Bulls n Bears Daily Market Commentary : 23 April 2020

Fri Apr 24 12:16:52 CAT 2020

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Bulls n Bears Daily Market Commentary : 23 April 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$16,751.260.75 with foreign buys at NIL and foreign sales
were ZWL $16,968.00 Total trades were 214.

The All Share index added 3.79 points to close at 475.94 points. RIOZIM
gained $0.9494 to $5.7494, FIRST MUTUAL LIMITED rose by $0.2400 to settle at
$1.4400 and CBZ BANK traded $0.2025 firmer at $2.0025. EDGARS  also
increased by $0.0635 to end at $0.3845 and BINDURA was $0.0589 higher at
$0.3989.

Trading in the negative; PADENGA lost $0.1377 to $5.4273, ECONET  eased
$0.0674 to $3.1002 and INNSCOR  declined by $0.0494 to $7.1518. OK ZIMBABWE
also decreased by $0.0078 to $1.6525 and SIMBISA  traded $0.0059 lower at
$2.7943.

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  Global Currencies & Equity Markets

Uganda

Ugandan shilling weakens against the dollar

(Reuters) - The Ugandan shilling   edged down on Friday mainly due to light
demand for dollars from some firms in the energy and telecoms sectors. 

At 0843 GMT, commercial banks quoted the shilling at 3,800/3,810, down from
Thursday's closing price of 3,780/3,790. 

Kenya

Kenyan shilling under pressure from energy sector dollar demand

(Reuters) - The Kenyan shilling was under pressure on Friday due to uptick
in dollar demand from the energy and telecommunications sector amid little
foreign Currency inflows to offer support, traders said.

At 0805 GMT, commercial banks quoted the shilling at 107.05/25 per dollar,
compared with 106.95/107.15 at Thursday's close.

 <mailto:info at bulls.co.zw> 

GLOBAL MARKETS

Asian stocks fall, Europe set to follow on doubts over coronavirus drug

(Reuters) - Asian shares and U.S. stock futures fell on Friday, spurred by
doubts about progress in the development of drugs to treat COVID-19 and new
evidence of U.S. economic damage caused by the coronavirus pandemic.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.4%.
U.S. stock futures, the S&P 500 e-minis, were down 0.56%.

Shares in China, where the coronavirus first emerged late last year, fell
0.79%.

Euro Stoxx 50 futures were down 2.23%, German DAX futures slipped 2.19% and
FTSE futures fell 1.36%.

The S&P 500 and the Nasdaq turned negative at the close on Thursday after a
report that Gilead Sciences Inc’s antiviral drug remdesivir had failed to
help severely ill COVID-19 patients in its first clinical trial.

Gilead said the findings were inconclusive because the study conducted in
China was terminated early.

The markets’ sensitivity to news related to the medical treatment of
COVID-19 reflected investors’ desperation for a sign of when the global
economy might start returning to normal, Tim Ghriskey, chief investment
strategist at New York-based wealth management firm Inverness Counsel.

U.S. business activity plumbed record lows in April, mirroring dire figures
from Europe and Asia as strict stay-at-home orders crushed production,
supply chains and consumer spending, a survey showed.

The U.S. House of Representatives on Thursday passed a $484 billion bill to
expand federal loans to small businesses and hospitals overwhelmed by
patients.

President Donald Trump, who has indicated he will sign the bill, said late
Thursday that he may need to extend social distancing guidelines to early
summer.

MSCI’s gauge of stocks across the globe shed 0.24%.

In Japan, shares in the Nikkei stock index slid 0.84% amid lingering concern
about the spread of infections before the Golden Week public holidays.

Shares in South Korea, which has won recognition for its aggressive measures
to contain the coronavirus, fell 1.11%.

Australian shares bucked the trend, rising 0.71% due to gains in the energy
and resources sector.

Oil prices extended a tentative rebound from a price collapse this week that
pushed U.S. crude futures into negative for the first time ever, but
investors remain concerned about weak energy demand and excess supplies of
crude.

U.S. crude ticked up 4.85% to $17.30 a barrel, while Brent crude rose 3.98%
to $22.18 per barrel in Asia as some oil producers said they will bring
forward output cuts.

The outlook remains dim because global energy demand has evaporated due to
business closures and travel curbs aimed at slowing the pandemic. In
addition, some countries are running out of space to store the crude oil
that they are not using.

