Bulls n Bears Daily Market Commentary : 06 May 2019

Tue May 7 07:37:06 CAT 2019

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Bulls n Bears Daily Market Commentary : 06 May 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 3,114,158.44 with foreign buys at RTGS$ 623,045.85 and
foreign sales were RTGS$ 106,016.03. Total trades were 80.

The All Share index opened the week on a high note adding 0.53 points  to
close at 136.23 points. NAMPAK  gained $0.0490 to close at $0.3500, ECONET
rose by $0.0407 to $1.1004 whilst INNSCOR   traded $0.0179 firmer at
$1.7200. CASSAVA SMARTECH   also increased by $0.0073 to end at $1.0751 and
RAINBOW TOURISM GROUP  was $0.0055 stronger at $0.0335.

Trading in the red was OLD MUTUAL LIMITED  which retreated $0.1595 to end at
$10.0022, DELTA  eased $0.0504 to settle at $2.7997 and AXIA  was $0.0085
weaker at $0.3615. Other counter to lose ground include PADENGA  which
dropped by $0.0066 to close at $1.1013 and STAR AFRICA  which was $0.0005
down at $0.0115

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  Global Currencies & Equity Markets

South Africa

South African rand and equities weaken on U.S.-China trade fears

(Reuters) - The South African rand weakened on Monday as the country heads
for national elections on Wednesday while worries over the trade war between
the United States and China curbed emerging market currencies and shares.

The rand declined by 1.05 percent to 14.4950 against the dollar by 1500 GMT,
having closed on Friday at 14.3450 after a moderate U.S. jobs report.

Markets were hit by U.S. President Donald Trump’s announcement on Sunday
that he would raise tariffs this week on $200 billion worth of Chinese
goods.

South Africans, meanwhile, are preparing to head to the polls on Wednesday
in what is expected to be the country’s most competitive elections since the
end of apartheid. While victory looks assured for the ruling African
National Congress, its majority is expected to decline.

Share trade volumes were relatively thin as investors await results from the
elections, Wohlberg said.

In bonds, the government yield on benchmark paper due in 2026 was up 2 basis
points at 8.580 percent.

The blue-chip Top-40 share index, meanwhile, shed 1.31 percent to 52,336
points while the broader All-Share index was down a shade more than 1
percent at 58,713 points.

Banking stocks fell 1.5 percent, with Absa down 2.6 percent at 168.50 rand
and Standard Bank dropping 2.1 percent to 202.48 rand.

Kenya

Kenyan shilling firms, helped by remittances

(Reuters) - The Kenyan shilling was firm against the dollar on Monday,
helped by dollar inflows from remittances that met demand from merchandise
and oil importers, traders said. 

At 0638 GMT, commercial banks quoted the shilling at 100.90/101.00 per
dollar, compared with 101.00/10 at Friday's close. 

       <mailto:info at bulls.co.zw> 

Asia

Asia shares linger near 5-week low amid renewed US-China trade jitters

(Reuters) - Asian shares wallowed near five-week lows on early Tuesday after
U.S. President Donald Trump’s threat to raise tariffs re-ignited worries
about U.S.-China trade tensions while Japan’s Nikkei opened down after a
10-day break.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped as much
as 0.2 percent to five-week low marked on Monday.

Japan’s Nikkei shed 1.1 percent to 22,006.58, taking a delayed hit after the
country’s financial markets opened after a 10-day market break to mark the
ascension of Japan’s new emperor to the throne.

U.S. stock futures for the S&P 500 declined as much as 0.7 percent in Asia
on Tuesday as top U.S. trade officials said China had backtracked on
commitments in trade talks.

Their comments came after global financial markets had reeled on Monday
after Trump had unexpectedly jacked up pressure on China to reach a trade
deal in the midst of negotiations, saying he would hike U.S. tariffs on
Chinese goods this week.

But offering some solace to investors, U.S. Trade Representative Robert
Lighthizer said he expected top Chinese negotiator Vice Premier Liu He would
lead a delegation coming from Beijing for talks in Washington on Thursday
and Friday.

Yasuo Sakuma, chief investment officer at Libra Investments in Tokyo said
believed stocks have entered a new downtrend, as investors had growing
doubts over whether the United States and China would cut a deal on trade
any time soon.

There was little movement in the currency market, with the euro trading flat
at $1.1199, having held in a tight range for the past four sessions, while
the dollar was steady at 111.75 yen.

