Bulls n Bears Daily Market Commentary : 31 October 2019

Fri Nov 1 00:49:49 CAT 2019

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Bulls n Bears Daily Market Commentary : 31 October 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$10,222,366.20 with foreign buys at ZWL$ 506,580.00 and
foreign sales were ZWL$3,760,156.00 Total trades were 159

The All Share index continues to gain ground as it added 1.43 points to
close at 232.86 points. OLD MUTUAL LIMITED  rose by $0.3596 to $36.2204, TSL
put on $0.1000 to settle at $0.7000 and EDGARS was $0.0337 firmer at
$0.2157. ARISTON  also increased by $0.0316 to $0.1905 and DELTA  traded
$0.0216 firmer at $3.7412.

Four counters lost ground including OK ZIMBABWE  which decreased by $0.0167
to $0.6535 and MASHONALAND HOLDINGS  which went down to $0.0700 after
shedding $0.0140. WILLDALE also dropped $0.0002 to end at $0.0478 and SEEDCO
INTERNATIONAL  eased $0.0001 to $2.7755.

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  Global Currencies & Equity Markets

South Africa

South Africa's rand little changed before Moody's credit review

(Reuters) - South Africa’s rand was steady on Thursday after plunging the
day before, when Finance Minister Tito Mboweni gave a bleak budget speech
where he slashed growth forecasts and predicted ballooning debt.

At 0720 GMT the rand was up 0.05% to 14.9960 per dollar after reaching a
two-week low of 15.1250 on Wednesday, its worst one-day decline in more than
a year.

Mboweni cut the forecast for 2019 economic growth to 0.5% from 1.5%, put
debt at over 70% of gross domestic product in the next two years and the
budget deficit at 5.9% - its highest since the 2009 global financial crisis.

The rand began tumbling before Mboweni had finished his speech and by the
end had lost more than 3%. Bonds yields spiked as investors faced the
prospect of South Africa’s losing its last investment-grade rating, from
Moody’s.

Uganda

Ugandan shilling weakens due to importer dollar demand

(Reuters) - The Uganda shilling weakened on Thursday, due to increased
dollar from commercial banks and general consumer goods importers, traders
said.

At 1109 GMT, commercial banks quoted the shilling at 3,710/3,720, weaker
than Wednesday’s close of 3,700/3,710.

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Asia

Asia Stocks Look to Gain; Treasuries Climb on Fed: Markets Wrap

Stocks in Asia looked set to gain after U.S. equities rose to a fresh record
high following the Federal Reserve’s decision to cut interest rates and
indicate it is unlikely to move in either direction any time soon. Treasury
futures extended gains in Asia trading.

Equity contracts rose in Japan and Hong Kong, while shares in Sydney dipped
at the open. The S&P 500 turned higher when Fed Chairman Jerome Powell said
rate hikes won’t occur as long as inflation remains persistently cool. That
fueled a rally in Treasuries and sent the dollar lower. The offshore yuan
climbed. After the close of trading, Apple and Facebook advanced after
posting results. The yen was steady ahead of the Bank of Japan’s policy
decision.

Stocks rise to record after Powell hints Fed won't raise rates for a while

Fed officials reduced interest rates by a quarter-percentage point for the
third time this year and signaled a pause in further cuts unless the
economic outlook changes materially. Up in the air remains the next step in
the trade war after Chile canceled next month’s APEC meeting where the U.S.
and China intended to sign a partial trade pact. Earnings continue to roll
on, while data on U.S. GDP and private hiring topped estimates.

Here are some key events coming up this week:

*         Earnings include: Mitsubishi Heavy on Thursday; Exxon Mobil and
Macquarie Group on Friday.

*         The Fed’s preferred inflation metric, the core PCE deflator, is
due Thursday.

*         The Bank of Japan sets policy on Thursday and Governor Haruhiko
Kuroda will hold a news conference.

*         Friday brings the monthly U.S. non-farm payrolls report.

These are some of the main moves in markets:

Stocks

*         Futures on the S&P 500 Index were flat as of 8:05 a.m. in Tokyo.
The underlying gauge rose 0.3% on Wednesday.

*         Futures on Japan’s Nikkei 225 advanced 0.4%.

*         Hang Seng futures earlier added 0.2%.

*         n Australia’s S&P/ASX 200 Index slid 0.1%.

Currencies

*         The yen was at 108.80 per dollar.

*         The offshore yuan traded at 7.0448 per dollar after climbing 0.3%.

*         The Bloomberg Dollar Spot Index was little changed.

*         The euro bought $1.1153.

