Bulls n Bears Daily Market Commentary : 24 December 2019

Fri Dec 27 03:16:58 CAT 2019

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Bulls n Bears Daily Market Commentary : 24 December 2019

Zimbabwe Stock Exchange Update

Market Turnover ZWL$6,032,817.84 with foreign buys at ZWL$636,821.80 and
foreign sales were ZWL$165,435.50 Total trades were 65

The All Share index added 0.56 points to close at 227.82 points ahead of the
Christmas holiday. OLD MUTUAL LIMITED   gained $0.5564 to $35.5564, MEIKLES
was $0.1475 firmer at $2.5000 and AMALGAMATED REGIONAL TRADING   traded
$0.0172 stronger at $0.1300. DAWN   also increased by $0.0028 to nd at
$0.0730.

Trading in the negative; INNSCOR   eased $0.0079 to end at $3.5300, DELTA
lost $0.0057 to close at $3.3934 and FBC HOLDINGS   was $0.0025 lower at
$0.6500. MASHONALAND HOLDINGS   also decreased by $0.0022 to $0.0780 and OK
ZIMBABWE   was $0.0011 weaker at $0.5519.

  Global Currencies & Equity Markets

Kenya

Kenyan shilling firm ahead of holiday season

(Reuters) - The Kenyan shilling was firm against the dollar on Tuesday
supported by inflows from diaspora remittances amid businesses closing ahead
of the holiday season, traders said.

At 0900 GMT, commercial banks quoted the shilling at 100.70/90 per dollar,
the same as Monday’s close. Markets will remain closed on Dec. 25th and 26th
for public holidays. 

South Africa

S.Africa's rand flat in subdued trade ahead of holidays

(Reuters) - South Africa’s rand steady against the dollar in early trade on
Tuesday, as a positive sentiment for emerging markets on an interim
U.S.-China trade deal was offset by lack of fresh bets by investors ahead of
the Christmas holidays.

* The rand dipped 0.01% to 14.2150 versus the greenback by 0648 GMT.

* The lull ahead of the holiday offset improved sentiment for riskier assets
boosted by optimism over a trade deal between China and United State.

* “People are still waiting for the trade deal to be officially passed.
Everybody is just sort of in limbo at the moment,” said Gary Van Der
Westhuizen, a forex dealer at Treasury One.

* In fixed income, the yield on the benchmark government paper due in 2026
was flat at 8.240%.

       <mailto:info at bulls.co.zw> 

GLOBAL MARKETS

Stocks rally to record highs; gold gains

(Reuters) - A gauge of global equity markets and Wall Street’s three major
indices finished at all-time highs on Thursday in light holiday trade as a
year-end rally advanced further on optimism over a U.S.-China trade
agreement.

Oil rose to three-month highs, buoyed by a report showing lower U.S. crude
inventories, hopes the pending Sino-U.S. trade deal will soon be signed and
efforts by the Organization of the Petroleum Exporting Countries (OPEC) to
curb crude supply.

Gold prices also rose.

MSCI’s all-country world index and Wall Street’s Dow Industrials, the
benchmark S&P 500 and the technology-rich Nasdaq all closed at record highs.

Boxing Day holidays closed markets in Commonwealth countries around the
world while a second Christmas Day shuttered markets in a swath of European
countries.

Overnight in Asia, equity markets rose. China shares closed higher after
Beijing laid out additional plans to bolster its economy, including
infrastructure investments.

MSCI’s gauge of stocks across the globe gained 0.38% to a record, on track
for its best year since 2009. The index has gained 24% this year.

Wall Street’s Dow Jones Industrial Average rose 105.94 points, or 0.37%, to
28,621.39. The S&P 500 gained 16.53 points, or 0.51%, to 3,239.91 and the
Nasdaq Composite added 69.51 points, or 0.78%, to 9,022.39.

MSCI’s broadest index of Asia-Pacific shares outside Japan closed up 0.15%,
while Japan’s Nikkei rose 0.60%. Its emerging market index rose 0.28%,
lifted by a 1.1% gain in Brazil’s Bovespa index, which is up 33% for the
year.

Wall Street was boosted by U.S.-China trade optimism and gains in Amazon.com
after a report signaled robust online holiday sales.

Amazon shares jumped 4.4% after Mastercard said U.S. shoppers spent more
online during the holiday shopping season than in 2018, with e-commerce
sales hitting a record.

The S&P 500, up 29% so far this year, is less than four-tenths of 1
percentage point shy of its best annual gain since 1997.

