Bulls n Bears Daily Market Commentary : 26 March 2019

Wed Mar 27 07:52:01 CAT 2019

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Bulls n Bears Daily Market Commentary : 26 March 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$6,505,603.81 with foreign buys at RTGS$742,883.38 and
foreign sales were RTGS$4,912,996.24. Total trades were 207.

The All Share index retreated 0.93 points  to close at 120.87 points. PPC
lost $0.3300 to end at $1.3200, TSL  dropped $0.1000 to $0.6000 and OLD
MUTUAL traded $0.0658 weaker at $7.0437. HIPPO VALLEY ESTATES  also
decreased by $0.0239 to settle at $1.5050 and NMB  eased $0.0205 to end at
$0.2195.  

Trading in the positive was PADENGA  which added $0.0173 to $0.9723, INNSCOR
gained $0.0155 to trade at $1.3002 and ZIMPAPERS traded $0.0080 higher at
$0.0870. DAWN   increased by $0.0040 to settle $0.0240 and SEEDCO
INTERNATIONAL  put on $0.0039 to close at $1.3039. 

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South  Africa

South Africa's rand slips as dollar rebounds, stocks tick up

(Reuters) - South Africa’s rand slipped on Tuesday, surrendering the
previous session’s gains as the dollar rebounded from a sell-off triggered
by fears the United States economy is heading for recession.

Stocks closed up slightly as riskier assets showed signs of stability, while
the bullion sector weighed on further gains.

The rand was 0.66 percent weaker at 14.4050 per dollar at 1613 GMT, compared
to a close of 14.3100 overnight in New York.

On Monday, the rand gained more than 1 percent in a broad emerging market
rally sparked by renewed fears that economic growth in developed markets was
set to contract after an inversion of the U.S. yield curve and poor
manufacturing data from Germany and Japan.

Locally, with no top tier data due, investors are waiting for Thursday’s
central bank monetary policy decision, and a Moody’s rating review on
Friday, which is likely to be after local markets close.

A Reuters poll last week forecast the bank will leave lending rates
unchanged 6.75 percent.

Government bonds also weakened, with the yield on benchmark 2026 paper
adding 3 basis points to 8.74 percent.

On the bourse, the Johannesburg All-Share index ticked up 0.49 percent to
55,638 points and the Top-40 index was up 0.43 percent at 49,372 points.

Among the decliners, the gold sector fell 1.18 percent after spot gold
prices retreated from more than three-week highs on Tuesday.

Gold Fields closing down 2.38 percent to 57.73 rand and AngloGold Ashanti
1.03 percent lower at 205.33 rand. 

Mozambique

IMF says will consider emergency financial assistance for Mozambique after
cyclone

(Reuters) - The International Monetary Fund said on Tuesday it will consider
emergency financial assistance in Mozambique under an IMF Rapid Credit
Facility after Cyclone Idai ripped through three southern African countries
killing at least 686 people.

       <mailto:info at bulls.co.zw> 

Asia

Asian shares lose steam on U.S. recession fears; kiwi dives on RBNZ signal

(Reuters) - Asian shares slipped on Wednesday, giving up small gains made
the previous day as investors tried to come to terms with a sharp shift in
U.S. bond markets and the implications for the world’s top economy.

MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1 percent
while Japan’s Nikkei average lost 0.6 percent.

Chinese stocks bucked the trend, with the benchmark Shanghai Composite
rebounding 0.6 percent, the blue-chip CSI 300 climbing 1.1 percent, and Hong
Kong’s Hang Seng advancing 0.5 percent.

Wall Street’s main indexes tallied solid gains on Tuesday but finished below
their session highs in a reflection of the underlying concerns about the
economic outlook.

The S&P 500 gained 0.72 percent while the Nasdaq Composite added 0.71
percent.

The 10-year U.S. Treasuries yield inched to as high as 2.432 percent from
Monday’s 15-month low of 2.377 percent, though the yield curve remained
inverted, with three-month bills yielding 2.461 percent, more than 10-year
bonds.

The inversion spooked many investors as this phenomenon has preceded every
U.S. recession over the past 50 years, triggering a dramatic selloff in
stock markets globally late last week and a stampede into longer-dated U.S.
government debt.

The silver lining for stock bulls is that in the past, it has usually taken
many months before the United States slipped into recession after the curve
was first inverted.

Yet the signs from a raft of economic data, including a set of indicators on
Tuesday, weren’t encouraging.

Home building fell more than expected in February as construction of
single-family homes dropped to near a two-year low while the consumer
confidence index by the Conference Board fell unexpectedly.

