Bulls n Bears Daily Market Commentary : 05 November 2019

Wed Nov 6 00:32:55 CAT 2019

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Bulls n Bears Daily Market Commentary : 05 November 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$15,539,618.10 with foreign buys at ZWL$1,128,727.82 and
foreign sales were ZWL$2,912,804.63 Total trades were 170

The All Share index closed the day in the positive after adding 2.99 points
to close at 242.43 points. INNSCOR gained $0.2129 to $3.2125, TSL  rose by
$0.1000 to end at $0.8000 and SEEDCO  was $0.0606 higher at $1.6564. SIMBISA
BRANDS also increased by $0.0452 to $1.4955 and DAIRIBOARD  traded $0.0341

firmer at $0.6785.

Three counters lost ground: OLD MUTUAL LIMITED   further retreated by
$0.0505 to $36.8792, PADENGA HOLDINGS   dropped $0.0045 to close at $3.0151
and ECONET

WIRELESS   eased $0.0014 to $1.7776. 

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South Africa's rand flat as Moody's relief wanes

(Reuters) - South Africa’s rand was little changed on Tuesday, as a rally
sparked by Moody’s decision to keep the country’s credit rating at
investment grade faded.

At 1530 GMT the rand was at 14.7980 per dollar, less than 0.1% stronger than
its previous close.

Fund managers had expressed scepticism on Monday that a bounce in the rand
would last, given major concerns over the weak economic growth outlook and
alarming pace at which government debt is growing.

On Friday Moody’s kept South Africa’s sovereign debt at Baa3, the lowest
rung of investment grade, but revised the outlook on that rating to
“negative,” which gives the country a window of up to 18 months in which a
downgrade could be delivered.

On the local bourse, stocks climbed in line with global peers on hopes that
the United States would roll back some of the tariffs it has imposed on
Chinese imports.

The Johannesburg Stock Exchange’s Top-40 Index closed up 0.6% to 50,984
points, while the broader All-Share Index ended 0.6% higher at 57,247
points.

Insurer Old Mutual and energy company Sasol were among the biggest winners,
with Old Mutual rising 4.19% to 20.41 rand and Sasol closing up 3.65% to
290.89 rand. 

Kenya

Portfolio investors help support Kenyan shilling

(Reuters) - The Kenyan shilling held steady on Tuesday as offshore investors
into the local stock market helped to boost the supply of dollars in the
market.  

At 0906 GMT, commercial banks quoted the shilling at 103.20/40 per dollar,
unchanged from Monday's close.

       <mailto:info at bulls.co.zw> 

GLOBAL MARKETS

Trade hopes lift dollar, crude; doubts slow stock rally

(Reuters) - The U.S. dollar and crude prices rose on Tuesday, spurred by
optimism that a U.S.-China trade deal may be near, but a rally in global
equity markets paused after China pressed U.S. President Donald Trump to
remove recently imposed tariffs.

MSCI’s gauge of global stock markets set a 21-month intraday high but pared
gains to close lower while the Nasdaq and Dow Jones industrial average eked
out record closing highs.

U.S. and European government bond yields climbed on trade hopes and upbeat
economic data. China’s push to remove more U.S. tariffs imposed in September
as part of a “phase one” trade deal mostly boosted optimism.

A trade deal is far from certain, Fawad Razaqzada, technical analyst at
FOREX.com, said in an investor note. “If the talks collapse, then so too
could the markets,” he said.

Solid corporate earnings and upbeat data gave equities a lift. More than
three-quarters of the S&P 500 companies that have reported so far have
beaten profit expectations, Refinitiv data showed.

ISM’s services data showed a reading of 54.7 in October from 52.6 the prior
month, exceeding expectations of economists polled by Reuters for 53.4. It
was the latest data to ease concerns the U.S. economy.

MSCI’s gauge of stock indexes in 47 countries edged lower by 0.01%. The
pan-European STOXX 600 index of small, mid-sized and large stocks and the
FTSEurofirst 300 index of leading regional shares both rose 0.2%.

On Wall Street, the Dow Jones Industrial Average rose 30.52 points, or
0.11%, to 27,492.63. The S&P 500 lost 3.65 points, or 0.12%, to 3,074.62 and
the Nasdaq Composite added 1.48 points, or 0.02%, to 8,434.68.

In Asia, optimism was fueled by the People’s Bank of China’s first cut in
its medium-term lending rate since early 2016. It was only a token 5 basis
points to 3.25%, but it underscored Beijing’s desire to support the economy.

Oil prices rose more than 1% on trade hopes. Oil was also supported when
OPEC Secretary-General Mohammad Barkindo said the market outlook for 2020
may be brighter than forecast, appearing to downplay any need for deeper
production cuts.

Brent crude futures for January delivery settled 83 cents higher at $62.96 a
barrel. U.S. West Texas Intermediate (WTI) crude futures rose 69 cents to
settle at $57.23 a barrel.

