Bulls n Bears Daily Market Commentary : 16 April 2019

Wed Apr 17 07:14:02 CAT 2019

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Bulls n Bears Daily Market Commentary : 16 April 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 7,912,395.67 with foreign buys at RTGS$ 3,726,532.15
and foreign sales were RTGS$ 3,689,104.32. Total trades were 154.

The All Share index added another 0.14 points  to close at 125.97 points.
NATFOODS rose by $0.0512 to $5.6712, OLD MUTUAL LIMITED  gained $0.0213 to
end at $8.3020 and SEEDCO INTERNATIONAL LIMITED  increased by $0.0150 to
close at $1.4173. INNSCOR  also advanced by $0.0148 to settle at $1.5348 and
HIPPO VALLEY ESTATES  was $0.0068 stronger at $1.4190.

Gains were partially offset by losses in RIOZIM  which eased $0.0386 to
$1.7601, BINDURA  dropped $0.0031 to settle at $0.0554 and SIMBISA traded
$0.0025 weaker at $0.8000. CASSAVA SMARTECH  also decreased by $0.0011 to
$1.0781 whilst AXIA  was $0.0002 down at $0.3598.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South Africa's rand weaker after Moody's report

(Reuters) - South Africa’s rand slipped on Tuesday, as Moody’s warned of
risks to the country’s last investment grade credit rating including rising
government debt and slow economic growth.

At 1536 GMT, the rand was down 0.3 percent against the U.S. currency at
14.0900 per dollar, heading for a second straight day of losses.

Markets are sensitive to any pronouncement Moody’s makes on Africa’s most
industrialised economy, as a downgrade to “junk” status by the credit agency
could trigger a large selloff in South African debt.

Moody’s said in a research note that while the outlook on South Africa’s
Baa3 rating was stable, it did not see growth picking up significantly
because of constraints like skills shortages and power supply problems.

The rand strengthened to below 14.00 per dollar last week for the first time
since late February, as appetite for riskier emerging market assets was
helped by signs of progress in trade talks between the United States and
China.

But it has now fallen around 0.8 percent against the dollar since Friday.
Trading volumes are expected to be muted this week ahead of Easter public
holidays.

In fixed income, the yield on the benchmark 2026 government bond was flat.

On the Johannesburg bourse, stocks followed international equities markets
higher.

The Johannesburg Stock Exchange’s Top-40 Index gained 1.2 percent to 52,590
points, while the wider All-share Index gained 1.1 percent to 58,902.

Telecommunications company MTN led the blue-chip index, gaining 3.97 percent
to 101.89 rand. There were also gains for miners like AngloGold Ashanti,
which rose by 3.18 percent to 186.38 rand.

Uganda

Ugandan shilling holds steady as banks pare positions

(Reuters) - The Ugandan shilling        was stable on Tuesday as some
players in the interbank market cut their hard currency positions,
counterbalancing demand for dollars. 

At 0907 GMT, commercial banks quoted the shilling at 3,730/3,740, same level
as Monday's close. 

       <mailto:info at bulls.co.zw> 

Asia

Asia relieved as China data point to recovery

(Reuters) - Asian share markets swung higher on Wednesday as a raft of
Chinese data easily beat expectations in a sign Beijing’s policy stimulus
may finally be gaining traction in the world’s second-largest economy.

Investors were hoping for better news from China and were not disappointed
with first-quarter economic growth pipping forecast at 6.4 percent.

More importantly industrial output surged 8.5 percent in March from a year
earlier, blowing away forecasts of a 5.9 percent increase. Retail sales also
pleased with a rise of 8.7 percent.

Investors reacted immediately by buying the Australian dollar, often a
liquid proxy for China plays, which pushed up 0.3 percent to a two-month top
at $0.7206.

Japan’s Nikkei added 0.5 percent to reach its highest in almost five months,
while E-Mini futures for the S&P 500 rose 0.2 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.2
percent to near its highest since July.

currency markets, the dollar finally managed to top resistance on the yen at
112.13 to reach its highest since December at 112.16. It was last at 112.02.

The dollar was flat on a basket of currencies at 96.991 , still within the
95.00 to 97.70 range that has held for the past six months.

