Bulls n Bears Daily Market Commentary : 01 November 2019

Mon Nov 4 00:31:26 CAT 2019

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Bulls n Bears Daily Market Commentary : 01 November 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$10,669,205.48 with foreign buys at ZWL$2,066,638.100 and
foreign sales were ZWL$2,510,097.75 Total trades were 124

The All Share index continues to gain ground as it added 3.03 points  to
close at 235.89 points. OLD MUTUAL LIMITED further advanced by $0.7602 to
$36.9806, DELTA   gained $0.1288 to settle at 3.8700 and DAIRIBOARD  was
$0.0825 firmer at $0.6450. ECONET WIRELESS   also increased by $0.0498 to
$1.7587 and MEIKLES traded $0.0400 firmer at $1.7500.

Only four counters traded in the negative: AXIA CORPORATION   decreased by
$0.0037 to $0.6513 and SIMBISA BRANDS  went down to $1.3902 after shedding
$0.0023. OK ZIMBABWE   also dropped $0.0010 to end at $0.6525 and SEEDCO
INTERNATIONAL eased $0.0005 to $2.7750. 

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South African rand, stocks gain; focus on Moody's review

(Reuters) - South Africa’s rand firmed against the dollar on Friday thanks
to a weaker greenback, while stocks also rose on improved risk appetite, as
markets awaited a Moody’s rating review later in the day.

At 1515 GMT, the rand was 0.74% firmer at 14.9950 per dollar.

The U.S. dollar dropped on Friday after data gave mixed signs on the
economy, and as optimism the United States and China would reach a deal to
end their trade war reduced safe-haven demand for the greenback.

Locally, focus was on the Moody’s review.

Moody’s is the only ratings agency out of the main three with an investment
grade assigned to South Africa’s sovereign debt.

Worries about losing it were sparked by the resumption of nationwide
blackouts in Africa’s most industrialized economy, and exacerbated by a
medium-term budget that showed a wider deficit and rising debt.

A full downgrade to non-investment grade would see South Africa evicted from
the benchmark World Government Bond Index (WGBI) of local currency debt and
trigger a sell-off by investors mandated to buy high-grade debt.

Government bonds weakened, with the yield on the benchmark 2026 instrument
adding 8 basis points to 8.575%.

On the bourse, stocks were up after strong economic data from China boosted
appetite for emerging market shares despite investor jitters over Moody’s
review.

The Top-40 index was up 0.52%, while the broader all-share was 0.41% higher.

Further gains were limited by gold mining companies, which were hit by lower
gold prices as better-than-expected U.S. jobs numbers and strong factory
data from China bolstered sentiment for riskier assets.

Sibanye-Stillwater slipped by 2.71%, while AngloGold Ashanti closed down by
1.86%. 

Uganda

Ugandan shilling little-changed in slow activity

(Reuters) - The Ugandan shilling        was little-changed on Friday in
trade with little dollar demand in the market.

At 0817 GMT commercial banks quoted the shilling at 3,705/3,715, from
Thursday's close of 3,710/3,720.

       <mailto:info at bulls.co.zw> 

Low, lower, lowest: Emerging central banks deliver more rate cuts

(Reuters) - Emerging market policymakers slashed interest rates further in
October, taking their lead from major central banks such as the U.S. Federal
Reserve, joining in efforts to shore up their economies.

Interest rate moves by central banks across a group of 37 developing
economies showed a net 9 cuts last month after a net 11 cuts in September.

October market the ninth straight month of net cuts - the longest easing
cycle for emerging market central banks since 2013.

For an interactive version of the above graphic, click here
tmsnrt.rs/2VtMl5w.

Below is a list of recent emerging market central bank monetary policy
changes:

COSTA RICA - The central bank cut the key policy rate by 50bps to 3.25% on
Oct 30. bit.ly/36yNe38

HONG KONG - The Hong Kong Monetary Authority (HKMA) lowered its base rate
charged through the overnight discount window by 25 basis points to 2% on
Oct. 30, hours after the U.S. Federal Reserve delivered a cut of the same
size.

SAUDI ARABIA/ UNITED ARAB EMIRATES / BAHRAIN / KUWAIT - Kuwait’s central
bank cut its benchmark interest rate on Oct. 30, joining the Federal
Reserve-led monetary easing cycle with its Gulf peers for the first time
since July. Saudi Arabia, United Arab Emirates and Bahrain, whose currencies
are pegged to the U.S. dollar, also cut rates.

BRAZIL - The central bank cut its benchmark interest rate to a new all-time
low of 5.00% on Oct. 30 as expected, but signalled that further easing may
be less aggressive than it has been in recent months, despite inflation
running well below target.