Traders were awaiting an interest rate decision from Australia’s central
bank later in the day.

A slim majority of economists polled by Reuters expects the central bank to
keep rates at a record low although calls for a rate cut have grown louder
after disappointingly weak first-quarter inflation.

In the commodity market, oil futures edged lower in volatile trade after a
gain on Monday, as the cloud cast over the global economy by Trump’s tariff
threat offset bullishness resulting from rising tensions between the United
States and Iran.

U.S. crude fell 0.2 percent to $62.12 per and Brent crude was 0.3 percent
lower at $71.00 per barrel on early Tuesday.

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Commodities Markets

London base metals mixed amid renewed U.S.-China trade tensions

(Reuters) - London base metals were mixed in early trade on Tuesday amid
concerns that an escalating U.S.-China trade tension could hurt the global
economy, but copper and nickel on the Shanghai Futures Exchange rebounded
from the previous session's slump.

U.S. President Donald Trump said he would impose additional tariffs on
Chinese goods slated to go into effect on Friday, as China, according to
U.S. trade officials, backtracked on

substantial commitments it had made during the trade negotiations.

Beijing is sending a delegation to Washington this week, led by Chinese Vice
Premier Liu He, to try to reach a trade deal with the United States ahead of
the tariffs imposition, U.S. Trade Representative Robert Lighthizer said on
Monday.

    FUNDAMENTALS

* Three-month copper on the London Metal Exchange was up 0.8 percent at
$6,283 a tonne, as of 0201 GMT.

* The most-traded ShFE copper contract  rose 1.1 percent to 48,370 yuan
($7,145.18) a tonne, after hitting its lowest in more than three months on
Monday. 

* Three-month LME nickel  fell 0.4 percent to $12,130 a tonne, while ShFE
nickel   which also hit a more than three-month low on Monday, was up 0.8
percent at $96,480 yuan a tonne.

* CHINA STIMULUS: China's central bank said on Monday it will cut reserve
requirement ratios to release about 280 billion yuan ($41 billion) for some
small- and medium-sized banks, in a

targeted move to help companies struggling amid an economic slowdown.

* LME ASIA WEEK: Hong Kong Exchanges and Clearing Ltd  Chief Executive
Charles Li said on Tuesday the bourse was in official talks about setting up
warehouses in mainland

China.             

* LME ASIA WEEK: The Hong Kong Futures Exchange plans to launch
dollar-denominated mini contracts for six base metals in the coming months,
the head of market development at the London Metal Exchange said on Monday. 

Hong Kong exchange plans China metals expansion with warehousing pilot plan

(Reuters) - Hong Kong stock exchange Chief Executive Charles Li said on
Tuesday the bourse was in official talks with Guangdong authorities on
metals warehousing, a major step towards its long-held aim of expanding in
mainland China.

Li, head of Hong Kong Exchanges and Clearing Ltd (HKEX) , has long wished
for a China warehousing foothold to boost its London Metal Exchange (LME)
franchise, but has faced reluctance from Chinese regulators concerned with
protecting emerging domestic exchanges in the world’s biggest consumer of
metals.

Warehouses are a critical part of the LME’s price-setting function because
they act as a market of last resort; a place of storage for sellers in need;
and a store of metal for buyers in a mechanism that roots exchange prices in
the physical market.

The plan involving Guangdong, a province in southern China, would come under
the country’s Greater Bay Area project, Li said. The project aims to better
integrate the economies of Guangdong and Hong Kong, spurring growth in both
regions.

The bourse still requires consent from regulators to go ahead with the pilot
plan, Li added.

The exchange is also planning to expand products under its mainland spot
physical exchange, the Qianhai Mercantile Exchange (QME), by adding
aluminium ingots in the third quarter, followed by T-bar aluminium, and
copper probably next year, Li added.

It will continue to look at cross-listing or clearing products from other
commodity exchanges, he said.

In London, the LME will make a “very significant” multi-million dollar
investment to modernise its options offerings towards screen-based trade
from the telephone interbank market, London Metal Exchange Chief Executive
Chamberlain said. He didn’t specify how much money LME would invest.

The telephone market supports LME volumes on the exchange’s ring, one of the
world’s last open outcry trading floors.

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
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opinions expressed and recommendations made are subject to change without
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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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