Bulls n Bears Daily Market Commentary : 25 November 2019

Tue Nov 26 00:46:05 CAT 2019

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Bulls n Bears Daily Market Commentary : 25 November 2019

Zimbabwe Stock Exchange Update

Market Turnover ZWL$2,659,956.27 with foreign buys at ZWL$614,286.50 and
foreign sales were ZWL$456,044.30 Total trades were 111

The All Share index opened the week on a lower note dropping 0.03 points  to
close at 241.41 points. DELTA futher retreated by $0.0320 to $3.8377,
TRUWORTHS   dropped $0.0054 to $0.0226 and BINDURA  was $0.0047 weaker at
$0.1637. CBZ HOLDINGS and OK ZIMBABWE  both lost $0.0025 to end at $0.6200
and $0.7875 respectively.

Trading in the positive:RIOZIM LIMITED  recovered $0.1425 to $2.7425, OLD
MUTUAL  rose by $0.1050 to $33.6050 and PPC LIMITED was $0.0753 stronger at
$4.5820. ECONET WIRELESS also gained $0.0137 to $1.6806 and SEEDCO LIMITED
was $0.0076 firmer at $1.7826.

  Global Currencies & Equity Markets

South Africa

South Africa's rand slips back into range as trade jitters resurface

(Reuters) - South Africa’s rand weakened on Monday, giving up small early
gains as uncertainty over a trade agreement between the United States and
China outweighed relief from S&P’s decision to only downgrade the outlook,
not the rating, on the country’s debt.

At 1545 GMT the rand was 0.17% weaker at 14.7640 per dollar, having hit a
session-best 14.6600 in the initial reaction to Friday’s late-night decision
by S&P Global Ratings to move the outlook to “negative” from “stable”.

S&P, which along with Fitch already ranks South Africa’s debt at junk, cited
flagging economic growth, mounting public debt and bailouts to state power
firm Eskom as the main risks.

The decision not to cut the ratings, along with South Africa’s
still-attractive yield after the central bank resisted calls to lower
interest rates on Thursday, shielded the rand from a knee-jerk selloff.

But lingering uncertainty, and investor nervousness, over the ongoing
Sino-U.S. trade dispute, kept the risk demand cool and big-money bets on the
sidelines, despite indications from a U.S. official that a trade deal by
year-end was still a possibility.

Bonds also weakened, with the yield on the benchmark 2026 paper up 5 basis
points to 8.47%.

On the bourse, stocks rose slightly along with emerging market bourses after
investors traded cautiously on optimistic trade talk news, but turned
slightly down after the International Monetary Fund warned that South Africa
faces risk of prolonged weak economic growth.

The benchmark JSE Top-40 Index was slightly down 0.15% to 50,409.21 points
while the broader All-Share Index nudged down 0.13% to 56,687.47 points.

Financials were the biggest losers on the blue-chip index with Discovery
down 4.27% and Nedbank down 4.15%.

Preventing further losses were oil companies Exxaro and BHP Billion rose by
1.97% and 1.93% respectively off the back of a firmer oil price. 

Kenya

Kenyan shilling weakens against the dollar amid end-month demand

(Reuters) - The Kenyan shilling weakened against the dollar on Monday due to
end month dollar demand from merchandise importers and the energy sector,
traders said. 

At 0930 GMT, commercial banks quoted the shilling at 101.70/90 per dollar,
compared with 101.55/75 at Friday's close.

       <mailto:info at bulls.co.zw> 

GLOBAL MARKETS

World share markets rally on revived trade hopes; dollar gains

(Reuters) - The dollar rose and global equity markets rallied on Monday,
with the Nasdaq and S&P 500 hitting new highs as investors grew more hopeful
the United States and China could soon sign an interim deal to end their
trade war.

Trade-sensitive miners in Europe and semiconductors on Wall Street climbing
on reports suggesting the world’s two largest economies were close to an
initial trade deal. A burst of M&A activity also lifted equities.

European shares posted their biggest daily gain in three weeks as France’s
LVMH agreed to buy luxury jeweler Tiffany & Co for $16.2 billion, and Swiss
drugmaker Novartis agreed to a $9.7 billion acquisition of The Medicines Co.

In the United States, Charles Schwab Corp agreed to buy TD Ameritrade
Holding Corp in an all-stock deal valued at $26 billion while EBay Inc will
sell ticketing unit StubHub to ticket reseller Viagogo Ltd for $4.05 billion
in cash.

Reports that an elusive “phase one” U.S.-Sino trade agreement was near drove
broad buying in stock markets.

Corporations have put a hold on capital expenditures on property, plant and
equipment as trade uncertainty has dragged on the industrial side of the
U.S. economy, Ghriskey said.

