Bulls n Bears Daily Market Commentary : 01 October 2019

Wed Oct 2 00:18:34 CAT 2019

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Bulls n Bears Daily Market Commentary : 01 October 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$9,728,651.64 with foreign buys at ZWL$ 682,665.4 and
foreign sales were ZWL$ 25,839.50 Total trades were 196.

The All Share dropped 0.89 points to end at 231.63 points. OK ZIMBABWE
LIMITED shed $0.1252 to close at $0.5785 and SEEDCO LIMITED  traded $0.1020
lower to end at $2.0980. FIRST CAPITAL BANK  also lost $0.0195 to $0.1000
while DELTA CORPORATION  traded $0.0162 weaker at $4.0044. CASSAVA SMARTECH
also shed $0.0063 to end at $1.7031. 

Trading in the positive: OLD MUTUAL LIMITED  advanced by $0.5145 to close at
$25.5288, PROPLASTICS LIMITED  traded $0.0500 firmer at $0.7500 and MASIMBA
HOLDINGS LIMITED  added $0.0240 to end at $0.1445. PADENGA HOLDINGS
advanced by $0.0227 to end at $2.5000 while ECONET WIRELESS

LIMITED  added $0.0187 to close at $1.8800.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South African rand slides as risk appetite wanes

(Reuters) - South Africa’s rand weakened to a one-month low on Tuesday,
slumping in line with emerging market peers as uncertainty related to
U.S.-China trade war, coupled with global growth worries, kept investors
wary of riskier assets.

At 1510 GMT, the rand traded at 15.3500 per dollar, 1.34% weaker than its
close on Monday and trading at its weakest levels since Aug. 30.

Manufacturing activity in the euro zone contracted at its steepest rate in
almost seven years last month, a survey showed, suggesting there would not
be a turnaround any time soon.

That exacerbated worries over risks to the global economy, which has already
taken a hit from a protracted trade war between the United States and China.

The two sides are due to meet for high-level trade talks next week in
Washington, but it is not clear if they will be able to resolve the dispute.

A survey showed on Tuesday that South Africa’s seasonally adjusted Absa
Purchasing Managers’ Index (PMI) sank to its lowest level in a decade in
September, on weak demand linked to fears over slowing domestic and global
growth.

On the bourse, stocks were up slightly with the broader All Share Index
rising 0.22% to 54,945 points and the blue-chip Top-40 Index up 0.26% to
48,938 points.

Gold stocks led the top-40 index higher, with Sibanye Gold closing 5.5%
higher to 22.14 rand, AngloGold Ashanti up 3.7% to 294.56 rand and
Goldfields rising 2.8% to 78.25 rand.

Shares in consumer-facing companies, on the other hand, suffered after the
disappointing PMI readout.

Retailer Shoprite was the biggest loser, down 1.65% to 120.62 rand, while
Woolworths fell 1.33% to 54.35 rand and The Foschini Group fell 1.08% to
164.3 rand. Telecoms firms MTN and Vodacom also shed more than 1%.

In fixed income, bonds were slightly weaker, with the yield on the benchmark
government bond due in 2026 up a single basis point to 8.35%. 

Uganda

Ugandan shilling steady as commodities and charity flows offer support

(Reuters) - The Ugandan shilling was stable on Tuesday, underpinned by some
hard currency inflows from commodity exporters and charities.

At 0917 GMT commercial banks quoted the shilling at 3,680/3,690, same level
as Monday’s close.

       <mailto:info at bulls.co.zw> 

Europe

Growth woes, trade uncertainty keep lid on stocks, Turkey's lira slides

(Reuters) - Emerging market stocks held steady on Tuesday as weak business
readings from major economies amid uncertainty related to trade ties between
the United States and China kept investors in a cautious mood, while
Turkey’s lira led a slide among currencies.

Manufacturing activity in the euro zone contracted at its steepest rate in
almost seven years last month, a survey showed, suggesting there would not
be a turnaround any time soon.

That exacerbated worries over risks to the global economy, which has already
taken a hit from a protracted trade war between the world’s two largest
economies.

The two sides are due to meet for high-level trade talks next week in
Washington but it is not clear if they will be able to resolve the dispute.

Overnight gains on Wall Street after the U.S. dismissed reports that the
Trump administration was considering de-listing Chinese companies from U.S.
stock exchanges as “fake news,” helped Asian tech-heavy indices.

The world’s largest contract chipmaker TSMC jumped nearly 3% to an all-time
high, thrusting the Taiwan index to its best session since Aug 30.

South Korean shares ticked up led by medical stocks after Celltrion said it
had won a supply deal worth $71.85 million.

MSCI’s index of developing world stocks traded flat to lower with stocks in
India , South Africa and Turkey drifting down. Markets in China and Hong
Kong were closed for a public holiday.

Turkey’s lira was the biggest loser on currency markets, down 0.7%, followed
by South Africa’s rand which lost 0.5% against a stronger dollar.

Data showed Turkish manufacturing activity stopped contracting in September
after 17 months as a pick up in new orders drove production and increased
staffing levels.

Investors were, however, not convinced an ambitious target of 5% growth set
for 2020 by the government could be achieved and if so, at what cost.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold bounces off two-month lows on weaker U.S. data

(Reuters) - Gold jumped 1% on Tuesday, reversing course from earlier in the
session, when it touched a near two-month low, as the dollar pared gains
after weak U.S. manufacturing data bolstered bets for another interest rate
cut by the U.S. Federal Reserve.

Spot gold rose 0.8% to $1,483.11 per ounce as of 1:38 p.m. EDT (1738 GMT),
having touched its lowest since Aug. 6 at $1,458.50. U.S. gold futures
settled up 1.1% at $1,489.

The U.S. manufacturing sector contracted in September to its weakest level
in more than a decade as business conditions deteriorated further amid trade
tensions with China.

U.S. equities turned red and the dollar pared gains to retreat from a
multi-year peak following the data. U.S. Treasury yields meanwhile, fell to
session lows.

Lower interest rates reduce the opportunity cost of holding non-yielding
bullion and also weigh on U.S. yields and the dollar, in which gold is
priced.

However, bullion has lost nearly $100 since scaling a peak of $1,557 early
September, largely due to the dollar’s strength.

Investors had been largely pricing in no further rate cuts going into a Fed
meeting later in the month, on stronger economic data and reduced fears of a
global recession. The Fed last cut interest rates in September for the
second time this year.

While gold had been testing support below $1,500 due to a repricing of Fed
rate cut expectations, “we think that risks remain skewed to the upside
between now and year end,” UBS analysts said in a note.

Palladium fell 1% to $1,657.71 an ounce. On Monday, the auto-catalyst metal
hit an all-time high of $1,700.71 on supply concerns.

Silver gained 1.7% to $17.28 an ounce after touching its lowest since Aug.
20 at $16.85, while platinum was down 0.3% at $879.72, having lost over 5%
in the last session. 

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
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.

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