Bulls n Bears Daily Market Commentary : 06 December 2019

Mon Dec 9 09:20:55 CAT 2019

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Bulls n Bears Daily Market Commentary : 06 December 2019

Zimbabwe Stock Exchange Update

Market Turnover ZWL$13,150,578.33 with foreign buys at ZWL$2,617,994.08 and
foreign sales were ZWL$2,369,098.30 Total trades were 199

The All Share index ended the week on a lower note ,after losing 1.58 points
ending at 234.91 points. BAT lost $2.2000 to end at $47.5000, PPC LIMITED
was $0.250 lower at $4.2000 and CBZ HOLDINGS also decreased by $0.0780 to
end at $0.6230. AFRICAN SUN traded $0.0580 weaker at $0.3000 and DELTA
CORPORATION  further eased $0.0380 to end at $3.5270.

Gains were offset by losses in OLD MUTUAL LIMITED which gained $0.2920 to
$35.9360, SEEDCO LIMITED  which rose by $0.0250 to $1.860 and TURNALL
HOLDINGS  which traded $0.0210 firmer at $0.1240. Other counters to advance
were MASIMBA HOLDINGS  which gained $0.0190 to end at $0.2090 and
MASHONALAND HOLDINGS  which traded $0.011 stronger at $0.0930.

  Global Currencies & Equity Markets

South  Africa

South Africa's rand steady shielded by trade deal optimism

(Reuters) - South Africa’s rand was barely changed in late trade on Friday,
with fresh optimism over Sino-U.S. trade talks helping the currency to
weather stronger employment numbers from the United States.

At 1530 GMT, the rand edged 0.07% firmer at 14.6400, improving from
session’s low of 14.6950 on Thursday following a batch of lukewarm economic
indicators sapped demand.

Sentiment towards emerging market currencies was boosted after U.S.
President Donald Trump said on Thursday that trade talks are “moving right
along,” despite Beijing maintaining its stance that some existing tariffs
must come off as part of an interim agreement.

That helped limit an expected souring of risk demand after job growth in the
U.S. increased by the most in 10 months in November, the strongest sign yet
the economy was not in danger of stalling, and that the central bank might
consider not easing rates.

On the bourse, stocks rose alongside global shares on the back of the trade
deal optimism.

The benchmark JSE Top-40 Index was up 0.98% to 49,065.21 points while the
broader All-Share Index rose 1.05% to 55,357.33 points.

U.S stocks were set to open higher after data showed that nonfarm payrolls
increased by 266,000 jobs last night, higher than the 180,000 additions
predicted by economists.

Mining heavyweights Anglo American rose 2.73% to 398.56 rand while
retail-led healthcare company Clicks were up 2.48% to 256.66 rand.

South Africa’s struggling state power utility Eskom said “stage 4” power
cuts on Friday until(0700 GMT) until 6 a.m. (0400 GMT) on Saturday.

Stage 4 involves throttling up 4,000 megawatts (MW) of power from the
national grid on a rotational basis.

Bonds were steady with the yield on the benchmark 10-year government issue
at 8.425%.

Uganda

Ugandan shilling holds steady against the dollar

(Reuters) - The Ugandan shilling        was stable on Friday as appetite for
dollars from merchandise importers and players in the interbank market
remained subdued. 

At 0831 GMT, commercial banks quoted the shilling at 3,680/3,690, unchanged
from Thursday's close. 

       <mailto:info at bulls.co.zw> 

Asia

Asian shares buoyed by Wall St rally, but China worry caps gains

(Reuters) - Asian stocks edged up on Monday, catching some of Wall Street’s
momentum after surprisingly strong U.S. jobs data although regional gains
were capped by concerns about China’s economic slowdown due to the prolonged
Sino-U.S. trade war.

Japan’s benchmark Nikkei added 0.4% while MSCI’s broadest index of
Asia-Pacific shares outside Japan gained 0.3%, with Australian stocks and
South Korea’s KOSPI up 0.4% and 0.3%, respectively.

China’s Shanghai Composite stood flat and Hong Kong’s Hang Seng rose 0.2%.

Wall Street rose to near record highs on Friday on the strong jobs data and
some signs of optimism about the U.S.-China trade talks, with the benchmark
S&P 500 closing within 0.2% of its peak set in late November.

U.S. job growth increased by the most in 10 months in November as the
healthcare industry boosted hiring and production workers at General Motors
returned to work after a strike, in the strongest sign that the world’s
largest economy is in no danger of stalling.

