Bulls n Bears Daily Market Commentary : 07 May 2019

Wed May 8 07:29:12 CAT 2019

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Bulls n Bears Daily Market Commentary : 07 May 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 6,238,203.00 with foreign buys at RTGS$ 1,564,959.13
and foreign sales were RTGS$ 1,378,121.59. Total trades were 139.

The All Share index’s bullish trend continues unabated as it added another
1.03 points to close at 137.26 points. NATFOODS  led the movers with a
$1.1400 gain to close at $6.8500, AXIA   put on $0.0585 to $0.4200 and CBZ
was $0.0309 stronger at $0.2414. Cement maker PPC  also increased by $0.0307
to settle at $1.4457 and OLD MUTUAL LIMITED recovered $0.0192 to end at
$10.0214.

Four counter lost ground including NAMPAK   which eased $0.0490 to end at
$0.3010, RIOZIM  dropped $0.0200 to settle at $1.7200 and OK ZIMBABWE
traded $0.0060 weaker at $0.2705. The other counter to decrease was ECONET
which retreated by $0.0004 to close at $1.1000.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South African rand steady ahead of elections, stocks down

(Reuters) - The South African rand steadied against the U.S. dollar on
Tuesday ahead of Wednesday’s elections for parliament and provincial
legislatures, which will determine the next president.

Stocks weakened as investors waited for direction.

At 1510 GMT, the rand traded at 14.4500 per dollar, unchanged from its New
York close on Monday.

While a victory for the ruling African National Congress (ANC) is almost
certain, its majority is likely to shrink, which could constrain President
Cyril Ramaphosa’s reforms and keep the economy on a slow burn.

In fixed income, the yield on the benchmark government bond due in 2026
added 2 basis points to 8.6 percent.

On the bourse, the blue-chip Top-40 share index fell 1.2 percent to 51,707
points while the broader All-Share index was down 1.03 percent at 58,110
points.

Among the biggest declines were general retailers, which fell 2.55 percent.

Massmart closed down 3.99 percent to 87.50 rand, Truworths fell 3.68 percent
to 76.10 rand and TFG weakened 3.63 percent to 189.55 rand. 

Uganda

Uganda shilling steady, expected to gain due to tea, coffee inflows

(Reuters) - The Uganda shilling        was stable on Tuesday and was
expected to gain on the back of hard currency inflows from exporters of
commodities like coffee and tea. 

At 0946 GMT commercial banks quoted the shilling at 3,757/3,767, compared
with Monday's close of 3,762/3,772.

       <mailto:info at bulls.co.zw> 

Asia

Asia stocks slip, bonds rally on fears China-US trade deal unravelling

(Reuters) - Asian equities tracked Wall Street’s slide on Wednesday, while
investors switched to safe-haven government bonds, driven by fears that
global growth will suffer as a potential trade deal between the United
States and China appeared to be unravelling.

Beijing said on Tuesday that Chinese Vice Premier Liu He will visit
Washington on Thursday and Friday for trade talks, setting up a last-ditch
bid to salvage a deal that would avoid a sharp increase in tariffs on
Chinese goods ordered by U.S. President Donald Trump.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.75
percent, stooping to its lowest level since late March.

The Shanghai Composite Index retreated 1.6 percent.

Australian stocks declined 0.6 percent, South Korea’s KOSPI fell 0.5 percent
and Japan’s Nikkei was down 1.6 percent.

Wall Street stocks had slid on Tuesday, with the S&P 500 losing 1.65 percent
and the Dow shedding 1.8 percent on the U.S.-China trade concerns.

Global stocks had a rocky start to the week after Washington on Monday
accused Beijing of backtracking from commitments made during trade
negotiations. That followed President Donald Trump’s unexpected statement on
Sunday that he would raise tariffs on $200 billion worth of Chinese goods to
25 percent from 10 percent.

Government bond prices surged and their yields fell sharply as investor
panic took a toll on growth asset markets.

Benchmark 10-year yields on U.S. Treasuries, German bunds and Japanese
government bonds (JGBs) sank to one-month lows.

Japan’s 10-year yield burrowed deeper into negative territory and last stood
at minus 0.060 percent.

In currency markets, the dollar declined for the fourth day and touched a
six-week low of 110.09 yen.

The Japanese yen, a perceived safe-haven, often gains against its peers in
times of market turmoil and political strife.

The euro was little changed at $1.1199 after ending the previous day nearly
flat, and having held in a tight range for the last few sessions.

