Bulls n Bears Daily Market Commentary : 22 November 2019

Mon Nov 25 00:49:43 CAT 2019

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Bulls n Bears Daily Market Commentary : 22 November 2019

Zimbabwe Stock Exchange Update

Market Turnover ZWL$2,840,209.47 with foreign buys at ZWL$272,200.75 and
foreign sales were ZWL$539,850.00 Total trades were 75

The All Share index closed the week on a higher note adding 0.84 points to
close at 241.44 points. OLD MUTUAL LIMITED   recovered $2.3446 to $33.5000,
AFDIS   rose by $0.4000 to $3.0000 and MEIKLES (MEIK.zw) was $0.0200
stronger at $2.1000. BINDURA   also gained $0.0084 to $0.1684 and ZPI   was
$0.0075 firmer at $0.0525.

Gains were partially offset by losses in DELTA   which eased $0.0601 to
$3.8697, AXIA   dropped $0.0261 to $0.7127 and ECONET   was $0.0196 waeker
at $1.6669. PADENGA   also decreased by $0.0088 to $2.9008 and OK ZIMBABWE
ended $0.0039 lower at $0.7900

  Global Currencies & Equity Markets

Uganda

Ugandan shilling trades flat as debt and charity flows lend support

(Reuters) - The Ugandan shilling traded flat on Friday, as hard currency
flows into this week’s Treasury auction and some charities offered support.

At 1000 GMT commercial banks quoted the shilling at 3,680/3,690, same level
as Thursday’s close.

South Africa

South African rand steady ahead of ratings decision, stocks up

(Reuters) - South Africa’s rand firmed a touch on Friday ahead of a decision
by S&P Global Ratings which could change the outlook on the country’s
sub-investment grade rating to negative.

At 1500 GMT the rand was at 14.6650 per dollar compared to an opening level
of 14.6900, having rallied below 14.70 in the previous session when the
central bank, citing growth risks, kept lending rates unchanged.

Africa’s most industrialised economy is ranked sub-investment grade by S&P
and Fitch, two of the three main ratings firms, and narrowly dodged a
downgrade to junk by Moody’s earlier this month when the firm opted to only
lower its outlook to negative.

S&P said last month at a conference in Johannesburg there was no immediate
pressure to change the country’s “BB” sovereign rating.

Bishop and other analysts believe S&P will wait until February’s budget
before changing the actual rating, with the rand gaining in the meantime
from relatively strong demand after Thursday’s central bank decision
supported the carry trade.

Stocks rose slightly alongside emerging market equities as the latest
comments from China about finding a resolution to its tariff dispute with
the United States lifted hopes that the two sides would reach a trade
agreement soon.

The benchmark JSE Top-40 Index was up 0.5% to 50,484.88 points while the
broader All-Share Index rose by 0.14% to 56,618.58 points.

Resources led the bourse higher, with energy companies Exxaro and BHP Group
up 2.74% and 2.24% respectively on stronger oil prices.

The yield on the benchmark government bond due in 2026 rose 5.5 basis points
to 8.385%. 

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GLOBAL MARKETS

Dollar, global shares gain on Xi, Trump remarks

(Reuters) - The dollar gained and global equity markets rose on Friday on
upbeat U.S. economic data while amicable messages from Chinese President Xi
Jinping and U.S. President Donald Trump helped defuse tensions over the
prolonged U.S.-Sino trade war.

Government bond yields mostly rose as U.S. manufacturing output accelerated
in November to its fastest pace in seven months and a survey of purchasing
managers showed services activity also picked up more than expected.

Equity markets warmed to China’s renewed offer to reach a trade agreement
with the United States. Xi said China wants to work out an initial pact and
avoid a trade war.

Trump reciprocated, saying a trade deal with China is “potentially very
close” and also that he stands with both the people of Hong Kong and Xi amid
massive protests in the former British colony.

MSCI’s gauge of stocks across the globe inched up 0.16%, with the
pan-European STOXX 600 index closing up 0.44%.

On Wall Street, the Dow Jones Industrial Average rose 109.33 points, or
0.39%, to 27,875.62. The S&P 500 gained 6.75 points, or 0.22%, to 3,110.29
and the Nasdaq Composite added 13.67 points, or 0.16%, to 8,519.89.

A 6.14% slump in shares of Tesla Inc weighed on Nasdaq as its electric
pickup truck design received an underwhelming response.

The dollar index, which compares the dollar against six major currencies,
was up 0.27% at 98.256.

The euro fell 0.32% against the greenback after a survey showed euro zone
business growth almost ground to a halt this month, with IHS Markit’s flash
November composite Purchasing Managers’ Index sliding closer to the 50 mark
separating growth from contraction.

IHS Markit’s final Purchasing Managers’ index readings also showed German
business conditions waned further.

After the upbeat U.S. data, most U.S. Treasury yields edged higher. The
benchmark 10-year U.S. Treasury note was little changed with its yield at
1.7706%.

Treasury yields had tracked the decline in Europe amid weak numbers in the
region and on nagging doubts about U.S.-China trade..

Tariffs can be delayed, Mendelsohn said, “but there’s so much pessimism
coming out of China at this point in time, it’s very hard to tell what’s
real and what’s really going on.”

Safe-haven German government bond yields had their biggest daily fall in
over a week and were last down 3.6 basis points at -0.364%.

Oil prices pulled back from two-month highs as doubts over the trade talks
overshadowed expectations of an extension to production cuts by the
Organization of the Petroleum Exporting Countries.

Brent crude futures settled down 58 cents to $63.39 a barrel and West Texas
Intermediate (WTI) crude futures fell 81 cents to settle at $57.77.

U.S. gold futures settled unchanged at $1,463.60 per ounce. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Asia Gold-Indian gold sellers opt for discounts; China, HK demand weak

(Reuters) - Gold demand remained subdued in China this week against a
backdrop of slowing economic growth, and in Hong Kong where protests
continued, while prices in India flipped into discount as demand eased.

In Hong Kong, gold premiums remained unchanged at 30 cents to 50 cents an
ounce range over benchmark prices, as people awaited district council
elections on Sunday after months of unrest by pro-democracy protesters,
which caused gold demand to weaken in the region.

A fresh dispute between China and the United States over Hong Kong this
week, as the U.S. Congress passed legislation to back protesters in Hong
Kong and threaten China with possible sanctions on human rights, further
raised fears that the 18-month long trade war could not be settled this
year.

Premiums dropped to $2-$3.50 an ounce in top consumer China, compared with
last week’s $4-$4.50 an ounce range.

Gold demand was lacklustre in India as well, with dealers offering a
discount of up to $3 an ounce over official domestic prices this week,
compared to a premium of $1.5 an ounce last week.

The domestic price includes a 12.5% import tax and 3% sales tax. Gold
futures were trading around 38,000 rupees ($530) per 10 grams on Friday.

India’s gold imports in October fell a third from a year earlier, dropping
for a fourth straight month.

Demand in Singapore, however, firmed this week, with premiums of 50-60 cents
being charged over global benchmark prices.

Global benchmark prices have retreated over 5% from a six-year high of
$1,557 an ounce hit in September, but are still on track for the biggest
yearly gain since 2010.

In Japan, premiums of 50 cents an ounce were charged, the same as last week.
($1 = 71.6820 Indian rupees)

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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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
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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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