Investors in major equity markets around the world have chalked up strong
gains this year, marking a contrast to a plunge late last year, noted Yousef
Abbasi, global market strategist at INTL FCStone Financial Inc in New York.

Fourth-quarter earnings will soon come into focus in January, which should
highlight whether sentiment among corporate management has improved, Abbasi
said.

Recession fears scuttled capital expenditure plans during much of 2019, but
strong employment and signs of an improving global economy suggest that will
change next year.

The number of Americans filing applications for unemployment benefits fell
last week in a sign of ongoing labor market strength.

A spokesman for China’s commerce ministry said Chinese and U.S. officials
are in close touch and going through necessary procedures before signing a
Phase 1 trade deal.

Gold prices rose to a two-month high. Spot gold added 0.8% to $1,510.98 an
ounce.

Gold has been on the rise recently as a hedge against potential inflation,
dollar weakness and increased equity market volatility in 2020, Abbasi said.

U.S. government debt yields fell after the Treasury Department sold $32
billion in seven-year notes to strong demand. The notes sold at a high yield
of 1.855% in light trading volume.

Benchmark 10-year notes last rose 4/32 in price to yield 1.8944%.

The auction comes after a $41 billion sale of five-year notes on Tuesday met
strong demand and slightly soft interest in a $40 billion two-year note sale
on Monday.

The dollar mostly edged lower, while oil gained. Against the Japanese yen,
the dollar rose to a near two-week high as U.S.-China trade optimism sapped
demand for safe-haven currencies.

The dollar index fell 0.1%, with the euro up 0.1% to $1.1101. The yen
weakened 0.25% versus the greenback at 109.64 per dollar.

Brent crude, the global benchmark, settled up 72 cents at $67.92 a barrel,
the highest since Sept. 17. U.S. West Texas Intermediate crude gained 57
cents to settle at $61.68 a barrel.

Brent has rallied 25% in 2019, supported by supply cuts by OPEC and allies
including Russia.

The American Petroleum Institute, an oil industry group, said late Tuesday
that U.S. crude stocks fell by 7.9 million barrels last week, much more than
analysts had forecast.

U.S. gold futures settled 0.7% higher at $1,514.40 an ounce.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Zambia plans to compel copper miners to account for gold

(Reuters) - Zambia plans to make copper mining companies account for the
gold they produce as it seeks to boost revenue from its mineral resources, a
senior ministry of mines official said on Thursday.

Ministry of Mines Permanent Secretary Barnaby Mulenga told a news conference
that Zambia, Africa’s second-largest copper producer, was missing out on a
lot of revenue because only one large mine was declaring its gold output.

First Quantum Minerals’ Kansanshi Mine, the only mine that has been
declaring its gold production, produced 4,200 kg of gold last year.

Mining accounts for more than 70 percent of Zambia’s foreign exchange
earnings and other companies operating in the southern African nation
include Barrick Gold Corp, Glencore and Vedanta Resources.

Mulenga said Zambia’s target for gold production next year was 40,000 kg and
that would come from primary and secondary sources, including artisanal and
small-scale miners.

Mulenga said some mining companies had not been declaring any gold
production, arguing that the quantities mined were very insignificant and
therefore sold as copper.

Zambia’s mining investment company ZCCM-IH would invest in exploration,
mining, processing and trading in gold, its chief executive officer Mabvuto
Chipata said at the same briefing.

ZCCM-IH had undertaken initial exploration work in northwestern Zambia in
collaboration with the mines ministry and was likely to start mining in the
first quarter of next year, Chipata said.

ZCCM-IH had also started to set up centres for buying gold in strategic
areas with deposits as a first step in a bid to formalise artisanal and
small scale miners, he said.

Chipata said ZCCM-IH would provide technical expertise to artisanal miners
on mine planning and safety and give them access to earth moving machinery
and processing plants. 

China's Yunnan Aluminium backs 210,000 T second phase for Heqing smelter

* Yunnan Aluminium said on Thursday its board of directors had unanimously
approved building a 210,000 tonne per year second phase at its aluminium
smelting project in Heqing county, Yunnan province, southwest China

* The company, which commissioned a first phase of the same capacity earlier
this year, said in a filing to the Shenzhen Stock Exchange it would invest
1.3 billion yuan ($185.8 million) in the project

* Yunnan Aluminium, controlled by state-owned Chinalco, currently has 2.1
million tonnes of annual aluminium production capacity, all of which uses
hydropower for the energy-intensive smelting process

* The filing did not provide a timeframe for the start of construction and
production of the second phase but projected annual net profits of 96.2
million yuan ($1 = 6.9961 Chinese yuan renminbi) 

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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