Bulls n Bears Daily Market Commentary : 23 April 2019

Wed Apr 24 07:33:24 CAT 2019

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Bulls n Bears Daily Market Commentary : 23 April 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 8,236,004.49 with foreign buys at RTGS$ 5,408,335.87
and foreign sales were RTGS$ 6,924,951.83. Total trades were 121.

The All Share index opened the week on a higher note adding 0.24 points  to
close at 126.52 points. OLD MUTUAL LIMITED gained another $0.1698 to close
at $8.5210, DELTA  rose by $0.0456 to settle at $2.3585 whilst INNSCOR  was
$0.0177 stronger at $1.5525. CASSAVA SMARTECH also increased by $0.0073 to
$1.0868 and OK ZIMBABWE traded $0.0070 firmer $0.2275. 

Gains were partially offset by loses in MEIKLES  which lost $0.0300 to
$0.5700, ECONET  eased $0.0278 to end at $1.0498 and AXIA traded $0.0073
lower at $0.3527. RTG also decreased by $0.0057 to end at $0.0233 and
WILLDALE  traded $0.0011 weaker at $0.0210.

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  Global Currencies & Equity Markets

South Africa

South Africa's rand slips on stronger dollar, stocks up

(Reuters) - South Africa’s rand fell more than 1 percent on Tuesday as a
firmer U.S. dollar weighed on developing world currencies, while stocks
closed higher.

At 1537 GMT, the rand traded at 14.3100 per dollar, 1.01 percent weaker than
its New York close on Monday.

The greenback climbed across the board on Tuesday as financial markets
re-opened after the Easter holiday and traders favoured the dollar ahead of
the release on Friday of U.S. gross domestic product data for the first
three months of 2019.

In the absence of local market moving data, the rand is expected to track
global market sentiment this week, even though South African-focused
investors were keeping an eye on election news ahead of parliamentary and
provincial votes on May 8.

Globally, markets are looking to the release of the U.S. GDP data for
indications about the strength of the world’s largest economy.

Better-than-expected economic readings from both the United States and China
lately have assuaged investor concerns of a sharp global economic slowdown,
although weak manufacturing surveys from Asia and Europe have kept a lid on
sentiment.

In fixed income, the yield on the benchmark government bond due in 2026
added 8.5 basis points to close at 8.55 percent.

On the bourse, stocks rose following positive news in the energy sector,
with the Top40-index up by 0.59 percent to 53,184.19 points while the
broader All-Share index rose by 0.54 percent to 59,544.80 points.

Chemicals and fertiliser company Omnia Holdings was the top performer on the
blue-chip index, rising by 16.28 percent to 58.14 rand after it said it
would be working towards a collaborative debt restructuring plan alongside
its principal debt providers.

Sasol Ltd climbed 4.21 percent to 487.49 rand after oil prices jumped to
near six-month highs on Tuesday, as the United States tightened sanctions on
Iran.

News on the operation of its new alkoxylation plant, which was completed
within the expected time frame and allocated budget, also boosted Sasol.

On the downside, gold mining stocks dropped 2.4 percent as gold prices
slipped as the dollar gained and investors preferred riskier assets,
dampening the safe-haven metal’s appeal. 

Kenya

Kenyan shilling weakens slightly against the dollar

(Reuters) - The Kenyan shilling weakened slightly against the dollar on
Tuesday, driven by demand from the energy sector and merchant importers as
trading resumed from Easter holiday, traders said. 

At 0945 GMT, commercial banks quoted the shilling at 101.45/65 per dollar,
compared with 101.35/55 at Thursday'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

Base metals pick up amid U.S.-China trade talk progress

(Reuters) - Most industrial metals on the London Metal Exchange rose on
Wednesday, after a top White House economic adviser said the United States
and China were making progress in trade talks.

National Economic Council Director Larry Kudlow on Tuesday said the United
States and China have made “a heck lot of progress”, but added that the two
nations still had issues to address.

The White House later announced that U.S. Trade Representative Robert
Lighthizer and Treasury Secretary Steven Mnuchin will travel to Beijing for
trade talks beginning on April 30.

Chinese Vice Premier Liu He, who will lead the Beijing talks for China, will
travel to Washington for more discussions starting on May 8, the White House
said in a statement.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange rose 0.2 percent to $6,419
a tonne by 0129 GMT, while aluminium advanced 0.5 percent, nickel increased
0.6 percent and lead was up 0.6 percent.

* Base metals on the Shanghai Futures Exchange fell, led by nickel and zinc
which eased 1 percent each, following declines in London in the previous
session. Copper and aluminium fell 0.2 percent each.

* The global world refined copper market showed an 8,000 tonne deficit in
January, compared with an 11,000 tonne surplus in December, the
International Copper Study Group (ICSG) said in its latest monthly bulletin.

* Global primary aluminium output rose to 5.414 million tonnes in March from
a revised 4.916 million tonnes in February, data from the International
Aluminium Institute (IAI) showed on Tuesday.

* The London Metal Exchange (LME) could ban or delist brands that are not
responsibly sourced by 2022 under an initiative launched on Tuesday to help
root out metal tainted by child labour or corruption.

* German carmaker BMW will buy cobalt, a key component for electric vehicle
(EV) batteries, directly from mines in Australia and Morocco to ensure they
are not produced by child labour, an executive said on Tuesday.

Gold prices dip as stock markets, dollar climb

(Reuters) - Gold prices eased on Wednesday, remaining near a four-month low
touched in the previous session as the dollar strengthened and Asian shares
rose after the Nasdaq and S&P 500 indexes marked record closing highs.

FUNDAMENTALS

* Spot gold had fallen 0.1 percent to $1,270.40 per ounce by 0105 GMT,
having hit its lowest since the end of last year at $1,265.90 in the last
session.

* U.S. gold futures were 0.1-percent lower at $1,272.50 an ounce.

* Equity markets in Asia rose on Wednesday morning after positive earnings
helped the Nasdaq and S&P 500 indexes to set record closing highs on Wall
Street overnight, while oil retreated from near six-month highs.

* The dollar hovered near a 22-month peak against its peers on Wednesday,
after strong U.S. housing data further eased concerns of a slowdown in the
world’s biggest economy.

* Sales of new U.S. single-family homes rose to a near 1-1/2-year high in
March, boosted by lower mortgage rates and house prices.

* After China’s economy defied expectations that it would slow further in
January-March, U.S. growth is expected to be 2.1 percent in the same period,
although the range of analysts’ estimates was wider than usual at 1.0 to 2.9
percent.

* U.S. GDP data is expected on Friday.

* Public debt in Greece and Italy, the two most indebted countries in the
euro zone, grew last year while the bloc as a whole saw its liabilities
decrease, the European Union statistics office said on Tuesday.

* North Korean leader Kim Jong Un and Russian President Vladimir Putin will
meet on Thursday in the Russian Pacific port of Vladivostok to discuss the
international standoff over Pyongyang’s nuclear programme, a Kremlin
official said.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund,
said its holdings fell 0.27 percent to 749.63 tonnes on Tuesday from 751.68
tonnes on Monday.

* Agnico Eagle Mines is doubling down this year on Nunavut, Canada’s least
developed territory, betting that the high-grade gold ores and slim
competition there will offset the risks of digging in the remote location in
the far north.

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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