Bulls n Bears Daily Market Commentary : 20 March 2019

Thu Mar 21 08:06:10 CAT 2019

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Bulls n Bears Daily Market Commentary : 20 March 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$4,987,004.18 with foreign buys at RTGS$1,360,521.65 and
foreign sales were RTGS$3,084,521.50. Total trades were 155.

The All Share index retreated by 2.65 points  to close at 127.07 points.
SEEDCO  dropped by $0.3575 to $1.4400, OLD MUTUAL LIMITED   eased $0.2637 to
end at $7.0259 and SEEDCO INTERNATIONAL LIMITED  traded $0.2000 weaker at
$1.3000. CASSAVA SMARTECH  also lost $0.0873 to settle at $1.1110 and
INNSCOR  was $0.0294 down at $1.3706.

Trading in the positive was ECONET  which added $0.0437 to close at $1.1959,
PADENGA  gained $0.0107 to $0.9532 whilst AFDIS  went up by $0.0025 to
settle at $1.7000. DELTA   increased by $0.0012 to $2.3001 and  WILLDALE
recovered $0.0010 to settle at $0.0190.

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  Global Currencies & Equity Markets

Ghana

Ghana successfully completes IMF programme

(Reuters) - Ghana has successfully completed a three-year programme with the
International Monetary Fund, the international lender said on Wednesday
after approving the disbursement of a final tranche of $185 million to the
West African country.

The roughly $920 million aid package was first approved in 2015, but was
extended for an additional year in 2017. It aimed to fix an economy dogged
by inflation and high public debt. 

Kenya

Kenyan shilling weakens against dollar amid demand from energy sector

(Reuters) - The Kenyan shilling weakened against the dollar on Wednesday due
to dollar demand from the energy sector outweighing dollar supply from
horticulture exports, traders said.

At 0839 GMT, commercial banks quoted the shilling at 100.90/101.10 per
dollar, compared with 100.75/95 at Tuesday's close. 

       <mailto:info at bulls.co.zw> 

Asia

Asian shares up on accommodative Fed; growth concerns linger

(Reuters) - Shares in Asia rose on Thursday after the U.S. Federal Reserve
took a more accommodative stance at its policy meeting, but concerns over
U.S.-China trade talks and slowing global growth capped broad gains and
pulled some markets lower.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.5
percent.

Chinese blue-chips, which spent the morning swinging between small losses
and gains, were flat, while Seoul’s Kospi added 1 percent as regulators
announced plans to cut the stock transaction tax this year.

Australian shares, which had risen earlier in the session, turned lower,
dropping 0.5 percent.

Markets in Japan are closed on Thursday for a public holiday.

Gains in the broad Asian index followed a wobbly session on Wall Street
overnight, after a move toward risk taking sparked by the Fed’s dovish shift
was overtaken by growth and trade concerns.

U.S. President Donald Trump on Wednesday warned that Washington may leave
tariffs on Chinese goods for a “substantial period” to ensure Beijing’s
compliance with any trade deal.

China-U.S. trade talks are set to resume next week.

Trump’s comments had more of an effect on U.S. shares than their Asian
counterparts, said Sean Darby, chief global equity strategist at Jefferies
in Hong Kong, adding that a move lower in U.S. rates “actually has a far
bigger impact or efficacy in EM and Asia than in the United States itself.”

In comments at the end of a two-day policy meeting Wednesday, the Fed
abandoned projections for any interest rate hikes this year amid signs of an
economic slowdown, and said it would halt the steady decline of its balance
sheet in September.

But while investors cheered the Fed’s new approach, the reasons behind it
are creating concern.

The Dow Jones Industrial Average fell 0.55 percent to 25,745.67, the S&P 500
lost 0.29 percent to 2,824.23 and the Nasdaq Composite added less than 0.1
percent to 7,728.97.

FALLING YIELDS

The Fed’s comments dragged yields on benchmark U.S. Treasuries lower, with
10-year notes yielding 2.5245 percent compared with a U.S. close of 2.537
percent on Wednesday.

The abandonment of plans for more rate hikes this year pushed the two-year
yield, sensitive to expectations of higher Fed fund rates, to 2.3982
percent, down from a U.S. close of 2.4 percent.

The dollar continued to ease after falling on Wednesday, with a basket
tracking the currency against major rivals edging down to 95.874. The
greenback was down about 0.1 percent against the Japanese currency, buying
110.59 yen.

The euro was up 0.14 percent on the day at $1.1427, while sterling rebounded
from a sharp drop Wednesday after British Prime Minister Theresa May asked
the EU to delay Brexit until June 30, a shorter extension than some in the
market had been expecting.

May later said she was “not prepared to delay Brexit any further.”

The pound was up 0.2 percent at $1.3221.

Global growth worries extended to commodity markets, where oil prices, which
had jumped Wednesday on supply concerns, retreated.

U.S. crude fell 0.1 percent to $60.17 a barrel after touching four-month
highs on Wednesday. Brent crude was a touch lower at $68.47.

