Bulls n Bears Daily Market Commentary : 14 November 2019

Fri Nov 15 01:42:34 CAT 2019

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Bulls n Bears Daily Market Commentary : 14 November 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$2,167,728.10 with foreign buys at ZWL$36,283.38 and
foreign sales were ZWL$464,022.00 Total trades were 130

The All Share index further advanced by 0.56 points  to close at 247.30
points. OLD MUTUAL LIMITED  added a further $0.1269 to end at $36.6216, OK
ZIMBABWE

  rose by $0.0734 to $0.8600 and INNSCOR AFRICA  was $0.0694 higher to close
at $3.7194. AFRICAN SUN  also increased by $0.0652 to $0.5052 and PADENGA
HOLDINGS   was $1.1868 higher at $0.0352.

Gains were offset by losses in DAIRIBOARD LIMITED   which eased $0.0981 to
$0.6000, CASSAVA SMARTECH   dropped $0.0641 to end at $1.4800 and PPC   was
$0.0600 lower at $5.2900. UNIFREIGHT   also retreated by $0.0200 to $0.0900
and ART CORPORATION   traded $0.0140 weaker at $0.0720. 

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  Global Currencies & Equity Markets

South Africa

South Africa's rand firms despite risk-off mood, equities fall

(Reuters) - South Africa’s rand firmed on Thursday, bucking a risk-off trend
in global markets, but equities were pulled lower on weak Chinese data and
doubts about whether Beijing and Washington will reach a trade deal anytime
soon.

At 1525 GMT, the rand was 0.85% firmer at 14.7860 per dollar.

Global risk sentiment cooled after industrial production growth in China
slowed more sharply than expected in October, while retail sales fell short
of prediction and investment growth hit a record low.

Doubts about whether the United States and China will be able to reach a
preliminary trade deal once again resurfaced after the Wall Street Journal
reported Beijing rebuffed a farm purchase deal that looked one-sided in
favour of the United States.

The Top-40 share index fell 0.21% percent while the broader all-share edged
0.27% lower.

Among the biggest decliners on the blue-chip index were Anglo American
Platinum (Amplats), which fell 2%, and telecoms major MTN Group Ltd, which
dropped 1.85%.

The yield on the benchmark 2026 government bond was down 2.7 basis points at
8.43%.

Egypt

Egypt issues dollar-denominated eurobonds worth $2 billion

(Reuters) - Egypt has issued dollar-denominated eurobonds worth $2 billion
in three tranches to cover part of its $5 billion 2019-2020 budget, the
finance ministry said in a statement on Thursday.

The issuance included $500 million of four-year bonds with a 4.55% yield, $1
billion of 12-year bonds with a 7.05% yield, and $500 million of 40-year
bonds with a 8.15% yield, it said.

Subscription orders exceeded $14.5 billion within few hours of the issuance
announcement, which helped lower the yields by 45 basis points compared with
the initial price guidance, the ministry said.

It described the 40-year bond as “the longest international bond in the
Middle East and North Africa”.

Egypt has a difficult foreign-debt repayment schedule for the next two years
and is trying to expand its investor base, extend its maturity and borrow at
lower interest rates.

The country’s foreign debt stood at $108.7 billion at the end of June, up
17.3% year-on-year.

       <mailto:info at bulls.co.zw> 

GLOBAL MARKETS

Stocks, yields slip as investor sentiment wavers

(Reuters) - World stocks edged lower and debt yields fell on Thursday as
Chinese economic data slowed in October and Germany narrowly avoided a
recession in the third quarter, adding to concerns about the U.S.-China
trade war’s impact on global growth.

MSCI’S All-Country World index, which tracks the performance of equity
markets in 47 countries, slid 0.11% while gold prices rose, moving further
away from a three-month low hit on Tuesday.

The dollar fell against the Japanese yen and traded near break-even to
slightly lower against the euro on diminished risk appetite due to the
difficult nature of the U.S.-China trade talks amid ongoing political
turmoil in Hong Kong.

The driver of investor sentiment is the status of a “phase one” trade
agreement, which had appeared to be in the cards but not any more, said
Kristina Hooper, chief global market strategist at Invesco.

China wants tariffs imposed by U.S. President Donald Trump to be removed but
has not made the agricultural purchases the United States wants because
swine flu has decimated its pork industry and eliminated the need for U.S.
soybeans.

Wall Street closed little changed, with the benchmark S&P 500 setting a new
record closing high.

The Dow Jones Industrial Average fell 1.63 points, or 0.01%, to 27,781.96,
the S&P 500 gained 2.59 points, or 0.08%, to 3,096.63 and the Nasdaq
Composite dropped 3.08 points, or 0.04%, to 8,479.02.

