Bulls n Bears Daily Market Commentary : 29 April 2019

Tue Apr 30 07:26:09 CAT 2019

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Bulls n Bears Daily Market Commentary : 29 April 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 1,671,198.62 with foreign buys at RTGS$ 944,026.70 and
foreign sales were RTGS$ 270,102.46. Total trades were 86.

The All Share index opened the week in green after gaining 0.62 points   to
close at 131.35 points. OLD MUTUAL LIMITED led the movers with a $0.4062
gain to close at $9.5145, HIPPO VALLEY ESTATES   added $0.0513 to close at
$1.5563 and INNSCOR traded $0.0323 end at $1.5613. DELTA also increased by
$0.0303 to $2.6578 and EDGARS  was $0.0200 firmer at $0.1300.

Three counters lost ground as OK ZIMBABWE  dropped $0.0260 to $0.2302, CBZ
eased $0.0100 to end at $0.2000 and CASSAVA SMARTECH  retreated further by
$0.0006 to close at $1.0690.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South African rand firms, stocks led lower by gold miners

(Reuters) - South Africa’s rand firmed against a steady dollar on Monday, as
investors looked ahead to key offshore events including a report from the
U.S. central bank, while stocks fell.

At 1608 GMT the rand traded at 14.3100 to the dollar, 0.56 percent higher
than its New York close on Friday.

An index that tracks the greenback against the euro, yen, sterling and three
other currencies was down 0.05 percent at 97.95.

A Federal Reserve policy meeting, Brexit negotiations and a raft of global
data including U.S. payrolls could each be the trigger for big swings in
currency markets this week.

In fixed income, the yield on the benchmark 10-year bond was down 4 basis
points at 8.535 percent.

On the bourse, stocks were dragged lower by a drop in gold mining shares
after the bullion price fell.

The benchmark Top-40 index closed 0.35 percent lower at 52,385, while the
broader All-Share index fell 0.39 percent to 58,662.

Shares in AngloGold Ashanti fell more than 4 percent while those in
Goldfields slipped nearly 3 percent. 

Uganda

Ugandan shilling unchanged as players stay on market sidelines

(Reuters) - The Ugandan shilling traded stable on Monday amid subdued
activity as both merchandise importers and players in the interbank market
stayed on the market sidelines, traders said.

At 0957 GMT commercial banks quoted the shilling at 3,740/3,750, same level
as Friday’s close.   

       <mailto:info at bulls.co.zw> 

Asia

Asian shares fall as China manufacturing data disappoints

(Reuters) - Shares in Asia fell on Tuesday as readings on China’s
manufacturing activity failed to meet expectations, underscoring weakness in
the world’s second-largest economy despite Beijing’s attempts to spur
growth.

Both official and private business surveys pointed to slower Chinese factory
growth this month, dashing hopes for a steady reading or even a faster
expansion. Data also showed a slower expansion in its services sector,
adding to economic uncertainty.

The dollar-denominated MSCI index of Chinese shares dropped 0.8 percent. But
Chinese blue chips in Shanghai and Shenzhen kept losses in check, losing
less than 0.1 percent as investors maintained hopes for further measures to
prop up the economy.

The weak manufacturing numbers suggest “stimulus is there to stay,” said
Frances Cheung, head of macro strategy for Asia at Westpac. Upbeat data for
March had prompted some analysts to scale back expectations of additional
support measures.

MSCI’s broadest gauge of Asia-Pacific shares outside Japan was off 0.7
percent. Korean shares led losses for the region, falling 1.3 percent.

Australian equities fell 0.6 percent.

Japan’s financial markets remain closed for a national holiday as Japanese
Emperor Akihito prepares to abdicate on Tuesday in favour of his elder son,
Crown Prince Naruhito.

Even before the China data, Asian investors had shrugged off cautious gains
on Wall Street overnight that had lifted the S&P 500 index to an intraday
record high of 2,949.52. The index finished up 0.11 percent at a record
closing high of 2,943.03.

The Nasdaq gained 0.19 percent to 8,161.85, also a record closing high, and
the Dow Jones Industrial Average eked out a 0.04 percent gain to 26,554.39.

The quiet start to the week in global equity markets comes ahead of a
two-day meeting of the policy-setting Federal Open Market Committee. The
committee is set to release its latest statement at 2 p.m. EDT (1800 GMT) on
Wednesday.

The Fed is widely expected to leave interest rates unchanged, as it seeks to
balance robust economic growth against low inflation.

In the latest slew of data sending mixed signals to the Fed, U.S. consumer
spending rose at the fastest pace in more than 9-1/2 years in March, but
core personal consumption expenditures (PCE), the bank’s favoured inflation
measure, logged its smallest annual rise in 14 months.

The yield on benchmark U.S. 10-year Treasury notes retreated to 2.527
percent as of 2330 GMT Tuesday after rising to a close of 2.536 percent
Tuesday on the strong consumer spending data.

The two-year yield, watched as a gauge of expectations of rate rises, was at
2.2942 percent in late New York trades, off from a U.S. close Tuesday of
2.298 percent.