Declines in oil prices, however, are seen to be limited by efforts led by
the Organization of the Petroleum Exporting Countries (OPEC) to curb supply.
Widely watched U.S. data also showed supplies were tightening.

Gold gained on the weaker dollar, with spot gold adding about 0.5 percent to
$1,318.40 per ounce.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold near 3-week peak on dovish Fed; palladium at record high

(Reuters) - Gold rose on Thursday, trading close to a three-week peak hit in
the previous session after the U.S. Federal Reserve phased out a possibility
of an interest rate hike this year, while palladium scaled a record peak on
supply issues.

FUNDAMENTALS

* Spot gold gained 0.3 percent at $1,315.81 per ounce as of 0114 GMT, after
touching its highest since Feb. 28 at $1,316.58 in the previous session.

* U.S. gold futures rose 1.1 percent to $1,316.10 an ounce.

* Spot palladium gained 0.4 percent to $1,609.70 an ounce, after registering
a record high at $1,615.5 earlier in the session.

* The dollar nursed heavy losses in Asia on Thursday after the Federal
Reserve stunned markets by abandoning all plans to raise rates this year, a
signal its three-year campaign to normalise policy might be at an end.

* Having downgraded their U.S. growth, unemployment and inflation forecasts,
policymakers said the Fed’s benchmark overnight interest rate, or fed funds
rate, was likely to remain at the current level of between 2.25 percent and
2.50 percent at least through this year.

* Shares in Asia rose on Thursday after the Fed’s policy decision, but
concerns over slowing global growth and U.S.-China trade talks are expected
to limit gains.

* U.S. President Donald Trump warned on Wednesday that the United States may
leave tariffs on Chinese goods for a “substantial period” to ensure that
Beijing complies with any trade agreement.

* Prime Minister Theresa May made an impassioned appeal to British lawmakers
to support her on Wednesday after the European Union said it could only
grant her request to delay Brexit for three months if parliament next week
backed her plans for leaving.

* Rapid flows of investor money into physically backed platinum
exchange-traded funds (ETFs) and a sharp drop in speculative bets on lower
prices suggest the autocatalyst metal is on the verge of a recovery.

* Citigroup Inc plans to sell several tons of gold placed as collateral by
Venezuela’s central bank on a $1.6 billion loan after the deadline for
repurchasing them expired this month, sources said, a setback for President
Nicolas Maduro’s efforts to hold onto the country’s fast-shrinking reserves.

* South Africa’s labour court ruled on Wednesday that the extension of a
wage agreement to cover all gold unions and non-unionised employees of
mining group Sibanye-Stillwater is valid and lawful, the miner said.

London copper hits 3-week high on dollar weakness, tight supply

(Reuters) - London copper and most other base metals rose on Thursday,
backed by a softer dollar after the U.S. Federal Reserve abandoned plans for
a further rate rise this year, and by a lack of near-term supply.

The dollar nursed heavy losses in Asia after the Fed stunned markets by
abandoning all plans to raise rates this year, a signal its three-year
campaign to normalise policy might be at an end.

FUNDAMENTALS

* COPPER: London Metal Exchange copper rose 1 percent to $6,518.5 a tonne by
0410 GMT, having touched a near three-week high earlier in the session.
Prices are testing a resistance around $6,505, with a break of the
$6,540-level potentially opening the way to peaks last seen in July 2018.

* SHFE: On the Shanghai Futures Exchange, copper traded slightly firmer,
while zinc rose 0.8 percent amid a lack of supply. Zinc prices hit 22,170
yuan ($3,317.67) last week, their highest since last April.

* TRADE: U.S. President Donald Trump warned on Wednesday that the United
States may leave tariffs on Chinese goods for a “substantial period” to
ensure that Beijing complies with any trade agreement.

* COPPER: The market was in a 387,000 tonne deficit in 2018 compared with a
265,000 tonne deficit the year before, the International Copper Study Group
said.

* SPREADS: Short-dated copper spreads have flared out over the past month,
illustrating a lack of immediately available supply, even after 70,000
tonnes arrived in LME warehouses last week. CMCUT-0

* LME data shows a dominant holder of copper warrants and nearby futures
positions, suggesting lending guidance is in play. <0#LME-WHT> <0#LME-WHC>

* PHILIPPINE NICKEL: Philippine nickel producer DMCI Mining Corp, a unit of
conglomerate DMCI Holdings Inc, said it expected 2019 to be a tough year,
with one of its two mines still suspended and its inventory almost depleted.

* ELECTRIC VEHICLES: Amnesty International attacked the electric vehicle
(EV) industry on Thursday for selling itself as environmentally friendly
while producing many of its batteries using polluting fossil fuels and
unethically sourced minerals.

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

Dairibord

Analysts Briefing

Palm Court, Meikles Hotel, Harare

20 March 2019 3pm

CFI

AGM

Farm & City Boardroom, 1st Floor Farm & City Complex, 1 Wynne Street

26 March 2019 11am

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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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
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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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