Bulls n Bears Daily Market Commentary : 25 March 2020

Thu Mar 26 02:30:52 CAT 2020

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Bulls n Bears Daily Market Commentary : 25 March 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$17,968,639.20 with foreign buys at ZWL$229,813.80 and
foreign sales were ZWL$2,952,810.00 Total trades were 224

The All Share index retreated by 15.87 points to close at 480.41 points. BAT
shed $5.0000 to $90.0000, OLD MUTUAL LIMITED eased $4.9458 to $38.8615 and
MEIKLES LIMITED   was $0.6757 weaker at $7.8243. PPC LIMITED also decreased
by $0.3000 to $4.3000 and INNSCOR AFRICA  shed $0.2949 to close at $7.7555.

Trading in the positive was NATIONAL FOODS LIMITED which gained $1.3678 to
$21.9678, FIRST MUTUAL PROPERTIES  rose by $0.0900 to $1.0500 and DAIRIBOARD
ZIMBABWE LIMITED  was up by $0.0500 to end at $0.6200. Two more counters to
advance were ART CORPORATION  which increased by $0.0450 to end at $0.5000
and ZIMPLOW was $0.0400 stronger at $1.0000.

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

  Global Currencies & Equity Markets

Kenya

Kenyan shilling strengthens on reduced dollar demand

(Reuters) - The Kenyan shilling strengthened on Wednesday due to reduced
dollar demand from importers in the manufacturing sector as factories slowed
down their activities over coronavirus concerns, traders said.

At 0738 GMT, commercial banks quoted the shilling at 106.40/60 per dollar,
compared with 106.60/80 at Tuesday’s close.

Central Bank Governor Patrick Njoroge said on Tuesday some of the shilling’s
recent weakening was caused by market misunderstanding of the bank’s plan to
increase its reserves by buying dollars from the market, and some “malicious
actors”.

The bank has also tripled the length of repurchase agreements they enter
with banks to 90 days from 28 to further boost liquidity in the financial
sector.

South Africa

South Africa's central bank begins bond buying programme to ease liquidity
crunch

(Reuters) - South Africa’s Reserve Bank (SARB) on Wednesday said it would
begin buying an unspecified amount of government bonds as part of additional
emergency policy measures aimed at easing a severe liquidity crunch
triggered by the coronavirus.

 <mailto:info at bulls.co.zw> 

GLOBAL MARKETS

Asia rides Wall St surge as investors place hopes on U.S. stimulus

(Reuters) - Asian shares extended their rally on Wednesday in the wake of
Wall Street’s massive rebound as the U.S. Congress appeared closer to
passing a $2 trillion stimulus package to mitigate the economic blow from
the coronavirus pandemic.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.7% with
Australian shares jumping 3.4% and South Korean shares gaining 3.5%. Japan’s
Nikkei surged 4.8%.

On Tuesday, MSCI’s gauge of stocks across the globe rallied 8.39%, the
largest single-day gain since the wild swings seen during the height of the
global financial crisis in October 2008. It rose another 0.8% in Asia on
Wednesday.

On Wall Street, the Dow Jones Industrial Average soared 11.37%, its biggest
one-day percentage gain since 1933.

Yet, much of the large gains in stock markets pale in comparison with the
brutal selloff of the past few weeks as investors braced for a deep global
recession in the wake of sweeping lockdowns in many countries.

U.S. S&P500 is still down almost 28% from its record peak hit just over a
month ago. Wall Street futures were down 1.1% in early Asian trade.

Senior Democrats and Republicans in the divided U.S. Congress said on
Tuesday they were close to a deal on a $2 trillion stimulus package to limit
the economic damage from coronavirus pandemic. But it was unclear when they
would be ready to vote on a bill.

Investor fears about a sharp economic downturn appear to be easing somewhat
after the U.S. Federal Reserve’s offer of unlimited bond-buying and
programmes to buy corporate debt.

The biggest uncertainty is on how countries can slow the pandemic and how
quickly they can lift various curbs on economic activity.

U.S. President Donald Trump pressed his case for a re-opening of the U.S.
economy by mid-April.

But that met immediate scepticism given the rise of infections in the United
States is now among the highest in the world, with the total cases reaching
more than 50,000, doubling in less than 3 days recently.

