Bulls n Bears Daily Market Commentary : 30 April 2020

Fri May 1 09:45:25 CAT 2020

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Bulls n Bears Daily Market Commentary : 30 April 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$17,291,550.93 with foreign buys at ZWL$975.00 and
foreign sales were ZWL $1,182,863.55 Total trades were 125.

The All Share index closed the day higher at 487.39 points after adding 6.
66points . OLD MUTUAL LIMITED further added $0.3140 to $43.0478, OK ZIMBABWE
LIMITED  rose by $0.1086 to settle at $1.8093 and FIRST MUTUAL LIMITED
traded $0.1033 firmer at $1.5200. Two more counters to advance were MASIMBA
HOLDINGS  which added $0.0800 to end at $0.4800 and FIRST MUTUAL PROPERTIES
was $0.0784 higher at $1.1300.

Only three counters lost ground ;DELTA CORPORATION LIMITED lost $0.0347 to
$5.8636, INNSCOR AFRICA LIMITED  eased $0.0111 to $7.1602 and PADENGA
HOLDINGS LIMITED dropped $0.0001 to $5.3999. 

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Nigeria's naira to weaken while Kenyan shilling seen on even keel

(Reuters) - The Nigerian currency is expected to weaken against the dollar
over the next week as the country prepares to begin easing its coronavirus
lockdown while the Kenyan shilling is seen stable.

NIGERIA

Nigeria’s naira is likely to weaken owing to a backlog of dollar demand as
the central bank restarts forex sales to commercial banks ahead of the
expected gradual easing of a coronavirus lockdown, traders said.

The naira this week hit a low of 460 against the dollar on the black market,
before the central bank on Wednesday said it would sell $100 million per
week to help individuals with dollar expenses abroad and importers revamp
economic activities.

The bank last month suspended forex sales to retail currency traders due to
the lockdown, causing forex demand to build up and piling pressure on the
naira, traders say.

The currency of Africa’s largest economy was quoted at 388.84 naira per
dollar on the over-the-counter spot market, mostly used by foreign investors
and exporters.

Nigeria is expected to begin a gradual loosening the lockdown on May 4.

TANZANIA

The Tanzania shilling is expected to hold steady amid a squeeze in demand
caused by disruption from the coronavirus outbreak.

Commercial banks quoted the shilling at 2,309/19 on Thursday, unchanged from
last week.

With parts of the economy shuttered to contain the spread of COVID-19, a
trader in one of the commercial banks in the commercial capital Dar es
Salaam said demand for hard currency was thin.

KENYA

The Kenyan shilling is also seen holding steady as some traders eye possible
inflows from the IMF and World Bank loans that Kenya is seeking to help
combat the COVID-19 outbreak.

Commercial banks quoted the shilling at 107.20/40 per dollar, compared with
106.95/107.15 at last Thursday’s close.

UGANDA

The Ugandan shilling is seen weakening as some foreign-owned firms buy hard
currency to help pay dividends for last year.

At 1050 GMT commercial banks quoted the shilling at 3,790/3,800 compared to
last Thursday’s close of 3,780/3,790.

A trader at a leading commercial bank said foreign-owned entities,
especially commercial financial institutions and firms in sectors like
manufacturing, were expected to start paying dividends next month.

ZAMBIA

The kwacha is likely to continue trading within current levels next week
with limited market activity as the new month begins.

On Thursday, commercial banks quoted the currency of Africa’s second-largest
copper producer at 18.6500 per dollar, down from a close of 18.4630 a week
ago.

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GLOBAL MARKETS

Global equities dip at end of best month since '09

(Reuters) - World equity benchmarks dipped on Thursday to close their best
month in 11 years as a rebound in oil prices, encouraging early results from
a COVID-19 treatment trial and expectations of more government stimulus
helped ease the pain of February and March.

Safe-haven assets including the dollar and government bonds were little
changed, reflecting an unsettled market weighed down by concerns about
containing the coronavirus outbreak and jobs data in the United States that
was worse than expected.

There were still worries about a second wave of infections, Doyle said,
adding that huge piles of cash waiting to go back into the markets suggest
investors remained nervous.

MSCI’s gauge of stocks across the globe shed 0.79% following broad losses in
Europe and gains in Asia that pushed Japan’s Nikkei to a seven-week high.

The index gained 10.5% in April, its best month since an 11.3% gain in April
2009 as the markets were recovering from the 2008 financial crisis.

