Bulls n Bears Daily Market Commentary : 19 November 2019

Wed Nov 20 02:33:38 CAT 2019

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Bulls n Bears Daily Market Commentary : 19 November 2019

Zimbabwe Stock Exchange Update

Market Turnover ZWL$7,328,118.09 with foreign buys at ZWL$1,095,993.68 and
foreign sales were ZWL$187,393.23 Total trades were 195

The All Share index eased 1.18 points to close at 244.85 points. DAIRIBORD
retreated by $0.1200 to $0.4800, FIRST MUTUAL LIMITED dropped by $0.0395 to
end at $0.2605 and ECONET  was $0.0339 weaker at $1.7539. OLD MUTUAL LIMITED
also went down by $0.0141 to settle at $33.9859 and CASSAVA SMARTECH  traded
$0.0125 lower at $1.4554.

Losses were offset by gains in RIOZIM  which added $0.0950 to $2.6000,
INNSCOR  was $0.0136 stronger at $3.7902 and FIRST MUTUAL PROPERTIES  traded
$0.0095 firmer at $0.1405. SIMBISA  also increased by $0.0049 to settle at
$1.3774 and PADENGA  rose by $0.0045 to $2.9893.

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  Global Currencies & Equity Markets

Uganda

Ugandan shilling holds steady against the dollar

(Reuters) - The Ugandan shilling        was stable on Monday amid lacklustre
appetite for hard currency from both commercial banks and  major importers
like manufacturers and energy firms. 

At 0921 GMT, commercial banks quoted the shilling at 3,685/3,695, unchanged
from Friday's closing level. 

South Africa

South Africa's rand firms as dollar stalls on trade deal impasse

(Reuters) - South Africa’s rand inched firmer early on Tuesday, mostly
remaining within a recent range as currency markets globally drifted in low
volume trade with investors still eyeing a breakthrough in U.S.-China trade
talks.

At 0700 GMT, the rand was 0.16% firmer at 14.7900 per dollar compared to an
overnight close of 14.8140.

The probability of a deal between Washington and Beijing receded after a
report on Monday that Chinese officials were feeling pessimistic about the
negotiations, suggesting a resolution to perhaps the biggest risk to the
global economy remains elusive.

The dollar subsequently took a knock, allowing emerging market currencies
such as the rand to squeak in gains, although on a weekly basis the currency
remains around the same levels, indicating mostly subdued activity in recent
sessions.

The currency hardly reacted to the appointment of a new chief executive at
ailing local power utility Eskom late on Monday.

Andre de Ruyter, former Nampak and Sasol CEO, begins the mammoth task of
restructuring the heavily indebted utility whose power plants are struggling
to keep the nation’s lights on in Jan. 2020.

Initial response to his appointment was lukewarm, with some analysts
questioning his lack of experience in the engineering and energy sectors.

Bonds started on the backfoot ahead of a 1.51 billion rand auction of
long-term government issues. The yield on the 2026 debt was up 2 basis
points to 8.42%.

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GLOBAL MARKETS

Shares, dollar dip as limp results, impeachment inquiry offset trade hopes

(Reuters) - Shares in Europe dipped, Wall Street backed off record highs and
the U.S. dollar was poised to extend a three-day losing streak as
underwhelming earnings and uncertainty over an ongoing U.S. impeachment
inquiry overshadowed hopes for a U.S.-China trade deal.

The U.S. benchmark S&P 500 index was nominally lower and Home Depot Inc
pulled the blue-chip Dow Jones Industrial index firmly into the red after
the home improvement retailer cut its 2019 sales forecast.

Talks continued between the world’s two largest economies on an interim deal
toward resolving their 18-month, market-rattling trade dispute that has
damaged supply chains and upset global markets, even as Washington is set to
impose a new round of tariffs on Chinese goods on Dec. 15.

But as the impeachment hearings in the U.S. House of Representatives gained
momentum, the end game of the U.S.-China trade war grew increasingly foggy.
The inquiry focuses on a July 25 phone call in which President Donald Trump
asked Ukrainian President Volodymyr Zelenskiy to carry out two
investigations that would benefit him politically.

The Dow Jones Industrial Average fell 79.52 points, or 0.28%, to 27,956.7,
the S&P 500 lost 2.73 points, or 0.09%, to 3,119.3 and the Nasdaq Composite
added 12.52 points, or 0.15%, to 8,562.46.

Hopes of a trade truce earlier in the day drove European stocks to a
four-year high and world stocks to their highest in nearly two years, but
those gains were pared later in the session.

The pan-European STOXX 600 index lost 0.06% and MSCI’s gauge of stocks
across the globe gained 0.01%.

Emerging market stocks rose 0.42%. MSCI’s broadest index of Asia-Pacific
shares outside Japan closed 0.64% higher, while Japan’s Nikkei lost 0.53%.

Long-dated U.S. Treasury yields slipped for the seventh straight day as risk
appetite weakened.

Benchmark 10-year notes last rose 4/32 in price to yield 1.7946%, from
1.808% late on Monday.

The 30-year bond last rose 16/32 in price to yield 2.2704%, from 2.293% late
on Monday.

The dollar was nominally lower against a basket of major world currencies,
giving up early gains. The dollar index , tracking it against six major
peers, fell 0.02%, with the euro up 0.11% to $1.1082.

The Japanese yen strengthened 0.12% versus the greenback at 108.56 per
dollar, while Sterling was last trading at $1.2938, down 0.11% on the day.

The protracted trade negotiations continue to weigh on crude prices, with
Brent crude oil futures dipping below $62 per barrel.

U.S. crude fell 1.93% to $55.95 per barrel and Brent was last at $61.51,
down 1.49% on the day.