The safe-haven yen and Swiss franc slid. Gold fell almost 2%, en route to
its biggest daily slide in over a month.

The dollar index rose 0.43%, with the euro down 0.48% to $1.1073. The
Japanese yen weakened 0.52% versus the greenback at 109.16 per dollar.

U.S. gold futures settled down 1.8% at $1,483.70.

Benchmark 10-year U.S. Treasury notes fell 19/32 in price to yield 1.8548%.
That boosted financial stocks. The S&P financial sector was the
second-biggest gainer of the 11 sectors, edged out by the rising energy
sector.

A steady rise in bond yields has been a big tailwind for financial stocks
and one of the biggest contributors to the continued strength in equities,
James said.

The 10-year U.S. Treasury barely yielded 1.5% in early October.

Germany’s 10-year bond yield rose as high as -0.308% , while the French
10-year hit -0.006% to within striking distance of positive territory.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper scales seven-week peak on trade deal hopes

(Reuters) - Copper climbed to a seven-week high on Tuesday as hopes of a
U.S.-China trade deal prompted bearish investors to buy back positions.

The Dow Jones industrial average hit a new intra-day record high, the
Chinese yuan advanced to a three-month peak and oil also rose after people
close to the negotiations said China was pushing U.S. President Donald Trump
to remove more tariffs imposed in September as part of a so-called Phase 1
trade deal.

Most of the bearish positions in copper are probably linked to
computer-generated algorithms largely used by commodity trade advisor (CTA)
funds, he added.

Three-month copper on the London Metal Exchange (LME) climbed 1.1% to $5,940
a tonne in final open-outcry trading to register its third straight daily
gain. It had earlier touched $5,978, its highest since Sept. 16.

* COPPER SUPPLY: Antofagasta’s production cuts in Chile have doubled to
about 10,000 tonnes, it said, citing worker protests in the South American
nation.

* CHINA COPPER: Copper in China’s bonded warehouses SMM-CUR-BON dropped to a
record low of 243,500 tonnes in November, monthly data from Shanghai Metals
Market shows.

* INDONESIA NICKEL: China’s top nickel producer Jinchuan Group will feel
some impact from Indonesia’s ban on ore exports from 2020 but will be able
to plug the supply gap, partly by using its own mines, a company executive
said on Tuesday.

LME nickel slipped 0.6% to close at $16,280 a tonne.

* ZINC SPREADS: LME cash zinc’s premium over the three-month contract
CMZN0-3> rose to $62 a tonne. That is the highest since July 1, having been
in backwardation of $40 at the end of October. The high premium indicates
near-term shortages of metal in the LME system.

* ALUMINIUM TECHNICALS: Aluminium has more upside after breaking above its
nine-month downtrend, said Commerzbank technical analyst Axel Rudolph.

LME aluminium shed 0.2% to close at $1,811 a tonne, reversing direction
after hitting a seven-week high of $1,818.

* PRICES: LME zinc gave up 1.6% to finish at $2,498 a tonne, lead fell 0.5%
to a three-week low of $2,151 and tin added 0.2% to $16,455.

Gold eases as U.S.-China trade deal hopes boost dollar

(Reuters) - Gold fell for a second session on Tuesday, as Sino-U.S. trade
deal hopes buoyed the dollar and improved risk appetite, blunting investors’
interest in the non-yielding bullion.

Spot gold was down 0.1% at $1,507.17 per ounce as of 0728 GMT, while U.S.
gold futures declined 0.2% to $1,508.20 per ounce.

Beijing and Washington have shown signs of progress in trade talks with the
Financial Times saying on Monday that the United States is considering
whether to drop some tariffs on Chinese goods.

The U.S. dollar was close to its highest in almost a week against a basket
of rivals on Tuesday, while Asian shares closed in on their July peak, on
growing optimism for the United States and China to strike a preliminary
deal to scale back their long-drawn trade war.

A stronger dollar makes gold expensive for holders of other currencies.

Shaving some fears of an upcoming recession, recent data suggests the
outlook for the world’s largest economy is not as bad as some had feared,
although the U.S. Federal Reserve has cut interest rates three times this
year.

After data last week showed U.S. job growth had slowed less than expected in
October, investors now await a U.S. ISM non-manufacturing report due on
Tuesday that is forecast to show activity accelerated slightly in October.

However, data on Monday showed new orders for U.S.-made goods fell more than
expected in September and business spending on equipment was slightly weaker
than initially thought, suggesting that manufacturing remains soft amid the
trade war between the world’s two biggest economies.

Among other metals, silver was flat at $18.06 per ounce and platinum edged
up 0.1% to $936.83 per ounce, having fallen more than 1% in the previous
session.

Palladium was down 0.4% at $1,772.04 an ounce, after sliding 1.5% in the
previous session. 

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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