Bulls n Bears Daily Market Commentary : 26 April 2019

Mon Apr 29 07:20:08 CAT 2019

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Bulls n Bears Daily Market Commentary : 26 April 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 1,167,353.21 with foreign buys at RTGS$ 892,165.45 and
foreign sales were RTGS$ 837,108.10. Total trades were 86.

The All Share index closed the week in the positive after adding 2.11 points
to close at 130.73 points. BRITISH AMERICAN TOBACCO went up by $0.6591 to
settle at $30.0000, DELTA   added another $0.1198 to close at $2.6275 and
OLD MUTUAL LIMITED  was $0.0479 stronger at $9.1083. AFRICAN SUN  also
increased by $0.0370 to end at $0.2290 and CBZ   traded $0.0300 stronger at
$0.2100. 

Trading in the negative was CASSAVA SMARTECH  and FIRST MUTUAL LIMITED
which lost $0.0055 and $0.0015 to close at $1.0696 and $0.1360 respectively.

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  Global Currencies & Equity Markets

Kenya

Kenyan shilling strengthens against the dollar

(Reuters) - The Kenyan shilling strengthened against the greenback on Friday
with some support from offshore investors buying government debt and
diaspora remittances, traders said. 

At 1044 GMT, commercial banks quoted the shilling at 101.35/55 per dollar,
compared with 101.45/65 at Thursday's close. 

South Africa

South Africa's rand firms as dollar slips, stocks flat

(Reuters) - South Africa’s rand firmed on Friday, recovering from a
four-week low touched in the previous session, as the dollar slipped after
U.S. economic growth data. Stocks ended flat.

At 1520 GMT the rand traded 14.3000 to the dollar, 0.97 percent firmer than
its New York close on Thursday. The currency had slipped to 14.5550 on
Thursday, its weakest price since March 29.

The dollar fell to a session low against a basket of currencies on Friday,
after data showed U.S. GDP accelerated in the first quarter. But the burst
in growth was driven by trade and the largest accumulation of unsold goods
since 2015 - temporary factors that are likely to reverse in the coming
quarters.

In fixed income, the yield on the benchmark 10-year issue fell 1.5 basis
points to 8.575 percent.

On the bourse, the benchmark JSE Top 40 Index closed 0.19 percent higher at
52,572 while the broader All-Share Index finished 0.15 percent higher at
58,894.

The markets had closed two hours earlier due to a software upgrade, the
exchange operator JSE Limited said.

Mining firm Goldfields was among the top performers in the blue-chip index,
rising by 0.97 percent to 55.44 rand after the Bank of Montreal raised their
rating to outperform from underperform.

       <mailto:info at bulls.co.zw> 

America

Strong dollar sends emerging currency index to three-month low

(Reuters) - A sudden leap in the dollar fuelled by concerns over the health
of the global economy battered emerging market currencies on Thursday,
evoking memories of the sharp declines developing economies such as Turkey
suffered in 2018.

MSCI’s Emerging Markets Currency Index suffered falls for a fifth straight
session and plumbed its lowest level in more than three months while the
dollar roared to its highest point since June 2017 on Wednesday against a
basket of other currencies.

Several emerging currencies have been beset by weakness in recent weeks and
- much like in 2018 - Turkey and Argentina are hogging the limelight.

Argentina’s peso has plummeted nearly a fifth against the dollar since the
start of the year, roiled by uncertainty over the outlook for the economy
mired in a painful recession and suffering from high inflation with Buenos
Aires gearing up for the October presidential election.

Turkey’s lira has lost 11 percent in 2019 and the central bank holding
interest rates and removing a reference to possible future tightening on
Thursday doing little to reassure investors rattled by Ankara’s toxic
cocktail of unconventional monetary measures, political risk and recession
hit economy.

South Africa’s rand this week hovered near a four-week low, while the
Russian rouble fell to a two-week low against the dollar on Thursday.

Underpinning the dollar’s recent strength has been more dovish turns by
global central banks outside the United States, as well as data pointing to
a robust performance of the U.S. economy and a surge in Wall Street stocks
to record highs.

Investors fretting about the impact of strong oil prices on some of the
largest emerging markets energy importers was also a factor behind the
sell-off, said Julian Mayo, chief investment strategist at Fiera Capital, an
investment management firm.

