Bulls n Bears Daily Market Commentary : 26 November 2019

Tue Nov 26 18:54:48 CAT 2019

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Bulls n Bears Daily Market Commentary : 26 November 2019

Zimbabwe Stock Exchange Update

Market Turnover ZWL$3,956,824.98 with foreign buys at ZWL$411,548.90 and
foreign sales were ZWL$454,444.33 Total trades were 123

The All Share index eased 2.27 points to close at 239.14 points. SIMBISA
dropped $0.1525 to $1.2200, DELTA lost $0.1178 to end at $3.7199 and INNSCOR
traded $0.0297 lower at $3.7678. ECONET  also decreased by $0.0290 to close
at $1.6516 and ARISTON  was $0.0198 weaker at $0.2088.

Losses were offset by gains in BRITISH AMERICAN TOBACCO  which added $0.9781
to $50.0000, PPC  rose by $0.4211 to close at $5.0031 and OLD MUTUAL LIMTED
went further up by $0.2865 to $33.8915. ZIMRE  also increased by $0.0150 to
$0.1150 and ZPI  was $0.0105 firmer at $0.0630.

  Global Currencies & Equity Markets

South Africa

South African rand steady, focus on U.S.-China talks

(Reuters) - South Africa’s rand steadied in afternoon trade on Tuesday,
while stocks fell, as traders awaited further developments in trade
negotiations between the United States and China.

As of 1530 GMT, the rand was largely unchanged at 14.7990 per dollar.

The outcome of U.S.-China trade talks remained the key driver, with Beijing
saying negotiators from both sides held a phone call trying to hammer out a
preliminary “phase one” deal.

The International Monetary Fund warned on Monday that South Africa faced a
prolonged period of weak growth if the government did not implement promised
reforms quickly, especially a turnaround of cash-strapped power utility
Eskom.

On the bourse, the banking sector led the market lower.

The benchmark JSE Top-40 Index fell 1.3% to 49,818.42 points while the
broader All-Share Index was down 1.19% to 56,074.74 points.

The banking index tumbled 2.77%. Leading decliners were Firstrand, down
3.38% to 62.25 rand, and Discovery , off 3.22% to 119.02 rand.

In fixed income, the yield on the benchmark paper due in 2026 added 1 basis
point to 8.475%. 

Kenya

Kenyan shilling weakens on end month demand

(Reuters) - The Kenyan shilling weakened on Tuesday due to uptick in end
month dollar demand from the energy and manufacturing sectors, traders said.

At 1050 GMT, commercial banks quoted the shilling at 102.35/55 per dollar,
compared with 102.00/20 at Monday's close.

       <mailto:info at bulls.co.zw> 

Asia

Asian stocks cheered by fresh trade talk momentum

(Reuters) - Asian stocks rose on Tuesday, bolstered by Wall Street’s record
closing highs and signs of new momentum in Beijing’s and Washington’s
efforts to end their long and acrimonious trade dispute.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5% to a
one-week high. Australian shares were up 0.9%, while Japan’s Nikkei stock
index rose 0.91%.

Shares in the region extended gains on Tuesday after Beijing said Liu He,
China’s Vice premier and chief trade negotiator, held a call with his U.S.
counterparts and that both sides reached consensus on solving relevant
problems.

That followed positive headlines out of China and the United States on
Monday, which had helped bolster confidence.

The yen fell to a two-week low versus the dollar, while the Swiss franc
traded near a six-week low against the greenback as the optimistic tone
sapped demand for safe-haven currencies.

Oil prices erased early losses to edge higher amid cautious optimism about
progress toward relieving one of the biggest risks to the global economic
outlook.

U.S. stock futures rose 0.21% in Asia on Tuesday.

Wall Street’s three main stock averages closed at record highs on Monday,
buoyed by hopes for a trade deal and by M&A activity.

Traders pointed to China’s decision to increase punishments for intellectual
property rights violations as a fresh concession to the United States in the
drawn-out and volatile negotiations.

Investors were also encouraged by positive comments from U.S. President
Donald Trump, Chinese President Xi Jinping and Chinese state-owned media
about the chance for an imminent trade deal.

Also driving Wall Street higher was a burst of major acquisition activity
with France’s LVMH offer to buy U.S. jeweller Tiffany & Co and Charles
Schwab Corp’s purchase of U.S. discount brokerage TD Ameritrade Holding
Corp.

Despite the recent optimism, a quick resolution to the U.S.-China trade war
is far from certain given relations between the world’s two-largest
economies have stalled many times before.

The United States has imposed tariffs on Chinese goods in a 16-month long
dispute over trade practices that the U.S. government says are unfair. China
has responded in kind with its own tariffs on U.S. goods.

If both sides cannot reach an agreement soon, the next important date to
watch is Dec. 15, when Washington is scheduled to impose even more tariffs
on Chinese goods.

In the offshore market, the yuan briefly rose to a one-week high of 7.0188
versus the dollar.

The yen fell to 109.205 per dollar, the lowest since Nov. 12, as safe-haven
demand waned.

The Swiss franc, another safe-haven, traded at 0.9971 per dollar, close to
the lowest since Oct. 16.

Sterling traded at $1.2904, holding onto overnight gains as polls show the
ruling Conservatives as runaway favourites to win a Dec. 12 election with a
pledge to implement Britain’s divorce from the European Union.

Bitcoin, the world’s biggest cryptocurrency, rose 0.64% on Tuesday to
$7,167.99. Bitcoin slumped to a six-month low on Monday after the People’s
Bank of China (PBOC) launched a fresh crackdown on cryptocurrencies.

The PBOC is stepping up efforts to roll out its own digital currency, partly
to fend off potential threats from Facebook’s proposed digital currency,
Libra.

U.S. crude ticked up 0.03% to $58.03 a barrel. Brent crude rose 0.09% to
$63.71 per barrel.

Oil traders await data this week that is forecast to show a decline in U.S.
crude oil inventories.

In addition, the Organization of the Petroleum Exporting Countries (OPEC)
meets on Dec. 5, where the bloc is widely expected to extend supply cuts to
mid-2020. 

 <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

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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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for guideline purposes only and sourced from third parties.

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