Bulls n Bears Daily Market Commentary : 07 April 2020

Wed Apr 8 07:52:30 CAT 2020

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Bulls n Bears Daily Market Commentary : 07 April 2020

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover ZWL$25,596,683.10 with foreign buys at ZWL$10,130,684.00 and
foreign sales were ZWL$1,360,730.00 Total trades were 138

The All Share index ended the day lower at 459.88 after losing 0.44 points .
SEEDCO LIMITED led the shakers with a $0.3606 loss to end at $3.4394, OLD
MUTUAL LIMITED  eased $0.2557 to $36.7443 and BINDURA traded $0.0838 lower
at $0.3387. ARTD LIMITED  also decreased by $0.0680 to $0.4020 and INNSCOR
AFRICA  was $0.0390 lower at $7.4802.

Losses were offset by gains in NMB LIMITED  which added $0.0900 to $0.7000,
EDGARS LIMITED  was up by $0.0480 to close at $0.2880 and ECONET WIRELESS
was $0.0471 firmer at $2.7999. CASSAVA SMARTECH LIMITED  also increased by
$0.0427 to $2.8000 and AXIA CORPORATION  traded $0.0296 stronger at $2.0571.

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

  Global Currencies & Equity Markets

Kenya

Kenyan shilling weakens amid thin activity, fewer trading hours

(Reuters) - The Kenyan shilling weakened on Tuesday amid thin market
activity and shorter trading hours, a consequence of measures taken to curb
the spread of the novel coronavirus in the east African country, traders
said.

At 1046 GMT commercial banks quoted the shilling at 106.75/107.25, compared
with 106.40/60 at Tuesday's close. 

South Africa

S.Africa's rand rallies as risk demand soothed by falling infections

(Reuters) - South Africa’s rand firmed early on Tuesday, extending its rally
from the previous session as a glimmer of risk demand, spurred by tapering
COVID-19 in the United States and Europe, lured back investors looking to
pocket the currency’s high returns.

At 0645 GMT the rand was 0.84% firmer at 18.5100 per dollar, a big
turnaround from Monday’s opening level of 19.0900 that brings the local unit
within a whisker of the 18.50 technical level that could unlock further
gains.

Since the beginning of March the rand has taken a 20% dive, the worst among
global currencies, as the coronavirus worsened the outlook of an already
fragile economy, with two credit downgrades in as many weeks pushing the
unit to all-time lows.

But the huge fall has left room for investors with eye on a long term rand
recovery or looking to short the greenback’s recent rally, with an
opportunity to build long positions at relatively cheap rates.

“With the rand now sitting around 35% undervalued relative to its long-term
mean, now eclipsing the undervaluation levels during the 2009 GFC, any
improvement in risk appetite could be utilized by market participants to
build long rand positions,” analysts at ETM Analytics said in a note.

Falling daily death toll’s in France, Italy and Spain, and remarks from the
White House that coronavirus infections were approaching a peak, has soothed
risk sentiment and paused the flight to safety.

The dollar index was down 0.5% in early trade.

“The sell-off yesterday will have spooked a lot of the speculative long
dollar positions out there, of which there are many. A break through the
next strong support level at 18.50 and we could easily head back to the
previous record high of 17.9000,” said chief trader at Standard Bank,
Warrick Butler.

Bonds were also firmer, with the yield on the benchmark 10-year government
issue falling 19.5 basis points to 11.24%. 

 <mailto:info at bulls.co.zw> 

ASIA

Asian shares turn cautious, oil rebounds in choppy trade

(Reuters) - Asian stocks stepped back on Wednesday after two sessions of
sharp gains as investors tempered their optimism about the coronavirus while
death tolls were still mounting across the globe.

While the number of COVID-19 hospitalizations seemed to be levelling off in
New York state, deaths across the United States jumped by a record 1,800.

Mainland China’s new coronavirus cases also doubled in 24 hours due to
infected overseas travellers.

Not helping sentiment were wild swings in the oil market, where prices
rebounded in Asia after sliding on Tuesday to leave traders feeling dizzy.

U.S. crude futures jumped 5.5% to $24.93 a barrel, having shed 9.4% the
session before, while Brent crude added 75 cents to $32.62.

The erratic action spilled over into equities with MSCI’s broadest index of
Asia-Pacific shares outside Japan losing 0.7%.

Japan’s Nikkei went the other way and added 0.4%, while Shanghai blue chips
lost 0.6%.

