Bulls n Bears Daily Market Commentary : 03 May 2019

Mon May 6 06:34:00 CAT 2019

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Bulls n Bears Daily Market Commentary : 03 May 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 11,397,532.44 with foreign buys at RTGS$ 7,445,065.51
and foreign sales were RTGS$ 5,751,314.70. Total trades were 154.

The All Share index closed the week on a high note adding 0.50 points  to
end at 135.70 points. OLD MUTUAL LIMITED  maintains its bullish trend as it
gained $0.0871 to settle at $10.1617, INNSCOR  rose by $0.0387 to $1.7021
and DELTA  firmed by $0.0250 to end at $2.8501. Other counters to strengthen
include PPC which added $0.0226 to close at $1.4150 and AFRICAN SUN  which
traded $0.0195 higher at $0.2500.

In the negative was PADENGA  which eased $0.0143 to $1.1079, CASSAVA
SMARTECH  dropped $0.0072 to end at $1.0678 and FIRST MUTUAL LIMITED  was
$0.0060 weaker at $0.1300. FIRST MUTUAL PROPERTIES also decreased by $0.0044
to $0.0552 and OK ZIMBABWE was $0.0034 down at $0.2765.

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  Global Currencies & Equity Markets

South Africa

South Africa's rand firms against greenback, stocks rise

(Reuters) - South Africa’s rand firmed on Friday as a modest U.S. jobs
report weighed on the dollar, although many investors stayed on the
sidelines with national elections less than a week away.

At 1500 GMT the rand was 1.11 percent stronger at 14.3533 to the dollar from
an overnight close of 14.5675.

The dollar weakened as traders focused on weaker aspects of the April U.S.
payrolls report, brushing aside stronger-than-forecast hiring and a drop in
the jobless rate to a more than 49-year low.

Locally, South Africans go to the polls next week. Although political
analysts say a victory for the governing African National Congress (ANC) is
all-but assured, the party has been struggling to reverse dwindling support
blamed in part on unfulfilled promises to improve the lives of millions of
the country’s poorest people.

The yield on South Africa’s benchmark 10-year bond rose 5 basis points to
8.560 percent, while stocks gained.

The benchmark JSE Top-40 Index was 1.02 percent higher at 53,028.35, while
the broader All-Share Index rose 1.01 percent to 59,335.90.

Telecommunications company MTN group was a top-performer, rising 1.74
percent to 105.3 rand after appointing former deputy finance minister
Mcebisi Jonas as chairman-designate in a board shake-up following a series
of regulatory issues.

FNB wealth and investment portfolio manager Wayne McCurrie said it made
sense for MTN to change its board now, as it lays out a new growth path.

Shares of gold miners rose 1.5 percent with the price of gold price 0.76
percent higher at 1279.95. 

Uganda

Ugandan shilling weakens on demand from importers and banks

(Reuters) - The Ugandan shilling weakened on Friday, undercut by an uptick
in demand for hard currency from merchandise importers and players in the
interbank market, traders said.

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America

Stocks climb after U.S. payrolls data tops views; dollar falls with
inflation comments

(Reuters) - Global equity markets rallied on Friday, buoyed by a U.S.
payrolls report that blew past expectations, while the dollar weakened after
several Federal Reserve officials voiced concerns about low inflation.

U.S. job growth surged in April, with non-farm payrolls increasing by
263,000 jobs, and the unemployment rate dropped to a more than 49-year low
of 3.6 percent, pointing to sustained strength in economic activity even as
last year’s massive fiscal stimulus recedes.

Wall Street stocks rallied, with each of the major indexes firmly in
positive territory, putting both the S&P 500 and Nasdaq on track for weekly
gains.

The strong jobs report came in the wake of a Fed policy announcement on
Wednesday, when the Fed reiterated that it would remain patient on any
changes in interest rates and indicated that no rate cuts were on tap for
later this year, disappointing the expectations of some investors.

U.S. interest rate futures briefly added to losses on Friday after the jobs
report as traders trimmed their bets the Federal Reserve would lower
interest rates.

The Dow Jones Industrial Average rose 209.15 points, or 0.8%, to 26,516.94,
the S&P 500 gained 27.94 points, or 0.96%, to 2,945.46, and the Nasdaq
Composite added 117.69 points, or 1.46%, to 8,154.46.

European shares closed higher, helped by gains in Adidas and HSBC after
strong quarterly results.

The pan-European STOXX 600 index rose 0.39% and MSCI’s gauge of stocks
across the globe gained 0.75%.

The dollar weakened against a basket of major currencies as traders focused
on the weaker aspects of the April U.S. payrolls report such as wage growth,
and following softer-than-expected data from an industry group on the
services sector and comments from two Fed officials on inflation.

The Federal Reserve may need to cut interest rates if the U.S. economy
softens, the president of the Chicago Fed, Charles Evans, said in remarks
that focused on his concern over persistently weak inflation, while St.
Louis Federal Reserve President James Bullard said the U.S. central bank’s
policy rate is “a little tight” and that current readings of inflation are
uncomfortably low.

