Bulls n Bears Daily Market Commentary : 14 May 2019
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Bulls n Bears Daily Market Commentary : 14 May 2019
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Zimbabwe Stock Exchange Update
Market Turnover RTGS$ 7,920,919.25 with foreign buys at RTGS$ 341,989.75 and
foreign sales were RTGS$ 91,367.09. Total trades were 113.
The All Share index continues on the upward trend as it added 0.67 points
to close at 143.13 points. OLD MUTUAL LIMITED went further up by $0.5464
to close at $11.0251, DELTA gained $0.0361 to $2.9162 whilst PROPLASTICS
and RIOZIM both added $0.0300 to close at $0.2800 and $1.7500 respectively.
PADENGA traded $0.0187 stronger at $1.1776.
Gains were partially offset by losses in ECONET which retreated further by
$0.0180 to $1.0778, FIRST MUTUAL PROPERTIES eased $0.0082 to $0.0510 and
FIRST MUTUAL LIMITED was $0.0060 weaker at $0.1300. OK ZIMBABWE also
lost $0.0050 to $0.2950 and INNSCOR traded $0.0019 lower at $1.9500.
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Global Currencies & Equity Markets
South Africa
South Africa's rand firms amid U.S.-China trade talk hopes, stocks down
JOHANNESBURG, Reuters - South Africas rand firmed on Tuesday as slightly
more optimistic comments from U.S. and Chinese officials on trade brought
some comfort to markets, while stocks fell.
At 1530 GMT, the rand traded at 14.2150 per dollar, 0.84% firmer than its
New York close on Monday.
The Chinese governments top diplomat said China and the United States have
the ability and wisdom to reach a trade deal that is good for both. U.S.
President Donald Trump said he was optimistic about resolving the trade
dispute.
Fears the United States and China are spiralling into a protracted trade
dispute that could derail the global economy have rattled investors in
recent weeks.
The rand weakened more than 1% on Monday, shedding post-election gains, as
the escalation in the U.S.-China trade war dented emerging market
currencies.
Despite the improvement in global market sentiment, the currency faces
domestic economic risks.
Data on Tuesday showed that South Africas unemployment rate inched up to
27.6% in the first quarter, underscoring the scale of the economic challenge
faced by President Cyril Ramaphosa after his ANC party won re-election.
The South African economy started the year on a disappointing note ... The
latest employment figures reflect these economic headwinds, said Jacques
Nel, an economist at NKC African Economics.
In fixed income, the yield on the benchmark government bond due in 2026 shed
3.5 basis points to 8.49%.
On the bourse, stocks continued to weaken, with the broader All-Share index
down 0.25 percent to 56,234 points and the Top-40 index 0.21 percent weaker
to 50,078 points.
The market is very much still trading on the talks of the (U.S. and China);
one minute theyre on, one minute theyre off, and the market is very news
driven at the moment, said Vasili Girasis, a trader at BP Bernstein.
South African conglomerate Bidvest lead the decliners on the blue-chip index
with a 3.83 percent fall, while private healthcare provider Netcare
continued to weaken a day after it warned on hospital margins. It was 3.78
percent weaker at 21.63 rand.
Uganda
Ugandan shilling weakens as offshore investors buy dollars
KAMPALA, (Reuters) - The Uganda shilling weakened on Tuesday, dragged by
demand for dollars from offshore investors cutting positions in the local
debt market.
At 1105 GMT, commercial banks quoted the shilling at 3,765/3,775, compared
with Monday's close of 3,755/3,765.
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Asia
Asia stocks wobble near 3-1/2-mth low as trade worries linger
TOKYO, (Reuters) - Asian stocks struggled near a 3-1/2-month low on
Wednesday on lingering concerns over the economic impact of a U.S.-China
trade war, although an overnight bounce on Wall Street helped limit the
losses.
MSCIs broadest index of Asia-Pacific shares outside Japan edged down 0.05%.
The index had fallen to its lowest level since the end of January the
previous day as a trade conflict between the United States and China
intensified. Beijing on Monday imposed a tariff hike on U.S. goods following
Washingtons decision last week to hike its levies on Chinese imports.
Australian stocks added 0.07%, South Koreas KOSPI slipped 0.1% and Japans
Nikkei shed 0.4%.
U.S. stocks on Tuesday reclaimed some of the ground lost in the prior days
steep sell-off, with tariff-sensitive technology stocks heartened by a
slight softening in U.S.-China trade rhetoric.
U.S. President Donald Trump on Tuesday said he had a very good dialogue
with China and insisted talks between the worlds two largest economies had
not collapsed.
Yet, investors braced for a protracted U.S.-China trade war.
On the day, investors will look to a batch of Chinese economic data due
later for a further gauge of the health of the worlds second-biggest
economy.
