Bulls n Bears Daily Market Commentary : 02 May 2019

Fri May 3 07:36:28 CAT 2019

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Bulls n Bears Daily Market Commentary : 02 May 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$12,614,927.94 with foreign buys at RTGS$ 9,502,268.72
and foreign sales were RTGS$ 8,774,806.09. Total trades were 174.

The All Share index continues in the positive territory after gaining 1.51
points  to close at 135.20 points. OLD MUTUAL LIMITED went further up by
$0.1647 to close at $10.0746, DELTA   rose by $0.0619 to end at $2.8251
whilst HIPPO VALLEY ESTATES was $0.0462 firmer at $1.6025. INNSCOR also
increased by $0.0290 to end at $1.6634 and OK ZIMBABWE  traded $0.0199
higher at $0.2799.

Gains were partially offset by losses in RIOZIM which lost $0.0201 to settle
at $1.7400, TURNALL  eased $0.0060 to end at $0.0800 and AXIA  traded
$0.0013 weaker at $0.3615. FIRST MUTUAL PROPERTIES  also decreased by
$0.0001 to settle at $0.0596.

\ <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Uganda

Uganda shilling inclined on weaker side amid uptick in banks' demand

Reuters) - The Ugandan shilling was inclined on the weaker side on Thursday,
undermined by a pick up in demand for hard currency by players in the
interbank market, traders said.

At 0931 GMT commercial banks quoted the shilling at 3,753/3,763, compared
with Tuesday’s close of 3,750/3,760.

The Ugandan money market was closed on Wednesday for a public holiday.

South Africa

South Africa's rand weaker after U.S. Fed holds lending rates, stocks gain

(Reuters) - South Africa’s rand weakened on Thursday, alongside emerging
markets, after the United States central bank kept benchmark lending rates
unchanged, but struck a hawkish tone.

Meanwhile, an uptick in vehicle sales lifted car retailers.

At 1609 GMT the rand was 0.59 percent weaker than its New York close, at
14.54 per dollar.

The U.S. Federal Reserve on Wednesday held interest rates steady and
signalled little appetite to adjust them any time soon, but with headwinds
on the horizon for emerging markets, including rising oil prices and
political uncertainty, investors opted to keep holding dollars.

Sentiment however remains focused on South Africa’s election next week, with
the vote set to be the most tightly contested since the end of apartheid 25
years ago and the ruling African National Congress’s large majority set to
narrow due to anger over unemployment and poverty.

Three polls this week showed the ANC, led by Cyril Ramaphosa, clinching a
narrow majority, an outcome seen by many investors as key to the policy
certainty necessary to reignite economic growth which has flat lined in the
last decade.

Bonds also weakened, with the yield on the benchmark 10-year government
issue up 6 basis points to 8.610 percent.

On the bourse, stocks rose with the benchmark Top-40 index up 0.42 percent
to 52,495.40 while the Johannesburg broader All-Share Index closed 0.37
percent up at 58,743.56.

A 0.7 percent increase in new vehicle sales in April provided some comfort
to car retailers such as Combined Motor Holdings, Bidvest Group and
automotive group Motus holdings, which rose 1.34, 2.34 and 2.25 percent
respectively.

Health and wellness group Ascendis Health jumped nearly 8 percent after
announcing plans to sell three businesses in its Biosciences division for
480 million rand ($33 million). It pared gains to close 1.58 percent firmer.

       <mailto:info at bulls.co.zw> 

Asia

Asian markets calm as investors await U.S. jobs report

(Reuters) - Asian share markets were subdued on Friday amid thin holiday
trade although the dollar found support as investors pared expectations for
a U.S. rate cut this year while oil prices loitered near one-month lows on
oversupply fears.

Australia’s benchmark index was last up 0.2 percent, New Zealand shares were
off 0.5 percent while South Korea’s KOSPI slipped 0.3 percent. Trading
volumes were light across Asia with markets in China and Japan still closed
for holidays.

