Bulls n Bears Daily Market Commentary : 21 November 2019

Fri Nov 22 02:07:10 CAT 2019

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Bulls n Bears Daily Market Commentary : 21 November 2019

Zimbabwe Stock Exchange Update

Activity aggregates surge as benchmarks falter

Activity aggregates improved in Thursday’s session as volumes exchanged
ballooned 269.20% to see circa 10.06m shares traded, yielding a turnover of
$6.81m which was a 53.81% surge from prior session. Top volume drivers of
the day were Medtech, OKZim and Mash with respective contributions of
42.88%, 12.26% and 11.21%. 

Anchoring the value outturn was Delta (15.73%), OKZim (14.41%), Simbisa
(13.10%), Cassava (12.65%) and Old Mutual (11.37%). Gainers outnumbered
fallers by a count of two, establishing a positive market breadth for the
day. The top gainer was hotelier RTG that garnered 20% to settle at $0.1380,
trailed by Afdis which extended 18.18% to $2.6000. Axia advanced 4.42% to
$0.7388 while, property concern ZPI added 2.27% to $0.0450. 

SeedCo completed the top five gainers of the day on a 1.28% lift to $1.7750.
The Mining Index gained 0.43% to 334.94pts buoyed by Bindura that rebounded
1.14% to close at $0.1600. Leading the fallers’ pack was regional cement
producer PPC that succumbed 14.77% to $4.5000, followed by multi-listed
group Old Mutual that retreated 8.24% to $31.1554. Insurer FML trimmed 7.87%
and closed at $0.2400 while, OKZim slipped 7.81% to $0.7989. 

The cigarrete manufacturer BAT tripped 1.96% to end pegged at a vwap of
$49.0219. The primary All Share Index lost 0.96% to close at 240.60pts
while, the Industrials let go 0.98% to 801.08pts. The ZSE Top Ten Index came
off 1.82% to end at 217.49pts.-EFE Securities

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  Global Currencies & Equity Markets

Kenyan and Tanzanian currencies seen firm, Uganda's stable and Zambia's weak

(Reuters) - Kenyan and Tanzanian currencies are expected to strengthen in
the coming week as Uganda’s remains stable and Zambia’s weakens.

KENYA

The Kenyan shilling is seen stronger in the coming week due to dollar
inflows from diaspora remittances, horticulture exports and offshore
investors buying government debt exceeding end month dollar demand from
importers, traders said.

Commercial banks quoted the shilling at 101.25/45 per dollar on Thursday,
compared with 102.00/20 at last Thursday’s close.

UGANDA

The Ugandan shilling is seen trading in a stable range in coming days on the
back of a tapering of hard currency demand by merchandise importers.

At 0938 GMT commercial banks quoted the shilling at 3,682/3,692, compared to
last Thursday’s close of 3,685/3,695.

Most importers, he said, had already purchased the hard currency they needed
to ship in goods for December holiday shoppers.

Possible inflows into a Treasury debt auction next week from offshore
investors will also give additional support to the local currency, he added.

The shilling will likely oscillate in the 3,680-3,700 range, he said.

TANZANIA

The Tanzanian shilling is expected to appreciate next week due to dollar
inflows from cashew nut exports and corporates meeting their end-month
obligations.

Commercial banks quoted the shilling at 2,298/2,308 on Thursday, up from an
average of 2,301/2,311 a week earlier.

ZAMBIA

The kwacha is likely to remain under pressure versus the U.S. dollar next
week due to rising demand for hard currency to meet energy and agricultural
sector imports.

On Thursday, commercial banks quoted the currency of Africa’s second-largest
copper producer at 14.1600 per dollar from a close of 14.0650 a week ago.

Bank of Zambia governor Denny Kalyalya said on Wednesday the kwacha was
under pressure due to higher demand for petroleum, electricity and
fertiliser imports.

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Stocks slip, dollar rebounds on trade hopes stir sentiment

(Reuters) - The dollar rebounded and global equity markets edged lower on
Thursday as efforts by China to smooth the path forward in U.S.-Sino trade
talks helped sooth investor sentiment, though fears remained that a phase
one deal might not occur until next year.

Oil prices rose to a two-month high after Reuters reported the Organization
of the Petroleum Exporting Countries and its allies are likely to extend
existing output cuts until mid-2020.

Yields on government debt rose, snapping three sessions of declines,
bolstered by China saying it was willing to work with the United States to
resolve core trade concerns, which rekindled some hope for a bilateral deal.

