Bulls n Bears Daily Market Commentary : 08 November 2019

Mon Nov 11 00:20:11 CAT 2019

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Bulls n Bears Daily Market Commentary : 08 November 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$3,125,368.50  with foreign buys at Nil and   foreign
sales were ZWL$7,224.00 Total trades were 114

The All Share index ended the week on a higher note, after adding 0.73
points  to close at 244.32 points. INNSCOOR AFRICA  added $0.0835 to
$3.3650, DAIRIBOARD  increased by $0.0379 to $0.7379 and BINDURA further
advanced by $0.0280 to $0.1680. SEEDCO LIMITED  also added $0.0235 to close
at $1.7250 and DELTA CORPORATION  was $0.0159 firmer at $4.0159.

Gains were offset by losses in ART CORPORATION  which eased $0.0254 to
$0.1030, CASSAVA SMARTECH which dropped $0.0195 to $1.4977 and ECONET
WIRELESS shed $0.0098 to $1.7542. PPC LIMITED  traded $0.0080 weaker at
$5.2920 and OLD MUTUAL was $0.0037 lower at  36.9000.

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  Global Currencies & Equity Markets

South Africa

South Africa power cuts hurt rand as they put economy under more pressure

(Reuters) - South Africa’s rand weakened on Friday, after nationwide
electricity blackouts overnight by ailing state utility Eskom spooked
investors and reignited worries about the economy.

At 1500 GMT the rand had slipped 0.46% to 14.8100 to the dollar, compared to
a close of 14.7460 in the previous session.

Power firm Eskom implemented stage 2 power cuts, or loadshedding, shaving
off 2,000 megawatts from the national grid starting at 2000 GMT on Thursday
evening until 0300 GMT on Friday.

The firm said it had lost three generation units, pushing its emergency
reserve capacity to “critical levels”.

Eskom added the risk of power cuts on Friday was high as the system remained
severely constrained, and that loadshedding on Friday could not be ruled
out.

The rand had rallied on Thursday to its firmest since before a bleak Oct. 30
budget, mainly on the back of renewed hopes of a U.S.-China trade deal that
helped the currency shrug off a dip in business confidence and a contraction
in manufacturing.

The latest bout of nationwide blackouts come after repeated power cuts in
February and March, which dragged the economy into contraction and pushed
the government to grant Eskom a $4 billion bailout on top of a $16 billion
bailout spread over the next 10 years.

A firmer dollar buoyed by news that China and the United States had agreed
to cancel some tariffs as part of a potential preliminary pact to end their
trade war also put the rand under pressure.

On the stock market, the benchmark JSE Top-40 Index fell 1.61% to 50,398.87
points while the broader All-Share Index closed down 1.54% at 56,600.46
points.

Gold mining companies fell to the bottom of the blue-chip index with Gold
Fields down 6.31% and AngloGold Ashanti slipping 2.34% as a stronger dollar
lead to weaker gold prices.

Dual listed Swiss jeweller Richemont also fell sharply, dropping 5.73% to
110.77 rand after announcing political protests in Hong Kong weighed on its
first half sales and reporting higher than expected losses.

Bonds were also weaker, with the yield on the benchmark paper due in 2026 up
9 basis points to 8.48%.

$1 = 14.7634 rand 

Kenya

Kenyan shilling firmer on offshore investor inflows

(Reuters) - The Kenyan shilling firmed against the dollar on Friday
supported by inflows of hard currency from offshore investors buying
government debt and banks' shares at the stock market, traders said. 

At 0833 GMT, commercial banks quoted the shilling at 102.70/90 per dollar,
compared with 102.80/103.00 at Thursday's close.   

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GLOBAL MARKETS

Trade deal doubts clip world stock rally, oil wavers

(Reuters) - Oil prices faltered and global equity markets slipped on Friday,
halting a week-long record-setting rally fueled on hopes a U.S.-China trade
deal was near, as the latest statements out of Washington cast fresh doubts
about progress between Beijing and Washington.

Optimism about a deal earlier in the week darkened after fierce opposition
from the White House to rolling back existing tariffs surfaced on Thursday
and after U.S. President Donald Trump reinforced that sentiment on Friday.

Trump told reporters he has not agreed to the rollback of tariffs sought by
China and that Beijing wanted to make a deal more than he did.