New York Fed President John Williams said in a research paper he co-authored
and distributed on Friday that policies that “raise inflation expectations
by keeping interest rates ‘lower for longer’ after periods of low inflation”
can keep people’s expectations for prices at the right levels.

The dollar index fell 0.31%, with the euro up 0.13% to $1.1191.

Oil prices advanced but were still on pace for a weekly drop as surging U.S.
output countered production losses in sanctions-hit Iran and Venezuela.

U.S. crude rose 0.31% to $62.00 per barrel and Brent was last at $71.02, up
0.38% on the day.

Benchmark 10-year Treasury notes last rose 6/32 in price to yield 2.5305%,
from 2.552% late on Thursday, falling from a 1-1/2-week high.

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Commodities Markets

Gold eyes biggest daily gain in two months as dollar retreats

(Reuters) - Gold was headed for its biggest daily rise in two months on
Friday, clawing away from a four-month low hit in the previous session,
helped by a pullback in the dollar and as some investors covered their short
positions.

Spot gold rose 0.7% to $1,279.47 per ounce as of 2:22 p.m. EDT (1822 GMT),
and was set for its biggest percentage gain since March 8. U.S. gold futures
settled 0.7% higher at $1,281.30 an ounce.

The metal on Thursday dipped to $1,265.85, its lowest since the end of
December.

Despite a strong U.S. jobs report, the dollar was down 0.3%, as traders
focused on the weaker aspects in the report.

The U.S. wage gains did not accelerate as expected last month, holding at a
reading that is consistent with moderate inflation.

A moderate pace of wage growth indicated that there would not be a rate hike
anytime soon, in turn boosting appeal for the non-interest bearing metal,
said an analyst based in New York.

Lower interest rates reduce the opportunity cost of holding the bullion.

Despite the gains, gold is still on track to post a weekly decline of about
0.5% after U.S. Federal Reserve signaled little appetite to adjust interest
rates in the near term.

However, two Fed officials said on Friday they were increasingly worried
about weak inflation, an indication that some U.S. central bankers see a
growing case for a future interest rate cut even as others push for
continued patience.

Market participants were also keeping a close watch on U.S.-China trade
talks, anticipating a resolution to the year long tariff war between the
world’s two largest economies.

U.S. President Donald Trump said on Friday the U.S.-China trade negotiations
are going pretty well.

Reflecting investor sentiment toward bullion, holdings in the world’s
largest gold-backed exchange-traded fund (ETF), SPDR Gold Trust, fell about
0.2% to 745.52 tonnes on Thursday, its lowest since Oct. 12.

Among other metals, silver rose 2.2% to $14.94 per ounce, after falling to a
more than four-month low of $14.52 in the previous session.

Platinum gained 2.6% to $869.75 per ounce, but has lost 3.3% for the week so
far, its biggest weekly decline in eight.

Palladium climbed 0.8% to $1,365.01 an ounce.

Copper jumps on weaker dollar but logs weekly loss

(Reuters) - Copper rose on Friday on a weaker dollar and expectations for
progress in U.S.-China trade talks, but the move higher was not enough to
rescue prices from their worst week since November.

A slide in the dollar boosted the appeal of most base metals which are
priced in the U.S. currency, making them cheaper for holders of other
currencies.

Investors also remained upbeat before U.S.-China trade talks next week that
are widely expected to progress well following meetings in Beijing this
week, analysts said.

The tit-for-tat tariff dispute between the world’s top economies has cost
both sides billions of dollars in exports, disrupted supply chains and
roiled financial markets.

Benchmark copper on the London Metal Exchange ended 1.1 percent higher at
$6,236 per tonne, rebounding from a two-and-a-half-month low touched the
previous session.

The metal used in the power industry and construction was down over 2.5
percent on the week, its biggest weekly loss since early November after
computer-driven funds sold following an options expiry.

DOLLAR: Traders focused on weaker spots in the U.S. jobs report, ignoring a
jump in jobs growth and a 49-year-low in unemployment.

At the same time, comments from two regional Federal Reserve chiefs
supported bets the U.S. central bank might lower key lending rates by the
end of the year.

INVENTORIES: Copper stocks available to the market in LME-approved
warehouses — on warrant stocks — dropped 5,750 tonnes to 164,375 tonnes
MCUSTX-TOTAL. This is up from 21,600 tonnes at the end of February.

TRADE TALKS: U.S. Vice President Mike Pence said on Friday that President
Donald Trump was optimistic the United States could reach a deal on trade
with China.

ALUMINIUM: On warrant stocks of LME aluminium have jumped 36 percent over
the last week and inched up a further 1,050 tonnes to 874,050 tonnes, LME
data showed on Friday. MALSTX-TOTAL

PRICES: Aluminium dipped 1.1 percent to $1,795.50 per tonne, zinc rose 1.5
percent to $2,772 after falling to a seven-week low in the previous session,
lead gained 1.3 percent to $1,900, tin gained 0.3 percent to $19,325 while
nickel was bid up 1.2 percent at $12,190.

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
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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