The Chinese yuan stood little changed at 6.9051 per dollar in offshore
trade, having edged away from a five-month trough of 6.9200 set on Tuesday.
The dollar traded a shade higher at 109.675 yen, pulling away from a
three-month low of 109.020 plumbed on Monday when trade war worries boosted
investor demand for the safe-haven Japanese currency.
The euro was steady at $1.1202. The common currency had dipped nearly 0.2%
the previous day after Italys deputy prime minister said the country is
ready to break European Union budget rules on debt levels if necessary to
spur employment.
The dollar index against a basket of six major currencies was nearly flat at
97.534 after gaining 0.2% the previous day.
In commodities, U.S. crude futures were down 1.04% at $61.14 per barrel
after the American Petroleum Institute (API) reported a bigger-than-expected
build in crude oil inventory.
U.S. crude inventories rose by 8.6 million barrels in the week to May 10 to
477.8 million, compared with analysts expectations for a decrease of
800,000 barrels.
Brent crude lost 0.69% to $70.75 per barrel.
Brent and U.S. crude futures had surged the previous day after top exporter
Saudi Arabia said explosive-laden drones launched by a Yemeni-armed movement
aligned to Iran had attacked facilities belonging to state oil company
Aramco.
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Commodities Markets
China April crude steel production rises 12.7% y/y - stats bureau
BEIJING, (Reuters) -
* China April crude steel output rose 12.7% year-on-year to 85.03 million
tonnes, according to data released by the National Bureau of Statistics on
Wednesday.
* China Jan-April crude steel output up 10.1% y/y at 314.96 mln tonnes -
stats bureau
* China Jan-April coke output up 6.5% y/y at 151.84 mln tonnes - stats
bureau
* China April coke output up 3.4% y/y at 38.99 mln tonnes - stats bureau
* China April coal output up 0.1% y/y at 294.29 mln tonnes - stats bureau
* China Jan-April coal output up 0.6% y/y at 1.11 bln tonnes - stats bureau
* China Jan-April crude oil throughput up 4.7% y/y at 207.47 mln tonnes -
stats bureau
* China April crude oil throughput up 5.1% y/y at 52.1 mln tonnes - stats
bureau
* China April power generation up 3.8% y/y at 544 bln kWh - stats bureau
* China Jan-April power generation up 4.1% y/y at 2.22 trln kWh - stats
bureau
* China April non-ferrous output up 4.9% y/y at 4.74 mln tonnes - stats
bureau
* China Jan-April non-ferrous output up 5.2% y/y at 18.64 mln tonnes - stats
bureau
Copper rises on U.S.-China trade talk hopes
SINGAPORE, (Reuters) - Copper and most other base metals rose on Wednesday,
after U.S. President Donald Trump insisted that trade talks with China had
not collapsed.
Trump on Tuesday called the trade war with China a little squabble and
softened his tone in a series of remarks expressing optimism about reaching
a trade deal with Beijing, While a Beijing senior diplomat also confirmed
that the two countries would pursue relevant discussions.
Base metals rallied on Tuesday from a recent sell off, as signs emerged that
the two countries might continue their trade talks, but some remained
cautious over the outlook for metals.
FUNDAMENTALS
* Three-month copper on the London Metal Exchange rose 0.6% to $6,060 a
tonne by 0155 GMT, while nickel advanced 0.6% and zinc climbed 1%. However,
aluminium fell 0.2% and tin slipped 0.5%.
* All base metals on the Shanghai Futures Exchange rose, following a strong
rally session overnight in London. Shanghai copper rose 0.3% percent to
47,650 yuan ($6,938.88) a tonne, while aluminium advanced 1%.
* Global miner BHP will hold on to the Australian nickel operations it
previously put up for sale, while Rio Tinto, is working on copper and
lithium projects as the mining industry bets on demand for electric vehicle
(EV) batteries.
* Barrick Gold Corp, the worlds second largest bullion miner, is preparing
its Zambian copper mine Lumwana for sale in the second half of 2019, looking
to target Chinese buyers, three sources with knowledge of the matter said.
* U.S. lawmakers on Tuesday moved closer to developing a national electric
vehicle supply chain policy, with senators voicing bipartisan support for
legislation designed to parry Chinas dominance in metals and battery
production.
* The U.S. has again decided not to impose tariffs on rare earths and other
critical minerals from China, underscoring its reliance on the Asian nation
for a group of materials used in everything from consumer electronics to
military equipment.
* For the top stories in metals and other news, click or
MARKETS NEWS
* Asian stocks struggled near a 3-1/2-month low on lingering concerns over
the economic impact of a U.S.-China trade war, although an overnight bounce
on Wall Street helped limit the losses.
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
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