.27 percent to 51,564 points.

Trader Ryan Woods, of Independent Securities, however pointed out that gold
stocks at least were looking “a little better”, with the underlying price up
half a percent.

AngloGold Ashanti, for instance, rose by 0.87 percent to 195.28 rand. Other
miners however dragged the index down, with South32 falling 4.19 percent and
AccelorMittal down 3.9 percent.

But Woods said there was little remarkable about the stock market on
Tuesday, with investors largely in wait-and-see mode ahead of South Africa’s
national election.

Uganda

Ugandan shilling steady, to ease due to dollar demand from energy firms

(Reuters) - The Ugandan shilling        was stable on Tuesday but was
forecast to weaken, hurt by demand from energy companies and some
foreign-owned firms preparing to pay dividends.  

At 0933 GMT, commercial banks quoted the shilling at 3,740/3,750, compared
to Monday's close of 3,735/3,745. 

       <mailto:info at bulls.co.zw> 

Asia

Asian stocks retreat from 8-month high as Trump opens new trade war front

(Reuters) - Asian shares slipped from eight-month highs on Wednesday as the
International Monetary Fund lowered its global growth outlook and as the
United States and Europe locked horns over tariffs in a fresh escalation of
trade tensions.

European shares were poised to begin lower, with Britain’s FTSE futures
dipping 0.1 percent and Germany’s DAX futures inching down 0.02 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.1
percent, a day after it hit its highest since Aug. 1.

The Shanghai Composite Index fell 0.4 percent and Japan’s Nikkei lost 0.7
percent. On Wall Street, the S&P 500 gave up 0.61 percent and the Nasdaq
Composite declined 0.56 percent on Tuesday.

MSCI’s broadest gauge of the world’s stock markets was down slightly from
Tuesday’s six-month peak but it was still up roughly 19 percent from a near
two-year trough marked in December.

Although earnings forecasts have been pegged back recently, share markets
have been propped up by hopes of a trade deal between Washington and Beijing
and optimism that the Chinese economy may be bottoming out as policy support
kicks in.

That view was reinforced on Tuesday when the IMF cut its forecast for world
economic growth this year, saying the global economy is slowing more than
expected and that a sharp downturn could require world leaders to coordinate
stimulus measures.

U.S. data overnight added to the cautious mood, with job openings dropping
to an 11-month low in February and raising doubts about the strength of U.S.
labour market, which has so far been one of the few bright spots in the
economy.

Global trade anxiety was another sore point for risk asset markets.

U.S. President Donald Trump threatened to impose tariffs on $11 billion
worth of European Union products, heightening tensions over a long-running
transatlantic aircraft subsidy dispute.

The move came as markets remain on edge as negotiators try to hammer out
trade deals with China and neighbours Mexico and Canada.

Global debt yields held mostly steady, with the 10-year U.S. Treasury yield
at 2.49 percent, off its 15-month low of 2.340 percent touched late last
month.

In a possible sign of investors’ strong appetite for bonds, Saudi Aramco is
set to raise $12 billion with its first international bond issue after
receiving more than $100 billion in orders.

It was a record breaking vote of market confidence for the oil giant despite
concerns sparked after the murder of Saudi journalist Jamal Khashoggi in
October.

Major currencies were little moved with an immediate focus on the European
leaders’ summit and the European Central Bank’s policy meeting.

EU leaders are likely to grant British Prime Minister Theresa May a second
delay to Brexit but they could demand she accepts a much longer extension as
France pushed for conditions to limit Britain’s ability to undermine the
bloc.

The euro held firm at $1.1260, extending its slow recovery from a four-week
low of $1.1183 touched on April 2.

The British pound was little changed at $1.3059.

The dollar was flat at 111.125 yen, having fallen 0.5 percent so far this
week.

Oil prices held firm after hitting five-month highs the previous day as
fighting in Libya raised supply disruption concerns.

U.S. crude futures stood at $64.10 per barrel, up 0.2 percent after rallying
to a five-month high of $64.79 on Tuesday.