But by the close of Wall Street, optimism returned to the market as
investors bet the White House needs a deal and it is in the interests of
China, too. All three major U.S. indexes eked out record closing highs.

MSCI’s gauge of stocks across the globe pared losses to close little
changed, down 0.03% on the day and just 1.3% from then all-time high set in
January 2018.

The dollar rose to a three-week high, lifted by safe-haven bids, as risk
appetite for higher-yielding currencies was curtailed by the uncertainty
over the tariff rollback, a major component of a preliminary U.S.-China
trade deal.

Optimism around a deal has run into skepticism about the strength of the
economy and corporate results, which is driving fear of more weakness ahead,
said Christopher Smart, chief global strategist at Barings.

The pan-European STOXX 600 index closed down 0.28%, snapping a five-day
winning streak, while Germany’s trade-sensitive DAX index fell 0.46%.

The record closing high by the S&P 500 was the fourth in six sessions as
U.S. stocks rallied on hopes of a trade deal.

The Dow Jones Industrial Average rose 6.44 points, or 0.02%, to 27,681.24.
The S&P 500 gained 7.9 points, or 0.26%, to 3,093.08 and the Nasdaq
Composite added 40.80 points, or 0.48%, to 8,475.31.

Earlier in Asia, shares retreated from six-month highs .

Investor sentiment is likely to continue to support risk assets as efforts
are made to reach a trade deal, said Brian Daingerfield, head of G10 FX
strategy at Natwest Markets in Stamford, Connecticut. “The fact that there
is some discussion of moving existing tariffs leans more positive.”

The dollar index rose 0.23%, with the euro down 0.27% to $1.1019. The
Japanese yen strengthened 0.08% versus the greenback at 109.22 per dollar.

U.S. Treasury yields traded mostly below three-month highs while Germany’s
10-year bond yield slid from five-month highs.

The yield on benchmark 10-year German bunds was one basis point lower at
-0.26%.

Benchmark 10-year U.S. Treasury notes fell 5/32 in price to push their yield
up to 1.9399%.

Gold extended losses to a three-month low and was on track for the biggest
weekly decline in almost three years. U.S. gold futures settled down 0.2% at
$1,462.90.

Oil prices pared losses after earlier falling more than 1% following Trump’s
comments.

Benchmark Brent crude fell 80 cents to $61.49 a barrel while West Texas
Intermediate (WTI) crude rose 9 cents to settle at $57.24 a barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Aluminium falters after touching near two-month peak

(Reuters) - Aluminium prices slipped from a near two-month peak on Friday
as analysts warned that producers were on the sidelines ready to hedge. 

The price of aluminium had rallied 6% over the past two weeks, largely
fuelled by bearish investors buying back their short positions.

But the global market is expected to flip into a surplus next year,
according to analysts polled by Reuters.             

A climb in the dollar index        to the highest in more than three weeks
would also encourage forward selling by producers, Garvey added.

Aluminium prices were capped on Thursday by "evidence of a producer offer",
Dee Perera at broker Marex Spectron said in a note.

Benchmark aluminium on the London Metal Exchange         slipped 0.3% to
$1,807.50 a tonne in final open-outcry trading, reversing after earlier
touching $1,822, the highest since Sept. 12. 

* TRADE DEAL: President Donald Trump on Friday told reporters he has not
agreed to roll back tariffs on China but that Beijing would like him to do
so.             

* COPPER: LME copper         fell 0.9% to finish at $5,924 a tonne after
hitting its highest in more than three months on Thursday.

* CHINA IMPORTS: China's copper imports fell 3.1% in October from the
previous month, customs data showed, as a cooling manufacturing sector in
the country kept demand subdued.

* SHANGHAI STOCKS: Nickel stocks in warehouses certified by the Shanghai
Futures Exchange SNI-TOTAL-W climbed 12% from a week earlier to 30,831
tonnes, their highest since the week ended June 1, 2018, while lead stocks
PB-STX-SGG jumped 34.7% in the same period to a 10-week high.             

* PRICES: LME lead         fell 0.3% to end at $2,107 a tonne after hitting
$2,084, the lowest since Oct. 2.  

Nickel         shed 0.1% to $16,190, paring losses after touching $15,845,
its lowest since Aug. 28, zinc         fell 0.1% to $2,482 and tin
rose 0.9% to $16,700. 

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
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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
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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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