Bulls n Bears Daily Market Commentary : 13 May 2019

Mon May 13 18:34:58 CAT 2019

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Bulls n Bears Daily Market Commentary : 13 May 2019

 <mailto:ctrade at escrowgroup.org?subject=Investor%20Day%20Conference:> 

Zimbabwe Stock Exchange Update

ZSE indices surges as activity aggregates falter

The ZSE opened the week in the black as three of the benchmarks gained with
only one of the indices ending in the red. The mainstream All Share Index
rose 0.59% to close at 142.46pts while, the Industrials firmed 0.62% to
476.11pts.

The ZSE Top Ten Index added a marginal 0.07% to end at 134.71pts as heavies
traded sideways in Monday’s session. Leading the market upside was Medtech
that rose 26.32% to $0.0024, trailed by hotelier African Sun that advanced
16.63% to end pegged at $0.3499. Turnall improved 15% to $0.0920 while,
tourism group RTG enhanced 14.58% to close at $0.0550. Banking group CBZ
capped the top five winners of the day after extending 7.14% to settle at
$0.3000. Powerspeed electrical was the top faller of the day reversing its
previous gains with a 11.01% loss to $0.1600. Star Africa dropped 4.17% to
close at $0.0115. 

The duo of Econet and Cassava completed the shakers of the day after
slipping 0.36% and 0.28% to end at $1.0958 and $1.0998 apiece. The Mining
Index let go 1.23% to close lower at 187.06pts weighed down by RioZim that
trimmed 1.71%

to settle at $1.7200.

Gainers outnumbered fallers by a count of seven, leaving the market with a
positive market breadth. Value outturn went down 39.77% to $3.92m while,
volume of shares traded similarly dropped 10.33% to 8.1m. Trades in Axia
highlighted the activity aggregates in week-opening after exchanging $1.75m
shares worth $0.72m. 

Axia claimed 21.54% of total volumes traded today and 18.24% of the value
outturn. Other notable volume drivers were AfriSun (19.63%), Star Africa
(18.75%) and CBZ (14.40%). Other value contributors were Afrisun, Cassava,
Econet and Old Mutual which claimed a combined 51.29% of the aggregate.-EFE
Securities

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Kenya

Kenyan shilling holds steady against the dollar

(Reuters) - The Kenyan shilling was stable on Monday due to lower demand for
dollars by oil importers. 

At 1054 GMT, commercial banks quoted the shilling at 101.00/20 per dollar,
unchanged from Friday's close. 

Uganda

Ugandan shilling inches up against the dollar

(Reuters) - The Ugandan shilling        edged up on Monday as energy firms
and other importers reduced their demand for hard currencies.  

At 0915 GMT, commercial banks quoted the shilling at 3,750/3,760, compared
with Friday's close of 3,770/3,780.

       <mailto:info at bulls.co.zw> 

America

U.S.-China trade setback stokes recession fears; stocks slide

(Reuters) - Global equities fell on Monday after their worst week of 2019 as
hopes of an imminent U.S.-China trade deal were crushed, raising fears of a
fresh round of tit-for-tat tariffs.

The impasse left investors bracing for retaliation by China for Washington’s
increase on Friday of tariffs on $200 billion worth of Chinese goods. The
move followed accusations by U.S. President Donald Trump that Beijing had
reneged on earlier commitments.

Trump on Monday warned China not to retaliate against an increase in tariffs
he imposed last week.

Escalation could tip the U.S. economy into recession, a risk flagged by the
inversion in U.S. Treasury bond yield curve between three-month and 10-year
rates for the second time in under a week.

The U.S. curve has inverted before each recession in the past 50 years. It
gave a false signal just once.

The pan-European Stoxx 600 slipped 0.5%. S&P 500 futures shed 1.3%.

Chinese shares tumbled. The benchmark Shanghai Composite and the blue-chip
CSI 300 indices shed 1.2% and 1.8%, respectively.

The offshore Chinese yuan fell to its lowest in more than four months, 6.88
to the dollar.

Trade talks as Washington demanded promises of concrete changes to Chinese
law and Beijing said it would not swallow any “bitter fruit” that harmed its
interests.

White House economic adviser Larry Kudlow told Fox News that China needed to
agree to “very strong” enforcement provisions to secure a deal. He said the
sticking point was Beijing’s reluctance to put into law changes that had
been agreed.

Kudlow said U.S. tariffs would remain in place while negotiations continued
and Trump was likely to meet Chinese President Xi Jinping at a G20 summit in
Japan in late June.

“The risk of a full-blown trade war has materially increased, even though
both sides seem to still want a trade deal and talks are expected to
continue,” UBS economist Tao Wang said.

Washington said it was preparing to raise tariffs on all remaining imports
from China, worth about $300 billion.

Major currencies were relatively calm. The euro was steady at $1.1234 and
the dollar little changed against a basket of currencies at 97.270.

Emerging-market stocks were down 0.9 percent, hovering near January lows.
JPMorgan said it had reduced its emerging-markets risk for the second time
in as many months on Monday following the set-back in U.S-China trade talks.

In commodities, oil futures jumped on growing concern about supply
disruptions in the Middle East. Brent crude futures rose 1.8% to $71.90 a
barrel and U.S. West Texas Intermediate futures were up 1.5% at $62.56 per
barrel.

In digital currencies, Bitcoin hovered above $7,000 on Monday, close to
nine-month highs, as the biggest cryptocurrency’s 2019 rally gathered steam.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper prices drop amid U.S.-China trade deadlock

(Reuters) - Copper prices fell on Monday, pressured by concerns over the
outlook for the global economy as Washington and Beijing appeared at a
deadlock in talks to end a bitter trade war.

The trade conflict between the world’s top two economies escalated on
Friday, with the United States hiking tariffs on $200 billion worth of
Chinese goods after President Donald Trump said Beijing “broke the deal” by
reneging on earlier commitments made during months of negotiations.

White House economic adviser Larry Kudlow told the “Fox News Sunday”
programme that the sticking point was China’s reluctance to put into law
changes that had been agreed upon, while Beijing remained defiant.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange had fallen 0.3% to $6,107
a tonne by 0124 GMT, while the most-traded copper contract on the Shanghai
Futures Exchange was almost unchanged at 47,750 yuan ($6,999.72) a tonne.

* Copper prices would be 5% to 15% higher without the U.S.-China trade war,
the chairman for Chile’s Antofagasta Plc told a Chilean newspaper on Sunday.

* London aluminium fell 0.5%, nickel was down 0.5% and zinc eased 0.1%.
Shanghai aluminium rose 0.9% and nickel increased 0.3%, while zinc fell 0.3%
and lead decreased 0.9%.

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

NMB

AGM

Head Office, 4th Floor, Unity Court

23 May 2019 , 3pm

Africa Day

25 May 2019

Dairibord

AGM

Steward Room, Meikles

31 May 2019, 12pm

Lafarge

AGM

Manresa Club, Arcturus

05 June 2019 , 12pm

CBZ

AGM

Stewart Room, Meikles

05 June 2019 , 3pm

 <mailto:info at bulls.co.zw> 

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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
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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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