Bulls n Bears Daily Market Commentary : 21 May 2019

Wed May 22 04:15:47 CAT 2019

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Bulls n Bears Daily Market Commentary : 21 May 2019

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Zimbabwe Stock Exchange Update

The All Share index added another  1.14 points  to close at 146.97 points.
ECONET  was $0.0957 stronger at $1.2001, PADENGA  gained $0.0475 to close at
$1.3000 and CASSAVA SMARTECH  was $0.0200 firmer at $1.1413. Other counters
to advance include RTG   which increased by $0.0130 to settle at $0.0850 and
INNSCOR  was $0.0097 higher at $1.9600.

Gains were offset by losses in OLD MUTUAL LIMITED which dropped $0.7736 to
$11.4163, LAFARGE  retreated by $0.1000 to close at $1.0000 and SEEDCO
INTERNATIONAL LIMITED   was $0.0550 stronger at $1.4950. TSL  also eased by
$0.0500 to end at $0.6000 and DELTA  was $0.0498 weaker at $2.8956.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South African rand steady in late trade, stocks slip

(Reuters) - South Africa’s rand steadied in late afternoon trade on Tuesday,
recovering from losses earlier in the session as developing world currencies
weakened on fears the protracted China-U.S trade conflict may have already
begun to impact Asian economies.

On the bourse, equities slipped slightly with financial stocks and retailers
leading the decline.

At 1517 GMT the rand 14.3900 per dollar, unchanged from an overnight close
in New York. The unit had weakened to a session low of 14.4900 earlier on
trade conflict concerns.

Data showed economic growth in Singapore was its lowest in nearly a decade
in the first quarter, while in Thailand it was at its lowest in four years,
raising worries that major Asian economies will be hurt by global trade
tensions.

Upcoming South Africa consumer inflation data and a central bank decision on
lending rates also capped any large bets.

A Reuters poll of economists and analysts conducted last week forecast the
central bank will leave interest rates unchanged at 6.75%, with inflation
expected to remain within the Reserve Bank’s 3-6% target range.

Statistics South Africa publishes April consumer figures on Wednesday at
0800 GMT.

In fixed income, the benchmark government bond dipped 3 basis points to
8.47%.

The broader All-Share index fell 0.17% to 55,524 points, while the blue chip
stocks on the Top-40 index declined 0.13% to 49,486 points.

Banking stocks slipped 2.01% to 9408.23 rand, with Nedbank falling the
farthest to 256.35 rand - a 3.26% decline, followed by Absa which shed 2.87%
to 164.20 rand. Insurer Discovery fell 2.77% to 139.66 rand, and Standard
Bank declined 2.170% to 192.95 rand.

Nigeria

Nigeria central bank holds benchmark interest rate

(Reuters) - Nigeria’s central bank held its benchmark interest rate at
13.5%, its governor Godwin Emefiele said on Tuesday, after a surprise 0.5
percentage point cut at the previous meeting.

Most analysts polled by Reuters had expected no change. A minority predicted
a rate cut

The decision comes a day after Nigeria’s statistics office said economic
growth had slowed in the first quarter of 2019, dropping to 2.01% from 2.38%
in the previous quarter as the country’s dominant oil sector shrank.

Emefiele, who this month became the first Nigerian central bank governor
since the return to democracy in 1999 to be given a second term, said the
central bank predicted that growth this year would come in at 2.38 percent.

At the last interest rate meeting in March, the central bank made an
unexpected cut as part of an attempt to stimulate growth in Africa’s biggest
economy and signal a “new direction”.

The move was the first rate cut since November 2015. The rate had been held
at 14% since July 2016 to support the naira and curb inflation.

Nigeria emerged from its first recession in 25 years in 2017. Higher oil
prices and recent debt sales have helped it accrue billions of dollars in
foreign reserves.

But growth remains fragile and inflation edged up in April to 11.37% from
11.25% a month earlier.

       <mailto:info at bulls.co.zw> 

Asia

Asia stocks wobble as trade fears overshadow Huawei reprieve

(Reuters) - Asian stocks were on shaky ground on Wednesday, as earlier
relief over Washington’s temporary relaxation of curbs against China’s
Huawei Technologies failed to offset deeper worries about trade frictions
between the world’s two largest economies.

