Bulls n Bears Daily Market Commentary : 15 November 2019

Mon Nov 18 02:23:34 CAT 2019

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 15 November 2019

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover ZWL$2,742,939.05 with foreign buys at ZWL$299,970.50 and
foreign sales were ZWL$100,759.07 Total trades were 148

The All Share index ended the week on a lower note dropping 0.87 points to
close at 246.43 points.OLD MUTUAL LIMITED  retreated by $0.2090 to $36.4130,
POWERSPEED  eased $0.0400 to end at $0.2800 and EDGARS  was $0.0350 lower at
$0.1550. BINDURA also dropped $0.0280 to $0.1400 and AXIA  traded $0.0180
weaker at $0.710.

Trading in the positive: ARISTON added $0.0280 to end at $0.2280. and
INNSCOR AFRICA and PROPLASTICS  both rose by $0.0030 to end at $3.7220 and
$0.8250 respectively. SEEDCO LIMITED  also increased by $0.0020 to $1.7420.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South African rand jumps to 1-week high as trade hopes boost risk buying

(Reuters) - South Africa’s rand powered to its firmest all week against the
dollar on Friday as risk appetite globally was lifted after a U.S. official
said a trade deal with China was getting close.

At 1645 GMT, the rand was 0.81% firmer at 14.6880 per dollar, its strongest
level in a week.

White House economic adviser Larry Kudlow said on Thursday that the world’s
two largest economies were nearing agreement, providing a fillip to investor
confidence.

Bonds also firmed, with the yield on the benchmark government bond due in
2026 down 5 basis points to 8.38%.

Stocks ended slightly lower in a slide led by rand hedges hurt by the
stronger currency.

The Top-40 share index fell 0.46% percent while the broader all-share edged
0.31% lower.

Shares of Shoprite barely budged after the grocery giant’s long-time
chairman Christo Wiese stepped down on Friday after nearly three decades at
the helm.

Mobile operator Telkom dipped 2.65% to 55.80 rand on the day following its
announcement that it was in talks about a potential takeover of Cell C, the
country’s third biggest mobile carrier.

Shares in Cell C’s majority shareholder Blue Label Telecoms also slipped
1.2% to 2.55 rand.

Cell C has been grappling with hefty debts while Telkom, the fourth biggest
carrier and 40% owned by the state, is also struggling with an increasingly
costly debt burden.

Uganda

Ugandan shilling a touch stronger on sagging appetite from banks, importers

(Reuters) - The Ugandan shilling was a touch stronger on Friday, helped by
muted demand for hard currency from both merchandise importers and players
in the interbank market.

At 0908 GMT commercial banks quoted the shilling at 3,685/3,695, compared to
Thursday’s close of 3,690/3,700.

       <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

 <mailto:info at bulls.co.zw> 

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.

(c) 2019 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

Invest Wisely!

Bulls n Bears

Telephone:    <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 719 441 674

Alt. Email:              <mailto:info at bulls.co.zw> info at bulls.co.zw 

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:                 @bullsbears2010

LinkedIn:              Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:                  Bulls.Bears 

Whatsapp Group:   <https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> Click
Here to Join

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191118/40680465/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191118/40680465/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 29436 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191118/40680465/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29460 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191118/40680465/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191118/40680465/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29478 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191118/40680465/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 3256 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191118/40680465/attachment-0011.jpg>