Bulls n Bears Daily Market Commentary : 12 April 2019

Sat Apr 13 11:22:11 CAT 2019

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Bulls n Bears Daily Market Commentary : 12 April 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 981,091.57 with foreign buys at RTGS$ 6,986.10 and
foreign sales were nil. Total trades were 99.

The All Share index ended its five day winning streak after losing 0.31
points   to close at 125.51 points. BRITISH AMERICAN TOBACCO   led the
losers with a $0.1918 loss to settle at $29.8082, OLD MUTUAL LIMITED   eased
$0.0427 to $8.2273 and AFRICAN SUN   was $0.0181 down at $0.1600. NAMPAK
also decreased by $0.0178 to end at $0.3022 and ECONET   traded $0.0119
weaker at $1.0796.

Losses were partially offset by gains in SEEDCO INTERNATIONAL LIMITED  which
added $0.0948 to $1.4023, NATFOODS  lost $0.0200 to close at $5.6200 and
PROPLASTICS was $0.0150 stronger at $0.2400. PADENGA  also increased by
$0.0144 to $1.0445 and INNSCOR   rose by $0.0031 to settle at $1.5056.

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  Global Currencies & Equity Markets

Kenya

Kenyan shilling holds steady against the dollar

(Reuters) - The Kenyan shilling held steady against the dollar on Friday
with inflows from offshore investors buying government debt helping meet
dollar demand from the energy sector, traders said.

At 0942 GMT, commercial banks quoted the shilling at 100.90/101.10 per
dollar, compared with 100.95/101.15 at Thursday's close.

South Africa

South Africa's rand firms on falling dollar, stocks up

(Reuters) - South Africa’s rand was set to end the week on a firmer footing
on Friday as the U.S. dollar weakened, while signs of economic stabilisation
in China boosted demand for riskier assets.

At 1517 GMT, the rand had strengthened by 0.57 percent to 13.9275 per
dollar, staying close to a six-month high of 13.8725 hit on Thursday.

Investors’ appetite for riskier currencies was boosted on Friday after
Chinese data showed exports rebounded last month, helping offset weaker
imports, and by reports of another reduction in Germany’s growth forecasts,
analysts said.

In fixed income, the yield on the benchmark government bond due in 2026 fell
0.5 basis points to 8.485 percent.

Bourses strengthened, following the rand higher on the back of
better-than-expected U.S. bank results.

The Johannesburg All-Share index gained 0.38 percent to 58,405 points, and
the Top-40 index increased by 0.38 percent to 52,142 points.

Consumer staples led the blue-chip index higher, with Africa’s largest
supermarket group Shoprite gaining 3.2 percent to 175.99 rand and Bid
Corporation rising 1.74 percent to 293 rand.

Gareth Curry, a portfolio manager at Sanlam Private Wealth, said
better-than-anticipated U.S. bank results had pulled up U.S. stocks,
ultimately helping the South African market.

       <mailto:info at bulls.co.zw> 

China

China data, JPMorgan results lift stocks, riskier assets

(Reuters) - Global stocks rose on Friday after JP Morgan’s results kicked
off the U.S. corporate earnings season in style, while signs of
stabilization in China’s economy helped riskier assets amid talk that the
growth outlook worldwide is better than thought.

Chinese data showed exports rebounded in March, lifting U.S. and euro zone
bond yields to three-week highs and helping offset weaker imports and
reports of another cut to German growth forecasts.

Investors are looking for signs of a Chinese economic recovery to temper
global growth worries, especially after the International Monetary Fund this
week downgraded its 2019 world economic outlook for the third time.

China’s trade results, as well as credit data, have helped boost risk
appetite and reinforce the stabilization thesis, which should have
spill-over effects for the global economy, said Candice Bangsund, a
portfolio manager with the global asset allocation team at Fiera Capital in
Montreal.

U.S. stocks rallied on JPMorgan and an 11.5% jump in Walt Disney Co shares,
which lifted the Dow Industrials by 1% and helped the S&P 500 total return
index post a record close.

MSCI’s gauge of equity market performance in 47 countries gained 0.46%,
while the EURO STOXX 50 index rose 0.36%.

JPMorgan’s quarterly earnings easily beat analyst estimates, easing fears
that slowing economic growth could weigh on results. JPMorgan’s shares rose
4.69% and led a broad rally in bank stocks, with the KBW banking index
gaining 1.94%.

Regional lenders in Europe, including StanChart, Deutsche Bank, BNP Paribas
and Credit Suisse, also rallied on JPM’s results, taking the European bank
index up 1.9 percent to a five-month high.

On Wall Street, the Dow Jones Industrial Average rose 269.25 points, or
1.03%, to 26,412.3. The S&P 500 gained 19.09 points, or 0.66%, to 2,907.41,
and the Nasdaq Composite added 36.81 points, or 0.46%, to 7,984.16.

The euro gained despite the German growth concerns. Dealers were gearing up
for demand from Japan as Mitsubishi UFJ Financial closed in on its
multi-billion-euro acquisition of DZ Bank’s aviation-finance business.

The dollar index fell 0.21%, with the euro up 0.38% to $1.1293. The Japanese
yen weakened 0.30% versus the greenback at 112.02 per dollar.

Euro zone and U.S. government debt yields rose after the rebound in Chinese
exports. Yields on Germany’s 10-year government bond crossed into positive
territory, to 0.058%.

Benchmark 10-year U.S. Treasury notes fell 16/32 in price to push up their
yield to 2.5615%.

CRUDE OIL’S BIG 2019 START

Oil provided big milestones, with Brent breaking through the $70 threshold
this week and the U.S. benchmark posting six straight weeks of gains for the
first time since early 2016.

Involuntary supply cuts in Venezuela, Libya and Iran have supported
perceptions of a tightening market, already constrained by production cuts
from the Organization of the Petroleum Exporting Countries and its allies.

Brent crude oil futures settled up 72 cents at $71.55 a barrel, while West
Texas Intermediate crude futures , the U.S. benchmark, rose 31 cents to
settle at $63.89.

Commodities have had the best first-quarter start ever, Bank of America
Merrill Lynch analysts said, calling the annualized returns they are
tracking the strongest in the past 100 years.

Taking advantage of strong prices and subdued valuations for oil producers,
Chevron said it will buy Anadarko Petroleum Corp for $33 billion in cash and
stock.

Gold steadied after posting its biggest daily decline in two weeks on
Thursday when it broke below the key psychological level of $1,300 an ounce,
as the impact of a weak dollar was offset by gains on Wall Street.

U.S. gold futures settled 0.1% higher at $1,295.2.

 <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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