Bulls n Bears Daily Market Commentary : 05 December 2019

Fri Dec 6 01:49:52 CAT 2019

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Bulls n Bears Daily Market Commentary : 05 December 2019

Zimbabwe Stock Exchange Update

Market Turnover ZWL$9,967,962.95 with foreign buys at ZWL$370,210.89 and
foreign sales were ZWL$5,688,430.54 Total trades were 156

The All Share index further retreated by 0.54 points ending at 236.49
points. THE CEMENT MAKER,PPC LIMITED lost $0.6400 to end at $4.4500, OLD
MUTUAL LIMITED   was $0.0817 lower at $35.6443 and BAT  also decreased by
$0.0628 to end at $49.7000. AFRICAN SUN traded $0.0483 weaker at $0.3583 and
OK ZIMBABWE  further eased $0.0158 to end at $0.7717.

Gains were offset by losses in CBZ HOLDINGS  which gained $0.0800 to
$0.7000, POWERSPEED  which rose by $0.0580 to $0.3480 and RIO-ZIM  which
traded $0.0426 firmer at $2.7676. Other counters to advance were SEEDCO
LIMITED  which gained $0.0184 to end at $1.8350 and MEIKLES  which traded
$0.0083 stronger at $2.2333.

  Global Currencies & Equity Markets

South Africa

South African rand stumbles on economic data

(Reuters) - South Africa’s rand was weaker on Thursday on lingering
ecomnomic weakness highlighted by the country’s current account deficit and
business confidence data.

By 1545 GMT the rand was down 0.6% at 14.6820 per dollar from an overnight
close of 14.6020.

Data from the central bank on Thursday showed the country’s current account
deficit has narrowed slightly but less than expected, while a measure of
monthly business confidence showed businesses are still struggling with the
tough economic climate and slack demand.

Earlier in the week, a reading from the statistics agency showed the economy
shrank 0.6% in the third quarter, raising concerns that the country could
lose its last investment-grade credit rating from Moody’s.

In equities, the benchmark JSE Top-40 Index slipped 0.5% to 48,589.71 points
while the broader All-Share Index was down 0.4% at 54,779.76 points.

Eskom implemented further power cuts on Thursday after a number of
generating units broke down.

Services, trading, and distribution group Bidvest dropped 2.2% to 192.70
rand while retailer Mr Price Group declined 1.9% to 179.60 rand.

Preventing further losses were resource shares, with platinum miner Impala
up 3.8%. Gold Fields rose 3.1%, helped partly by stronger gold prices.

Bonds were broadly flat, with the yield on the benchmark 2026 bond at 8.43%.

Uganda

Sluggish demand for dollars supports Ugandan shilling

(Reuters) - The Ugandan shilling        was stable on Thursday mainly due to
slow demand for dollars by importers. 

At 0910 GMT, commercial banks quoted the shilling at 3,685/3,695, same level
as Wednesday's close.

       <mailto:info at bulls.co.zw> 

GLOBAL MARKETS

Stocks rally on renewed trade talk optimism, yields rise

(Reuters) - Government debt yields and a gauge of global equity markets rose
on Wednesday as sentiment improved after U.S. President Donald Trump said
trade talks with China were going “very well” and a news report suggested
key differences were being ironed out.

European stocks rallied, with the blue-chip Euro STOXX 50 , Germany’s DAX
and French CAC 40 gaining more than 1%. The news reversed overnight losses
in Asia when investors remained jittery over the prolonged talks.

The safe-haven yen and Swiss franc fell as Trump’s encouraging comments on
the U.S.-China trade negotiations boosted “risk-on” sentiment.

The dollar index fell after the Institute for Supply Management (ISM)
reported activity in the U.S. services sector slowed more than expected in
November amid lingering concerns about trade tensions and worker shortages.

The poor ISM reading failed to slow the equity rally because the underlying
economic data overall is getting better, said Jim Paulsen, chief investment
strategist at The Leuthold Group in Minneapolis.

Trump, who on Tuesday had roiled markets after he raised the prospect of
extended U.S.-Sino trade tensions, told reporters at a meeting of NATO
leaders near London that “discussions are going very well and we’ll see what
happens.”

The market is now focused on Dec. 15, when new U.S. tariffs on Chinese
imports are scheduled to take effect. Nobody knows whether Trump is serious
about going forward with the tariffs or if the date is a bargaining chip,
said David Lafferty, chief market strategist at Natixis Investment Managers.

Market sentiment rebounded earlier when Bloomberg reported that the two
sides were closer to agreeing on how many tariffs would be rolled back in a
“phase one” trade deal.

MSCI’s gauge of equity performance in 49 countries gained 0.47% while stocks
on Wall Street also rose, snapping a three-day losing streak.

The Dow Jones Industrial Average rose 146.97 points, or 0.53%, to 27,649.78.
The S&P 500 gained 19.56 points, or 0.63%, to 3,112.76 and the Nasdaq
Composite added 46.03 points, or 0.54%, to 8,566.67.

Investors also shrugged off a survey showing U.S. private-sector job growth
unexpectedly slowed to its weakest pace in six months in November as goods
producers and construction companies cut jobs.