The New Zealand dollar was down 0.5 percent at $0.6560 after the country’s
central bank cut interest rates to 1.5 percent from 1.75 percent on
Wednesday. The kiwi had earlier dropped to $0.6525, its lowest since
November 2018.

The Australian dollar edged up 0.2 percent to $0.7022 .

The Aussie was on the front foot after the Reserve Bank of Australia kept
its policy interest rate unchanged at 1.5 percent on Tuesday, defying
expectations for a cut.

U.S. West Texas Intermediate crude futures rose 0.8 percent to $61.88 per
barrel, recovering some ground after sinking 1.36 percent on Tuesday.

Crude oil prices had dropped as renewed U.S.-China trade worries stoked
concerns of slower global growth crimping demand for commodities. But a
relatively tight market conditions due to U.S. sanctions on Iran and
Venezuela has provided underlying support for oil prices.

Brent crude oil futures were up 0.5 percent at $70.24 per barrel, pulling
back from a one-month trough of $68.79 brushed on Monday. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold firms as Sino-U.S. trade concerns dampen risk appetite

(Reuters) - Gold prices firmed on Wednesday as renewed concerns on
U.S.-China trade dispute upset risk appetite, boosting demand for safe-haven
assets.

FUNDAMENTALS

* Spot gold was up 0.1 percent at $1,285.76 per ounce as of 0109 GMT.

* U.S. gold futures edged 0.1 percent higher to $1,287.40 an ounce.

* Chinese Vice Premier Liu He will travel to Washington for two days of
trade talks this week, China said on Tuesday, setting up a last-ditch bid
for a deal that would avoid a sharp increase in tariffs on Chinese goods
ordered by U.S. President Donald Trump.

* Asian equities tracked Wall Street’s slide on Wednesday as the latest
developments in the U.S.-China trade conflict fanned fresh fears about
global growth, driving support for safe-haven government bonds.

* Growing fears about the impact on global growth from a worsening U.S.-Sino
trade conflict kept the Japanese yen, which like gold is also a safe-haven
asset, near its highest since late March.

* Indians could buy at least 10 percent more gold during the annual Hindu
and Jain holy festival of Akshaya Tritiya than a year ago, industry
officials said, as a recent dip in prices prompted consumers to increase
purchases.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund,
said its holdings rose 0.04 percent to 739.94 tonnes on Tuesday from 739.64
tonnes on Monday.

* International sanctions could be reimposed on Iran if it reneges on
commitments under its nuclear deal, sources at the French presidency said on
Tuesday, after Tehran said it would scale back its compliance a year after
Washington pulled out.

* Russia’s Norilsk Nickel (Nornickel), the world’s largest palladium and
refined nickel producer, says it expects palladium demand to exceed supply
for another three to four years.

China's April copper imports rise vs March, demand builds momentum for Q2
peak

(Reuters) - China’s unwrought copper imports rose 3.6 percent in April from
the previous month, according to data released by the General Administration
of Customs on Wednesday, as demand gathered momentum at the start of the
peak-consumption second quarter.

Imports of unwrought copper, including anode, refined and semi-finished
copper products into China, the world’s top consumer of the metal, came in
at 405,000 tonnes last month. That compares with 391,000 tonnes in March,
although it was down 8.4 percent from 442,000 tonnes in April 2018.

Copper is widely used in construction and manufacturing, and demand for the
metal is considered a bellwether for the health of an economy. The second
quarter typically sees China’s metal use rise after the end of winter
anti-pollution restrictions on industry, and as construction sites ramp up
work.

However, factory activity in China expanded at a much slower pace than
expected in April, pointing to a sluggish manufacturing sector in the
world’s second-largest economy, locked in a trade war with the United
States.

Furthermore, the arbitrage between London and Shanghai copper prices
remained closed in April, denying traders the opportunity to profit from
shipping physical metal to China.

Arrivals of copper concentrate, or partially processed copper ore, were at
1.66 million tonnes in April, according to the customs data.

That was down 6.2 percent from 1.77 million tonnes in March and up 7.1
percent from 1.55 million tonnes in April 2018.

China’s aluminium exports, meanwhile, fell 8.8 percent from 546,000 tonnes
in March to 498,000 tonnes in April. That was up 15.8 percent however, from
430,000 tonnes in April 2018.

Besides a blip in February, Chinese aluminium exports have been riding high
since exports of semi-finished aluminium products were given a higher
value-added tax (VAT) rebate from November.

The VAT rate was previously 16 percent but was lowered to 13 percent from
April as part of moves by China to ease pressure on its economy.

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
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whatsoever for any loss howsoever arising from any use of this report or its
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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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