RUSSIA - The central bank carried out its biggest interest rate cut in two
years on Oct. 25, trimming the key rate to 6.50% from 7%, and hinted it
could slash the rate again in coming months because of slowing inflation.

UKRAINE - Ukraine’s central bank on Oct. 24 lowered its main interest rate
for the fourth time this year to 15.5% from 16.5%, a steeper than expected
cut, saying price pressures were easing more rapidly while economic growth
was picking up.

INDONESIA - The central bank stepped up efforts to boost Southeast Asia’s
largest economy on Oct. 24 by cutting its benchmark interest rate to 5.00% -
its fourth cut in as many months, while saying growth in the third quarter
may be slower than expected.

CHILE - The central bank slashed its benchmark interest rate on Oct. 23 to
1.75% from 2%, its third major rate cut since June, as protests over
economic inequality rocked the South American nation.

GEORGIA - Georgia’s central bank raised its key refinancing rate to 8.50%
from 7.50% on Oct. 23 amid rising inflation. The central bank had raised the
rate twice last month as annual inflation exceeded the 3% target.

SOUTH KOREA - The central bank cut its policy interest rate for the second
time in three months on Oct. 16, as expected, to support a slowing economy
and address mounting deflationary pressures. The main benchmark rate now
stands at 1.25%

UGANDA - The central bank cut its key lending rate by 100 basis points to
9.0% on Oct. 7, saying the reduction would revive economic growth in the
eastern African country, a prospective crude oil producer. It is the first
time the Bank of Uganda has changed its main rate since October last year.

INDIA - The Reserve Bank of India cut interest rates for a fifth straight
meeting on Oct 4, to 5.15%, stepping up efforts to kickstart economic growth
languishing at six-year lows.

MEXICO - For the second time in a row, Mexico’s central bank cut its key
interest rate by 25 basis points to 7.75% on Sept. 26, citing slowing
inflation, widening slack in the economy, and expectations for a slight
economic recovery.

EGYPT - Egypt’s central bank trimmed its key interest rates by 100 basis
points on Sept. 26, its second cut in as many months, after inflation fell
further and as central banks globally ease monetary policy.

THE PHILIPPINES - The central bank cut its benchmark interest rate to 4.0%
on Sept. 26, its third reduction this year to bolster a slowing economy
against the risk of weakening global growth.

PARAGUAY - The central bank cut its policy rate by 25 basis points to 4.00%
on Sept. 23. here

CHINA - China cut its new one-year benchmark lending rate for the second
month in a row on Sept. 20, to 4.20%, as the central bank seeks to guide
borrowing costs lower for an economy hit by the Sino-U.S. trade war.

JORDAN - The central bank said on Sept. 18 it was cutting its benchmark
interest rate by 25 basis points to 4.25% in a move to help spur economic
growth.

VIETNAM - The central bank said on Sept. 13 it was cutting several interest
rates to increase liquidity and support economic growth, which the country
hopes will stay near 7% this year.

AZERBAIJAN - The central bank said it had cut its refinancing rate to 8.00%
from 8.25% on Sept. 13 and adjusted its rate corridor.

TURKEY - The central bank cut its policy rate by 325 basis points to 16.5%
on Sept. 12, delivering its second aggressive policy easing in less than two
months as it seeks to boost a recession-hit economy and put last year’s
currency crisis behind it.

ARMENIA - The central bank cut its key refinancing rate to 5.50% from 5.75%
on Sept. 10.

KAZAKHSTAN - Policymakers raised the key interest rate to 9.25% from 9.00%
on Sept. 9, citing inflationary pressure from domestic demand boosted by
extra spending.

DOMINICAN REPUBLIC - Policymakers cut interest rates by 25 basis points to
4.50% on Aug. 30. bit.ly/2lOxRAv

BOTSWANA - The central bank cut the lending rate by 25 basis points to 4.75%
on Aug. 29.

JAMAICA - Jamaica's central bank cut its interest rate by 25 basis points to
0.50% on Aug. 28. www.boj.org.jm/

MOZAMBIQUE - The central bank cut its benchmark interest rate by 50 basis
points on Aug. 14 to 12.75%.

NAMIBIA - Policymakers reduced the lending rate by 25 basis points to 6.5%
on Aug. 14.

MAURITIUS - The central bank on Aug. 9 cut the repo rate by 0.15 basis
points to 3.35%.

PERU - The central bank cut the benchmark interest rate to 2.5% on Aug. 9
amid growing expectations for an economic slowdown in the world’s No.2
copper producer, but stressed its decision did not necessarily mean the
start of an easing cycle.

