Bulls n Bears Daily Market Commentary : 02 April 2020

Fri Apr 3 06:42:34 CAT 2020

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Bulls n Bears Daily Market Commentary : 02 April 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$942,284.60 with foreign buys at NIL and foreign sales
were ZWL$13,809.00 Total trades were 49

The All Share index ended the day higher at 460.98 points after adding 2.04
points . OLD MUTUAL LIMITED traded $0.4221 higher at $38.0000, ECONET
WIRELESS was up by $0.1000 to $2.6500 and BINDURA  gained $0.0675 stronger
at $0.4225. Two more counters to gain ground were EDGARS  which increased by
$0.0400 to $0.2400 and CASSAVA SMARTECH was $0.0063 firmer at $2.6563.

Gians were offset by losses in ZPI LIMITED which retreated by $0.0320 to
$0.1280, AXIA LIMITED  which lost $0.0214 to $2.0286 and SIMBISA BRANDS  was
$0.0155 weaker at $3.0000. CBZ LIMITED also decreased by $0.0025 to settle
at $1.5400 and ARISTON LIMITED was $0.0002 lower at $0.4998.

   . <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South Africa's rand hits new low on bleak economic outlook

(Reuters) - South Africa’s rand fell to a new all-time low against the
dollar on Thursday, as analysts predicted a steep economic contraction and
large budget deficit because of the global coronavirus pandemic.

At 1545 GMT, the rand was around around 2% weaker at 18.6000 per dollar,
after earlier touching a new low of 18.6500.

South Africa has the most confirmed coronavirus cases in sub-Saharan Africa,
at 1,380.

It is heavily exposed to the disruption caused by the virus as a major
exporter of commodities and has imposed some of the toughest restrictions on
the continent, including a 21-day lockdown that began on Friday.

The toll on the economy, which fell into recession late last year, has
already shown up in preliminary tax numbers.

BNP Paribas economist Jeffrey Schultz said in a research note that he had
revised down his gross domestic product (GDP) forecast to a contraction of
4.0% this year.

He now expects a 9.1% of GDP budget deficit in the 2020/21 fiscal year that
will compound worries over the country’s public finances, which have been
stretched by repeated bailouts to ailing state firms including power utility
Eskom and South African Airways.

The yield on the government bond due in 2030 rose 3 basis points to 11.190%.

On the Johannesburg Stock Exchange, strong gains for gold shares helped lift
the main indices by more than 3%.

Gold Fields was up 10.76% and AngloGold Ashanti 11.02% higher, supported by
a higher spot gold price .

Shares in telecom firm MTN Group rose 12.59%, helped by signs Saudi Arabia
and Russia may be ready to cooperate to stabilise the oil market after a
slump in prices. MTN operates in a number of oil-producing countries such as
Nigeria and Iran.

African currencies seen under pressure from the dollar

(Reuters) - The Nigerian naira and Kenyan shilling are expected to remain
under pressure from the dollar in the week ahead mainly due to lower export
earnings caused by coronavirus-related disruptions.

NIGERIA

The Nigerian naira is likely to weaken next week as banks struggle to fill
dollar orders by importers seeking to meet past due obligations in the face
of lower hard currency earnings, traders said.

The naira has been weakening across the official and black markets since
last month after the price of oil collapsed, prompting the central bank to
devalue the currency and suspend foreign exchange sales to retail currency
traders.

The naira eased to 387.30 per dollar on Thursday after it touched a new low
of 387.70. The currency was quoted at 415 naira per dollar on the black
market, much weaker than the spot market rate.

Foreign currency inflows into Africa’s biggest economy dried up after oil
prices plunged as the coronavirus outbreak worsened an already tight
currency market.

KENYA

The Kenyan shilling is expected to remain under pressure from the dollar due
to lack of foreign currency inflows from tourism and farm exports caused by
the coronavirus outbreak, traders said.

