Bulls n Bears Daily Market Commentary : 30 September 2019

Tue Oct 1 02:32:22 CAT 2019

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 30 September 2019

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover ZWL$12,884,727.40 with foreign buys at ZWL$ 471,457.80 and
foreign sales were ZWL$ 766,385.00 Total trades were 114.

The All Share started the week on a higher note, advancing by 0.48 points
to end at 232.52 points. NATIONAL FOODS LIMITED  advanced by $0.9981 to
close at $9.0000, PADENGA HOLDINGS LIMITED  traded $0.2271 firmer at $2.4773
and SEEDCO LIMITED  added $0.0658 to end at $2.2000. EDGARS STORES  advanced
by $0.0286 to end at $0.1825 while SEEDCO INTERNATIONAL LIMITED added
$0.0260 to close at $2.7100.

Trading in the negative: DELTA CORPORATION LIMITED  shed $0.0794 to close at
$4.0206 and FIRST MUTUAL LIMITED  traded $0.0640 lower to end at $0.2560.
OLD MUTUAL ZIMBABWE  also lost $0.0357 to $25.0143 while ECONET WIRELESS
traded $0.0345 weaker at $1.8613. OK ZIMBABWE LIMITED

  also shed $0.0063 to end at $0.7037.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Uganda

Ugandan shilling edges down on importer demand

(Reuters) - The Ugandan shilling inched down on Monday due to end-month
demand for dollars by some merchandise importers and manufacturers.

At 1005 GMT, commercial banks quoted the shilling at 3,680/3,690, compared
with Friday’s close of 3,675/3,685.

Egypt

Egypt's currency strengthens after c.bank interest rate cut.

(Reuters) - The Egyptian pound strengthened against the dollar on Sunday,
the first trading day after the central bank lowered its main interest rates
by a full percentage point.

The currency strengthened to 16.22 to the dollar, its strongest since March
4, 2017, from 16.26 on Saturday.

The central bank cut interest rates by 100 basis points on Thursday, with
overnight deposit rates lowered to 13.25% and lending rates easing to
14.25%.

Egyptian pound treasury bills have been popular among foreign investors for
their high yields and the country’s relatively stable currency.

Shares also rose on the Egyptian stock exchange on Sunday, with the main
EGX30 index jumping 3.3% after anti-government protests called for Friday
failed to gain traction.

Egyptian pound treasury bills eased, with the average yield on 91-day bills
slipping to 15.605% from 15.627% last week and that on 273-day bills falling
to 15.261% from 15.537% two weeks ago.

Egypt’s currency trades within a range managed by the central bank. 

       <mailto:info at bulls.co.zw> 

Global stocks stalled in Q3 as bonds boom and dollar zooms

(Reuters) - It has been a pivotal few months for financial markets. China
and Europe have halted the global stocks rally, oil has cooled dramatically
and rising recession worries have sent gold and government bonds charging
again.

Perhaps it was to be expected after such a flying start to the year, but the
deterioration in risk appetite has included some eye-catching milestones.

The switch back into support mode by the top global central banks has
swollen the amount of bonds trading at negative rates — where investors pay
rather than get paid to lend — to a record $17 trillion.

Over 3.5% returns on U.S. Treasuries following the first Federal Reserve
rate cuts since the financial crisis mean they are now having their best
year since 2011 while calmer politics and ECB stimulus have given Italian
bond markets their best quarter since Mario Draghi’s 2012 “whatever it
takes” vow.

There has been much more divergence in equity and foreign exchange markets.

On one hand, Wall Street’s S&P 500 has added another 1% to its 19% H1 surge,
Japan’s Nikkei is up 2.4% and Turkey’s battered stock market has bounced
back almost 12% after torrid last 18 months.

In the drop zone though, Hong Kong’s protests saw the Hang Seng lose 9% in
its worst quarter in four years and plenty of emerging markets from South
Africa to Saudi Arabia have buckled badly too.

MSCI’s all country world index, which now tracks around 2,700 stocks in 49
countries is set for its first quarterly dip of the year but a near 2%
rebound this month has limited the damage to a modest 0.5%.

A weaker yuan means China’s big bourses are down as well in dollar terms
despite Beijing’s stimulus efforts in the face of the trade war. But then
again so too are London, Frankfurt and Paris in Europe.

The dollar is up over 3% against a basket of top global currencies but
sterling’s additional Brexit worries mean it is down a bit more and the euro
is more than 4% lower after the ECB’s cut its interest into even more
negative territory.

DOLLAR CHARGE

It’s been the worst quarter for the Australian dollar, meanwhile, since the
end of 2016 as its China-sensitive economy has spluttered while 6.5% has
been lopped off its Antipodean cousin, the New Zealand dollar .

“The U.S. dollar has been very strong really against everything,” explained
head of currencies at State Street Global Advisors, James Binny, citing
global factors like the trade war.

Among commodities there has been a big split too, but there it has been
between what’s precious and what’s not.