U.S. national security adviser Robert O’Brien said on Saturday that a trade
pact was still possible by year’s end, while Chinese state-backed tabloid
Global Times said Beijing and Washington were “very close” to a “phase one”
trade deal.

Adding to the positive mood was the weekend announcement that China would
seek to improve protections for intellectual property rights, a sticking
point in the talks.

MSCI’s gauge of stocks across the globe gained 0.70% and its emerging
markets index added 0.47%. The pan-European STOXX 600 index rose 1.0%.

Apple Inc, Microsoft Corp and Amazon.com , along with microchip stocks,
lifted U.S. stocks.

The Philadelphia Semiconductor index jumped 2.43% and was on pace for its
best day in just over three weeks.

The Dow Jones Industrial Average rose 190.85 points, or 0.68%, to 28,066.47.
The S&P 500 gained 23.35 points, or 0.75%, to 3,133.64 and the Nasdaq
Composite added 112.60 points, or 1.32%, to 8,632.49.

The benchmark S&P 500 has gained 25% so far this year, while the Nasdaq is
up 30%.

Overnight in Asia, MSCI’s broadest index of Asia-Pacific shares outside
Japan bounced 0.7% and Japan’s Nikkei firmed 0.7%.

Gold fell for a fourth straight session, sliding to a two-week low, as
investors’ appetite for riskier assets increased. Oil prices edged higher.

U.S. gold futures settled down 0.5% at $1,456.90 an ounce. Brent crude
futures gained 26 cents to settle at $63.63 a barrel and West Texas
Intermediate (WTI) crude rose 24 cents to settle at $58.01 a barrel.

Core euro zone bond yields rose slightly, as positive trade developments
trumped last week’s weak euro zone data.

The German benchmark 10-year bond yield rose two basis points in early
London trading before easing to trade almost flat on the day at -0.349%.

U.S. Treasury yields slid ahead of the Treasury Department’s scheduled sale
of $113 billion in coupon-bearing supply this week and on optimism about
trade.

Benchmark 10-year notes rose 4/32 in price to push their yield down to
1.7586%.

The dollar index rose 0.05%, with the euro down 0.11% to $1.1009. The
Japanese yen weakened 0.29% versus the greenback at 108.96 per dollar.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Trade war optimism and inventory plunge push copper higher

(Reuters) - Copper prices rose on Monday after positive comments from the
United States and China on the progress of trade talks and a sharp decline
in available stocks in London Metal Exchange (LME) warehouses.

Benchmark copper on the LME was up 0.7% at $5,895.50 a tonne at 1149 GMT
after touching $5,917, its highest since Nov. 12.

Prices of the metal used in power and construction are down about 20% from
last year’s high as the trade dispute drags on global economic growth and
metals demand.

She said that a sharp drop in treatment charges for smelters could curtail
Chinese copper output, adding that lacklustre demand is likely to hold
prices around current levels through next year.

TRADE WAR: A Chinese state-backed tabloid said that China and the United
States were “very close” to an initial trade agreement, adding to optimism
from Friday, when the presidents of both countries reiterated their desire
for a deal.

STOCKS: On-warrant copper inventories in LME-registered warehouses fell 22%
to 127,850 tonnes, the lowest since March 14. MCUSTX-TOTAL

POSITIONING: Speculators’ net short position in LME copper was equal to 1.5%
of open contracts as of last Thursday, broker Marex Spectron said. Short
positions on the U.S. COMEX exchange have also expanded.

MANUFACTURING: Germany’s Ifo institute said its headline business climate
index rose slightly but the country’s manufacturing sector remains in
recession.

U.S. manufacturing output, however, accelerated in November to its fastest
pace in seven months, data showed on Friday.

CHINA IMPORTS: China’s imports of refined copper and zinc rose in October,
while imports of scrap metal fell 43% from the previous month to 160,000
tonnes, data showed.

China’s October nickel ore imports from Indonesia jumped by more than 23%
from the previous month, lifted by Chinese buyers stocking up ahead of a ban
on exports from Indonesia from January.

NICKEL: The European Union launched a complaint at the World Trade
Organization on Friday against Indonesia’s curbs on exporting nickel and
other raw materials.

ALUMINIUM STOCKS: On-warrant aluminium inventories in LME warehouses rose by
50,850 tonnes to 1,051,725 tonnes, the most since Jan. 16.

GOLDMAN: Goldman Sachs said its top 2020 trade recommendation is its
commodities index, with the best returns likely to come from oil.

OTHER METALS: LME aluminium was down 0.1% at $1,737.50 a tonne, zinc lost
0.2% to $2,300, nickel fell 1.1% to $14,480, lead slipped 0.5% to $1,956 and
tin was up 0.1% at $16,360. 

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
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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
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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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