Bulls n Bears Daily Market Commentary : 18 March 2019

Tue Mar 19 06:20:59 CAT 2019

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Bulls n Bears Daily Market Commentary : 18 March 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$1,089,829.79 with foreign buys at RTGS$319,106.79 and
foreign sales were RTGS$492,871.20. Total trades were 80.

The All Share index opened the week in red after losing a significant 5.05
points to close at 128.67 points. PPC  led the shakers with a $0.2000 loss
to settle at $1.7000, ECONET   dropped $0.1611 to end at $1.1039 whilst
SEEDCO INTERNATIONAL LIMITED  was $0.1400 down at $1.5000. CASSAVA SMARTECH
also deacreased by $0.1031 to end at $1.1502 and DELTA  traded $0.0499
weaker at $2.3001.

Four counters gained groud as HIPPO VALLEY ESTATES   added $0.1075 to
$1.5500, PADENGA put on $0.0092 to $0.9400 and UNIFREGHT  was $0.0008
stronger at $0.1010. AXIA   increased by a marginal $0.0002 to close at
$0.4000.

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  Global Currencies & Equity Markets

South Africa

South Africa's rand weakens on power cuts, stocks rise

(Reuters) - South Africa’s rand weakened on Monday after power utility Eskom
said it would carry out more power cuts this week as it struggles with
capacity shortages, weighing on investor sentiment.

At 1504 GMT, the rand traded at 14.4475 per dollar, 0.4 percent weaker than
its New York close on Friday.

Eskom said it would continue to implement rolling blackouts on Monday and
Tuesday with 4,000 megawatts to be cut from the grid on a rotational basis,
locally known as ‘loadshedding’.

“Eskom’s ongoing and extended load-shedding schedule will likely continue to
weigh on possible prospects of an economic recovery,” Nedbank analysts said
in a note.

Analysts say power cuts, which have happened in several rounds since June
last year, are one of the reasons why business confidence has slumped in
recent months.

The economy grew by just 0.8 percent last year, insufficient to meaningfully
reduce poverty or South Africa’s high unemployment rate of 27 percent.

Currency traders were now looking for further direction from South Africa’s
February consumer price inflation data on Wednesday and the U.S. Federal
Reserve’s interest rate decision due later this week.

In fixed income, the yield on the benchmark government bond maturing in 2026
rose 2.5 basis points to 8.695 percent.

Stocks meanwhile rose, with the Johannesburg Stock Exchange’s top-40 index
closing 1.42 percent higher, at 50,388 points. The broader all-share index
rose 1.3 percent to 56,769 points.

The biggest winner on the bourse was South African retailer Steinhoff, which
has lost 216 billion rand in market value since December 2017 when it
disclosed a large hole in its accounts in what would become the country’s
biggest corporate scandal.

It rose more than 7 percent on Monday, the first trading session after it
published long-awaited details of a probe by PwC into the fraud at the
company, which the auditor found totalled $7.4 billion.

Kenya

Kenyan shilling under pressure from importer demand

(Reuters) - The Kenyan shilling was under pressure against the dollar on
Monday amid dollar demand from oil and merchandise importers, traders said.

At 0800 GMT, commercial banks quoted the shilling at 100.35/55 per dollar,
compared with 100.25/45 at Friday's close. 

       <mailto:info at bulls.co.zw> 

Asia

Asian shares flat as Fed looms, May's Brexit deal in chaos

Asian shares held tight ranges on Tuesday ahead of the a Federal Reserve
policy meeting, but were broadly supported near six-month highs on
expectations the central bank might strike a dovish tone, while fresh Brexit
worries dogged the pound.

MSCI’s broadest index of Asia-Pacific shares outside Japan was flat, easing
back from its highest level since Sept. 21 hit earlier in the session.

Japan’s Nikkei average dropped 0.3 percent, while Australian stocks eased
0.1 percent.

Chinese stocks held tight ranges, with benchmark Shanghai Composite hovering
almost flat, the blue-chip CSI 300 declining 0.2 percent, and the Hang Seng
edging 0.1 percent lower.

All three major U.S. indexes rose overnight, lifted by the bank and tech
sectors, with the Dow Jones Industrial Average , the S&P 500, and the Nasdaq
Composite adding between 0.3 and 0.4 percent each.

With global economic growth appearing to slow, traders were focused on the
Fed meeting, which kicks off its two-day policy meeting later in the day,
for clues about the likely path of U.S. borrowing costs.

Investors will particularly look to see whether policymakers have
sufficiently lowered their interest rate forecasts to more closely align
their “dot plot”, a diagram showing individual policymakers’ rate views for
the next three years.

Also expected is more detail on a plan to stop cutting the Fed’s holdings of
nearly $3.8 trillion in bonds.

In the currency market, the pound found firmer footing on Tuesday after
slipping to as low as $1.3183 overnight as lawmakers cast doubt on Prime
Minister Theresa May’s third attempt to get parliament to back her Brexit
deal.

May’s Brexit plans were thrown into further turmoil on Monday when the
speaker of parliament ruled that she could not put her divorce deal to a new
vote unless it was re-submitted in fundamentally different form.

May has only two days to win approval for her deal to leave the European
Union if she wants to go to a summit with the bloc’s leaders on Thursday
with something to offer them in return for more time.

Meanwhile, senior diplomats said the European Union leaders could hold off
making any final decision on any Brexit delay when they meet in Brussels
later this week, depending on what exactly May asks them for.

The dollar index against a basket of six major currencies barely moved and
was at 96.475, hovering close to a two-week low. The index has lost 1.2
percent after hitting a three-month high of 97.710 marked on March 7.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper, aluminium rise on China tax policy boost for manufacturers

(Reuters) - Copper and aluminium prices ticked up on Tuesday, supported by
China’s announcement to cut tax for manufacturers from next month to boost
growth in the world’s second-largest economy.

China will cut value-added tax for manufacturing and other sectors on April
1, Premier Li Keqiang said on Friday, adding that cuts in taxes and fees
remained a key measure to cope with downward pressure on its economy.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange rose 0.3 percent to
$6,440.5 a tonne by 0122 GMT, while the most-traded copper contract on the
Shanghai Futures Exchange edged up 0.1 percent to 49,260 yuan a tonne.

* Aluminium and nickel contracts ticked up on both London and Shanghai
exchanges, with the three-month London aluminium hovering near an
over-two-week high level.

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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