In particular, its financial hub of New York City suffered another quick and
brutal rise in the number of infections to around 15,000, raising worries
about shortage of hospital beds.

In the currency market, the dollar has slipped as a greenback liquidity
crunch loosened slightly.

The euro traded at $1.0808 up 0.15% after four straight days of gains.

The dollar dropped 0.3% against the yen to 110.85 , off a one-month high of
111.715 touched the previous day.

Gold ticked up 0.3% to $1,614.5 per ounce after having soared almost 5%, its
biggest gains since 2008, on Tuesday. It was in part helped by concerns
lockdowns in major producer South Africa could disrupt supply.

Oil prices bounced back as hopes for U.S. stimulus offset fears of falling
global demand.

India, the world’s third largest oil consumer, ordered its 1.3 billion
residents to stay home for three weeks, the latest big fuel user to announce
restrictions on social movement, which have destroyed demand for gasoline
and jet fuel worldwide.

The market remained pressured by a flood of supply after Saudi Arabia
started a price war earlier this month, a move that dealt a crushing blow to
markets already reeling from the pandemic.

U.S crude futures rose 4.5% to $25.10 per barrel. That is up about $5.5, or
almost 26%, from their 18-year intraday low of $19.46 touched on Friday.
Still on the month, the market is down 44%.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper rises on U.S. stimulus hopes, supply worries

(Reuters) - Copper prices rose on Wednesday on concerns about supply due to
coronavirus-driven lockdowns in mining countries and as U.S. lawmakers
appeared closer to passing a $2 trillion stimulus package.

Gains, however, were capped by demand worries as more countries in Asia and
Europe imposed self-isolation to arrest the spread of the virus.

The most-traded copper contract on the Shanghai Futures Exchange (SHFE) rose
1.7% to 38,800 yuan ($5,504.72) a tonne by 0151 GMT, and three-month copper
on the London Metal Exchange (LME) advanced 0.1% to $4,818.50 a tonne.

Democrats and Republicans in the divided U.S. Congress said they were close
to the stimulus package deal, while rising lock downs and transport
restrictions in mining countries fed fears of supply disruptions.

FUNDAMENTALS

* CHINA COPPER: Charges for processing copper concentrate in China have
fallen for the first time since December, as the pandemic hit operations at
overseas mines and leave smelters uncertain over future supply.

* ALUMINIUM: Chinese aluminium smelters have cut their annual production
capacity by up to 340,000 tonnes in response to a coronavirus-driven plunge
in prices of the metal.

* FIRST QUANTUM: Canadian miner First Quantum Minerals Ltd said production
at its Cobre Panama copper mine would ramp up at a slower-than-expected pace
after several workers contracted with the virus.

* OTHER PRICES: LME aluminium rose 0.7% to $1,559 a tonne, lead advanced
2.2% to $1,620.50 a tonne while ShFE aluminium increased 0.3% to 11,430 yuan
a tonne and lead fell 0.6% to 13,340 yuan a tonne.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Asian shares extended their rally in the wake of Wall Street’s big gains
as U.S. Congress appeared closer to passing a the stimulus package to curb
the pandemic’s economic toll.

CME to launch new gold futures contract with expanded delivery options

(Reuters) - U.S. exchange operator CME Group Inc said on Tuesday it was
launching a new gold futures contract with expanded delivery options that
include gold bars, in a bid to address the disruptions to bullion’s supply
due to the coronavirus outbreak.

Earlier on Tuesday, Reuters reported the London Bullion Market Association
and several major banks that trade gold had asked CME Group to allow gold
bars in London to be used to settle its contracts to ease disruption to
trading.

London is a key gold storage centre that uses 400-ounce bars which must be
melted down and recast as 100-ounce bars to be accepted by Comex in New
York.

The options for the new contract sizes include gold bars of 100 ounces, 400
ounces and 1 kg, CME said.

It will be available for trading on CME Globex, and will be subject to the
rules and regulations of Comex in New York, the company added.

Traders feared shutdowns of air travel and precious metal refineries due to
the pandemic will make it harder to ship bullion from London to the United
States to meet contractual requirements.

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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