Top White House economic adviser Larry Kudlow said on Friday that a Dec. 15
deadline is still in place to impose a new round of U.S. tariffs on Chinese
consumer goods, but President Donald Trump likes where trade talks with
China are going.

Still, investors think things could change if trade tensions escalate
further, especially if Trump goes ahead with the planned tariffs on some
$156 billion worth of products from China in mid-December.

The market has been largely working on the assumption that those tariffs,
which cover several consumer products such as cellphones and toys, will be
dropped or at least postponed, given that Washington and Beijing agreed in
October to work on a trade deal.

Meanwhile, China’s exports shrank for the fourth consecutive month in
November, sending shivers through a market already concerned about damage
being done to global demand by the trade war. But growth in imports was seen
as a possible sign that Beijing’s stimulus efforts over the last two years
were helping to stir demand.

U.S. Treasury yields climbed on the strong employment report, with benchmark
10-year notes rising to 1.843% .

The Federal Reserve’s Open Market Committee (FOMC) kicks off its two-day
policy meeting on Tuesday. The central bank is expected to highlight the
economy’s resilience and keep interest rates on hold in the range of 1.50%
to 1.75%.

Analysts said the much better-than-expected jobs report offset mixed signals
from recent economic data and validated the Fed’s wait-and-see stance on
interest rates after three “insurance cuts” this year.

Oil prices retreated but hovered near recent peaks after OPEC and its allies
agreed to deepen output cuts by 500,000 barrels per day in early 2020.

U.S. West Texas Intermediate (WTI) crude slipped 0.5% to $58.92 per barrel,
still not far from Friday’s 2-1/2-month high of $59.85 per barrel, while
Brent futures were down 0.3% at $64.21 per barrel.

In the currency market, the dollar maintained a firm tone on Monday, with
the dollar index against a basket of major currencies standing at 97.715 and
the euro changing hands at $1.1055, both little changed on the day.

Against the Japanese yen, the dollar was last traded at 108.60 yen, flat on
the day.

Elsewhere, British pound traded at $1.3142, not far from a seven-month high
of $1.3166 set on Thursday. Versus the euro, the currency hit a 2-1/2-year
high of 84.07 pence per euro on Monday.

Sterling has been bolstered by expectations that Prime Minister Boris
Johnson’s Conservative Party will win an outright majority in the upcoming
election on Thursday, thereby ending a hung parliament and political
paralysis on Brexit.

 <mailto:info at bulls.co.zw> 

Commodities Markets

China copper imports hit 13-month high in November on improved factory
activity

(Reuters) - China’s copper imports rose 12.1% in November from the previous
month to their highest in more than a year, as an unexpected improvement in
the manufacturing sector drove up demand.

Imports of unwrought copper including anode, refined and semi-finished
copper products into China stood at 483,000 tonnes last month, data from the
General Administration of Customs showed on Sunday. That was the highest
since September 2018.

The imports were up from 431,000 tonnes in October, and 5.9% higher than
456,000 in November 2018.

For the first 11 months of 2019, imports of unwrought copper were down 8.5%
from a year earlier at 4.45 million tonnes.

The higher monthly number comes as factory activity in China, the world’s
top copper consumer, improved unexpectedly in the manufacturing sector in
November, as demand rose on stimulus measures to steady growth.

China’s overall copper imports during the fourth quarter are expected to
rise, especially amid low inventory levels, Minmetals and Jingyi Futures
metals analyst Wu Kunjin said.

Copper stocks in bonded warehouses in China SMM-CUR-BON have been declining
since June and were at 245,500 tonnes on Nov. 30, the lowest since at least
June 2013, according to Refinitiv Eikon data.

November imports of copper concentrate CNC-COPEOR-IMP, or partially
processed ore, came in at 2.157 million tonnes, up 12.7% from 1.914 million
tonnes in October and up 27% on year.

Copper concentrate imports for January-November stood at 20.11 million
tonnes, up 10.2% year-on-year.

Exports of unwrought aluminium, including primary metal, alloy and
semi-finished products, stood at 452,000 tonnes in November, according to
customs data.

This is up 4.9% from October’s exports of 431,000 tonnes, and a 14.7% fall
year-on-year.

January-November exports from China, the world’s top aluminium producer,
were at 5.25 million tonnes, down 0.3% from a year ago. 

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

 <mailto:info at bulls.co.zw> 

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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