The euro edged up a touch to $1.1298, having slipped form $1.1314 overnight
on a Reuters report that several European Central Bank policymakers think
the bank’s economic projections are too optimistic.

One currency on the move was the New Zealand dollar which sank as far as
$0.6668 after annual consumer price inflation came in well below
expectations at just 1.5 percent for the first quarter.

Yields on two-year bonds dived 9 basis points to 1.48 percent as investors
wagered the Reserve Bank of New Zealand (RBNZ) would have to cut rates in
response.

The improved Chinese data later gave it a helping hand back up to $0.6723.

In commodity markets, the general improvement in risk sentiment saw spot
gold slip to its lowest for the year so far and was last at $1,276.61 per
ounce.

Oil prices were buoyed as fighting in Libya and falling Venezuelan and
Iranian exports raised concerns over tightening global supply.

U.S. crude was last up 48 cents at $64.53 a barrel, while Brent crude
futures rose 27 cents to $71.99.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Shanghai zinc hits 3-week low in line with London

(Reuters) - The most active zinc contract on the Shanghai Futures Exchange
(ShFE) slipped to its lowest in three weeks on Wednesday, tracking a decline
in London markets.

The zinc contract in Shanghai was down 1.8 percent at 21,845 yuan
($3,255.69) a tonne, as of 0206 GMT, after slipping to 21,715 yuan a tonne
earlier in the session, while the benchmark zinc in London         rebounded
0.5 percent.

Benchmark zinc ended 3.1 percent weaker in the previous session, its biggest
daily fall since August, as a big inflow into the London Metal Exchange
(LME) warehouses fanned 

expectations that a supply deficit would soon end.             

Other base metals treaded water, as cautious investors eyed data on
first-quarter economic growth in China, which is to be released later in the
day.

    FUNDAMENTALS

* Three-month copper on the London Metal Exchange rose 0.3 percent to $6,512
a tonne, while most-traded copper contract on the Shanghai Futures Exchange
edged up 0.3 percent.

* A railway that carries zinc from major producers such as Glencore  , MMG
Ltd and South 32 across Australia's Outback is expected to reopen this month

after it was damaged in floods.   

Gold near 4-month low as stocks, dollar weigh

(Reuters) - Gold steadied around a 4-month trough on Wednesday, after
falling nearly 1 percent in the previous session due to a surge in global
equities, while a stronger dollar piled pressure on the metal.

FUNDAMENTALS

* Spot gold was down 0.1 percent at $1,286.38 per ounce, as of 0104 GMT. In
the previous session, the metal sank to $1,272.70, its lowest since Dec. 27.

* U.S. gold futures edged up 0.1 percent to $1,278.10 an ounce.

* Stocks around the globe rose on Tuesday to six-month highs as positive
economic data in China and Germany boosted investor sentiment.

* The euro sagged early on Wednesday following a report that some European
Central Bank policymakers have expressed dovish views, with the market
awaiting Chinese economic data for further cues.

* Asian shares started cautiously on Wednesday as investors waited anxiously
for a raft of Chinese data that might show policy stimulus is finally
gaining traction in the world’s second-largest economy.

* China is expected to report on Wednesday that economic growth slowed to
its weakest pace in at least 27 years in the first quarter, as policymakers
seek to head off a sharper slowdown that could stoke job losses.

* Gold, a non-yielding asset for investors looking to hedge against times of
economic and political uncertainty, loses appeal when interest-yielding
equities rise.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund,
said its holdings fell 0.23 percent to 752.27 tonnes on Tuesday from 754.03
tonnes on Monday.

* All 12 of the U.S. Federal Reserve’s regional banks supported keeping
steady the interest rate commercial banks are charged for emergency loans
before the central bank’s last policy meeting, records from the discussions
showed on Tuesday.

* Japan’s Economy Minister Toshimitsu Motegi said on Tuesday that no
agreement had been reached on individual trade issues with the United States
after two days of talks with U.S. Trade Representative Robert Lighthizer.

* Standard Chartered on Tuesday forecast the palladium market deficit
widening in 2019 and 2020.

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

 <mailto:info at bulls.co.zw> 

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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