Brent crude futures were at $70.63 per barrel and in reach of Tuesday’s
five-month peak of $71.34. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper slips from 1-wk high on U.S.-Europe trade tension, lower growth
forecast

(Reuters) - Copper on Wednesday eased from a one-week high hit the day
before, pressured after the International Monetary Fund cut its global
growth forecast and as the United States threatened to slap tariffs on
hundreds of European goods.

The IMF reduced its forecast for world economic growth this year to 3.3
percent from 3.5 percent previously, citing the U.S.-China trade war and a
potentially disorderly British exit from the European Union.

It warned chances of further cuts to the outlook were high.

Meanwhile, the U.S. Trade Representative on Monday proposed slapping tariffs
on a list of EU products ranging from large commercial aircraft to dairy
products and wine as it kicked off the retaliation process against European
aircraft subsidies.

A stronger U.S. dollar on Wednesday also weighed on prices for
dollar-denominated metals as it makes them more expensive for countries
using other currencies to make purchases.

FUNDAMENTALS

* COPPER: Three-month copper on the London Metal Exchange had fallen 0.1
percent to $6,483.5 a tonne by 0357 GMT, while the most active copper
contract on the Shanghai Futures Exchange was down 0.1 percent at 49,550
yuan ($7,381.86) a tonne.

* RESISTANCE: “The previous (copper) prices were a little high,” said
Shanghai-based copper analyst He Tianyu of CRU.

London copper hit $6,540 in the previous session, its strongest since April
1, with He saying that had been a resistance level since February and that
he had not seen any signs of a pick up in demand.

* PERU: An indigenous community in Peru voted to suspend its two-month road
blockade of MMG Ltd’s Las Bambas copper mine for two days until the
government visits the region on Thursday, an advisor to the community told
Reuters.

* PRICES: London aluminium dipped 0.1 percent, while zinc climbed 0.3
percent and lead rose 0.5 percent. Shanghai zinc was on track for its third
straight decline, down 0.7 percent, and lead was down 0.7 percent.

Gold trades near 2-week high on U.S.-EU trade tensions

(Reuters) - Gold on Wednesday traded near a two-week high hit in the
previous session, as investors worried about the trade tensions between the
United States and Europe, and as the International Monetary Fund cut its
global growth outlook.

FUNDAMENTALS

* Spot gold was down about 0.1 percent at $1,303.14 per ounce as of 0110
GMT, after touching its highest since March 28 at $1,306.09 in the previous
session.

* U.S. gold futures were also down about 0.1 percent at $1,307.60 an ounce.

* U.S. President Donald Trump on Tuesday threatened to impose tariffs on $11
billion worth of European Union products, heightening tensions over a
long-running transatlantic aircraft subsidy dispute and opening a new front
in his global trade war.

* The International Monetary Fund on Tuesday cut its global economic growth
forecasts for 2019 and warned growth could slow further due to trade
tensions and a potentially disorderly British exit from the European Union.

* Britain will suffer economic damage equivalent to the loss of at least 2-3
years of normal growth between now and the end of 2021 if it leaves the
European Union without an exit deal, the International Monetary Fund warned
on Tuesday.

* European Union leaders will grant British Prime Minister Theresa May a
second delay to Brexit but they could demand she accepts a much longer
extension as France pushed for conditions to limit Britain’s ability to
undermine the bloc.

* The European Central Bank is all but certain to keep policy on hold on
Wednesday, taking its time to evaluate whether its most recent stimulus
cocktail is enough to arrest a rapid decline in sentiment.

* Venezuela removed eight tonnes of gold from the central bank’s vaults last
week, and the cash-strapped socialist state is expected to sell the bullion
abroad as it seeks to raise hard currency in the face of U.S. sanctions, a
lawmaker and one government source said.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund,
said its holdings fell 0.35 percent to 757.85 tonnes on Tuesday.

DATA AHEAD (GMT) 0830 UK GDP Estimate YY (Feb) 0830 UK Manufacturing Output
MM (Feb) 1145 Euro Zone ECB Refinancing Rate (April) 1145 Euro Zone ECB
Deposit Rate (April) 1230 U.S. Consumer Price Index MM, SA (March) 1230 ECB
President Mario Draghi holds a press conference after an interest rate
meeting 1800 Federal Open Market Committee will release the minutes from its
March 19-20 policy meeting 

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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