Bulls n Bears Daily Market Commentary : 13 March 2020

Sat Mar 14 09:47:55 CAT 2020

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Bulls n Bears Daily Market Commentary : 13 March 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$67,245,904,489 with foreign buys at ZWL$174,979.00 and
foreign sales were NIL Total trades were 192

The All Share index ended the week in green adding 16.00 points to close at
522.20 points. MEIKLES gained $1.3273 to $9.7273, CAFCA rose by $1.0000 to
$19.0000 and HIPPO   was $0.7302 firmer at $7.5702. OLD MUTUAL LIMITED also
increased by $0.2194 to close at $53.2194 and CASSAVA SMARTECH traded
$0.2189 firmer at $3.1551.

Gains were offset by losses in PPC   which eased $0.9970 to $5.5580,
DAIRIBORD  lost $0.1037 to end at $0.5700 and POWERSPEED  was $0.0600 lower
at $0.4100. ZPI  also decreased by $0.01500 to $0.1050 and ARISTON  traded
$0.0112 weaker at $0.5863.

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

  Global Currencies & Equity Markets

Uganda, Nigeria currencies seen soft, Tanzania's firm

(Reuters) - Ugandan and Nigerian currencies are expected to come under
pressure next week, but Tanzania’s is seen firming while Kenya’s holds
steady.

UGANDA

The Ugandan shilling is expected to trade with a weakening tone over the
next few days as the disruption to international trade links and tourism
caused by the coronavirus pandemic trims inflows of hard currency.

At 1110 GMT, commercial banks quoted the shilling at 3,710/3,720, compared
with last Thursday’s close of 3,700/3,710.

He said the shilling would likely weaken past 3,720 in the coming days as
the global economic impact of the coronavirus snowballs.

NIGERIA

Nigeria’s naira is seen easing next week amid fears of a possible
devaluation in the wake an oil price collapse that has worsened dollar
shortages in the West African nation, traders said.

The naira was quoted at 370 on the over-the-counter market on Thursday,
weaker than the 368 per dollar in the previous session.

Traders said liquidity was tight amid a surge in demand. The naira has also
been weakening on the black market. However, the central bank has been
helping to keep the naira stable at 306.95 on the official market.

The impact of the oil price plunge over the weekend has spread across asset
classes in Nigeria, causing investors to widen spreads on the bond market,
sell stocks and weaken the naira.

TANZANIA

The Tanzanian shilling is expected to gain further next week due to the
decline in demand for dollars.

Commercial banks quoted the shilling at 2,296/2,306 on Thursday, up from
2,299/2,309 recorded a week earlier.

KENYA

The Kenyan shilling is seen stable in the coming week, with inflows from
non-governmental organisations helping ease dollar demand from commercial
banks and importers, traders said.

Commercial banks quoted the shilling at 102.40/60 per dollar, compared with
102.50/70 at last Thursday’s close.

GLOBAL MARKETS

Late Wall Street rally leads global stocks higher; oil also jumps

(Reuters) - A gauge of stocks across the globe bounced back on Friday led by
a late rally on Wall Street, after U.S. President Donald Trump freed $50
billion to tackle the novel coronavirus pandemic.

Oil prices shot higher after Trump, in the same speech, said that the United
States would take advantage of the recent sharp decline in prices to fill
the U.S. strategic reserves of oil “right up to the top.”

Trump’s declaration of a national emergency over the virus gave a shot to
stocks which had only partly reversed the sharp decline from Thursday.
Financial markets closed a week marked by anxiety over the economic effects
of the fast-spreading disease.

Two weeks ago, Trump had called the now-pandemic a “hoax” meant to damage
his presidency.

Volatility is seen remaining high, with sharp moves expected in both
directions and across asset classes. The S&P 500 closed up 9.3% a day after
falling 9.5%. The index’s weekly decline was 8.8%.

On Friday, the Dow Jones Industrial Average rose 1,985 points, or 9.36%, to
23,185.62, the S&P 500 gained 230.38 points, or 9.29%, to 2,711.02 and the
Nasdaq Composite added 673.07 points, or 9.35%, to 7,874.88.

Earlier, the pan-European STOXX 600 index rose 1.43%.

MSCI’s gauge of stocks across the globe gained 5.27% after falling by the
largest percentage on record on Thursday. Its weekly decline was 12.4%.

Nikkei futures rose 5.63%.

U.S. Treasury yields rose as stocks rallied and as liquidity remained
scarce.

Benchmark 10-year notes last fell 41/32 in price to yield 0.9829%, from
0.852% late on Thursday.

Justin Hoogendoorn, head of fixed income strategy and analytics at Piper
Sandler in Chicago, said there were “very little bids” in the market.

Italy, where the COVID-19 death toll shot past 1,000 people, saw its
borrowing costs spike by about 73 basis points this week - the most for any
week since 1994.

Bond yields rose across the euro zone as investors’ expectations grew for
fiscal stimulus in the region to combat the coronavirus pandemic.

U.S. crude rose 4.54% to $31.73 per barrel and Brent was last at $34.97, up
5.27% on the day. Despite the sharp gains, oil prices posted their largest
weekly drops since 2008.

The dollar extended its previous session’s gains, while the yen felt the
pressure of risk-on trading. Market participants said signs of dollar
funding stress persist and policymakers probably need to do even more.

The dollar index rose 1.019%, with the euro down 0.7% to $1.1105.

The Japanese yen weakened 3.05% versus the greenback at 107.94 per dollar,
while sterling was down 2.3% on the day.

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Commodities Markets

Gold gains on bargain hunting, palladium heads for record weekly loss

(Reuters) - Gold rose on Friday as bargain hunters took advantage of the
previous day’s slide that exceeded 3.5%, but the precious metal was on track
for its biggest weekly decline since November 2016.

Palladium rose as much as 11.5%, a day after a 28% plunge, and was heading
for its biggest weekly percentage decline ever.

Spot gold was up 0.2% at $1,580.24 per ounce by 10:23 a.m. EDT (1423 GMT).
For the week, it was down about 5.8%. U.S. gold futures fell 1% to
$1,573.90.

On Thursday, bullion posted its biggest daily percentage fall in nearly
seven years, as panic-selling driven by coronavirus fears forced investors
to cover margin calls in other assets.

Wall Street was set for a strong rebound following the biggest daily selloff
in more than three decades as investors hoped fiscal stimulus would head off
a global recession.

In a move to stem a market meltdown, the Federal Reserve on Thursday offered
$1.5 trillion in short-term loans, signalling more aggressive action to
stimulate the economy.

“The expansion support measures from central banks, basically pumping money
into the economy is one of the factors that is providing support for gold,”
Julius Baer’s Menke added.

On the physical side, major Asian hubs saw activity dwindle due to impact of
the coronavirus outbreak, especially in the world’s biggest gold consumer,
China.

An oil price war will also support gold, Fitch added.

Palladium fell 4.2% to $1,753.72 per ounce, and was headed for a weekly
decline of more than 30%.

Platinum gained 1.4% to $773.45, but was down nearly 15% for the week.

Silver fell 2.4% to $15.45, the metal was on track for its biggest weekly
decline since 2011.

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
other member of Bulls ‘n Bears nor any other person, accepts any liability
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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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