Bulls n Bears Daily Market Commentary : 09 April 2020

Fri Apr 10 07:54:56 CAT 2020

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Bulls n Bears Daily Market Commentary : 09 April 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$20,150,897.90 with foreign buys at ZWL$312,003.97 and
foreign sales were ZWL$3,557.549.28 Total trades were 257

The All Share index closed the short week higher at 467.82 points after
adding 4.12 points . OLD MUTUAL LIMITED added $0.2291 to settle at $36.6891,
CBZ  was up by $0.22115 to $1.8000 and PROPLASTICS traded $0.1900 firmer at
$1.8000. Two more counters to gain were ECONET WIRELESS  added $0.1894 to
$2.9962 and DAIRIBOARD  was $0.1171 stronger at $0.7200.

Gains were offset by losses in MEIKLES LIMITED  which dropped $0.8885 to
$7.1115, PPC LIMITED eased $0.0552 to $3.6448 and BAT LIMITED  was $0.0513
lower at $85.9487. SEEDCO INTERNATIONAL LIMITED  lost $0.0500 to $4.5000 and
INNSCOR AFRICA  traded $0.0499 weaker at $7.2501.

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

  Global Currencies & Equity Markets

South africa

South Africa's rand rallies as investors see value after deep fall

(Reuters) - South Africa’s rand rallied to its firmest in more than a week
on Thursday, breaking through the key 18.00 mark as increased bets of the
currency returning to fair value and a new $2.3 trillion stimulus by the
U.S. central bank spurred demand.

At 1500 GMT the rand was 1.62% firmer at 17.8950 per dollar, its best level
since April 1 and well below the 18.00/$ technical mark that stands to open
up further gains.

The greenback sank after the Federal Reserve rolled out a $2.3 trillion plan
aimed at taming growing unemployment, prompting a further unwinding of long
dollar positions, with money chasing higher yields elsewhere benefiting
riskier currencies

The rand, after tumbling to an all-time low of 19.3450 following two credit
rating downgrades in quick succession, has clawed back ground in the last
few sessions in line with other emerging market currencies.

But it has also benefited from hitting over-sold levels much quicker than
its peers, as Moody’s finally pushed the country’s debt rating to “junk” at
the end of March, removing the uncertainty that had clouded valuations for
close to three years.

Analysts see the rand moving closer to fair-value of around 15.50 by year
end.

In fixed income, the yield on the 10-year government bond due in 2030 was
down 16.5 basis points to 10.810%.

The Johannesburg Stock Exchange’s Top-40 index climbed 2.41% to close at
43,802 points while the All-Share index rose 2.7% to close at 47,950 points.

The rally was driven by the country’s banks and mining companies. The
FTSE/JSE bank index was up by 7.15% while the resources index was up 3.54%
by the end of trading.

Uganda

Ugandan shilling unchanged amid flat importer and banks' demand

(Reuters) - The Ugandan shilling was stable on Thursday from the previous
session amid flat appetite for dollars from both commercial banks and
merchandise importers. 

At 0945 GMT, commercial banks quoted the shilling at 3,795/3,805, unchanged
from Wednesday's close.

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GLOBAL MARKETS

Global stock markets jump on Fed stimulus, oil pulls back from earlier surge

(Reuters) - Global equity benchmarks moved higher on Thursday following
signs of some success by governments and central banks which have taken
additional steps to bolster their economies during the COVID-19 pandemic,
while oil prices pulled back from an earlier surge.

Oil prices ended the day in negative territory after an earlier surge as
OPEC and its allies hammered out an agreement to cut output that was smaller
than the market was expecting.

MSCI’s gauge of stocks across the globe gained 1.58%.

The Dow Jones Industrial Average rose 285.8 points, or 1.22%, to 23,719.37;
the S&P 500 gained 39.84 points, or 1.45%, to 2,789.82 and the Nasdaq
Composite added 62.67 points, or 0.77%, to 8,153.58.

Gains in the United States were bolstered after the Federal Reserve
announced a $2.3 trillion effort to support local governments and small to
medium-sized businesses. The U.S. central bank said it would begin buying
municipal bonds issued by state and local governments in order to help them
respond to the health crisis.

The S&P 500 gained more than 10% since the start of the holiday-shortened
week.

On Thursday, New York Governor Andrew Cuomo said the state’s efforts at
social distancing were working in getting the virus under control in the
epicenter of the U.S. outbreak.

New cases in hospitals fell to a low of 200 in a sign that the disease’s
curve was flattening in the state. But New York state also recorded a
record-high 799 deaths on Wednesday, for a total of 7,067.

“You can’t relax. The flattening of the curve last night happened because of
what we did yesterday,” Cuomo said.

Members of U.S. President Donald Trump’s economic team have been bullish on
re-opening of the economy.

Asked on CNBC on Thursday whether he believed the U.S. economy could be
reopened as soon as next month, Treasury Secretary Steven Mnuchin said, “I
do.” As soon as Trump “feels comfortable with the medical issues,” he said.

The euro gained against the dollar on hopes euro zone finance ministers
would agree on more support for their coronavirus-hit economies.

