Bulls n Bears Daily Market Commentary : 03 October 2019

Thu Oct 3 23:03:13 CAT 2019

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Bulls n Bears Daily Market Commentary : 03 October 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$5,220,579.04 with foreign buys at ZWL$ 3,121,061.50 and
foreign sales were ZWL$ 150,586.00 Total trades were 133.

The All Share lost 2.85 points to close at 230.87 points. DELTA CORPORATION
dropped $0.1160 to $3.8604, ECONET WIRELESS LIMITED eased $0.0584 to close
at $1.8299 and CASSAVA SMARTECH  traded $0.0487 lower at $1.6086. BINDURA
also decresed by $0.0301 to settle at $0.1600 and TURNALL   was $0.0195
weaker at $0.1105.

Trading in the positive was : PADENGA HOLDINGS LIMITED which advanced by
$0.0329 to $2.7593, MEIKLES LIMITED which rose by $0.0284 to $1.5185 and OLD
MUTUAL LIMITED which was $0.0276 stronger at $30.0000. AFRICAN SUN also
increased by $0.0200 to $0.5000 and ZIMRE HOLDINGS   was

$0.0142 firmer at $0.0854.

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  Global Currencies & Equity Markets

South Africa

South Africa's rand firms as dollar, stocks fall

(Reuters) - South Africa’s rand firmed on Thursday thanks to a weaker
dollar, as investors fretted that weakness in the U.S. manufacturing and
service sectors could herald a slowdown in the world’s largest economy.

At 1610 GMT, the rand was 0.98% firmer at 15.1400.

The dollar fell as weak U.S. data deepened concerns over economic growth and
bolstered bets for further interest rate cuts by the Federal Reserve.

Lower U.S. interest rate expectations lift investors’ appetite for emerging
markets assets, which offer higher returns but carry more risk.

Investors will now be eyeing the U.S. non-farm payrolls release on Friday.

Stocks on the other hand suffered as a result of the negative sentiment. The
Johannesburg Stock Exchange’s All-Share Index fell 0.51% to 53,727 points,
while the blue-chip Top-40 Index shed 0.54% to 47,743 points.

Gold stocks were on the up as investors sought a safe haven. Anglo American
Platinum rose 6.47% to 1057.5 rand, followed by AngloGold Ashanti, up 3% to
303 rand, and Sibanye Gold, which closed 2.8% higher at 23.51 rand. Impala
Platinum and Goldfields also benefited.

In fixed income, the yield on the benchmark government bond due in 2026 fell
3.5 basis point to 8.245%. 

Uganda

Ugandan shilling holds steady against the dollar

(Reuters) - The Ugandan shilling        was stable on Thursday due to low
appetite for hard currency from both merchandise importers and commercial
banks.

At 1146 GMT, commercial banks quoted the shilling at 3,675/3,685, same level
as Wednesday's close. 

       <mailto:info at bulls.co.zw> 

Global stocks crawl up slightly as weak U.S. data spurs hopes of Fed rate
cut

(Reuters) - The latest weaker-than-expected U.S. economic data on Thursday
fed hopes that the Federal Reserve would cut U.S. interest rates this month,
which helped lift global equities slightly after two days of declines, but
investors also parked some funds in U.S. Treasuries and other safe-haven
assets.

The drop in the closely watched Institute for Supply Management’s
non-manufacturing activity index boosted fears that the U.S.-China trade war
could push the global economy into a recession.

MSCI’s gauge of stocks across the globe gained 0.39%, following broad
declines in Europe as investors priced in new U.S. tariffs that are set to
be imposed on $7.5 billion of European goods.

Washington will enact 10% tariffs on Airbus planes and 25% duties on French
wine, Scotch and Irish whiskies and cheese from across the continent as
punishment for EU subsidies to Airbus.

On Wall Street, the Dow Jones Industrial Average rose 123.1 points, or
0.47%, to 26,201.72, the S&P 500 gained 23.1 points, or 0.80%, to 2,910.71
and the Nasdaq Composite added 87.02 points, or 1.12%, to 7,872.27.

Each index had been slightly positive before the ISM data was released
shortly after the market opened and fell more than 1% before recovering
their losses.

Fears of an economic slowdown helped push investors into the perceived
safety of bonds. Benchmark 10-year U.S. Treasury notes last rose 18/32 in
price to yield 1.5359%, from 1.597% late on Wednesday.

