Bulls n Bears Daily Market Commentary : 14 March 2019

Fri Mar 15 07:17:23 CAT 2019

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Bulls n Bears Daily Market Commentary : 14 March 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$3,340,019.07 with foreign buys at RTGS$1,555,873.50 and
foreign sales were RTGS$958,873.66. Total trades were 66.

The All Share index recovered 1.31 points   to close at 134.14 points.
Telecoms giant ECONET  added $0.1062 to close at $1.2414, OLD MUTUAL LIMITED
gained $0.0572 to settle at $7.3000 and SIMBISA   was $0.0300 stronger at
$0.7100. TSL  also increased by $0.0124 to settle at $0.7125 whilst WILLDALE
was $0.0012 firmer at $0.0190.

Trading in the negative was SEEDCO  which lost $0.0775 to $1.7975, MEIKLES
dropped $0.0274 to end at $0.4926 and ZIMPAPERS  eased $0.0068 to close at
$0.0790. DELTA   weakened by $0.0032 to $2.3969 and MASIMBA   traded $0.0008
lower at $0.0810.

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  Global Currencies & Equity Markets

South Africa

South African rand falls after poor data; equities flat

(Reuters) - The South African rand fell on Thursday, hurt by subdued
appetite for emerging market assets and data showing that output in two key
industrial sectors of mining and manufacturing remained weak, while the
stock market ended flat.

At 1510 GMT the rand traded at 14.4850 per dollar, 0.5 percent weaker than
its previous close.

Emerging market stocks and currencies slipped on Thursday as concern over
slowing growth reared its head again after data showed that Chinese
industrial output growth hit a 17-year low in the first two months of 2019.

Locally, figures from Statistics South Africa showed mining output
contracted for the sixth time in eight months in December, led by declines
for gold, iron ore and coal production.

Manufacturing output, meanwhile, came close to a standstill, expanding 0.3
percent on a yearly basis and contracting 2 percent from November, its worst
month-on-month performance in a year.

South Africa’s economy, Africa’s most industrialised, grew 0.8 percent in
2018, with the Treasury forecasting 1.5 percent expansion in 2019.

However, the nationwide electricity blackouts and subdued spending by
cash-strapped consumers and investors are viewed as obstacles to President
Cyril Ramaphosa’s plans to revive growth.

Power utility Eskom resumed power cuts on Thursday after a breakdown at its
mammoth Kusile power plant project exacerbated a shortfall in generating
capacity.

In fixed income, the yield on the 2026 bond rose 4 basis points to 8.76
percent.

On the stock market, the Top-40 index was largely unchanged, easing by 0.2
percent to 49,485 points, while the broader all-share index ended flat at
55,789 points.

Shares in Exxaro Resources rose 4.3 percent to 156.49 rand after the mining
company said its full-year earnings climbed 7 percent, boosted by higher
coal prices and the absence of one-off transactions a year earlier.

Kenya

Kenyan shilling expected to weaken due to energy sector demand

(Reuters) - The Kenyan shilling stable on Thursday but was forecast to ease
due to dollar demand from the energy sector that outweighed inflows from
horticulture and diaspora remittances, traders said. 

At 1206 GMT, commercial banks quoted the shilling at 100.10/30 per dollar,
compared with 100.05/25 at Wednesday's close. 

       <mailto:info at bulls.co.zw> 

Asia

Asian stocks up as Sino-U.S. trade talks in focus, dollar supported

(Reuters) - Asian stocks stepped ahead on Friday as sentiment improved on a
report that more progress has been made in U.S.-China trade talks and after
UK lawmakers voted to delay a potentially chaotic exit from the European
Union.

Chinese Vice Premier Liu He spoke by telephone with U.S. Treasury Secretary
Steven Mnuchin and U.S. Trade Representative Robert Lighthizer, with the two
sides making further substantive progress on trade talks, Xinhua news agency
said on Friday.

Yet, the prospect of the trade talks taking longer than expected tempered
the cheer, and there was still no clarity on how close the two economic
powers are on reaching an agreement.

Mnuchin said on Thursday that a summit to seal a trade deal between U.S.
President Donald Trump and his Chinese counterpart Xi Jinping will not
happen at the end of March as previously discussed because more work is
needed in negotiations.

MSCI broadest index of Asia-Pacific shares outside Japan gained 0.5 percent.

