Bulls n Bears Daily Market Commentary : 27 November 2019

Thu Nov 28 01:42:47 CAT 2019

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Bulls n Bears Daily Market Commentary : 27 November 2019

Zimbabwe Stock Exchange Update

Market Turnover ZWL$6,730,752.97 with foreign buys at ZWL$146,003.70 and
foreign sales were ZWL$10,940.00 Total trades were 190

The All Share index advanced by 1.23 points  to close at 240.37 points. OLD
MUTUAL   added $0.5753 to $34.4668, PPC  further advanced by $0.1384 to
close at

$5.1415 and OK ZIMBABWE LIMITED  went up by $0.0901 to $0.8800. MEIKLES also
increased by $0.0400 to $2.1400 and MASIMBA HOLDINGS was $0.0310 firmer at
$0.1860.

Trading in the negative: ECONET WIRELESS  dropped $0.0278 to $1.6238, DELTA
further retreated by $0.0251 to end at $3.6948 and PADENGA HOLDINGS  traded
$0.0052 lower at $2.8948. SIMBISA BRANDS  also decreased by $0.0039 to close
at $1.2161.

  Global Currencies & Equity Markets

Uganda

Ugandan shilling unchanged as banks and importers trim appetite

(Reuters) - The Ugandan shilling was unchanged on Wednesday on the back of
flat demand for dollars from importers and players in the interbank market.

At 0912 GMT commercial banks quoted the shilling at 3,690/3,700, same level
as Tuesday’s close.

South Africa

South Africa's rand firms on risk-on mood, stocks inch up

(Reuters) - South Africa’s rand firmed on Wednesday, tracking its emerging
market peers after comments from U.S. President Donald Trump spurred hopes
of a resolution to the trade dispute between the United States and China.

At 1550 GMT the rand was 0.47% firmer at 14.7340 per dollar. The unit is
often considered one of the most liquid currencies in emerging markets and
susceptible to global signals.

Trump said on Tuesday the United States and China were close to agreement on
the first phase of a trade deal and that Washington was in the “final
throes” of work that would defuse a 16-month trade war with Beijing.

On the bourse, stocks also inched up on the improved sentiment.

The benchmark JSE Top-40 Index rose 0.18% to 49,910 points while the broader
All-Share Index also advanced 0.18% to 56,156 points.

Dual-listed stocks were the biggest winners on the blue-chip index, with
bank Investec up 4.27% to 84.98 rand and British American Tobacco up 2.69%
to 582.36 rand.

Retailer Woolworths was down 4.85% to 54 rand after reporting that sales at
its struggling clothing brand David Jones had declined by 2.1% amidst tough
trading conditions in Australia.

Investment firm Brait tumbled 11.82% after announcing a recapitalisation
plan to tackle unsustainable debt that would include issuing 150 million
pounds of convertible bonds.

In fixed income, the benchmark government issue due in 2026 dipped 4.5 basis
points to 8.43%. 

       <mailto:info at bulls.co.zw> 

GLOBAL MARKETS

Stocks near record highs on trade hopes, dollar gains

(Reuters) - The U.S. dollar rose and a gauge of global equities pushed
closer to an all-time high on Wednesday after a batch of U.S. economic data
brightened the economic outlook and investors remained bullish on prospects
for a U.S.-China trade accord.

Stocks on Wall Street set all-time highs, the latest surge to push the Dow
Industrials and S&P 500 to closing records in five of the past nine
sessions, with the Nasdaq setting a record on six of those days.

MSCI’s gauge of stock markets across the globe gained 0.36% and hovered less
than 1 point from an all-time high of 550.63 established in January 2018.
The index closed at 549.68.

Major pan-European equity indexes traded at highs last seen in 2015 while
MSCI’s emerging markets index also gained, all bolstered by hopes the United
States and China were close to an initial deal to end a 16-month trade war.

An improving economic outlook for 2020 has given investors more to cheer,
said Joseph LaVorgna, chief economist for the Americas at French bank
Natixis in New York.

The pan-European STOXX 600 index rose 0.32% while earlier in Asia Japan’s
Nikkei rose 0.28% and most other Asian markets gained on hopes of a trade
deal.

Chinese shares fell as weak industrial profit data highlighted growing
strains on China’s economy.

The Dow Jones Industrial Average rose 42.32 points, or 0.15%, to 28,164. The
S&P 500 gained 13.11 points, or 0.42%, to 3,153.63 and the Nasdaq Composite
added 57.24 points, or 0.66%, to 8,705.18.

Adding to optimism was data showing U.S. economic growth picked up slightly
in the third quarter, rather than slowing as initially reported in October.
Other data indicated U.S. consumer spending rose steadily last month.