Bonds

*         Futures on 10-year Treasuries rose 0.1%. The yield on 10-year
Treasuries lost seven basis points to 1.77% on Wednesday, when the two-year
yield slipped four basis points to 1.60%.

*         Australia’s 10-year yield fell two basis points to 1.12%.

*         Commodities

*         Gold was at $1,495.56 an ounce.

*         West Texas Intermediate crude declined 0.2% to $54.96 a barrel.

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Commodities Markets

Copper slips on weak economic data from top consumer China

(Reuters) - Copper prices fell on Thursday after weaker than expected
manufacturing data from China heightened concerns about demand for the metal
used in power and construction.

A protracted trade conflict with the United States has cooled China’s
economic growth and weighed on metals prices, raising expectations that
Beijing will need to roll out more support measures soon.

China accounts for about half of global copper demand, estimated this year
at about 24 million tonnes.

Benchmark copper on the London Metal Exchange (LME) fell 1.9% to $5,797 a
tonne in final open-outcry trading, a one-week low and marking the biggest
one-day loss since Aug. 2.

CHINA DATA: Factory activity in China shrank for the sixth straight month in
October and by more than expected, while service sector growth eased as
companies grapple with the weakest economic growth in nearly 30 years.

TRADE WAR: Leaders from the United States and China encountered a new
obstacle in their struggle to end a damaging trade war when the summit at
which they were supposed to meet was cancelled on Wednesday because of
violent protests in host nation Chile.

Washington and Beijing both said they still expect to sign an initial trade
agreement next month.

RIO TINTO: Mining group Rio Tinto has changed its exploration strategy to
consider smaller ore deposits that have growth potential because the
likelihood of finding large low-cost mines is dwindling, an executive said.

CHILE: September’s manufacturing output in Chile dropped 1.5% from the same
month last year, with mine production down 5.4%.

DISRUPTIONS: Mining operations in Chile are facing delays in supplies,
travel disruptions and workers walking off to join nationwide protests in
what is the South American nation’s biggest political crisis since 1990.

TAILINGS DAMS: A global inquiry into how mining companies store billions of
tonnes of waste in huge dams, launched after a collapse in Brazil killed
hundreds of people, shows about a tenth of the structures have had stability
issues, investors said.

AURUBIS: Europe’s largest copper producer Aurubis remains on the hunt for
takeovers with a war chest of about $1 billion, its chief executive said,
pushing on with diversification after the early departure of its previous
boss.

TARIFFS: Lack of transparency in the U.S. Commerce Department’s handling of
steel and aluminium tariffs raised the appearance that certain companies may
have had “improper influence” in the process, its internal watchdog said in
a document.

PRICES: LME aluminium fell 0.3% in closing rings to $1,755 a tonne, zinc
shed 1.8% to $2,482.50, lead dropped 2.2% to finish at $2,160 after hitting
a two-week low of $2,155.

Nickel lost 0.8% to end at $16,645 while tin slipped 1.6% to $16,525 after
touching a three-week low of $16,300.

Gold gains on dollar weakness and trade uncertainty

(Reuters) - Gold rose on Thursday as the dollar came under pressure after
the U.S. Federal Reserve cut interest rates while uncertainty surrounding a
U.S.-China trade deal bolstered the metal’s appeal as a safe-haven
investment.

Prices also got a further boost after U.S. weekly jobless claims rose more
than expected last week.

Spot gold climbed 0.9% to $1,507.98 an ounce by 1258 GMT, having earlier
risen to a nearly one-week high of $1509.80. Prices were set for a monthly
gain of more than 2%.

U.S. gold futures were up 0.9% at $1,510.40.

The U.S. central bank on Wednesday cut interest rates for the third time
this year to help to sustain U.S. growth despite a slowdown in other parts
of the world.

The U.S. dollar fell to a more than one-week low against leading rivals.

Gold is highly sensitive to any reduction in interest rates, which decreases
the opportunity cost of holding non-yielding bullion. Rate cuts also weigh
on the dollar, in which gold is priced.

Uncertainties on the trade front also supported bullion, with the
cancellation of an Asia-Pacific economic cooperation summit in Chile next
month, at which the United States and China were expected to sign an interim
deal to ease hostilities in their long-running trade war.

However, news that Beijing could remove extra tariffs imposed since last
year on U.S. farm products fanned hopes that a trade deal remains possible.

Elsewhere, palladium was down 0.6% at $1,794.47 an ounce, having hit a
record high of $1,824.50 on Wednesday. The autocatalyst metal was set for a
third straight monthly gain, up 7% in October alone.

Silver rose 1.1% to $18.06 an ounce while platinum firmed by 0.9% to
$933.87, with both metals set for monthly gains.

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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