The Shanghai Composite Index added 1.3 percent.

Japan’s Nikkei climbed 1 percent and South Korea’s KOSPI rose 0.9 percent.

Global markets drew some relief overnight with European stocks rising to a
five-month high, boosted by strength in the banking sector after Britain’s
parliament voted to reject a disorderly Brexit.

But the S&P 500 dipped 0.1 percent, snapping a three-day winning run, and
the Nasdaq shed 0.2 percent on Thursday in the wake of uncertainty over when
a U.S.-China trade deal would be reached.

In the currency market, the pound was steady at $1.3237 , trimming some of
the heavy losses suffered overnight.

Sterling retreated 0.75 percent on Thursday as investors geared up for
British Prime Minister Theresa May to once more try and win approval for her
Brexit deal.

Her third chance to get the divorce deal approved came after British
lawmakers voted on Thursday to seek a delay in Britain’s exit from the
European Union.

The dollar held gains having snapped its four-day losing streak to a group
of six major peers.

The dollar index was little changed at 96.738 after rising 0.25 percent on
Thursday to bounce back from a nine-day trough of 96.385.

The greenback rose as U.S. Treasury yields climbed from two-month lows
marked earlier in the week, driven by corporate supply.

The dollar extended the previous day’s gains and was 0.1 percent higher at
111.84 yen.

The yen showed little response to the Bank of Japan’s widely expected
decision to keep interest rates unchanged. Not surprisingly, the central
bank offered a bleaker assessment of exports and output, as global demand
waned.

The euro edged up 0.1 percent to $1.1311 after slipping 0.2 percent
overnight.

U.S. crude oil futures declined 0.1 percent to $58.55 per barrel, losing
some steam after a recent surge but holding close to a four-month peak of
$58.74 brushed on Thursday.

Oil prices soared to the four-month high as investors focused on global
production cuts and supply disruptions in Venezuela. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper drops on weak Chinese data and surge in LME stocks

(Reuters) - Copper prices dropped on Thursday as industrial output in top
metals consumer China fell to a 17-year low in the first two months of 2019,
while LME stocks of the metal used in power and construction rose.

Other Chinese data showed a mixed picture as the jobless rate climbed but
property investment strengthened.

Deutsche Bank metals strategist Nick Snowdon said the delivery of copper
metal into LME warehouses “has been taken as a signal that we are seeing the
softness we saw in China feed into ex-China market”.

Benchmark copper on the London Metal Exchange closed 1.1 percent lower at
$6,404 per tonne, its lowest in nearly a week.

U.S. President Donald Trump and Treasury Secretary Steven Mnuchin said on
Thursday that discussions with China to end a months-long trade war are
progressing quickly, though Trump said he could not say whether a final deal
would be reached.

There were reports earlier saying a meeting between Washington and Beijing
scheduled for later this month could be pushed back to at least April.

Hopes for a resolution of the long-standing trade conflict have helped
propel the LME index of six major base metals up nearly 9 percent so far
this year.

STOCKS: On-warrant stocks of copper, those not earmarked for delivery, in
LME-approved warehouses jumped 34,900 tonnes to 66,325 tonnes. MCUSTX-TOTAL

SPREADS: The premium of cash copper over the three-month LME contract
CMCU0-3 eased to $20 a tonne from a discount of $70 last week, indicating
worries over tight supply were easing.

CHINA PREMIUMS: China’s Yangshan copper import premium SMM-CUYP-CN rose to
$59 from $52.5 registered a week ago, which was a level not seen since April
2017.

CHINA STEEL: China’s daily steel output rose in January and February, as
mills in the world’s top producer raised production amid firm steel margins
and easier environmental restrictions.

ZINC: Vedanta’s Skorpion zinc refinery in Namibia has suspended operations
for five weeks due to lack of raw feed material. The refinery has a capacity
of 100,000 tonnes annually.

ZINC STOCKS: Headline LME inventories of zinc fell 250 tonnes to 58,700
tonnes, their lowest since October 2007.

OTHER METALS: Aluminium fell 0.2 percent to $1,903 per tonne, zinc shed 0.8
percent to $2,825, lead ceded 0.7 percent to $2,114, tin eased 0.7 percent
higher at $21,170 and nickel lost 2.5 percent to $12,880.

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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