Bulls n Bears Daily Market Commentary : 15 August 2019

Fri Aug 16 00:47:27 CAT 2019

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Bulls n Bears Daily Market Commentary : 15 August 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$ 8,186,052.96 with foreign buys at ZWL$ 6,470,158.35 and
foreign sales were ZWL$ 4,025,939.00 Total trades were 86.

The All Share index retreated by 0.94 points  to close at 179.63 points as
heavyweight counters lost ground. CASSAVA SMARTECH dropped $0.0395 to end at
$1.2943, ECONET WIRELESS  eased $0.0283 to $1.3000 and PADENGA decreased by
$0.0070 to settle at $1.8000.

Trading in the positive; OLD MUTUAL LIMITED added $0.2222 to settle at
$21.7222, PPC gained $0.1099 to close at $2.1000 and SEEDCO INTERNATIONAL
LIMITED  was $0.0250 stronger at $2.1500. ZPI increased by $0.0029 to close
at $0.0280 and BINDURA  traded $0.0025 firmer at $0.1100.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South African rand bounces back after steep sell-off

(Reuters) - The South African rand gained more than 1 percent against the
dollar on Thursday, pulling back from a steep sell-off as worries about the
global economy eased slightly.

The rand has been on a torrid run this month, losing around 6 percent
against the U.S. currency on a dismal domestic growth outlook and fears the
United States could tip into recession over its trade war with China.

The rand traded at 15.25 versus the dollar by 1630 GMT, around 1.2 percent
stronger than its previous close, after higher-than-expected U.S. retail
sales data.

Some international investors use the South African currency as a proxy for
emerging market risk, making it highly susceptible to swings in sentiment on
global markets.

Some traders said the recovery in the rand was likely to be short-lived,
given grave concerns about the country’s debt trajectory and the sluggish
pace of economic reform.

A senior International Monetary Fund representative said on Thursday that
South Africa’s public debt was reaching “uncomfortable” levels.

On the Johannesburg bourse, stocks recovered some ground lost earlier in the
day but still closed weaker, with investors averse to risk a day after an
inversion of the U.S. Treasury bond yield curve, a sign some investors see
as a harbinger of recession in the world’s largest economy.

The Johannesburg Stock Exchange’s All-Share index lost 0.35% to 53,841
points and the benchmark Top-40 was down 0.33% to 48,117 points.

Bullion producer Gold Fields led the declines on the blue-chip index,
slipping 9.76% to 80.98 rand after it reported a lower than expected
increase in half-year profits.

Fellow miners Anglo American Platinum and Anglo American fell 3.79% to
812.12 rand and 3.49% to 313.18 rand, respectively. South African paper and
pulp maker Sappi lost 2.56% to 42.68 rand.

The banking index rose 3.55% to 8,340 points. Insurer Discovery closed up
5.26% to 105.91 rand, while Standard Bank increased 4.58% to 173.50 rand and
Absa rose 4.03% to 152.07 rand.

Uganda

Ugandan shilling steady after central bank key rate decision

(Reuters) - The Ugandan shilling held steady against the dollar on Thursday
after policymakers left the benchmark lending rate at 10%.

At 1058 GMT, commercial banks quoted the shilling at 3,690/3,700, unchanged
from same Wednesday’s closing level.

       <mailto:info at bulls.co.zw> 

America

Stocks waver, dollar recovers on renewed growth worries

(Reuters) - The dollar recovered from early weakness but a gauge of world
equity performance edged lower on Thursday as concerns about global growth
offset investor optimism over a surge in U.S. retail sales last month and
strong Walmart earnings.

Gold prices, which have climbed almost 20% since late May on uncertainty
driven by the U.S.-Sino trade spat and global growth concerns, rose after
China threatened to retaliate against the latest U.S. tariffs, renewing
investor unease about the row.

China called on the United States to meet it halfway on a potential trade
deal as U.S. President Donald Trump said any pact would have to be on
America’s terms.

The yield on 30-year U.S. government debt fell to a record low below 2% and
benchmark 10-year Treasury notes dropped to a three-year trough, beaten down
by the U.S.-Chinese trade tensions and economic growth concerns.