Brent prices rose above $75 per barrel on Thursday for the first time this
year as supply worries stalk oil markets. The United States this week said
it would end all exemptions for sanctions against Iran, OPEC’s third-largest
producer, demanding countries halt oil imports from Tehran from May or face
punitive action from Washington.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold scales near 2-week peak as dollar dips after U.S. GDP data

(Reuters) - Gold jumped to a near 2-week high on Friday, en route to its
best week in 12, as the dollar slipped on tepid inflation data from the
United States, which outweighed an overall strong first-quarter growth
report.

Spot gold gained 0.8 percent to $1,287.62 per ounce as of 11:57 EDT (1557
GMT), after hitting its highest since April 16 at $1,288.

The metal, which reached its lowest since late December on Tuesday at
$1,265.90, is up 1 percent so far this week, and set to post its best weekly
gain since Feb 1.

U.S. gold futures rose 0.8 percent to $1,289.80 an ounce.

The dollar index fell, making gold cheaper for holders of other currencies,
after an overall strong U.S. first-quarter growth report was overshadowed by
soft inflation data.

The core personal expenditures consumption price index figure, the Federal
Reserve’s preferred inflation gauge, increased at only a 1.3% rate versus
1.8% in the prior quarter.

Even strong data out of the United States was unlikely to change the Federal
Reserve’s monetary strategy, analysts said.

According to a Reuters poll, major central banks are done tightening policy
as the global growth outlook has softened across developed and emerging
economies, with scant prospects for a surge in inflation.

Central bank gold purchases have been running strong this year, which could
support prices, the bank said.

While gold has fallen more than 4 percent from a peak in February, bullion’s
recovery from this week’s four-month low is painting a neutral picture in
technical charts.

Gold looks neutral in a $1,274-$1,284 range, and an escape could suggest a
direction, said Reuters technical analyst Wang Tao.

Among other precious metals, silver was up 0.8 percent to $15.06 per ounce,
while platinum rose 1.8 percent to $898.05.

Palladium advanced 3 percent to $1,457.06 per ounce, its highest level since
March 27. 

Copper rises as dollar comes off highs, trade talks loom

(Reuters) - Copper and most other industrial metals inched higher on Friday,
boosted by a retreat in the dollar and hopes that a meeting between the
United States and China could help ease damaging trade tensions.

Three-month copper on the London Metal Exchange was bid 0.4 percent higher
at $6,387.50 a tonne after failing to trade in official rings. It is still
on track for a 1.5 percent weekly decline, however.

The metal used in power and construction hit its lowest since March 28 on
Thursday on a strong U.S. dollar and worries over the outlook for the global
economy.

He said metals markets were mostly pricing in a resolution to a
long-standing trade conflict between China and the United States as the
world’s two largest economies prepare for talks.

The dollar index eased versus a basket of six major currencies on Friday but
stayed near its two-year peak.

A weaker greenback makes dollar-denominated metals cheaper for buyers with
other currencies.

U.S. GDP: U.S. economic growth accelerated in the first quarter, but the
burst in growth was driven by trade and the largest accumulation of unsold
goods since 2015, temporary factors that are likely to reverse in the coming
quarters.

LME STOCKS: Total copper inventories in LME-approved warehouses have jumped
more than 70 percent since mid-March to 195,900 tonnes. MCUSTX-TOTAL

SHANGHAI STOCKS: Aluminium inventories in warehouses monitored by the
Shanghai Futures Exchange AL-STX-SGH fell to the lowest since October 2017
at 638,030 tonnes, while copper stocks CU-STX-SGH hit a two-month low of
219,679 tonnes.

SPREADS: The premium of cash zinc over the three-month contract has been
steadily rising this year and reached about $120 on Friday, showing low
availability of supplies in LME-approved warehouses. CMZN0-3

COPPER OUTPUT: Freeport-McMoRan Inc’s copper output fell 18 percent to
around 340,000 tonnes in the first quarter, while Anglo American’s
production rose by 4 percent to 161,100 tonnes.

GLENCORE/AURELIA: Australian miner Aurelia Metals Ltd said it was in talks
about a possible acquisition of Glencore’s CSA copper mine in the state of
New South Wales.

PRICES: Aluminium was the sole decliner, bid 0.5 percent lower at $1,848 per
tonne, while zinc was bid up 1.1 percent to $2,771, lead was bid 0.2 percent
firmer at $1,936, tin was bid up 0.2 percent at $19,850, and nickel was up
0.2 percent to $12,345 in electronic trading by 1245 GMT.

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

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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