Bulls n Bears Daily Market Commentary : 30 April 2019

Tue Apr 30 22:16:50 CAT 2019

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Bulls n Bears Daily Market Commentary : 30 April 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 7,035,535.38 with foreign buys at RTGS$ 2,847,626.77
and foreign sales were RTGS$ 305,963.78. Total trades were 156.

The All Share index added another 2.34 points  to close at 133.69 points.
OLD MUTUAL LIMITED  gained $0.3954 to close at $9.9099, DELTA  increased by
$0.1054 to end at $2.7632 whilst INNSCOR  was $0.0731 firmer at $1.6344.
Other counters to advance include PADENGA  which traded $0.0463 stronger at
$1.1095 and FBC HOLDINGS  which rose by $0.0300 to close at $0.3800.

Three counters lost ground as ECONET  dropped $0.0092 to end at $1.0504,
NAMPAK  eased $0.0012 to settle at $0.3010 and WILLDALE  traded $0.0007
weaker at $0.0214.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Zambia

IMF staff says buildup of Zambia's domestic expenditure arrears poses risk

(Reuters) - The International Monetary Fund (IMF) said in preliminary
findings on Tuesday that a buildup in Zambia’s domestic expenditure arrears
was weighing on households and businesses, posing a risk for the financial
sector.

Zambia’s external debt rose to $10.05 billion at the end of last year from
$8.74 billion at the end of 2017.

Uganda

Ugandan shilling strengthens on the back of charity flows

(Reuters) - The Ugandan shilling strengthened on Tuesday, helped by hard
currency inflows from non-governmental organisations (NGOs) looking to pay
salaries and meet other operational expenses, traders said.

At 1008 GMT commercial banks quoted the shilling at 3,735/3,745, compared to
Monday’s close of 3,740/3,750. 

       <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

Copper prices rise despite weak Chinese factory data

(Reuters) - Copper prices rose on Tuesday as investors bet that top consumer
China would respond to weak factory data by implementing fresh stimulus
measures.

Zinc also gained more than 1 percent as surging premiums for cash metal on
the London Metal Exchange (LME) pointed to a shortage of nearby supply.

Benchmark LME copper on the LME closed 0.3 percent up at $6,415 a tonne.

The metal used in power and construction has gained about 8 percent this
year on hopes that China can prevent a sharp economic slowdown, though
prices have been trapped around $6,500 since late February.

He said a likely trade deal between the United States and China would lift
copper, but predicted prices would return to $6,500 a tonne at the end of
the year.

Further support came from a weaker U.S. dollar, making metals cheaper for
buyers with other currencies.

CHINA FACTORIES: Two surveys on Tuesday showed a loss of momentum in Chinese
factory activity in April.

The unexpected slowdown in growth followed upbeat data in March, which had
raised hopes that the world’s largest consumer of metals was getting back on
firmer footing.

TRADE WAR: U.S. Treasury Secretary Steven Mnuchin said he hoped to make
“substantial progress” with Chinese negotiators in the next two rounds of
trade talks.

WESTERN ECONOMIES: The euro zone and United States reported positive
economic data.

ZINC SPREAD: The premium for cash zinc over the three-month contract on the
LME MZN0-3 has leapt to $134.50, its highest since 1997, suggesting a
shortage of immediately available metal.

ZINC STOCKS: However, zinc stocks in LME-registered warehouses MZNSTX-TOTAL
have risen to 81,325 tonnes from record lows around 50,000 tonnes earlier
this month.

Stockpiles in Shanghai Futures Exchange (ShFE) warehouses, at 72,090 tonnes,
are down from about 124,000 tonnes in March but up sharply from the start of
the year. ZN-STX-SGH

ZINC PRICE: LME zinc ended 1.2 percent up at $2,825.50 a tonne, near a 9-1/2
month high of $2,958 reached on April 1.

GLENCORE: Glencore cut its target for 2019 copper output to about 1,460,000
tonnes from around 1,540,000 tonnes.

CHILE: Copper output in Chile fell 3.5 percent to 479,080 tonnes in March.

CHALCO: China’s Chalco said that first-quarter aluminium output fell to
950,000 tonnes from 1.02 million tonnes a year earlier.

COLUMN: Aluminium’s bull narrative is lost in the shadows, writes Reuters
columnist Andy Home.

OTHER METALS: LME aluminium finished 1.6 percent down at $1,798 a tonne,
lead fell 2.3 percent to $1,925 and tin closed flat at $19,650.

Nickel did not trade in closing rings but was 1.2 percent lower at $12,260
at 1619 GMT in electronic trading.

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

Workers Day

01 May  2019

Africa Day

25 May 2019

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been compiled from sources believed to be reliable, but no representation or
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opinions expressed and recommendations made are subject to change without
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for guideline purposes only and sourced from third parties.

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