Bulls n Bears Daily Market Commentary : 11 November 2019

Tue Nov 12 00:58:30 CAT 2019

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Bulls n Bears Daily Market Commentary : 11 November 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$6,244,186.24 with foreign buys at ZWL$19,000.00 and
foreign sales were ZWL$1,627,535.00 Total trades were 134

The All Share index opened the week on lower note dropping 0.42 points  to
close at 243.90 points. ZIMPLOW  eased $0.1100 to close at $0.4425, OLD
MUTUAL LIMITED  lost $0.1006 to $36.7994 and POWERSPEED  was $0.0700 down at
$0.3200. DAIRIBORD  was also $0.0379 down at $0.7000 and MASIMBA  traded
$0.0350 lower at $0.1550.

Trading in positive; PPC  added $0.2023 to $5.4943, MEIKLES rose by $0.0475
to end at $1.9000 and SEEDCO INTERNATIONAL LIMITED  was $0.0175 higher at
$2.8025. MASHONALAND HOLDINGS  also increased by $0.0103 to $0.0803 and
SIMBISA  was $0.0100 to close at $1.5325.

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  Global Currencies & Equity Markets

South Africa

South Africa’s rand weaker on China-U.S. trade deal delay

(Reuters) - South Africa’s rand ended flat on Monday, with trading subdued
by the trade deal stalemate between China and the United States.

At 1530 GMT the rand was 0.05% weaker at 14.8570, clawing back some ground
from a session-low of 14.9560.

Officials from Beijing and Washington said late last week that a rollback of
some tariffs had been agreed as part of a preliminary deal, but it had yet
to be finalised.

South African bonds also weakened, with the yield on the benchmark due in
2026 adding 3.5 bps to 8.495%.

Stocks fell along with global equities as escalating violence in Hong Kong
pushed Asian stocks to their worst day since August and stoked demand for
yen and gold.

The benchmark JSE Top-40 Index was down 1.05% to 49,876.79 points, while the
broader All-Share Index fell 0.96% to 56,071.43 points.

Shoprite and platinum miners Impala Platinum fell to the bottom of the
blue-chip index, with the grocer down 2.76% to 134.01 rand and Impala
falling 2.64%.

However, gold miners were buoyed by a rise in a gold prices off the back of
fresh doubts over whether China and the U.S can strike a trade deal.

AngloGold Ashanti was up 0.25% to 283.72 rand while rival Gold Fields rose
0.12% to 76.54 rand. 

Kenya

Kenyan shilling firms to 4-month high, helped by remittances

(Reuters) - The Kenyan shilling strengthened on Monday to a four-month high
, by dollar inflows from remittances and offshore investors buying shares on
the

stock market, traders said. 

At 0803 GMT, commercial banks quoted the shilling at 102.30/50 per dollar,
compared with 102.50/70 at Friday's close. The shilling last traded at its
present level on July 8, Refinitiv data showed.  

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GLOBAL MARKETS

Dollar, stocks slip amid trade deal uncertainty

(Reuters) - The dollar slid and global equity markets fell on Monday after
U.S. President Donald Trump’s remarks over the weekend dashed investor
optimism that Washington and Beijing would soon reach a deal to end their
debilitating trade war.

Moody’s warning on Britain’s sovereign debt weighed on shares in London,
while escalating violence in Hong Kong led Asian equities to their biggest
daily decline since August, boosting demand for the safe-haven yen and Swiss
franc.

Trump said on Saturday that the U.S.-Sino trade talks were moving along
“very nicely” but more slowly than he would have liked. He also said there
had been incorrect reporting about U.S. willingness to lift tariffs.

Last week, U.S. and Chinese officials said they had agreed to roll back
tariffs - a key consideration for China - that already are in place in a
“phase one” trade deal.

The 16-month trade war between the world’s two largest economies has slowed
global growth. Data over the weekend showed that China’s producer prices
fell the most in more than three years in October.

U.S. stocks ended last week at record closing highs, capping a rally that
had lifted the S&P 500 more than 7% since early October. MSCI’s gauge of
equity performance in 47 countries closed last week barely 1% off a record
high.

The MSCI all-country world index shed 0.27%, while the FTSEurofirst 300
index of leading regional shares closed down 0.04%.

On Wall Street, the Dow Jones Industrial Average rose 9.77 points, or 0.04%,
to 27,691.01. The S&P 500 lost 6.09 points, or 0.20%, to 3,086.99 and the
Nasdaq Composite dropped 11.04 points, or 0.13%, to 8,464.28.

The Dow Jones Industrial Average eked out a modest gain after shares of
Boeing Co jumped 4.55% after it said U.S. regulators are expected to approve
the return to commercial service of its grounded 737 MAX jet in coming
weeks.

The U.S. dollar, which often acts as a safe-haven asset when political and
economic uncertainty reigns, was lower against the yen and the Swiss franc,
other traditional safe havens.

