Bulls n Bears Daily Market Commentary : 05 March 2019

Wed Mar 6 08:05:27 CAT 2019

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Bulls n Bears Daily Market Commentary : 05 March 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$7,220,472.58 with foreign buys at RTGS$2,590,897.00 and
foreign sales were RTGS$4,928,474.00. Total trades were 125.

The All Share index weakened by further 1.81 points  to close at 144.75
points. INNSCOR  led the shakers with a $0.0503 loss to settle at $1.6000,
DELTA  dropped by $0.0427 to $2.6998 and CASSAVA SMARTECH   was $0.0340 down
to $1.4015. CBZ  also decreased by $0.0198 to end at $0.1400 and PADENGA
traded $0.0175 lower at $0.9800.

Trading in the positive was OLD MUTUAL LIMITED  which recovered $0.0282 to
settle at $7.0000, ZIMRE HOLDINGS   added $0.0009 to $0.0220 and CAFCA
traded $0.0002 stronger at $1.0325.

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  Global Currencies & Equity Markets

Zimbabwe

Zimbabwe allows mines, others to import own fuel as shortages bite

(Reuters) - Zimbabwe on Tuesday allowed mining companies and other
businesses to import their own fuel following shortages that have gripped
the economy in the last six months due to a severe dollar crunch, a cabinet
minister said.

Supplies of fuel in the southern African nation have been intermittent since
September, which has seen motorists spending hours in queues at service
stations.

President Emmerson Mnangagwa in January announced a 150 percent hike in the
price of fuel, sparking violent protests in major towns, which were met by a
brutal security crackdown.

The world’s top two platinum producers Anglo American Platinum and Impala
Platinum Holdings are some of the big mining companies operating in
Zimbabwe, which will be able to buy their own fuel.

Zimbabwe’s central bank provides between $80 and $100 million a month in
scarce dollars to fuel companies to import the commodity. By allowing
companies to buy their own fuel, the government expects to ease pressure on
demand for dollars.

Long queues that resurfaced last week after a brief lull continued on
Tuesday and Mutsvangwa said the government had been forced to take 8 million
litres of diesel from the country’s strategic reserve to supply the market.

Despite previous promises by the central bank and energy minister to end the
fuel shortages, Zimbabwean motorists have got used to queuing for hours for
the scarce resource.

South Africa

South Africa's rand firms after GDP data, stocks weak

(Reuters) - South Africa’s rand firmed on Tuesday after data showing an
economic recovery from a recession continued in the fourth quarter of last
year, albeit at a slower rate.

Stocks weakened as the GDP figure was below market expectation.

At 1500 GMT, the rand was 0.42 percent firmer at 14.1400 per dollar,
compared to its close of 14.2000 on Monday.

South Africa suffered a recession in the first half of 2018 as farming
plunged after a drought, but growth has since recovered.

The economy grew 1.4 percent in October-December 2018, after expanding by a
revised 2.6 percent in the third quarter, Statistics South Africa said.

The Treasury has projected that the economy will grow 1.5 percent this year.
But risks such as electricity supply shortages remain after struggling power
utility Eskom resumed nationwide electricity cuts late in February.

Bonds firmed, with the yield on the benchmark paper due in 2026 dipping 6
basis points to 8.665 percent.

In equities, the local market shrugged off the GDP data as it opened in the
green before losing all its steam at 0730 GMT and drifting lower for the
rest of the trading session, with the Johannesburg All-share index closing
0.71 percent lower at 55,815 points.

The Top-40 index closed 0.62 percent weaker at 49,585 points.

Refinitiv’s consensus forecast was for growth of 1.6 percent
quarter-on-quarter.

Davies also blamed market heavyweight Naspers for the weakness after it gave
away its earlier gains.

Naspers closed 0.06 percent weaker at 3,155 rand after rising more than 3
percent earlier. 

       <mailto:info at bulls.co.zw> 

Asia

China stocks rally on stimulus hopes, Aussie dlr hit by weak GDP data

(Reuters) - Asian stocks held their ground on Wednesday as Chinese equities
soared on stimulus hopes, although a resurgence in regional tensions capped
broader gains with North Korea opting to restore part of a missile test site
it had began dismantling earlier.

The Shanghai Composite Index was up 1 percent, hovering near a nine-month
high, as China’s state planner said the government will boost domestic
consumption further this year. Beijing announced billions of dollars in tax
cuts and infrastructure spending on Tuesday to reduce the risk of a sharper
economic slowdown.