Spot gold rose 0.08% to $1,470.56 an ounce.

Copper rose 0.53% to $5,861.00 a tonne.

Three-month aluminum on the London Metal Exchange lost 0.46% to $1,730.00 a
tonne.

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Commodities Markets

Oversupply angst drags oil lower, stocks drift near highs

(Reuters) - Oil prices fell sharply on Tuesday on oversupply concerns, while
a gauge of stocks across the globe rose for a seventh straight session after
large overnight gains in Asia.

The U.S. benchmark S&P 500 index was little changed, the blue-chip Dow Jones
Industrial Average fell and the Nasdaq rose, all having hit record intraday
highs earlier in the session.

Traders cited the lingering uncertainty over whether the United States and
China could agree to end a near 1-1/2 year trade war as a reason for stocks
to drift and bond prices to go higher.

U.S. President Donald Trump said he would raise tariffs on Chinese imports
if no deal is reached with Beijing to end the trade war. The next round of
tariffs is due to start in mid-December.

Oil fell after sources told Reuters that Russia is unlikely to agree to cut
its oil output further at a meeting with fellow exporters next month.

Separately, Norway’s October oil production beat forecasts and the potential
oversupply, combined with some worries over global demand next year, sent
prices lower.

U.S. crude fell 3.38% to $55.12 per barrel and Brent was last at $60.73,
down 2.74% on the day.

On Wall Street, the Dow Jones Industrial Average fell 102.2 points, or
0.36%, to 27,934.02, the S&P 500 lost 1.85 points, or 0.06%, to 3,120.18 and
the Nasdaq Composite added 20.72 points, or 0.24%, to 8,570.66.

Hopes of a trade truce earlier in the day drove European stocks to a
four-year high and a measure of world stock markets to their highest in
nearly two years, but those gains were pared later in the session.

The pan-European STOXX 600 index lost 0.12% while MSCI’s gauge of stocks
across the globe gained 0.02% eking out its seventh straight session of
gains.

Emerging market stocks rose 0.48%. MSCI’s broadest index of Asia-Pacific
shares outside Japan closed 0.68% higher, while Japan’s Nikkei futures lost
0.66%.

Long-dated U.S. Treasury yields slipped as risk appetite weakened.

Benchmark 10-year notes last rose 7/32 in price to yield 1.786%, down from
1.808% late on Monday.

The 30-year bond last rose 29/32 in price to yield 2.252%, from 2.293% late
on Monday.

The dollar was little changed against a basket of six major currencies. The
dollar index rose 0.05%, with the euro up 0.05% to $1.1075.

While the dollar was supported by recent U.S. economic data meeting lowered
expectations, the greenback may be in for some weakness, said Juan Perez,
senior foreign exchange trader and strategist at Tempus Inc.

The Japanese yen strengthened 0.13% versus the greenback at 108.55 per
dollar, while Sterling was last trading at $1.2925, down 0.21% on the day.

Spot gold added 0.1% to $1,472.19 an ounce.

Copper rose 0.86% to $5,880.00 a tonne.

Three-month aluminum on the London Metal Exchange lost 0.06% to $1,737.00 a
tonne.

Copper rises on U.S.-China trade talks, but gains limited

(Reuters) - Copper rose on Tuesday on hopes that the United States and China
could reach a trade deal, but gains were capped by concerns that a full
agreement was some way off.

Three-month copper on the London Metal Exchange (LME) ended 0.8% higher at
$5,875 a tonne. The metal, used in power and construction, is down about 2%
so far this year on worries the trade war could cut global growth and hurt
demand.

Copper prices will likely remain under pressure for the rest of the year,
albeit with some short-lived gains, as there are several major issues yet to
be resolved in trade negotiations, said Commerzbank analyst Daniel
Briesemann.

POSITIONING: Speculative positioning in LME copper remained largely neutral
at last Thursday’s close, at 1.1% of open interest, falling from 12.7% on
Oct. 7, estimates by broker Marex Spectron showed.

TECHNICALS: LME copper should remain below the 200-day moving average at
$6,021.26 a tonne and the early July high at $6,075 over the next week or
so, Commerzbank technical analyst Axel Rudolph said in a note.

CHINA STIMULUS: China will step up credit support to the economy and push
real lending rates lower, central bank governor Yi Gang said on Tuesday, in
an effort to prop up growth hit by a bruising trade war with the United
States.

China accounts for nearly half of global copper consumption, estimated at
around 24 million tonnes this year.

COPPER: Freeport McMoRan Inc expects treatment and refining charges for
copper concentrates in 2020 to be “well below” last year’s levels as Chinese
smelting capacity is expected to rise, a senior company executive said.

INDONESIA: Environmental impact studies for factories in Indonesia to
produce battery-grade nickel chemicals could be completed by the end of the
year, said Indonesia’s coordinating minister who oversees mining.

The studies need to be completed and approved before investors can proceed
with construction.

ZINC AND LEAD: During the first nine months of the year, the global zinc
deficit narrowed to 156,000 tonnes compared to 272,000 tonnes in the same
period of last year.

The lead shortage widened to 83,000 tonnes in the year to end September from
34,000 tonnes last year.

ZINC SPREADS: The premium of cash zinc over the three-month contract CMZN0-3
fell to around $20 a tonne, its lowest in over a month and down from $62
touched earlier this month, as supply concerns eased.

Headline stocks in LME-approved warehouses moved further away from record
lows, rising 8% to 56,275 tonnes. MZNSTX-TOTAL

PRICES: Aluminium fell 0.4% to $1,731 a tonne, zinc was unchanged at $2,343,
lead gained 2% to $1,993, tin fell 0.5% to $15,975, and nickel ended down 1%
to $14,690 after touching its lowest since Aug. 5.

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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