Overnight on Wall Street, major indices gave up initial gains and closed in
the red, weighed down by energy shares.

World stocks have rallied hard this year - the S&P 500 has climbed more than
16 percent so far in 2019 - but further gains will be hard to come by,
analysts at Capital Economics said.

Capital Economics forecast the S&P 500 would drop to 2,300 points by
Christmas from current levels of just under 2,900.

Investors await U.S. employment figures due later in the day, which is
forecast to show 185,000 net new jobs were added in April and the
unemployment rate steady at 3.8 percent.

A solid reading would bolster the notion the world’s biggest economy is on
track for its longest expansion ever, further boosting the greenback and
prospects for corporate earnings.

Global policymakers are grappling with tepid wage growth and lukewarm
inflation despite a surge in jobs and still strong economic expansion,
complicating monetary policy decision-making.

In the currency markets, the biggest movers were the Australian and New
Zealand dollars, which fell as speculators wagered both countries could see
interest cuts next week.

The Aussie slipped below psychological support of $0.7000 overnight to the
lowest since early January while the kiwi dollar drifted closer to a recent
five-month trough of $0.6581.

The weakness in the antipodean currencies also came as the U.S. dollar
gained on remarks by U.S. Federal Reserve Chair Jerome Powell earlier this
week that a recent weakness in inflation owed to “transitory” factors.

That led traders to start paring the chance of Fed rate cut. Futures now
imply about a 49 percent probability of an easing at year-end, down from 61
percent late on Wednesday, according to CME Group’s FedWatch program.

The dollar index held at 97.814, inching towards a two-year peak of 98.33
touched last week.

Against the Japanese yen, the dollar was idling at 111.46 having spent the
entire week in a tight 111.03-111.89 range.

In commodities markets, oil prices fell after U.S. crude production output
set a new record, though the losses were capped by the intensifying
political crisis in Venezuela and the stopping of Iranian oil sanction
waivers by Washington.

U.S. crude was flat at $61.81 a barrel while Brent slipped 21 cents to
$70.54. Spot gold was marginally higher at $1,271.2 an ounce.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper recovers from 2-1/2-month low; Tesla sees shortage of copper, nickel

(Reuters) - Copper prices and other industrial metals rebounded slightly on
Friday in thin Labour Day holiday trade, with electric vehicle maker Tesla
Inc expecting a global shortage for nickel and copper.

Tesla, a major minerals consumer, saw shortages of nickel, copper and other
electric-vehicle battery minerals down the road due to under-investment in
the mining sector, its global supply manager for battery metals told a
conference on Thursday.

Three-month copper rose 0.2 percent to $6,177.50 a tonne at 0204 GMT,
rebounding from a two-and-a-half-month low hit in the previous session.

Copper has been under pressure on uncertain demand outlook from China, the
world’s biggest consumer of the red metal, as the Chinese economic growth
has yet shown a steady sign of stabilising after last year’s slowdown.

FUNDAMENTALS

* Latest data showed copper stocks in LME-approved warehouses MCUSTX-TOTAL
rebounded slightly to 231,950 tonnes on Wednesday when the LME copper
cash-to three month spread CMCU0-3 returned to the discount zone.

* Nickel increased 0.3 percent. Nickel stocks in LME-approved warehouses
MNISTX-TOTAL was at its lowest level since April 2013, latest data showed.

* LME Asia Week, London Metal Exchange’s Hong Kong gathering of executives,
traders and brokers, will kick off on Monday.

* A U.S. senator planned to introduce legislation on Thursday to streamline
regulation and permitting requirements for the development of mines for
electric-vehicle supply chain minerals, part of a plan to offset China’s
dominance in the space.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Asian share markets were subdued amid thin holiday trade although the
dollar found support as investors trimmed hopes for a U.S. rate cut this
year while oil prices loitered near one-month lows on oversupply fears..

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

Africa Day

25 May 2019

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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
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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
whatsoever for any loss howsoever arising from any use of this report or its
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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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