Bulls n Bears Daily Market Commentary : 11 March 2020

Thu Mar 12 03:23:22 CAT 2020

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Bulls n Bears Daily Market Commentary : 11 March 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$36,871,961.50 with foreign buys at ZWL$5,952,856.66 and
foreign sales were ZWL$6,138,281.60 Total trades were 246

The All Share index advanced by adding 7.01 points to close at 478.35
points. CAFCA gained $0.7500 to end at $15.0000, DELTA CORPORATION added
$0.2403 to $6.5185 and NATIONAL FOODS LIMITED  was $0.2000 stronger at
$20.4000. ECONET WIRELESS  also increased by $0.1906 to $2.7031 and INNSCOR
AFRICA LIMITED  traded $0.1385 firmer at $7.8086.

Gains were offset by losses in OLD MUTUAL LIMITED eased $0.4834 to $50.0254,
NAMPAK ZIMBABWE LIMITED lost $0.2000 to $0.8000 and ALMAGAMATED

REGIONAL TRADING CORPORATION   was $0.0800 lower at $0.6000. FIRST MUTUAL
LIMITED  also decreased by $0.0794 to $0.8006 and AFRICAN SUN  traded
$0.0500 weaker at $0.6000.

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

  Global Currencies & Equity Markets

Nigeria

Nigeria bond spreads widen as investors fret over naira, oil price

(Reuters) - Nigeria’s 2021 bond spread widened by more than 600 basis points
on Wednesday as jittery investors worried about the value of the naira
currency after oil prices plunged.

Investors were bidding to buy the 2021 bond at 12.79% while offers to sell
were at 6.57%. Spreads for the bond which has a little over a year to
maturity had been trading at around 100 basis points before the oil price
rout.

Spreads for the 2023 bond widened by more than 300 basis points.

Kenya

Kenyan shilling strengthens on non-governmental inflows

(Reuters) - The Kenyan shilling strengthened on Wednesday supported by
dollar inflows from non-governmental organizations amid subdued buying
activity from merchandise importers, traders said. 

At 0840 GMT, commercial banks quoted the shilling at 102.40/60 per dollar,
compared with 102.55/75 at Tuesday's close. 

EMERGING MARKETS

Stocks fall, await stimulus as coronavirus spreads

(Reuters) - Emerging market shares fell on Wednesday after Washington left
investors in the dark about a stimulus package to combat the economic
fallout from the coronavirus outbreak.

Earlier this week, U.S. President Donald Trump helped lift market sentiment
when he said “major steps” would be taken to ease economic strains caused by
the spread of the flu-like virus.

But, the lack of major announcements since then has left some investors
unimpressed.

Asia shares weighed as stocks in mainland China , South Korean and Taiwan
ended lower, as coronavirus cases spiked in South Korea. MSCI’s index of
emerging market shares was down 0.5% at 0918 GMT.

The Bank of England slashed interest rates by 50 basis points on Wednesday
and launched a slew of other measures. On Thursday, all eyes will be on the
European Central Bank’s decision.

Stocks in Turkey, South Africa and Hungary rose between 0.9% and 1.2%.

But, markets are expecting a rise in coronavirus cases, particularly in the
United States and western Europe which could squash any bounce in equities,
Turner said.

Russian stocks were flat in volatile trading, while the rouble gave up early
gains to trade down as oil prices edged lower.

Saudi Aramco has been directed by the Ministry of Energy to raise its oil
production capacity to 13 million barrels per day (bpd) from 12 million bpd,
the company’s Chief Executive Amin Nasser said on Wednesday.

Saudi Arabia’s move to increase production and slash crude prices had sent
oil prices crashing on Monday, hammering currencies of oil exporters like
Russia and Mexico.

Turkish stocks rose for the first time in four days and the lira traded
flat. Central bank data on Wednesday showed Turkey’s current account deficit
in January was less than expected, while a revision of 2019 numbers saw
surplus jump to $8 billion from a previously-announced $1.7 billion.

Talks between Turkey and Russia on the implementation of a ceasefire
agreement in Syria's Idlib region are "positive, constructive", a Turkish
new agency was reported as saying. Tensions in Syria had spiked dramatically
recently, prompting Moscow and Ankara to reach a ceasefire deal. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper treads water as stimulus promises fail to calm virus fears

(Reuters) - Copper was steady on Wednesday as a decline in new coronavirus
cases in China and central bank stimulus was offset by concerns the virus
had not been completely stamped out and continued to threaten demand for
metals.

Benchmark copper on the London Metal Exchange (LME) was steady at $5,563 a
tonne by 1120 GMT, after touching a three-year low of $5,433 on Monday.

The virus, which has infected 80,778 people in China and killed 3,158, has
hobbled manufacturing in the country and its spread has sparked fears of a
global slowdown.

The Bank of England on Wednesday was the latest central bank to cut interest
rates in an effort to stop the outbreak triggering a recession.

Capital Economics analyst Kieran Clancy said while the response from central
banks was encouraging, the impact would be minimal without a significant
slowdown in infections and rollbacks in government containment measures.

CHINA: Signalling a turnaround in the fight against the spread of the virus,
Chinese President Xi Jinping visited Wuhan, the epicentre of the epidemic,
for the first time since the outbreak began.

About three-quarters of China’s municipalities, regions and provinces
lowered their emergency response level from the highest tier.

U.S STIMULUS: The White House and Congress negotiated measures on Tuesday to
bolster the U.S. economy and Americans’ paychecks against the outbreak’s
impact, although there was no immediate sign of a deal.

JAPAN MEASURES: Japan announced a second package of measures worth about $4
billion.

METALS TRADING: The LME has made contingency plans to relocate or ditch
open-outcry trading if the coronavirus outbreak worsens.

ZINC INVENTORIES: Zinc stocks in LME-approved warehouses MZNSTX-TOTAL gained
675 tonnes to 75,225 tonnes, close to seven-month highs set on Feb. 25.

They touched their lowest in at least 30 years at about 50,000 tonnes
earlier this year.

LITHIUM: Albemarle Corp, the world’s largest producer of lithium for
electric vehicle batteries, said it is experiencing a weak first quarter in
China.

CHINA AUTOS: Vehicle sales in China, the world’s top car market, tumbled in
February as customers stayed at home and away from dealerships due to the
epidemic.

PRICES: LME aluminium fell 0.4% to $1,690 a tonne, zinc firmed 1.6% to
$2,008, lead increased 0.3% to $1,800, tin fell 0.1% to $16,885 while nickel
lost 1.1% to $12,540.

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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