Yet concerns about the toll of the slowdown measures on the global economy
kept a lid on a broad move into riskier assets after U.S. jobless claims
data exceeded 6 million for the second straight week, according to data
released on Thursday.

Benchmark 10-year notes last rose 15/32 in price to yield 0.7175%, from
0.764% late on Wednesday.

The Organization of the Petroleum Exporting Countries and its allies,
including Russia - a group known as OPEC+ - held talks on Thursday on record
oil output curbs of about 15 million barrels per day (bpd) or more, roughly
15% of global supplies, to support prices hammered by the coronavirus
crisis, sources involved in the discussions said.

They said the plan included cuts of about 5 million bpd from producers
outside the group known as OPEC+ and could be made gradually.

U.S. crude dropped 7.4% to $23.22 a barrel. Brent crude fell 3% to $31.85
per barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold hits 1-month peak fuelled by Fed's new stimulus measures

(Reuters) - Gold prices surged over 2.5% to their highest in a month on
Thursday after the U.S. Federal Reserve announced a massive stimulus to
combat the economic toll of the coronavirus pandemic.

Spot gold jumped 2.5% to $1,686.85 per ounce by 1:31 p.m. EDT (1731 GMT),
having earlier hit its highest since March 9 at $1,690.03. It has risen
about 4.2% so far this week.

U.S. gold futures settled 4.1% higher at $1,752.80.

The Fed rolled out a broad, $2.3 trillion effort to bolster local
governments and small and mid-sized businesses to keep the U.S. economy
intact as the country battles the coronavirus pandemic.

Fed Chair Jerome Powell said the central bank will continue to use all the
tools at its disposal until the U.S. economy begins to fully rebound from
the harm caused by the outbreak.

Data showed the number of Americans seeking unemployment benefits in the
last three weeks has blown past 15 million, with weekly new claims topping 6
million for the second straight time last week as the pandemic has abruptly
grounded the country to halt.

More than 1.47 million people have been reported infected by the new
coronavirus globally and 87,760 have died.

Also helping gold, the dollar fell 0.6%, en route to a weekly dip.

Holdings of gold by ETFs rose in March to a record high of 3,185 tonnes,
worth $165 billion, the World Gold Council said on Wednesday.

Major physical bullion hubs saw activity dwindle this week due to
coronavirus-led restrictions, with strained supply chains cut off from
soaring safe-haven demand in some regions.

Elsewhere, palladium rose 0.2% to $2,179.13 per ounce, platinum rose 2.5% to
$748.10 and silver rose 2.6% to $15.44 and were up over 6% so far this week.

Most markets will be closed for Good Friday on April 10.

Copper set for biggest weekly rise in 14 months as risk appetite improves

(Reuters) - Copper prices were set for their biggest weekly gain in more
than a year after signs that the spread of the coronavirus may be slowing
lifted risk assets.

Benchmark copper on the London Metal Exchange (LME) — which is closed on
Friday and Monday for the Easter holidays — was up 0.2% at $5,010 a tonne at
1730 GMT and 3.5% higher this week, the most in any week since February
2019.

Copper, used in power and construction, has had a torrid two years as a
U.S.-China trade war, slowing global economic growth and the coronavirus
outbreak pushed prices down from more than $7,000.

LME cash copper is expected to average $4,700 a tonne in the second quarter
and $5,200 over the full year, according to a Reuters poll of 23 analysts,
which also forecast a 337,000-tonne surplus this year.

CORONAVIRUS: Mainland China this week reported a drop in new coronavirus
cases, and new infections in Italy and hard-hit parts of the United States
slowed.

MARKETS: Global equities rose as governments promised more stimulus
measures, and despite data showing 6.6 million more Americans filed for
unemployment benefits. Oil prices rose on hopes of output cuts and the
dollar fell.

CHINA: China’s new bank loans are expected to have rebounded in March as
policymakers urge lenders to help cash-strapped companies.

CHINA PREMIUMS: Yangshan copper import premiums have risen to $76 a tonne,
the highest since November, in part due to hopes of a value-added tax cut
that have lifted near-dated Chinese copper futures. SMM-CUYP-CN

DEMAND: Analysts at ANZ said copper demand would fall nearly 3.5% to below
23 million tonnes this year and prices would average below $5,000 for the
rest of 2020.

SUPPLY: Australia-based miner MMG Ltd became the latest miner to report
supply disruption, declaring force majeure on copper concentrate supplies
from its Las Bambas mine in Peru, sources said.

BHP confirmed on Thursday two cases of coronavirus at its Escondida copper
mine in Chile. Chile’s Codelco said its production continued in line with
its plans.

STOCKS: Copper inventories in LME-registered warehouses rose 20% this week
to 260,275 tonnes, the highest since October, and the discount of cash metal
over the three-month contract leapt to $26.75 from $14 on Monday, suggesting
plentiful nearby supply. MCU0-3 MCUSTX-TOTAL

OTHER METALS: Benchmark LME aluminium was up 1.2% at $1,482.50 a tonne, zinc
was 1% lower at $1,903, nickel rose 1.4% to $11,670, lead gained 0.2% to
$1,722 and tin was up 3.5% at $14,905.

All were up this week except aluminium, which was roughly unchanged. 

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
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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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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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