Bulls n Bears Daily Market Commentary : 02 December 2019

Tue Dec 3 01:29:40 CAT 2019

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Bulls n Bears Daily Market Commentary : 02 December 2019

Zimbabwe Stock Exchange Update

Market Turnover ZWL$2,553,920.70 with foreign buys at ZWL$76,544.94 and
foreign sales were ZWL$180,633.09 Total trades were 156

The All Share index opened the week on a lower note dropping 2.72 points to
close at 238.09 points. ECONET  eased $0.1595 to $1.4432, DAIRIBORD  lost
$0.0958 to end at $0.3900 and PADENGA   was $0.0927 lower at $2.7973. PPC
also decreased by $0.0415 to end at $5.1000 and AXIA  traded $0.0350 weaker
at $0.7700.

Trading in the positive; OLD MUTUAL LIMITED  gained $0.8991 to $35.9514,
SEEDCO INTERNATIONAL LIMITED   rose by $0.0164 to $2.8001 and MASIMBA
traded $0.0120 firmer at $0.1998. SIMBISA also gained $0.0107 to end at
$1.2501 and ZPI  traded $0.0079 stronger at $0.0759.

  Global Currencies & Equity Markets

Uganda

Ugandan shilling holds steady, seen coming under pressure

(Reuters) - The Ugandan shilling        was stable on Monday but traders
said it was likely to come under pressure from demand for dollars by
merchandise importers. 

At 0926 GMT, commercial banks quoted the shilling at 3,690/3,700, same level
as Friday's close. 

Kenya

Kenyan shilling weakens on surging importer demand

(Reuters) - The Kenyan shilling was under pressure on Monday as strong
dollar demand by merchandise importers outstripped inflows from
non-governmental organisations, traders said. 

At 0852 GMT, commercial banks quoted the shilling at 102.55/75 per dollar,
compared with 102.45/65 at Friday's close. 

       <mailto:info at bulls.co.zw> 

America

Dollar, stocks slide on Trump tweets, dour PMI data

(Reuters) - The dollar and global stock markets fell on Monday after U.S.
President Donald Trump said he would restore tariffs on some imports from
Brazil and Argentina, with losses exacerbated by a slide in new U.S. factory
orders in November to their lowest since 2012.

European shares posted their biggest daily drop in two months as the tariff
threat overshadowed encouraging data on the Chinese and euro zone economies.
Investors worried Trump would target Europe again.

Last week, MSCI’s gauge of global stock markets had approached a record high
on hopes Beijing and Washington will hammer out a “phase one” trade deal
this year.

The dollar posted its biggest decline against the euro since mid-September
as the weak U.S. manufacturing data and an unexpected drop in U.S.
construction spending in October rekindled worries about a slowing economy.

Data from the Institute for Supply Management (ISM) showed the U.S.
manufacturing sector contracted for a fourth straight month in November as
new orders slid.

European equities were also pressured by a World Trade Organization ruling
on European Union subsidies to European planemaker Airbus, which supported
the U.S. case for retaliatory tariffs.

Germany’s export-sensitive DAX stock index tumbled 2.1%, its biggest
single-day decline since early October, when the WTO approved U.S. moves to
slap import tariffs on $7.5 billion worth of European goods.

MSCI’s gauge of stocks across the globe shed 0.61%, while the pan-European
STOXX 600 index lost 1.58. Wall Street also fell, though not as hard as
Europe.

Trump’s tweets triggered selling that accelerated on the
weaker-than-expected data, said Fawad Razaqzada, market analyst at Forex.com
in London.

The major U.S. indexes last week hit record highs while MSCI’s index of
equity markets in 49 countries rose to one point below an all-time high
established in January 2018.

The Dow Jones Industrial Average fell 268.37 points, or 0.96%, to 27,783.04,
the S&P 500 lost 27.11 points, or 0.86%, to 3,113.87 and the Nasdaq
Composite dropped 97.48 points, or 1.12%, to 8,567.99.

ISM said its index of U.S. factory activity dropped 0.2 point to a reading
of 48.1 in November. A reading below 50 indicates contraction in factory
output, which accounts for 11% of the U.S. economy. The index needs to break
below 42.9 to signal a recession.