A Wall Street Journal report that said China had invited top U.S. trade
negotiators for a new round of face-to-face talks in Beijing also lifted
sentiment.

Germany’s trade-sensitive DAX index pared most losses to close 0.16% lower,
while the Dow Industrials and S&P 500 index also pared early losses to
briefly trade above break-even, before closing lower.

MSCI’s gauge of stocks across the globe shed 0.3%, while the pan-European
STOXX 600 index lost 0.40%.

On Wall Street, the Dow Jones Industrial Average fell 54.8 points, or 0.2%,
to 27,766.29. The S&P 500 lost 4.92 points, or 0.16%, to 3,103.54 and the
Nasdaq Composite dropped 20.52 points, or 0.24%, to 8,506.21.

The latest news on the trade deal came after headlines earlier this week
suggested ongoing talks were unraveling.

Reuters reported on Wednesday that negotiations to finalize a deal may
extend into next year as Beijing presses for more extensive tariff rollbacks
and the Trump administration counters with heightened demands of its own.

The yield of benchmark German and U.S. bonds ended a three-day streak of
declines to edge higher.

German 10-year bond yields, considered a euro zone benchmark, rose more than
2 basis points to -0.325%.

The benchmark 10-year U.S. Treasury note fell 9/32 in price to push yields
up to 1.7688%.

The dollar firmed late in the session.

The dollar index rose 0.04%, with the euro down 0.12% to $1.1059. The
Japanese yen strengthened 0.02% versus the greenback at 108.60 per dollar.

Brent crude settled up $1.57 at $63.97 a barrel, while West Texas
Intermediate (WTI) crude gained $1.57 to settle at $58.58 a barrel.

Both benchmarks had fallen earlier in the session.

Gold prices eased. U.S. gold futures fell 0.7% to settle at $1,463.60 per
ounce.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper slips as U.S. support for Hong Kong protesters fans trade fears

(Reuters) - Copper prices fell on Thursday after U.S. legislation supporting
protesters in Hong Kong increased concerns that a U.S.-China trade deal
would be

delayed.  

Benchmark copper         on the London Metal Exchange (LME) ended 0.8% down
at $5,829 a tonne. 

The metal used in power and construction has fallen about 20% from 2018
highs as the U.S.-China trade dispute has weakened global economic growth
and metals demand. It touched a two-year low of $5,518 in September. 

The copper market is in deficit this year and may be again in 2020, said
WisdonTree analyst Nitesh Shah. "But that's getting overshadowed by concerns
on the demand side," he added. 

Prices will remain volatile until Washington and Beijing give investors some
clarity on their future trading relationship, Shah said.    

TRADE WAR: Completion of a "phase one" U.S.-China trade deal could slide
into next year, trade experts and people close to the White House said,
though China said it would strive to reach an agreement and the Wall Street
Journal reported that Beijing had invited top U.S. trade negotiators for a
new round of face-to-face talks.                                       

Possibly complicating the negotiations, the U.S. House of Representatives on
Wednesday passed two bills to back protesters in Hong Kong and send a
warning to China about human rights.

GLOBAL GROWTH: The global economy is growing at the slowest pace since the
financial crisis, the OECD said on Thursday.

TREATMENT CHARGES: Miner Freeport-McMoRan Inc         and three Chinese
copper smelters agreed a 23% cut in annual treatment and refining charges
(TC/RCs) for 2020, pushing the industry benchmark to a nine-year low.

The fall reflects tight copper concentrate supply and increasing Chinese
processing capacity. 

FUNDAMENTALS: The global refined copper market was in a 330,000-tonne
deficit for January-August, against a 268,000 tonne shortfall in the same
period last year, the International Copper Study Group (ICSG) said.

ALUMINIUM SPREAD: The premium for cash aluminium over the three-month
contract rose to $13,50, its highest since the start of the year, suggesting
lower availability of nearby metal.

MAL0-3

NICKEL: The global nickel market was in a deficit of 50,800 tonnes in the
first nine months of the year after a 122,800-tonne shortfall in the same
period of 2018, the International Nickel Study Group (INSG) said on
Thursday.

OTHER METALS: LME aluminium         finished 0.4% down at $1,734 a tonne,
zinc         fell 0.9% to $2,293 and lead         slipped 1.5% to $1,958.
Tin         rose 2.5% to $16,425 and nickel         closed 0.9% up at
$14,485. 

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
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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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