The dollar index fell 0.14%, with the euro up 0.14% to $1.1032. The yen
strengthened 0.16% versus the greenback at 109.06 per dollar, while the
dollar was 0.4% weaker against the franc, at 0.9933 per dollar.

Gold fell to its lowest in more than three months.

U.S. gold futures settled down 0.4% at $1,457.10 an ounce.

Oil prices slid as trade worries offset industry data showing a drop in U.S.
crude inventories at the Cushing, Oklahoma, delivery point.

Brent crude fell 33 cents to settle at $62.18 a barrel. U.S. crude settled
down 38 cents at $56.86 a barrel.

A sell-off in southern European bond markets pushed yields higher, with the
inconclusive election in Spain adding to uncertainty.

Government bond markets across the single-currency bloc have been hurt in
recent weeks by optimism over a U.S.-China trade deal and improving economic
data.

U.S. Treasury markets were closed for the Veterans Day holiday. 

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Commodities Markets

Gold slips to over 3-month low as equities rise on 'risk-on' sentiment

(Reuters) - Gold fell on Monday to its lowest in more than three months,
dragged below technical support as upbeat risk sentiment kept U.S. stock
indexes close to record levels, while investors awaited news on the
U.S.-China trade.

Spot gold fell 0.1% to $1,456.98 per ounce as of 1:46 p.m. EST (1846 GMT),
having touched its lowest since Aug. 5 earlier. U.S. gold futures settled
down 0.4% at 1,457.10.

U.S. stocks bounced off lows on Monday and hovered near record levels hit
the previous week.

But investors remained cautious about U.S.-China trade negotiations after
U.S. President Donald Trump said Beijing wanted a deal more than he did.

Trump also said that there had been incorrect reporting about Washington’s
willingness to lift tariffs. Wall Street’s bounce “took everything out of
gold that it had going today,” said Bob Haberkorn, senior market strategist
at RJO Futures.

Gold slumped 3.6% last week for its biggest weekly decline in three years on
upbeat equities and optimism surrounding the U.S.-China trade deal.

Among other precious metals, palladium dropped 3.2% to $1,686.93 per ounce,
having touched lowest since Oct. 10 earlier.

Platinum slipped 1%, to $877.43 per ounce, after touching its lowest since
Oct. 4, while silver rose 0.3% to $16.84 after slipping to its lowest since
mid-August earlier in the day. 

Copper slides as China data weighs on sentiment

(Reuters) - Copper prices slipped on Monday as weak data from top consumer
China reinforced poor demand and growth prospects, with the prolonged
U.S.-China trade dispute undermining economic activity globally.

Benchmark copper on the London Metal Exchange ended 0.8% lower at $5,878 a
tonne. Prices of the metal used by investors as a gauge of economic health
hit 15-month highs of $6,011 last week on hopes for an end to the trade war.

DATA: China’s producer price index, seen as a guide to corporate
profitability, fell 1.6% in October from a year earlier, marking the
steepest decline since July 2016, official data showed.

New bank loans in China fell more than expected to the lowest in 22 months
in October. Loans are used as a yardstick of activity among smaller and
private companies which generate a sizeable share of Chinese growth and
jobs.

Chinese industrial output and investment data for October are due Thursday.
Both are highly correlated with metals demand.

TRADE: Optimism about a trade deal faded after President Donald Trump said
he has not agreed to rollbacks of U.S. tariffs sought by China.

TECHNICALS: Support for copper stands at the 21-day moving average currently
at $5,861, followed by the 100-day moving average at $5,833.

NICKEL: Prices of the stainless steel ingredient fell to $15,500, the lowest
since August and a drop of more than 15% since early September. They ended
down 3.9% at $15,565.

Nervousness about supplies from top exporter Indonesia faded after the
government allowed nine companies to resume nickel ore exports following
reports of ore export rules violations and inspections.

However, historically low stocks of nickel - around 65,000 tonnes - in
LME-registered warehouses are a concern for users of the market MNISTX-TOTAL
looking for nearby delivery.

This is why the premium for the cash over the three-month contract hit $214
a tonne at the start of October. The premium is now a discount of $1, but
traders say more nickel needs to go on LME warrant for larger discounts
CMNI0-3.

ALUMINIUM: Focus is also on the $14 a tonne premium CMALZ19-3 for December
aluminium over the three-month contract, which has been ticking up for a few
days.

Traders say it is needed to attract the large amounts of metal that need to
be delivered to buyers.

PRICES: Three-month aluminium was down 1.6% to $1,779 a tonne, zinc rose
0.6% to $2,496.50, lead fell 0.8% to $2,090 and tin ceded 0.8% to $16,575.

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

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been compiled from sources believed to be reliable, but no representation or
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opinions expressed and recommendations made are subject to change without
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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
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