Bulls n Bears Daily Market Commentary : 12 November 2019

Wed Nov 13 00:39:41 CAT 2019

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Bulls n Bears Daily Market Commentary : 12 November 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$4,834,512.02 with foreign buys at ZWL$1,129,755.10 and
foreign sales were ZWL$183,200.00 Total trades were 201

The All Share index advanced by 0.61 points to close at 244.51 points.
MEIKLES  added $0.1000 to $2.000, INNSCOR AFRICA  rose by $0.0779 to end at
$3.4435 and TSL LIMITED  was $0.0500 higher at $0.8500. ECONET WIRELESS
also increased by $0.0269 to $1.7893 and AXIA  was $0.0247 to close at
$0.7022.

Gaines were offset by losses in OLD MUTUAL  which eased $0.5626 to close at
$36.2368, AFRICAN SUN  which lost $0.0763 to $0.4400 and ZIMRE HOLDINGS

  which was $0.0130 down at $0.0700. PADENGA HOLDINGS  was also $0.0104 down
at $2.9871 and WILLDALE traded $0.0100 lower at $0.0400.

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  Global Currencies & Equity Markets

South Africa

South African rand, stocks slip as investors await big Trump speech

(Reuters) - South Africa’s rand weakened in late trade on Tuesday in a
subdued session as investors avoided big bets ahead of local retail and
mining data later in the week, and a definitive sign from the trade talks
between China and the United States.

At 1530 GMT the rand was 0.22% weaker at 14.9250 per dollar, having closed
at 14.8850 overnight and kicking off the session on the front foot before
fading fast.

The currency’s late-session dip, driven mostly by a rebounding greenback,
left the local unit closer to the 15.00/$ psychological mark which has
recently opened the door to bigger losses.

U.S. President Donald Trump was due to give a speech in New York where he
may delay a tariff decision on European automakers by six months, according
to European Union officials, lifting the dollar on trader optimism.

Locally, no first tier data was released, but a $304 million weekly bond
auction by the government showed a slight increase in demand. Statistics
South Africa publishes retail figures on Wednesday and mining production
data on Thursday.

Government bonds were weaker, with the yield on the 2026 bond up 1.5 basis
points at 8.485%.

On the bourse, stocks rose with world shares as equity investors also
awaited Trump’s speech.

The benchmark JSE Top-40 Index was up 0.57% to 50,261.69 points while the
broader All-Share Index inched 0.49% to 56,450.75 points.

“I think what investors will be looking for is comments particularly with
regards to the rollback of tariffs with China and if he does we’re betting
for now there will be more information than what we’ve heard so far,” said
Musa Makoni, trader at GT247.

Platinum miners were the day’s biggest winners on the blue-chip index after
South Africa’s biggest mining union sealed wage agreements, concluding
negotiations that have been ongoing since June. Anglo American Platinum was
up 4.71% while Impala Platinum rose 4.52%%.

Telecommunications company Telkom also rose 6.68% to 65.94 rand after
announcing on Tuesday that it was in discussions over a potential
acquisition even as a spike in debt costs pushed half-year profits down more
than a third.

Kenya

Kenyan shilling steady, remittances to meet importer demand

(Reuters) - The Kenyan shilling was stable on Tuesday, with inflows from
diaspora remittances and offshore investors buying stocks expected to meet
dollar demand from importers, traders said. 

At 0842 GMT, commercial banks quoted the shilling at 102.35/55 per dollar,
the same as Monday's close. 

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GLOBAL MARKETS

Stocks, dollar rise as Trump says trade deal is near

(Reuters) - Global equity markets and the dollar rose on Tuesday as U.S.
President Donald Trump reiterated the United States is close to signing a
trade deal with China but offered no new details.

Stocks on Wall Street set fresh record highs before Trump’s highly
anticipated remarks to the Economic Club of New York, but slowly pared some
gains after the speech, which contained no major policy announcements.

Trump touted his administration’s economic record in a campaign-style speech
but did not announce a venue or date for signing a trade deal with Chinese
President Xi Jinping as market speculation had suggested he might.

Rising technology shares helped Wall Street hit record highs while European
shares rebounded toward four-year highs. MSCI’s gauge of worldwide equity
performance climbed to within 1% of a record peak set in January 2018.

Trade-sensitive chipmakers helped push Europe’s STOXX 600 up 0.38% as the
Philadelphia semiconductor index rose almost 1% but then pared gains to
close 0.28% higher.

Overnight in Asia, MSCI’s broadest measure of Asia-Pacific shares outside
Japan climbed 0.5% while Japan’s Nikkei ended 0.8% higher.

Greg Anderson, global head of foreign exchange strategy at BMO Capital
Markets, said Trump’s speech had no revelations.

Markets have been focused on a U.S.-China trade deal but improving economic
data lately has provided upside too, said Candice Bangsund, a global asset
allocation strategist at Fiera Capital in Montreal.

“There’s been so much pessimism on the state of the global economy that
earnings or fundamentals matter very little when it comes to equity gains
this year,” Bangsund said.

MSCI’s gauge of stocks across the globe gained 0.17%. In Europe, the
FTSEurofirst 3000 index of leading regional shares closed up 0.42%.

The Nasdaq set a new closing high while the benchmark S&P 500 and Dow Jones
industrials hit intraday records.

The Dow Jones Industrial Average closed unchanged at 27,691.49. The S&P 500
gained 4.83 points, or 0.16%, to 3,091.84 and the Nasdaq Composite added
21.81 points, or 0.26%, to 8,486.09.

Investors were anxious about Hong Kong after a violent escalation of
protests knocked 3% off the key Hang Seng index and nearly 2% off
Asia-exposed banks HSBC and StanChart in recent days.

Hong Kong’s embattled leader Carrie Lam said protesters who were trying to
“paralyze” the city were extremely selfish and that she hoped all
universities and schools would urge students not to participate in violence.

U.S. Treasury yields held below three-month highs after Trump’s speech.

A holiday in the United States had closed the Treasury market on Monday but
there was an early milestone on Tuesday as the gap between short-term
3-month and longer-term 10-year yields hit the widest level of the year so
far.

That steepening of the yield curve adds to signs that fears of recession
were receding.

Treasury yields on 10-year notes fell to 1.9173%. European yields were a
touch higher.

The dollar was little changed after Trump spoke, remaining mostly higher on
the day.

The dollar index rose 0.14%, with the euro down 0.23% to $1.1007. The
Japanese yen strengthened 0.07% versus the greenback at 109.00 per dollar.

Gold slipped to its lowest level in more than three months on increased
appetite for riskier assets.

U.S. gold futures settled down 0.2% at $1,453.70 per ounce.

Oil prices edged lower after paring gains of about 1%.

U.S. crude fell 6 cents to settle at $56.80 a barrel, while Brent crude
futures fell 12 cents to settle at $62.06.

 <mailto:info at bulls.co.zw> 

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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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
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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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