Paulsen said the ADP National Employment Report is not that closely
correlated with the payrolls data compiled by the U.S. Labor Department,
which will release its November report on Friday. A slowdown in jobs
creation in a tight labor market is understandable, he also said.

Yields on benchmark U.S. and euro zone government debt rebounded, with the
10-year U.S. Treasury note falling 18/32 in price to push its yield up to
1.7723%.

The 10-year German bund’ s yield rose about 3 basis points to -0.316% and
yields across the euro area followed suit, rising by 2 to 3 basis points.

The dollar index fell 0.12%, with the euro down 0.04% to $1.1077. The
Japanese yen weakened 0.22% versus the greenback at 108.88 per dollar.

Oil prices jumped ahead of an expected extension to production curbs by the
Organization of the Petroleum Exporting Countries and its allies. More
support came from industry data showing a larger-than-forecast drop in U.S.
crude stockpiles.

U.S. crude rose $2.33 to settle at $58.43 a barrel. Brent crude futures
settled up $2.18 at $63.00 a barrel.

Renewed hopes over the trade talks prompted gold to erase earlier gains.
U.S. gold futures settled 0.3% lower at $1,480.20 an ounce.

 <mailto:info at bulls.co.zw> 

Commodities Markets

London copper slips as trade-deal doubts linger

(Reuters) - Benchmark London copper prices dipped on Thursday amid
scepticism over the chances for a near-term preliminary trade deal between
Washington and Beijing, despite U.S. President Donald Trump sounding
positive again about the prospects.

Three-month copper on the London Metal Exchange         was down 0.2% at
$5,873 a tonne, as of 0701 GMT, surrendering some of the gains from the
previous session.

The most-traded copper contract on the Shanghai Futures Exchange
ended up 0.5% at 47,200 yuan ($6,705.59) a tonne, rebounding after four
straight sessions of declines. 

Clouding prospects for a near-term trade deal, China warned on Wednesday
that U.S. legislation calling for a tougher response to Beijing's treatment
of its Uighur Muslim minority will affect bilateral cooperation.

The warning came amid conflicting signals from Trump on the trade talks,
which he said on Wednesday were going "very well", a day after suggesting
that a deal might have to wait until after the 2020 U.S. presidential
election.             

 NICKEL: Brazil's Vale SA plans to exit its troubled New Caledonia assets,
but still aims to ramp up nickel output ahead of rising demand for electric
batteries. 

COBALT: South Korean battery maker SK Innovation  has signed a six-year deal
to buy up to 30,000 tonnes of cobalt from miner Glencore         , allowing
it to produce batteries for 3 million electric vehicles.             

COPPER: Aurubis AG          , Europe's biggest copper smelter, said an
accident at its plant in Olen in Belgium in November has disrupted copper
production but that deliveries to customers are continuing normally.

SCRAPS: China has issued a seventh batch of import quotas for scrap metal,
including 17 quotas for a total of 7,970 tonnes of high-grade copper scrap.

PRICES: London nickel  edged up 0.2%, but Shanghai nickel dropped 1.3%,
declining for an eighth straight session amid an oversupply of   stainless
steel in China. 

Shanghai zinc  climbed 1.3%, while London zinc  was up 0.3%.

Apple buys first-ever carbon-free aluminum from Alcoa-Rio Tinto venture

(Reuters) - Apple Inc on Thursday said it has bought the first-ever
commercial batch of carbon-free aluminum from a joint venture between two of
the world’s biggest aluminum suppliers.

The metal is being made by Elysis, a Montreal-based joint venture of Alcoa
Corp and Rio Tinto announced last year with $144 million in funding from the
two companies, Apple and the governments of Canada and Quebec.

The aluminum will be shipped this month from an Alcoa research facility in
Pittsburgh and used in Apple products, although the technology company did
not say which ones.

Aluminum is carbon-intensive to produce. The smelting process involves
passing electrical current through a large block of carbon called an anode,
which burns off during the process and releases carbon dioxide into the
atmosphere.

The carbon-free move is a response to consumer, activist and investor demand
that miners and manufacturers show they are working to lessen their impact
on climate change.

Apple uses aluminum housings for many of its electronics, including iPhones,
Apple Watches and Mac computers. Apple last year introduced Mac models that
use recycled aluminum.

The Alcoa-Rio joint venture wants to commercialize a technology by 2024 that
uses a ceramic anode to make aluminum and emits only oxygen, eliminating
direct greenhouse gas emissions from the smelting process.

Alcoa has already produced test metal with the process and joined with Rio
Tinto to bring it up to commercial scale. Elysis plans to license the
technology and says that existing smelting facilities can be retrofitted to
use it.

The first batch was made in Pittsburgh, but Elysis also plans to manufacture
it at a $50 million CAD research facility being built in Saguenay, Quebec,
and that is expected to come online in the second half of 2020.

Apple and Elysis would not disclose the size or cost of the first purchase.
They described it as a “commercial batch,” and Elysis said the process is
expected to have lower operating costs than traditional aluminum smelting.

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
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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
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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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