Bulls n Bears Daily Market Commentary : 11 April 2019

Fri Apr 12 07:03:54 CAT 2019

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Bulls n Bears Daily Market Commentary : 11 April 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 7,500,738.45 with foreign buys at RTGS$ 5,544,254.50
and foreign sales were RTGS$ 1,885,053.20. Total trades were 154.

The All Share index added another 0.79 points to close at 125.82 points in a
session mostly dominated by movers. Cement maker PPC gained $0.0965 to end
at $1.3690, SIMBISA   rose by $0.0400 to close at $0.7500 whilst RIOZIM was
$0.0272 firmer at $1.7987. Other counters to advance include MEIKLES which
put on $0.0241 to $0.5491 and NAMPAK  which traded $0.0200 stronger at
$0.3200. 

Three counters lost ground including PADENGA  which dropped $0.0178 to
$1.0301, CBZ  eased $0.0027 to settle at $0.1727 and CASSAVA SMARTECH
retreated by $0.0025 to end at $1.0973.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Tanzania

Tanzanian shilling to hold steady, Uganda's to weaken

(Reuters) - The Kenyan and Ugandan shillings are expected to weaken against
the U.S. dollar in the next week to Thursday while Tanzania’s currency is
likely to hold steady, traders said.

KENYA

The Kenyan shilling is expected to remain under pressure from increased
dollar demand in the energy sector and excess liquidity in money markets.

Commercial banks quoted the shilling at 100.95/101.15 per dollar, compared
with 100.65/85 at last Thursday’s close.

UGANDA

The Ugandan shilling is expected to weaken on the back of a slowdown in
yields on government debt, which could dent offshore investor interest.

Commercial banks quoted the shilling at 3,750/3,760, compared with last
Thursday’s close of 3,735/3,745.

Rates on Ugandan debt declined at this week’s auction. The central Bank of
Uganda is due to sell three-year and 15-year Treasury bonds on April 17.

TANZANIA

The Tanzanian shilling is expected to hold steady and possibility gain
ground, helped by dollar inflows from the tourism sector and mining
companies.

Commercial banks quoted the shilling at 2,310/2,320 per dollar, the same as
last Thursday’s close.

NIGERIA

The naira is expected to be stable at around the 360 level as ample dollar
liquidity from foreign investors and exporters provides support for the
currency, traders said.

The naira traded in a range between 360.12 and 360.50 per dollar on
Thursday, similar to levels quoted last week. Traders say the naira has
found support at 360 because the central bank buys excess dollar liquidity
at that level.

It was quoted at 360 at currency bureaus and 307 on the official market,
thanks to central bank support.

Nigerian Treasury yields are still attractive to foreign buyers, which has
helped to support the naira, traders said, adding that exporters have also
been selling hard currency.

       <mailto:info at bulls.co.zw> 

Asia

Asian shares dip on caution over global growth, US earnings

(Reuters) - Asian shares turned lower on Friday as trepidation ahead of the
start of the U.S. corporate earnings season and underlying anxiety over the
global growth outlook eclipsed some reassuring U.S. economic data.

MSCI’s broadest index of Asia-Pacific shares outside Japan was last down 0.1
percent, having see-sawed within a tight range throughout the morning
session

Despite broad weakness in the region, with Chinese blue-chips down 0.8
percent ahead of the release of trade data, higher Chinese iron ore prices
helped to push Australia’s S&P/ASX 200 index up 0.7 percent.

Japan’s Nikkei stock index gained 0.5 percent.

Michael McCarthy, chief market strategist at CMC Markets and Stockbroking in
Sydney, said markets were in a “holding pattern” as they waited on Chinese
trade data and the U.S. earnings season.

Matt Simpson, senior market analyst at GAIN Capital in Singapore, said a
dovish shift by central banks, together with possible progress on a
U.S.-China trade deal and U.S. President Donald Trump’s talking up of the
markets could help to support equities in the coming weeks.

The tepid performance of Asian markets Friday followed a choppy session on
Wall Street that left major indexes treading water, hemmed in by anxiety
ahead of corporate earnings and worries about a global economic slowdown,
which capped gains stemming from upbeat U.S. economic data.

The Dow Jones Industrial Average fell 0.05 percent to 26,143.05, the S&P 500
closed flat at 2,888.32 and the Nasdaq Composite dropped 0.21 percent to
7,947.36.

Tempering expectations for a sharp slowdown in U.S. growth as data that
showed the number of Americans filing applications for unemployment benefits
dropped to a 49-1/2-year low last week

Comments from U.S. Federal Reserve Vice Chairman Richard Clarida that the
U.S. economy is in a “good place” but reemphasising the Fed’s patience on
rate hikes, also helped to reassure investors.

International Monetary Fund Managing Director Christine Lagarde said on
Thursday that the six-month delay of Britain’s exit from the European Union
avoids the “terrible outcome” of a “no-deal” Brexit, but does nothing to
lift uncertainty over the final outcome.

Underscoring ongoing threats to the health of the global economy, IMF Deputy
Managing Director Mitsuhiro Furusawa warned that a bigger-than-expected
slowdown in China’s economy remains a key risk to global growth.