In the currency market, the dollar lost 0.05 percent against the yen to
111.55, and the euro was barely changed at $1.1184.

The dollar index, which tracks the greenback against a basket of six major
rivals, was also unchanged, holding at 97.852.

While other currencies remained stable, the dollar jumped 0.4 percent
against the Korean won, to 1,163.33.

Oil prices turned lower, after edging higher on Monday as markets attempted
to resume a rally interrupted by demands from U.S. President Donald Trump
that OPEC raise output.

U.S. crude fell 0.2 percent to $63.37 per barrel and Brent crude was down
0.4 percent at $71.75.

Gold showed some lustre after dipping Tuesday on the U.S. data. Spot gold
was up 0.2 percent at $1,282.06 per ounce.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Chalco aluminium output drops in first quarter; profits rise

(Reuters) - Aluminum Corp of China Ltd , known as Chalco, said in a data
sheet sent to analysts that its first-quarter aluminium output fell by 6.9
percent year-on-year, underlining the impact low prices are having on its
operations.

Its aluminium output for January-March came in at 950,000 tonnes, down from
1.02 million tonnes a year earlier, said Chalco, listed arm of Chinalco,
China’s biggest state-owned aluminium firm, in the data sheet released on
Tuesday and reviewed by Reuters.

Despite the lower production, Chalco’s profits rose 46 percent year-on-year
to 444.9 million yuan ($66.08 million), according to a Monday filing to the
Hong Kong stock exchange, as asset disposals swelled its bottom line.

That compared with an adjusted net profit figure of 304.5 million yuan in
the first quarter of 2018 and a net loss of 626 million yuan in the fourth
quarter, when Chinese aluminium prices slumped to two-year lows.

Revenue was up 20.1 percent year-on-year in the first quarter to 44.11
billion yuan, Chalco said in its earnings statement. Output of alumina, the
substance used to make aluminium, rose 10 percent year-on-year to 3.51
million tonnes, according to the data sheet.

Chalco did not immediately respond to a request for comment on the output
numbers.

The Chinese aluminium maker last year overtook United Company Rusal as the
world’s second-biggest listed producer of the metal, churning out 4.17
million tonnes of it.

With margins squeezed by low prices, however, Chalco in January said it was
shutting a 200,000 tonnes per year plant in Shandong, citing high
electricity costs, among other factors. That followed production cuts made
at other Chalco facilities in November.

Aluminium prices on the Shanghai Futures Exchange were broadly flat in the
first quarter, still languishing below the 14,000 yuan-a-tonne mark that
many smelters need to break even.

Despite the drop in production, Chalco remained ahead of Rusal in the first
quarter, with the Russian firm saying Tuesday its January-March aluminium
output was 928,000 tonnes.

Chalco’s first-quarter earnings were lifted by investment income to the tune
of 415.3 million yuan through the disposal of subsidiaries, joint ventures
and associates.

These include sales of a 60 percent equity interest in power distribution
firm Ningxia Fenghao and a 40 percent stake in Inner Mongolia Fengrong to
parent Chinalco.

This quarter, aluminium prices in China are up 3.4 percent near 14,200 yuan
a tonne as demand recovers during the metal’s peak consumption period,
easing the pressure on smelters.

$1 = 6.7332 yuan 

Gold edges up on equity blip, market eyes data, Fed

(Reuters) - Gold edged up on Tuesday as Asian shares fell ahead of the
release of a raft of economic data and the U.S. Federal Reserve’s two-day
meeting which will decide the trajectory of interest rates.

FUNDAMENTALS

* Spot gold was up 0.2 percent at $1,281.95 per ounce at 0123 GMT.

* U.S. gold futures were up 0.2 percent at $1,283.90 an ounce.

* Shares in Asia fell on Tuesday morning despite another record high close
for the S&P 500, as investors look to a U.S. Federal Reserve statement due
Wednesday for signs the central bank will continue a “patient” approach to
interest rate policy.

* Growth in China’s factory activity unexpectedly slowed in April, an
official survey showed on Tuesday, suggesting the economy is still
struggling to regain traction despite a flurry of support measures.

* The market is now eyeing a bevy of economic data from the euro zone and
the Fed’s statement on Wednesday.

* The Federal Reserve is expected to hold interest rates steady as
policymakers balance recent stronger-than-expected U.S. economic growth
against sluggish inflation.

* China’s net gold imports via main conduit Hong Kong in March rose 9.8
percent from the previous month, Hong Kong government data showed on Monday.

* Australia-based Newcrest Mining Ltd’s gold production in the third quarter
came in about 5 percent lower than in the prior quarter, hurt by lower
production at most of its operations, including its flagship Cadia mine.

* Newmont Goldcorp Corp said on Monday it plans to suspend operations at its
Peñasquito mine in Mexico due to a blockade by a trucking contractor and
some members of the Cedros community.

* Palladium fell by 7 percent on Monday to $1,361.50 an ounce, but recovered
some ground to settle at $1,370.50.

* Palladium was up 0.3 percent at $1,374.51 an ounce on Tuesday.

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
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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
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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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