The dollar headed for weekly gains against the Norwegian crown, the Canadian
dollar, and the Russian rouble as investors chose to sell the currencies of
major oil producers and keep their funds in dollars.

Elsewhere in the currency markets, the euro headed for its second weekly
decline against the dollar after the European Union agreed on Thursday to
set up a joint financial fund of up to 2 trillion euros to help recover from
the pandemic but delayed a decision on the details of the programme until
the summer.

The yen was little changed at 107.67 against the dollar. Japan’s currency
fell briefly after the Nikkei newspaper reported the Bank of Japan will
consider unlimited government bond purchases at a policy meeting next week
Monday.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Papua New Guinea refuses extension of Barrick gold mine

(Reuters) - Papua New Guinea has refused an application to extend mining at
Barrick Gold Corp’s Porgera gold mine, Prime Minister James Marape said on
Friday.

The decision, which would have extended by 20 years Barrick’s rights, was
based on the recommendation of the country’s mining advisory committee,
Marape said in a statement.

Barrick had been set to elevate the troubled mine to its top-tier assets,
despite landowner and government demands to cede a larger stake and
deteriorating security at the joint venture with China’s Zijin Mining.

With a 20-year lease renewal application in the balance, Barrick has faced
backlash from Papua New Guinea landowners and residents.

Critics say the Porgera mine has polluted the water supply and created other
environmental and social problems, with minimal economic returns for locals.

Marape said that plans were to bring the mine into state control, without
giving any financial details over how much the State might pay for it.

The manager of Barrick’s joint venture, Barrick (Niugini) Limited, could not
immediately be reached for comment.

Several other resources companies are waiting on government approval for new
projects, including Australia’s Newcrest for its Wafi Golpu gold and copper
project.

In the statement, Marape said PNG was “moving to progress” Wafi Golpu as
well as P’ynang, which will feed Exxon Mobil Corp’s PNG LNG plant and
Total’s Papua LNG as its three priority projects. 

Most base metals drop on demand concerns, coronavirus drug trial

(Reuters) - Most base metals prices in London fell on Friday, as risk
appetite weakened amid prospects of lean demand and on reports that an
experimental drug to treat the coronavirus showed inconclusive results.

Three-month copper on the London Metal Exchange (LME) was down 0.8% at
$5,120 a tonne, as of 0703 GMT, and on track for its first weekly decline in
four weeks.

Aluminium eased 0.2% to $1,507.50 a tonne, nickel was down 0.1% to $12,160 a
tonne, while zinc rose 0.4% to $1,880.50 a tonne.

A closely watched Gilead Sciences Inc experimental antiviral drug failed to
help patients with severe COVID-19 in a clinical trial conducted in China,
but the firm said the findings were inconclusive as the study was terminated
early.

Asian shares and U.S. stock futures dropped after the news about the
experiment in China and on new evidence of U.S. economic damage caused by
the pandemic.

Copper is often used as a gauge of global economic health, and China
accounts for about half of the global copper consumption.

The most-traded copper contract on the Shanghai Futures Exchange (ShFE)
edged up 0.2% at 41,780 yuan ($5,902.38) a tonne, tracking overnight gains
in London, while aluminium fell 0.2% to 12,285 yuan a tonne and zinc
declined 0.03% to 15,825 yuan a tonne.

China’s central bank cut the interest rate on its targeted medium-term
lending facility on Friday to help support the economy, but failed to lift
metals prices.

The global economy will suffer its steepest contraction on record this year
with a likely U-shaped recovery, while China’s economy is slowly recovering
but could still face a recession if conditions worsen again from the
coronavirus pandemic, Reuters polls showed.

The speculative net short positions in ShFE copper rose for a third
consecutive session on Thursday, reaching 25.7% of open interest and up from
23.9% in the previous session, latest data by Marex Spectron showed.

Copper prices were pressured further by news that miner MMG Ltd could
restart copper concentrate shipments from the site of its Las Bambas
operations in Peru to the port “as soon as next week”, after the firm
declared force majeure at the mine amid national restrictions measures to
combat COVID-19.

FUNDAMENTALS

* ALUMINIUM: Banks’ diminishing appetite to lend due to the coronavirus
crisis will keep prices under pressure amid a ballooning surplus.

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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