U.S. Treasury yields inched lower amid the cautious retreat in shares, after
earlier rising on the U.S. jobless claims data, stronger producer prices and
a weak 30-year bond auction.

On Friday morning, the yield on benchmark 10-year Treasury notes fell to
2.497 percent compared with its U.S. close of 2.504 percent on Thursday. The
two-year yield was unchanged at 2.356 percent.

In currency markets, the dollar was up 0.1 percent against the yen at
111.75, but a strong gain in the euro, which jumped 0.36 percent on the day
to buy $1.1290, pushed the dollar index down 0.2 percent to 96.979.

Traders said demand for the euro jumped among Japanese players amid
speculation toward cross-border flows.

U.S. crude ticked up 0.35 percent at $63.80 a barrel, while Brent crude was
up 0.28 percent at $71.03 per barrel.

Gold was flat after falling more than 1 percent on Thursday to break below
the key $1,300 level following solid U.S. data. Spot gold traded at
$1,292.03 per ounce.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper rebounds on lower dollar, nickel drops despite supply worries

(Reuters) - London copper rebounded from two days of declines on Friday on a
weaker U.S. dollar, while nickel contracts in both London and Shanghai fell
despite analyst warnings of supply shortages.

The dollar fell against a basket of major currencies on Friday, making it
cheaper for buyers using other currencies to purchase greenback-denominated
metals.

Three-month copper on the London Metal Exchange rose 0.4 percent to
$6,433.50 a tonne at 0321 GMT, while the most active Shanghai copper
contract fell 0.3 percent to 49,230 yuan ($7,327.75) a tonne.

London nickel fell 0.5 percent, after declining 1.9 percent in the previous
session in its biggest drop in four weeks. The contract has been the best
performer among base metals on the LME, supported by low inventory.

Shanghai nickel dropped 2.2 percent.

Analysts said on Thursday the global nickel market will face grave supply
shortages unless key Chinese-led projects in Indonesia come online in a
timely manner.

FUNDAMENTALS

* NICKEL STOCKPILES: LME nickel inventory MNISTX-TOTAL continued to hover
around its lowest level since 2013, while on-warrant nickel inventory in
warehouses tracked by ShFE SNI-TOTAL-D stayed around its lowest since 2015.

* BYD: Chinese electric car and battery maker BYD Co Ltd , worried about
nickel supply, said it welcomed joint ventures to secure supply of the metal
used to make batteries for electric vehicles.

* CHINA DATA: Markets are eyeing trade data from China, due for release
later on Friday, for clues on whether the world’s second biggest economy is
rebounding.

* PRICES: Other London metals edged up slightly after falling in early
trade, while most Shanghai metals fell, amid worries on a slowing global
economic growth.

* UPSIDE: “We believe (base metal) prices will witness limited upside in the
coming weeks, unless a U.S.-China trade deal is finally struck, as concerns
over global growth continue,” said Fitch Solutions in a note Friday.
“Nevertheless non-ferrous metal prices remain elevated in the year-to-date
and we expect them to head higher from spot as we move into H219 on the back
of robust demand from China,” it said.

Gold prices steady after steep fall

(Reuters) - Gold prices steadied on Friday, having posted their biggest
daily decline in two weeks in the previous session after robust U.S.
economic data lifted the dollar.

FUNDAMENTALS

* Spot gold was up about 0.1 percent at $1,293.19 per ounce as of 0123 GMT,
after slipping more than one percent on Thursday.

* For the week, gold is up about 0.1 percent, on track to eke out its first
weekly gain in three.

* U.S. gold futures gained about 0.3 percent at $1,296.60 an ounce.

* The dollar held firm on Friday after strong U.S. labour and inflation data
soothed concerns about the world’s largest economy, while falling oil prices
weighed on commodity-linked currencies such as the Canadian and Australian
dollars.

* The number of Americans filing applications for unemployment benefits fell
to a 49-1/2-year low last week, pointing to sustained labor market strength
that could temper expectations of a sharp slowdown in economic growth.

* U.S. producer prices increased by the most in five months in March, but
underlying wholesale inflation was tame.

* U.S. President Donald Trump on Thursday expressed a willingness to hold a
third summit with North Korean leader Kim Jong Un but said in talks with
South Korean President Moon Jae-in that Washington would leave sanctions in
place on Pyongyang.

* European Union countries gave initial clearance on Thursday to start
formal trade talks with the United States, EU sources said, a move designed
but not guaranteed to smooth strained relations between the world’s two
largest economies.

* The six-month delay of Britain’s exit from the European Union avoids the
“terrible outcome” of a “no-deal” Brexit that would further pressure a
slowing global economy but does nothing to lift uncertainty over the final
outcome, the head of the International Monetary Fund said on Thursday.

* Global silver demand rose 4 percent last year, chalking up its first
increase since 2015 thanks to sharply higher consumption in India, with a
supply fall creating a small deficit, an industry report said on Thursday.

* South Africa’s total mining output fell 7.5 percent year-on-year in
February compared to a contraction of 3.3 in January, Statistics South
Africa said on Thursday.

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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