European shares fell after data showed the German economy grew just 0.1% in
the third quarter. Though Germans avoided slipping into a mild contraction
thanks to consumer spending, economic growth remained weak nevertheless.

The pan-European STOXX 600 index closed down 0.36%, while Germany’s DAX fell
0.38%, also pulled lower by a 4.5% drop in Daimler shares. The carmaker said
tougher emissions rules would hit earnings in 2020 and 2021.

Ten-year bond yields across the euro area fell around 2 basis points each.
Germany, French and Dutch yields reached one-week lows,.

France’s 10-year bond yield slipped back into negative territory a week
after it turned positive for the first time since July. Germany’s Bund yield
fell to a low of -0.353% , down from last week’s three-and-a-half-month low
around -0.22%.

In Asia, stocks fell after soft economic data in China and Japan showed the
trade war between Beijing and Washington was hitting growth in some of the
world’s biggest economies.

China’s factory output growth slowed significantly more than expected in
October, as weakness in global and domestic demand and the drawn-out
Sino-U.S. trade war weighed on broad segments of the world’s second-largest
economy.

Chinese industrial production growth slowed sharply in October, with the
4.7% year-on-year rise well below forecasts for 5.4%. Investment growth hit
a record low and retail sales also missed expectations.

Worries about spiraling violence as anti-government protests intensify in
Hong Kong have also soured investor sentiment.

Protesters paralyzed parts of Hong Kong for a fourth day, forcing school
closures and blocking highways and other transport links in a marked
escalation of unrest in the financial hub.

Hong Kong’s Hang Seng fell 0.8% to a fresh one-month low.

In currency markets, safe havens such as the Japanese yen and Swiss franc
gained.

The dollar index fell 0.2%, with the euro up 0.13% to $1.102. The yen
strengthened 0.36% versus the greenback at 108.45 per dollar.

The Swiss franc traded at 0.9880 versus the greenback, also near its highest
in more than a week.

The uncertainty over the U.S.-China trade deal also pushed gold higher by
denting demand for riskier assets.

U.S. gold futures settled up 0.7% at $1,473.40 per ounce.

Oil slid as a build in U.S. crude inventories weighed on prices, while
comments from the Organization of the Petroleum Exporting Countries about
lower-than-expected U.S. shale production in 2020 limited declines.

Brent crude futures settle dlonw 9 cents to $63.40 a barrel, while U.S. West
Texas Intermediate (WTI) crude fell 35 cents to settle at $56.77 per barrel.

The yield on benchmark 10-year Treasury notes fell 14/32 in price to push
yields down to 1.8204%.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper slides to two-week low as China data hits sentiment

(Reuters) - Copper prices fell to two-week lows on Thursday as weak
manufacturing and investment data from China fuelled concerns about demand
in the top consumer and expectations of lower interest rates in the United
States receded.

Benchmark copper on the London Metal Exchange ended down 0.4% at $5,812 a
tonne having touched a session low of $5,807. Prices of the metal used
widely in the power and construction industries have dropped more than 10%
since the 2019 peak above $6,600 hit in April.

This would support the U.S. currency, which when it rises makes
dollar-denominated commodities more expensive for holders of other
currencies, subduing demand.

This relationship is used by funds that trade using buy and sell signals
generated by numerical models.

PPI: U.S. producer prices increased by the most in six months in October,
lifted by gains in the costs of goods and services, bolstering the Fed’s
stance that it will probably not cut rates again in the near term.

RATES: Among other things, Powell said the October employment report was
“very solid”, the probability of recession was not elevated and that the
U.S. consumer sector was very strong.

DATA: China’s industrial output grew significantly slower than expected in
October, as weakness in global and domestic demand and the drawn-out
U.S.-China trade war weighed on activity.

Thursday’s data also showed fixed asset investment, a key driver of economic
growth, grew 5.2% from January-October, the lowest since Reuters’ records
began in 1996. The consensus was for growth of 5.4%.

TRADE: China and the United States are holding “in-depth” discussions on a
first phase trade agreement, and cancelling tariffs is an important
condition to reaching a deal, the Chinese commerce ministry said.

STIMULUS: China has been relying on a combination of fiscal stimulus and
monetary easing to weather the current slowdown, but room for aggressive
policy action has been limited by worries over debt and housing risks.

PRICES: Aluminium closed down 1.3% at $1,742, zinc slipped 1.1% to $2,396,
lead fell 0.9% to $2,017, tin rose 1.2% to $16,200 and nickel ceded 1.7% to
$15,120.

ZINC: Prices of the metal used to galvanise steel earlier touched $2,387.5 a
tonne, the lowest since Oct. 18, on concerns about demand from steel
producers in China, hidden stocks and expectations of rising output. 

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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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
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