Safe-haven gold is up 4.5% and is now on its longest quarterly winning
streak since 2011 having been rising since Q4 2018. Equally precious
palladium meanwhile is up for a sixth straight quarter - its best run since
2000.

Industrial bellwether and China proxy copper is at the other end of the
spectrum. The red metal is down for a sixth quarter in the last seven. It
has been black for oil too - it is down over 8% though that is after a 25%
surge in the first half of the year.

In cyberspace Bitcoin is down 22% which might sound calamitous. But it was
up 220% in H1.

What is perhaps more telling for the overall picture is that FANG stocks,
which have been one of the big driving forces for equity markets in recent
years, have struggled to make more than 1% this quarter as a set.

Facebook and Amazon are both down over 8%, Apple and Google are both up over
10%, but streaming giant Netflix is down a hefty 27% having been up 38% for
the year going into Q3.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper slips, weak demand prospects dominate mood

(Reuters) - Copper slipped on Monday as worries about weak demand due to the
prolonged U.S.-China trade war weighed on sentiment, but above-consensus
industrial activity data from top consumer China provided price support.

Benchmark copper on the London Metal Exchange ended down 0.7% at $5,725 a
tonne. Prices of the metal widely used as a gauge of economic health are
down more than 4% this quarter and on course for their second quarterly
loss.

Funds and traders squaring positions for end of quarter book keeping were
behind price moves in the afternoon session.

PMIs: The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) for
September rose to 51.4 from 50.4 in August. The consensus was for a dip to
50.2.

Another official survey showed factory activity picked up in September on
improving domestic demand, despite shrinking for the fifth straight month as
new export orders continued to fall.

The official PMI was at 49.8 in September, slightly higher than 49.5 in
August.

CHINA: China accounts for nearly half of global copper demand, estimated at
24 million tonnes this year.

TRADE: China hopes Beijing and Washington will resolve their trade dispute
“with a calm and rational attitude”, Vice Commerce Minister Wang Shouwen
said on Sunday, ahead of talks expected in Washington on Oct. 10-11.
STIMULUS: China plans to step up economic adjustments to counter its slowing
economy while providing adequate liquidity in the economy, the central bank
said on Sunday.

HOLIDAY: The Shanghai Futures Exchange (ShFE) will be closed during Oct. 1-7
for the National Day holiday.

ZINC: The premium for the cash over the three-month contract soared to a
three-month high of $50 a tonne MZN0-3 due to worries about supplies on the
LME market.

These worries have been fuelled by one company holding large amounts of cash
contracts, and stocks in LME warehouses near historical lows at 67,300
tonnes MZNSTX-TOTAL.

Three-month zinc was up 3.1% at $2,376 a tonne. It is on course for gains of
more than 7% in September, the first monthly gain since March.

LEAD: Prices ended up 3.2% to $2,135. Earlier it touched a seven-month high
of $2,151.50 a tonne on worries about shortages over the winter months when
demand from the auto battery sector is strong.

PRICES: Aluminium traded down 0.8% at $1,721.5, tin slipped 1.4% to $15,925
and nickel fell 0.9% to $17,050 a tonne. 

Palladium breaks through $1,700 on supply concerns; dollar pressures gold

(Reuters) - Palladium hit a record peak on Monday, passing $1,700 an ounce,
as tight supply of the autocatalyst metal stoked fears the deficit could
only widen amid rising industrial demand, while a stronger dollar hurt gold
prices.

Spot palladium rose 0.4% to $1,687.19 an ounce by 1250 GMT, having touched a
record $1,700.71. The metal, up for a third straight session, gained 2.4%
last week.

Concerns that supply of the metal used in car exhaust systems could run out
has helped to lift prices by more than 33% this year alone, despite a
weakening auto sector.

Gold prices, meanwhile, were weighed down by a robust dollar as fears of an
escalation in the U.S.-China trade war eased.

Markets received temporary reassurance over news that the U.S.
administration was considering delisting Chinese companies from U.S. stock
exchanges, with a spokeswoman for the White House saying it is not
contemplating such a move “at this time”.

Spot gold dropped 0.9% to $1,483.84 an ounce. Prices have shed about 3%
since hitting a close to three-week high of $1,535.60 on Sept. 24.

Spot gold could fall towards $1,462, as suggested by its wave pattern and a
retracement analysis, said Reuters analyst Wang Tao.

Other precious metals followed gold, with platinum down 3% at $902.93 and
silver shedding 2% to $17.19.

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
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
report shall be solely responsible for making their own independent
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.

(c) 2019 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

Invest Wisely!

Bulls n Bears

Telephone:    <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 719 441 674

Alt. Email:              <mailto:info at bulls.co.zw> info at bulls.co.zw 

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:                 @bullsbears2010

LinkedIn:              Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:                  Bulls.Bears 

Whatsapp Group:   <https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> Click
Here to Join

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191001/c5925adc/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191001/c5925adc/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 29436 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191001/c5925adc/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29447 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191001/c5925adc/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191001/c5925adc/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29478 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191001/c5925adc/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 3256 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191001/c5925adc/attachment-0011.jpg>