Hong Kong’s Hang Seng added 0.2 percent and Australian stocks advanced 0.7
percent as mining stocks climbed on the prospect of increased Chinese
stimulus.

Some of region’s other equity markets, however, underperformed.

South Korea’s KOSPI was down 0.3 percent following news that North Korea had
restored part of a missile test site, with U.S. President Donald Trump’s
national security advisor John Bolton warning that new sanctions could be
introduced if Pyongyang did not scrap its nuclear weapons program.

Japan’s Nikkei lost 0.7 percent. MSCI’s broadest index of Asia-Pacific
shares outside Japan nudged up 0.1 percent.

Robust U.S. economic data supported the dollar, but its Australian
counterpart slid after data showed the economy slowed to a near standstill
in the fourth quarter.

The Australian economy expanded just 0.2 percent in the fourth quarter,
slower than the 0.3 percent increase economists had forecast in a Reuters
poll. The Aussie was down 0.66 percent at $0.7036 following a slip to a
two-month trough of $0.7029.

Wall Street dipped on Tuesday as a drop in General Electric shares countered
positive retailer earnings and investors eyed a key resistance level for the
benchmark S&P 500 after the market’s run to a five-month peak on Monday.

A report from the Institute for Supply Management showed U.S.
non-manufacturing sector companies in February placing the most new orders
since August 2005, an indicator of robust health.

Beijing revealed at the annual meeting of its parliament on Tuesday that it
is targeting economic growth of 6.0 to 6.5 percent in 2019, less than the
6.6 percent gross domestic product growth reported last year.

On the trade front, U.S. Secretary of State Mike Pompeo said on Monday he
thought the United States and China were “on the cusp” of a deal to end
their trade war. Pompeo added on Tuesday that “Things are in a good place,
but it’s got to be right.”

The dollar held gains after rising against its peers on Tuesday’s upbeat ISM
non-manufacturing sector report.

The dollar was a touch lower at 111.76 yen after going as high as 112.135
overnight, its strongest since Dec. 20.

The euro was little changed at $1.1299 following a decline of 0.3 percent
the previous day, when it plumbed a two-week trough of $1.1289.

U.S. crude oil futures were down 0.8 percent at $56.12 per barrel after data
from the American Petroleum Institute (API), an industry group, showed a
larger-than-expected increase in U.S. crude stockpiles.

Brent crude eased 0.7 percent to $65.39 per barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold steadies above 5-week lows as market rally pauses

(Reuters) - Gold prices steadied on Wednesday, after recovering from a more
than five-week low in the previous session, supported by a pause in global
equities’ rally, while a firmer dollar curbed gains.

Spot gold was steady at $1,286.75 per ounce, as of 0528 GMT, after slipping
to $1,280.70 in the previous session, its lowest since Jan. 25.

U.S. gold futures were up about 0.3 percent at $1,287.90 per ounce.

Asian stocks held their ground on Wednesday as Chinese equities soared on
stimulus hopes, although a resurgence in regional tensions capped broader
gains.

The dollar index held near a two-week high hit in the previous session.

Markets were a bit cautious over the Sino-U.S. trade dispute and are
awaiting developments in talks between the two major economies after a
tit-for-tat tariff war, analysts said.

U.S. Secretary of State Mike Pompeo said President Donald Trump will reject
any trade deal that is not perfect but that they will still keep working on
an agreement rekindling concerns in the market.

While a series of robust data from the United States has strengthened the
dollar, the Federal Reserve’s patience on policy is nowhere close to running
out.

Markets will now look ahead to the European Central Bank’s monetary policy
meeting on Thursday and U.S. non-farm payrolls data on Friday.

On the technical front, gold is expected to hover above a support at $1,283
per ounce, as it seems to be stabilising around this level, according to
Reuters analyst Wang Tao.

However, gold continues to see downwards pressure from outflows in exchange
traded funds and a firmer dollar, MKS PAMP Group said in a note.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded
fund, dropped 2.7 percent so far this year.

Among the other precious metals, palladium slipped 0.4 percent to $1,509.40
per ounce.

Spot silver lost 0.3 percent to $15.08 per ounce, after slipping to its
lowest since Dec. 27 in the previous session, while platinum dipped 0.8
percent to $830.65 per ounce.

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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