SERBIA - The Serbian central bank surprised markets by cutting its benchmark
interest rate another 25 basis points to 2.5% on Aug. 8, the second cut in
as many months, to further bolster lending and growth.

BELARUS - The central bank said on Aug. 7 it was cutting its main interest
rate to 9.5% from 10% with effect from Aug. 14 and that the intensity of
inflationary processes had slowed in the second quarter.

THAILAND - Policymakers unexpectedly cut the benchmark rate on Aug. 7,
expressing worry about strength of the baht and aiming to help support
faltering growth.

MOLDOVA - The central bank raised its main interest rate to 7.5% from 7% on
July 31 to fight rising inflation caused by wage increases and higher food
prices.

SOUTH AFRICA - The central bank cut its main lending rate as expected on
July 18, but struck a cautious tone that suggested future cuts in borrowing
costs were not a foregone conclusion despite benign inflation.

PAKISTAN - Policymakers hiked the main interest rate by 100 basis points on
July 16 to 13.25%, citing increased inflationary pressures and a likely
near-term rise in prices from higher utility costs.

SRI LANKA - The central bank cut its key interest rates by 50 basis points
on May 31, as widely expected, to support its faltering economy as overall
business and consumer confidence slumped following deadly bomb attacks.

TAJIKISTAN - The central bank reduced the refinancing rate to 13.25% from
14.75% on May 31.

KYRGYZSTAN - Policymakers in the Central Asian nation cut the benchmark rate
to 4.25% from 4.50% on May 28, citing slowing inflation.

ANGOLA - Angola’s central bank cut its benchmark lending rate by 25 basis
points to 15.5% on May 24.

ZAMBIA - The central bank in Lusaka raised the benchmark lending rate to
10.25% from 9.75% on May 22 to counter inflationary pressure and support
macroeconomic stability.

MALAYSIA - The central bank on May 7 became the first in Southeast Asia to
cut its key interest rate this year, by 25 basis points to 3.0%, moving to
support its economy at a time of concern about global growth.

RWANDA - Rwanda’s central bank cut its key repo rate by 50 basis points on
May 6 to 5.0%.

MALAWI - Malawi’s central bank cut its benchmark lending rate by 100 basis
points on May 3 to 3.5%.

CZECH REPUBLIC - The Czech National Bank raised interest rates on May 2,
using a window of opportunity created by easing economic risks abroad to
stem rising domestic inflation by fine-tuning a tightening cycle it had
paused at the end of 2018.

NIGERIA - In a surprise move, the central bank cut its benchmark interest
rate to 13.5% from 14% on March 26 as part of an attempt to stimulate growth
in Africa’s biggest economy and signal a “new direction”.

TUNISIA - Policymakers in Tunisia raised the key interest rate to 7.75% from
6.75% on Feb. 19 to combat high inflation - the third such hike in the past
12 months.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold slips on positive U.S. jobs, China factory data

(Reuters) - Gold prices eased on Friday as better-than-expected U.S. jobs
numbers and strong factory data from China bolstered sentiment for riskier
assets.

Spot gold dipped 0.2% to $1,510.82 per ounce at 12:13 p.m. EDT (1613 GMT).
Prices were set for a weekly gain.

U.S. gold futures were little changed at $1,513.20.

U.S. job growth slowed less than expected in October, while hiring in the
prior two months was stronger than previously estimated, offering assurance
that consumers would continue to prop up the slowing economy for a while.

The Fed cut interest rates for a third time this year, but signalled there
would be no further reductions unless the economy takes a turn for the
worse.

Lower interest rates generally reduce the opportunity cost of holding
non-yielding gold and weigh on the dollar.

Stock markets took comfort from the October U.S. jobs data and numbers
showing China’s factory activity expanded at its fastest pace in more than
two years.

Also lifting sentiment for riskier assets was a statement by U.S. President
Donald Trump saying Washington and Beijing would soon announce a new venue
for the signing of a “Phase One” trade deal, after protests in Chile
resulted in the cancellation of a planned summit there this month.

In terms of the overall outlook for gold, however, the trend is positive
with the metal likely consolidating before moving higher, said Edward Moya,
a senior market analyst at OANDA, adding there are doubts that the trade war
will get completely wrapped up and investors are also skeptical about
jumping into the stock market rally.

In other precious metals, silver was down 0.3% at $18.07. Platinum rose 2%
to $950.95 per ounce, after hitting its highest level since Sept. 25, at
$952.20, en route to a weekly rise of about 3%.

Palladium was 0.8% higher at $1,808.01. The metal was set to mark a
four-week gaining streak, having notched up a record high of $1,824.50 an
ounce on Wednesday. 

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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