E-Mini futures for the S&P 500 wobbled either side of flat, while EUROSTOXX
50 futures dropped 1.1%.

The S&P 500 had ended Tuesday down 0.16%, having been up as much as 3.5% at
one stage. The Nasdaq dropped 0.33% and the Dow 0.12%.

After U.S. stock markets closed, President Donald Trump said the United
States may be getting to the top of the coronavirus curve.

The Trump administration asked Congress for an additional $250 billion in
emergency economic aid for small U.S. businesses reeling from the pandemic.

Ratings agency S&P Global on Wednesday warned the cost of combating the
virus would weigh heavily on Australia’s finances and changed the outlook
for the country’s rating to negative.

That knocked the Aussie dollar down 0.6% to $0.6130 and hit risk sentiment
generally. The U.S. dollar eased 0.1% on the safe-haven yen to 108.80, while
the euro dipped 0.2% to $1.0865.

Against a basket of currencies, the dollar edged up 0.2% to 100.170.

Gold prices eased back to $1,645, after touching a 3-1/2-week high on
Tuesday at $1,671.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper slips from 3-week high on demand worry

(Reuters) - Copper prices retreated on Wednesday from a near three-week high
hit in the previous session, as the spreading new coronavirus pandemic
continued to dampen demand outlook for the metal.

Three-month copper on the London Metal Exchange (LME) declined 0.8% to
$4,998.50 a tonne by 0156 GMT, while the most-traded copper contract on the
Shanghai Futures Exchange (ShFE) fell 0.4% to 40,470 yuan ($5,727.18) a
tonne.

Earlier this week, investors took solace from signs of a slowdown in virus
death tolls in hard-hit countries like Italy and Spain.

But sentiment took a hit again when Spain reported higher deaths cases for
the first time in five days on Tuesday and the U.S. state of New York saw
its single-highest daily loss of life.

Meanwhile, France became the fourth country to register more than 10,000
deaths from the virus.

FUNDAMENTALS

* COPPER: South Africa’s strict lockdown has caused miners to divert copper
from the country’s ports to others in Africa, with Dar es Salaam the clear
winner.

* GLENCORE: Glencore’s Zambian unit Mopani Copper Mines said it would
shutter its mines on Wednesday following disruption from the pandemic and
low copper prices.

* FREEPORT: Freeport-McMoRan Inc said three employees at its Chino copper
mine in New Mexico had tested positive for COVID-19.

* OTHER PRICES: LME nickel dipped 0.5% to $11,410 a tonne, zinc declined
0.5% to $1,914 a tonne and lead fell 1% to $1,719 a tonne, while aluminium
was unchanged at $1,477.50 a tonne.

* SHANGHAI PRICES: ShFE aluminium fell 0.8% to 11,540 yuan a tonne, nickel
eased 0.2% to 93,360 yuan a tonne, zinc dropped 1% to 15,685 yuan a tonne
and lead was down 0.7% to 13,775 yuan a tonne.

Gold drops over 1% as virus slowdown hopes boost stock markets

(Reuters) - Gold prices fell over 1% on Tuesday, retreating from a near
one-month high hit earlier in the session, as signs of slowdown in
coronavirus cases in major epicenters boosted equity markets, drawing away
some of the bullion's safe-haven appeal.

Spot gold        fell 1% to $1,644.51 an ounce by 1:36 p.m. EDT (1736 GMT),
after touching $1,671.40.

World stock markets registered a second day of sharp gains on signs of
progress against the coronavirus in both Europe and the United States.  

Eurozone finance ministers are likely to agree on measures worth half a
trillion euros for finance recovery, while Japanese Prime Minister Shinzo
Abe declared a state of emergency and rolled out a nearly $1 trillion
stimulus package to soften the economic blow.  

Gold prices had risen as much as 3.2% in the previous session. 

U.S. gold futures settled 0.6% lower at $1,683.70, but held a lead over
London spot prices, signaling market concern that refinery closures and
logistics constraints could hamper bullion shipments to the United States to
meet contract requirements.

Gold stocks held in New York vaults registered with CME Group have jumped
almost 50% since the end of last week as the exchange launched a new
contract and a price premium since the outbreak encouraged traders to
stockpile.             

Palladium gained 1.9% at $2,195.30 an ounce, platinum rose 0.5% to $738.66
and silver inched up 0.2% to $15.

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

 <mailto:info at bulls.co.zw> 

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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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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