Many major economies in the world, including China, Europe and Japan, are
already slowing down, not helped by uncertainties stemming from trade
frictions between the U.S. and China as well as Brexit.

A senior International Monetary Fund official said on Tuesday trade tensions
between the U.S. and China have caused huge amounts of economic uncertainty
and could cut Asia’s economic growth by 0.9 percentage point.

Investors are left wondering what to expect on Britain’s plan to exit from
the European Union, with potential scenarios spanning from a cancellation of
Brexit to a no-deal exit.

Prime Minister Theresa May will address Conservative Party lawmakers,
possibly to set out a timetable for her departure, to win support for her
twice-rejected Brexit deal as the parliament prepares to vote on a variety
of possible options.

Ahead of the so-called indicative votes, the pound inched 0.1 percent lower
to $1.3185.

The euro slipped to a two-week low of $1.1251 as the dollar gained some
footing on a rebound in U.S. bond yields.

The dollar edged back to 110.55 yen, from Monday’s 1-1/2-month low of
109.70.

The New Zealand dollar took a tumble after the country’s central bank
blindsided markets by saying the next move in interest rates would likely be
down, abandoning its long-standing neutral stance.

While the Reserve Bank of New Zealand (RBNZ) kept the official cash rate
(OCR) at 1.75 percent as expected, it surprised many by flatly stating “the
more likely direction of our next OCR move is down.”

The kiwi dollar dived 1.6 percent to a two-week low at $0.6797, while bond
and bill futures rallied sharply, taking yields to fresh all-time lows.

The Australian dollar was dragged down in its wake, falling 0.4 percent to
$0.7102, though the Aussie did make hefty gains on its kiwi counterpart.

Oil prices remained supported by supply curbs by the Organization of the
Petroleum Exporting Countries plus allies and as Venezuela’s main oil export
port and four crude upgraders have been unable to resume operations
following a massive power blackout.

Brent crude oil futures rose 0.2 percent to $68.12 per barrel while U.S.
crude futures edged up 0.1 percent to $60.01.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Shanghai zinc hits 1-year high; tight stocks, trade talks in focus

(Reuters) - Most base metals moved higher in early Asian trade on Wednesday,
with Shanghai zinc touching a more than one-year high, as investors focused
on tight inventory levels and the resumption of U.S.-China trade talks in
Beijing this week.

The United States Trade Representative Robert Lighthizer and Treasury
Secretary Steven Mnuchin are expected to arrive in Beijing later on
Wednesday for talks starting on Thursday.

Copper steady as growth concerns deepen and trade talks loom

(Reuters) - Copper prices held steady on Tuesday as a murky global economic
growth outlook sapped demand ahead of a new round of trade talks between the
United States and China this week.

Benchmark copper ended 0.2 percent lower at $6,330 a tonne, having touched
its lowest in a month in the previous session before closing 0.4 percent up.

An inversion of the U.S. yield curve, which is widely viewed as an indicator
of an economic recession, stoked fears that the world’s biggest economy was
headed for contraction.

More immediately, the next round of U.S.-China talks to end a long and
damaging trade war kicks off this week as a U.S. trade delegation visits
China.

PERU: Chinese miner MMG said it expects to declare force majeure on
contracts for copper from its Las Bambas deposit in Peru after a weeks-long
blockade by an indigenous community.

COPPER SPREADS: The physical signs were still indicating plentiful supply as
cash copper flipped from a premium to $3 a tonne discount over the
three-month contract CMCU0-3. This was down from a $70 a tonne premium
touched on March 5.

TECHNICALS: LME copper formed a top at its current March high of $6,555.50
and should slide to the 200-day moving average at $6,206.96, said
Commerzbank senior analyst Axel Rudolph.

LEAD PRICES: Lead hit its lowest in two months at $2,001.50 a tonne even as
stocks in LME-approved warehouses remained around 2009 levels at 79,424
tonnes. MPBSTX-TOTAL At the close, lead was down 0.9 percent at $1,992.50
per tonne. ZINC: China’s refined zinc imports plunged to a two-year low of
20,350 tonnes in February, customs data showed, owing to unfavourable
arbitrage between London and Shanghai.

RESTARTS: Miners Rio Tinto and BHP Group said they had begun to resume
operations at some facilities that were halted as two separate cyclones
battered Australia’s northern coastline over the weekend.

PRICES: Aluminium rose 0.2 percent to $1,886 a tonne, zinc gained 1.5
percent to $2,874, tin shed 0.1 percent to $21,275 and nickel was up 1.2
percent at $13,100.

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

 <mailto:info at bulls.co.zw> 

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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