Two other U.S. economic reports showed orders for non-defense capital goods
excluding aircraft, a proxy for business spending plans, surged 1.2% in
October while initial claims for state unemployment benefits declined.

The dollar index rose 0.15%, with the euro down 0.16% to $1.1.

The Japanese yen weakened 0.46% versus the greenback at 109.56 per dollar.

Sterling wobbled more as pre-election opinion polls showed some narrowing of
the lead British Prime Minister Boris Johnson’s Conservatives enjoy over
opposition parties, although he remains favoured to gain an overall
majority.

Kay Van-Petersen, global macro strategist at Saxo Capital Markets in
Singapore, said while trade hopes might be driving some tactical, near-term
moves in the market, they were mostly just “noise.” The Federal Reserve
policy is more important.

The broader market direction is “about the accommodative Fed and
accommodative monetary policy and the fact that structurally the meta-trend
is still lower in yields and rates,” he said.

China had seized on the plunge in borrowing costs to issue its biggest
international bond ever on Tuesday.

The benchmark 10-year U.S. Treasury note fell 8/32 in price to lift its
yield to 1.7689%.

In Europe, core European government debt yields rose slightly, with yields
on benchmark German 10-year bonds pushing above one-month lows.

Benchmark German 10-year bond yields traded at -0.371%, holding above a
November low of -0.384%.

Oil edged lower after a report showing U.S. crude inventories grew
unexpectedly last week, but optimism that a U.S.-China trade deal would be
reached soon limited losses.

U.S. West Texas Intermediate crude fell 30 cents to settle at $58.11 a
barrel. Global benchmark Brent crude settled down 21 cents to $64.06 a
barrel.

U.S. gold futures settled 0.5% lower at $1,453 per ounce, heading for its
worst month in almost three years after a 3.5% drop.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper rises for fourth day as Trump hails trade progress

(Reuters) - Copper prices hit their highest in nearly three weeks on
Wednesday, rising for a fourth day after U.S. President Donald Trump said
Washington was in the “final throes” of work on a trade deal with China.

Benchmark copper on the London Metal Exchange (LME) closed up 0.4% at $5,945
a tonne after touching $5,968, the highest since Nov. 8.

The metal used in power and construction has fallen around 20% since the
United States and China began their trade dispute in summer 2018 and global
economic growth began to weaken.

It has been stuck in a range between around $5,600 and $6,100 since May.

Momentum in trade talks and a slight improvement in global factory data
should keep prices near the top of that range, said Danske Bank analyst Jens
Pedersen.

But a “phase one” trade agreement is unlikely to push prices significantly
higher, he said. “What matters is more what happens after that.”

TRADE WAR/MARKETS: Trump’s comment after U.S. and Chinese negotiators spoke
by telephone boosted oil prices and lifted world equities to within a
whisker of record highs.

CHINA: China, the world’s largest consumer of metals, has brought forward 1
trillion yuan ($142 billion) of the 2020 local government special bonds
quota to this year as it seeks to avert a sharper economic slowdown.

However, profits at China’s industrial firms shrank at their fastest pace in
eight months in October, reflecting weakening factory activity which has
weighed on the outlook for metals demand.

JAPAN: A senior Japanese ruling party official said he believed the
government was striving to compile a spending package worth about 10
trillion yen ($92 billion) to support the economy.

U.S.: Economic growth in the United States picked up slightly in the third
quarter, rather than slowing as initially reported, data showed.

COPPER STOCKS: Combined copper inventories in LME and Shanghai Futures
Exchange (ShFE) warehouses, at around 350,000 tonnes, are at typical levels
for this time of year. MCUSTX-TOTAL CU-STX-SGH

But stockpiles in Chinese bonded warehouses, at 243,800 tonnes, are down
from near 400,000 tonnes a year ago and the lowest since at least 2013.
SMM-CUR-BON

CHINA PREMIUMS: Chinese Yangshan import premiums, at $73, were rising back
towards October’s 11-month high of $83. SMM-CUYP-CN

TECHNICALS: Copper held above its 50- and 100-day moving averages this month
and is rising towards its technically important 200-day moving average at
$6,013.

ZAMBIA COPPER: Zambia’s Konkola Copper Mines (KCM) smelter, which has a
capacity of 311,000 tonnes, could restart next week after a delay of around
a fortnight, mines minister Richard Masukwa told Reuters.

MUTANDA: Glencore’s Mutanda mine in Democratic Republic of Congo suspended
operations prematurely on Monday.

OTHER METALS: LME aluminium ended up 0.6% at $1,764 a tonne, zinc slipped
0.1% to $2,297, lead finished unchanged at $1,943, tin rose 0.5% to $16,400
and nickel fell 1.5% to $14,380.

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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