MSCI’s broadest index of Asia-Pacific shares outside Japan initially edged
up following gains on Wall Street but was last down 0.15%.

Australian stocks slipped 0.25%, South Korea’s KOSPI fell 0.45% and Japan’s
Nikkei edged up 0.05%.

The U.S. Commerce Department on Monday granted Huawei Technologies Co Ltd a
license to buy U.S. goods until Aug. 19, a move intended to give telecom
operators that rely on Huawei time to make other arrangements.

The United States blocked Huawei from buying U.S. goods last week, a major
escalation in the trade war against China, saying the firm was involved in
activities contrary to national security.

Shares of technology companies helped lift Wall Street on Tuesday after
Washington’s easing of curbs on Huawei. Chipmakers, many of which sell to
Huawei, had been hit at the start of the week.

Leaders from G20 nations are scheduled to gather for a summit in Japan at
the end of June.

The dollar traded at 110.580 yen after popping up to a two-week high of
110.675 against the safe-haven Japanese currency as risk aversion in the
broader markets softened.

The greenback was also supported as U.S. yields rose in the wake of gains by
Wall Street shares.

The euro was little changed at $1.1165 after brushing a 2-1/2-week trough of
$1.1142.

The Australian dollar, sensitive to shifts in risk sentiment, slipped 0.15%
to $0.6873. The currency had suffered losses the previous day when the
country’s central bank governor said interest rates might be cut as soon as
next month.

In commodities, U.S. West Texas Intermediate (WTI) crude futures were down
0.59% at $62.76 per barrel after American Petroleum Institute data showed
that U.S. crude stockpiles rose unexpectedly last week. 

  <mailto:info at bulls.co.zw> 

Commodities Markets

Gold holds near 2-week low on firm dollar ahead of Fed minutes

(Reuters) - Gold steadied on Wednesday after falling to a more than two-week
low in the previous session, as a stronger dollar dented demand for bullion
ahead of the release of minutes from the U.S. Federal Reserve’s latest
meeting.

FUNDAMENTALS

* Spot gold edged down 0.1% to $1,273.96 per ounce at 0114 GMT. In the
previous session the metal fell to $1,268.97, its lowest since May 3.

* U.S. gold futures were unchanged at $1,273.60 an ounce.

* The dollar hovered near a four-week high on Wednesday, supported by higher
U.S. yields, which rose overnight after the United States eased trade
restrictions on Chinese telecommunications equipment maker Huawei
Technologies Co Ltd .

* A stronger dollar makes gold more expensive for holders of other
currencies.

* Chinese Ambassador to the United States Cui Tiankai said on Tuesday that
Beijing was ready to resume trade talks with Washington, but blamed the U.S.
side for frequently “changing its mind” on tentative deals to end U.S.-China
trade disputes.

* Asian stocks on the other hand were on shaky ground, as earlier relief
over Washington’s temporary relaxation of curbs against China’s Huawei
failed to offset deeper worries about trade frictions between the two
largest economies.

* Meanwhile, the Fed minutes are expected to provide insights into the May 1
central bank meeting in which policymakers decided to keep interest rates
steady and signalled little appetite to adjust them any time soon.

* On Monday, Fed Chair Jerome Powell said it was premature to ascertain the
impact of trade and tariffs on monetary policy.

* Economic growth in China and the United States could be 0.2%-0.3% lower on
average by 2021 and 2022 if the two countries do not row back on tit-for-tat
tariffs in their dispute that has dampened the global economic outlook, the
OECD said on Tuesday.

* Japanese exports fell for a fifth month in April in a sign of the growing
economic strain exerted by the Sino-U.S. trade war, but a pickup in business
sentiment and machinery orders shows companies remain optimistic about the
future.

* Elsewhere, SPDR Gold Trust, the world’s largest gold-backed
exchange-traded fund, said its holdings rose 0.48 percent to 739.69 tonnes
on Tuesday from 736.17 tonnes on Monday.

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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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
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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
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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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