Euro zone government bond yields went further into negative territory,
reflecting fear of an impending global recession after the U.S. yield curve
remained inverted for a second day. The inversion is a classic sign of
recession.

But Walmart Inc reported strong second-quarter results and raised its
earnings expectations for the year, while U.S. retail sales increased 0.7%
last month after gaining 0.3% in June, the Commerce Department said.

Economists polled by Reuters had forecast retail sales would rise 0.3% in
July. Walmart shares closed up 6.1% at $112.69.

Investors are caught between slowing global growth and its impact on equity
markets, with few alternatives to invest in when the dividends of many
stocks are higher than the interest on government debt, said Rick Meckler, a
partner at Cherry Lane Investments in New Vernon, New Jersey.

MSCI’s gauge of stocks across the globe shed 0.14%, while the pan-European
STOXX 600 index lost 0.18%.

Stocks on Wall Street closed mixed after a day of choppy trade.

The Dow Jones Industrial Average rose 99.97 points, or 0.39%, to 25,579.39.
The S&P 500 gained 7 points, or 0.25%, to 2,847.6 and the Nasdaq Composite
dropped 7.32 points, or 0.09%, to 7,766.62.

The dollar recovered from early weakness against the safe-haven yen on the
better-than-expected U.S. retail sales. The yen tends to benefit from
geopolitical or financial stress as Japan is the world’s biggest creditor
nation.

The Japanese yen weakened 0.10% versus the greenback at 106.02 per dollar.
The dollar index rose 0.11%, with the euro down 0.24% to $1.1111.

Oil prices fell more than 1%, extending the previous session’s 3% drop,
pressured by mounting recession concerns and a surprise boost in U.S. crude
inventories.

International benchmark Brent crude fell $1.25 to settle at $58.23 a barrel.
U.S. crude settled down 76 cents to $54.47.

U.S. gold futures settled up 0.2% at $1,531.20.

 <mailto:info at bulls.co.zw> 

Commodities Markets

China steel futures extend rally on stimulus hopes; iron ore falters

(Reuters) - Steel futures in China extended gains on Thursday as market
participants hoped Beijing would roll out more measures to stimulate the
slowing domestic economy amid fears about a global recession.

Rallying for a fourth straight day, the most-traded October 2019 contract
for hot-rolled coil, used in cars and home appliances, on the Shanghai
Futures Exchange ended up 0.7% to 3,722 yuan ($529.78) a tonne, its
strongest finish since Aug. 2.

The construction steel rebar index was up 0.5% at 3,715 yuan a tonne,
marking its third session of gains.

Shanghai steel futures managed to push higher on Wednesday despite
unexpectedly weak Chinese economic data for July, including a marked
slowdown in industrial output growth amid a protracted U.S.-Sino trade war.

Support for steel prices is also seen intact as some Chinese steelmakers
have decided to reduce their output to prop up weak prices and thus boost
profit margins squeezed by high costs of raw materials.

Iron ore prices retreated, with the Dalian Commodity Exchange benchmark
falling as much as 3.5% while futures in Singapore dropped as much as 2.4%
on downbeat Chinese demand prospects for the raw material and rising port
stockpiles.

FUNDAMENTALS

* The most-active Dalian iron ore contract, with January 2020 expiry, ended
down 2.8% at 618 yuan a tonne, after hitting its lowest in more than two
months earlier in the session.

* In Singapore, the most-active September 2019 iron ore contract was down
2.2% at $86.40 a tonne.

* Iron ore prices have cooled, as a supply squeeze fades but a hoped-for
Chinese boost to demand remains elusive, according to Reuters Breakingviews
columnist Clara Ferreira-Marques.

* Benchmark spot 62% iron ore for delivery to China, as assessed by
SteelHome consultancy SH-CCN-IRNOR62, settled at $91.50 a tonne on
Wednesday, rebounding from its lowest in more than four months, hit early
this week.

* Other steel ingredients were mixed, with Dalian coking coal up 0.2% at
1,328 yuan a tonne, but coke edged down 0.4% to 1,981.50 yuan.

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

($1 = 7.0256 yuan)

INVESTORS DIARY 2019

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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