On Wall Street, the Dow Jones Industrial Average fell 288.14 points, or
1.17%, to 24,345.72, the S&P 500 lost 27.08 points, or 0.92%, to 2,912.43
and the Nasdaq Composite dropped 25.16 points, or 0.28%, to 8,889.55.

Declines in the equity market came on the heels of a strong finish on Wall
Street on Wednesday after partial results from a trial of Gilead’s antiviral
drug remdesivir suggested it could help speed recovery from COVID-19, the
respiratory disease caused by the new coronavirus.

Partial results from the 1,063-patient U.S. government trial of Gilead’s
remdesivir were hailed as “highly significant” by the top U.S. infectious
disease official, Anthony Fauci.

But since treatment hopes do not seem to take into account regulatory and
distribution difficulties, should a treatment be found, currency and bond
markets were more circumspect.

Safe haven assets held steady after U.S. unemployment claims were greater
than expected. Benchmark 10-year notes last fell 4/32 in price to yield
0.6377%, from 0.627% late on Wednesday.

Initial claims for state unemployment benefits totaled a seasonally adjusted
3.839 million for the week ended April 25, the U.S. government said. That
was down from 4.442 million in the prior week.

Commodities were also set to close the month significantly higher. Gold is
set for its best month in four years and copper, which is seen as a
something of a bellwether of global industry, was on track for its best
performance since December 2017.

Hope that demand could soon return helped push oil prices broadly higher.
U.S. crude recently rose 24.97% to $18.82 per barrel and Brent was at
$25.39, up 12.64% on the day.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper dips on China factory data but hopes for recovery underpin prices

(Reuters) - Copper eased on Thursday as a private sector survey showed
factory activity in top consumer China unexpectedly shrank, but hopes for
higher metals demand as the world’s second largest economy reboots curbed
price falls.

Lingering fears for a long recovery ahead for China pulled benchmark copper
on the London Metal Exchange (LME) down 1.3% to $5,196 per tonne by 1611
GMT.

Prices touched their highest in over six weeks in early trade, helped by a
reading of China’s official factory activity showing faster expansion in
April.

However, that was offset by the closely watched Caixin survey which showed
factory activity shrank last month as the coronavirus pandemic shattered
global demand, sparking a substantial drop in export orders and more
layoffs.

China accounts for nearly half of global copper consumption estimated at 24
million tonnes.

ING analyst Wenyu Yao said China’s recovery, although slow, had fuelled the
recent rally in copper prices and that supply cuts were also underpinning
the market.

OUTPUT CUTS: Supporting prices were expectations for lower output as miner
Glencore cut its production forecast for the year for copper by 3% to 1.25
million tonnes and for zinc by 8% to 1.16 million tonnes.

Mining giants including Anglo American and Rio Tinto have also cut their
2020 output expectations as government restrictions hobble operations.

CHILE COPPER: Chile, the world´s top copper producer, boosted its output of
the red metal in March versus the prior year, even as the coronavirus
outbreak spread quickly across the country.

CHINA MOLY: China Moly is sending more copper and cobalt from Democratic
Republic of Congo (DRC) to ports in Tanzania, Namibia and Mozambique, as it
weathers coronavirus disruption at South African outlets.

COPPER PREMIUMS: In further signs of higher demand in China, copper premiums
in bonded warehouses of Yangshan SMM-CUYP-CN rose to $90 a tonne on
Wednesday, their highest since November 2018, the latest Shanghai Metals
Market (SMM) data showed.

BONDED STOCKS: Copper inventories continued to fall in China, with stocks in
bonded warehouses of Shanghai SMM-CUR-BON down to 305,800 tonnes as of April
24, the lowest since Feb. 7, SMM data showed.

Meanwhile, ShFE copper stocks CU-STX-SGH declined for a sixth straight week,
down 36.6% to 230,956 tonnes.

ALUMINIUM: Fresh cancellations of 10,000 tonnes took on-warrant aluminium
stocks available to the market in LME warehouses to 1.18 million tonnes.

But the LME inventories are still near their highest since December, having
climbed about 78% since Jan. 17. MCUSTX-TOTAL

OTHER PRICES: LME aluminium eased 1.1% to $1,489.50 a tonne, zinc fell 0.6%
to $1,933.50, lead shed 1.2% to $1,631, tin lost 1.1% to $15,135, and nickel
shed 0.9% to $12,205.

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
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whatsoever for any loss howsoever arising from any use of this report or its
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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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