The dollar dropped from six-month highs against the Japanese yen and slid to
a two-week trough versus the euro after the U.S. manufacturing report.

The dollar index fell 0.43%, with the euro up 0.59% to $1.108. The yen
strengthened 0.55% versus the greenback at 108.98 per dollar.

The rally in equities has been predicated on economic recovery and Monday’s
data belied that trend, said Jack Ablin, chief investment officer at Cresset
Capital Management in Chicago.

Holiday sales may provide the market upside.

Markets also were pressured by a report showing U.S. construction spending
unexpectedly fell in October as investment in private projects tumbled to
the lowest in three years.

Benchmark 10-year U.S. Treasury notes fell 13/32 in price to push yields up
to 1.8206%.

Oil jumped above $61 a barrel, supported by hints that the Organization of
the Petroleum Exporting Countries and allies may agree this week to deepen
output cuts, while rising Chinese manufacturing activity suggested stronger
demand.

U.S. crude gained 79 cents to settle at $55.96 a barrel and Brent added 43
cents to settle at $60.92.

Germany’s borrowing costs rose after the Social Democrats (SPD) chose new
leaders critical of their ruling coalition, with yields on benchmark 10-year
debt set for the biggest one-day spike in nearly three months.

Benchmark German bond yields jumped across the board, with 10-year yields up
more than 7 basis points to -0.273%, their highest in nearly three weeks.

U.S. gold futures settled 0.2% lower at $1,469.20.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Zinc hits 3-month low on scepticism over China buoyancy

(Reuters) - Zinc sank to its lowest in nearly three months on Monday and
other industrial metals also posted losses as investors doubted that upbeat
manufacturing data in China pointed to an economic recovery.

Factory activity in top metals consumer China expanded at the fastest rate
in three years, a private sector survey showed on Monday, reinforcing strong
government data released on Saturday.

But some analysts said the buoyant showing, especially for the Caixin/Markit
manufacturing Purchasing Managers’ Index, may be influenced by one-off
factors.

There was also worry that the good data might undermine a U.S.-China trade
deal.

Benchmark zinc prices on the London Metal Exchange fell 1.3% to $2,243 a
tonne in final open-outcry trading after touching $2,237, the lowest since
Sept. 4.

* ZINC POSITION: The net speculative short position of LME zinc has risen to
14.7% of open interest, a level not seen since late September, Alastair
Munro at broker Marex Spectron said in a note.

* NORSK HYDRO CUT: Norsk Hydro, one of the world’s biggest aluminium
producers, plans to cut production by 20% at its majority-owned Slovalco
plant in Slovakia, citing a weakening market.

“With a demand rebound unlikely near-term, supply cuts in excess of 1
million tonnes per annum are needed to prevent a drop to our bear case of
$1,657/t in early 2020,” said Morgan Stanley analysts in a note.

LME aluminium rose 1.1% to close at $1,790 a tonne.

* ALUMINIUM STOCKS: The weak aluminium market has led to rising inventories.
On-warrant LME stocks MALSTX-TOTAL, material not earmarked for delivery,
reached 1,114,650 tonnes, the highest since Feb. 22, data showed on Monday.

They have shot up 42% over the past three weeks.

* COPPER CONTRACT: China’s Shanghai International Energy Exchange (INE) is
preparing to launch a copper futures contract within the next year that will
be open to domestic and foreign investors, according to two sources familiar
with the plans.

* PRICES: LME three-month copper edged up 0.3% to end at $5,883 a tonne,
lead dropped 1.6% to $1,906, the weakest since July 9, and tin slipped 0.03%
to $16,490.

Nickel gained 0.4% to finish at $13,720, rebounding after touching $13,610,
the weakest since July 16.

Brazil in touch with U.S. officials on surprise steel, aluminum tariffs
-source

(Reuters) - The Brazilian government is in touch with the U.S. Trade
Representative’s office and other agencies about U.S. President Donald
Trump’s surprise decision to restore tariffs on Brazilian steel and
aluminum, according to a source familiar with Brasilia’s reaction.

The source, who was not authorised to speak publicly, rejected the U.S.
claim that the Brazilian government was manipulating its real currency,
noting the central bank of Brazil had recently intervened to strengthen -
not weaken - the real.

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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