Commercial banks quoted the shilling at 105.75/95 per dollar, compared with
105.00/20 at last Thursday’s close.

UGANDA

The Ugandan shilling is expected to be stable in the week ahead as the
central bank moves to tighten liquidity in the money market, traders said.

At 0943 GMT, commercial banks quoted the shilling at 3,785/3,795 per dollar,
compared with last Thursday’s close of 3,820/3,830.

A trader at a leading commercial bank said they anticipated the local unit
would trade in a narrow range around 3,790 per dollar as liquidity tightens.

The central bank on Thursday removed an undisclosed amount of cash via a
repurchase agreement and a deposit auction.

 <mailto:info at bulls.co.zw> 

EMERGING MARKETS

Surging oil prices lift rouble, most EM stocks bounce

(Reuters) - Soaring oil prices lifted currencies of crude exporters
including Russia’s rouble and Mexico’s peso on Thursday, while stocks in
emerging markets gained after a weak performance in the last session.

Russia’s rouble led gains among major emerging markets peers, up 1%, as oil
prices soared after U.S. President Donald Trump raised hopes of a truce
between Russia and Saudi Arabia regarding oil prices.

Crude prices had crashed last month after Saudi engaged in a price war with
Russia, hammering the rouble as well currencies of Mexico and Colombia.

Most other developing world currencies also rose as the dollar weakened
slightly against a basket of currencies.

South Africa’s rand rose 0.2% but stayed near all-time lows hit in the last
session, as investors worried about the weak economy’s ability to take the
toll of the pandemic.

Turkey’s lira crept higher, recovering from its lowest in almost two years.

The currency has fared slightly better than its peers this year as a
recovering economy and lower oil prices bode well for the importer. But
rising number of COVID-19 cases has dented sentiment of late and analysts
are also worried about decreasing foreign exchange reserves as the central
bank intervenes to stabilize markets.

Emerging markets have suffered a “sudden stop” in capital flows in March
with portfolio investors pulling a record $83.3 billion from stocks and
bonds, the Institute of International Finance said.

After dismal manufacturing data from around the world had knocked sentiment
on Wednesday, U.S. weekly jobless claims data due later in the day will be
the next to measure impact on growth. Last week, claims had jumped to 3.3
million from 282,000 in the week before.

The World Health Organization, World Bank and International Monetary Fund
are calling for debt relief to help developing countries, the WHO chief said
on Wednesday.

As U.S. stocks future moved higher after a rout on Wall Street overnight,
most EM stocks rose. Some Asian bourses gave up early losses to turn
positive, while those in Turkey, South Africa, Russia and Hungary rose
between 0.2% and 1.7%.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Holdings of SPDR Gold, iShares Silver rise

(Reuters) - Holdings of the largest gold-backed exchange-traded-fund (ETF),
New York's SPDR Gold Trust, rose 0.18

percent on Wednesday from Tuesday, while the largest silver-backed ETF,  New
York's iShares Silver Trust, rose 0.05 percent on Wednesday from Monday.

Exchange-traded funds, the most widely recognized type of ETP, back each
security issued with physical stocks of a given commodity, creating a
product they say is free from counterparty risk.    

** ZKB physical gold, silver, platinum and palladium funds are fully backed
by physical precious metal and investors are entitled

to physical delivery of them.

*** Shareholders in the GAM Gold fund can elect to hold "A class" shares,
which are fully backed by physical gold. Investors in that class are
entitled to physical delivery of the precious metal. 

Investors may also elect to hold "AX" class shares, which are fully backed
by physical gold. Investors in that class are not entitled to physical
delivery of the precious metal.

**** Absa Capital's NewPalladium Exchange Traded Fund (ETF) was listed on
March 27, 2014 and is fully backed with South African

palladium.

# Standard Bank's AfricaPalladium ETF, South Africa's first listed palladium
exchange traded fund, debuted on March 24, 2014.  ))

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
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
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
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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