Asian shares racked up losses earlier in the day. Japan’s Nikkei stock index
closed down 2%, its biggest one-day decline since Aug. 26.

The weak economic data has increased market expectations that the Fed will
cut rates again. Traders see a 98% chance the Fed will cut rates by 25 basis
points to 1.75%-2.00% in October, up from 39.6% on Monday, according to CME
Group’s FedWatch tool.

Bets on a rate cut could rise further if a U.S. non-farm payrolls report on
Friday shows weakness in the labor market.

Brent crude futures were last down 0.3% to $57.51 a barrel, while U.S. West
Texas Intermediate (WTI) crude fell 0.8% to $52.22 per barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold gains 1% as poor U.S. data ignites growth worries

(Reuters) - Gold jumped more than 1% to its highest in a week on Thursday as
weak U.S. data deepened concerns over economic growth and bolstered bets for
further interest rate cuts by the Federal Reserve.

Spot gold was up 0.5% at $1,506.45 per ounce by 1:52 p.m. EDT (1752 GMT).
Earlier, prices had hit their highest since Sept. 25 at $1,518.50.

U.S. gold futures settled 0.4% higher at $1,513.80 an ounce.

U.S. services sector growth hit its slowest pace in three years last month,
and job growth in the largest segment of the economy was the weakest in half
a decade, a survey of purchasing managers showed.

Data earlier in the week showed manufacturing contracted to the weakest
level in a decade and hiring by U.S. private employers slowed further in
September.

The weaker-than-expected U.S. economic data weighed on global financial
markets, extending a stock slide that has pushed world equity benchmarks
back to lows last seen in August.

Adding to the economic uncertainty, Washington on Wednesday said it would
slap tariffs on certain products from the European Union.

Further helping gold, the dollar fell to a four-week low against the yen and
a one-week trough versus the euro.

Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold
Shares, rose to 923.76 tonnes on Wednesday, very close to last week’s 924.94
tonnes, their highest since mid-November 2016.

Platinum rose 0.2% to $888.59 per ounce, while silver gained 0.3% to $17.60
an ounce.

Palladium slid 2% at $1,653.17 per ounce.

The metal used in vehicle exhausts to reduce harmful emissions is likely to
rise still higher after growing demand from automakers and a gaping supply
shortfall pushed prices to record levels above $1,700 an ounce this week,
analysts said.

Rising trade fears drag copper to 4th day of losses

(Reuters) - Copper prices slipped for a fourth day on Thursday after the
United States announced tariffs on some European goods, adding to fears that
a global economic slowdown will deepen, weakening demand for metal.

A large delivery of copper into London Metal Exchange (LME) warehouses and a
widening of spreads between contracts meanwhile pointed to ample supply.

Benchmark copper on the LME traded down 0.4% at $5,655 a tonne in official
rings. The metal used in power and construction has tumbled more than 20%
from June 2018 highs.

Weak copper supply growth will likely tighten the market but prices will
remain around current levels due to the poor demand outlook, said Deutsche
Bank analyst Nick Snowdon.

TRADE WAR: Washington said it would slap tariffs on European goods including
cheese and Airbus planes as punishment for illegal EU aircraft subsidies.

The move comes amid a U.S.-China trade dispute that has seen tariffs imposed
on hundreds of billions of dollars’ worth of products, damaging the global
economy.

MANUFACTURING: Factory activity is falling in the United States, China and
the euro zone, data this week showed.

COPPER STOCKS: On-warrant stocks of copper in LME-registered warehouses
jumped to 195,425 tonnes, the highest since Sept. 20, after 39,750 tonnes of
arrivals. MCUSTX-TOTAL

COPPER SPREAD: The discount for cash copper vs three-month metal on the LME
rose to $35 this week, the most since August last year, pointing to
plentiful availability. MCU0-3

ZINC CHARGES: Treatment charges by Chinese zinc smelters jumped to $280, the
highest since at least 2014. “Higher treatment charges suggest that
production will remain strong for the rest of the year,” analysts at ING
said. SMM-ZNCONC-IMP

ZINC SPREAD/PRICE: Despite expectations of increased supply, nearby
availability remains tight, however, with cash zinc at a premium of $41 to
the three month contract, down from $50 on Monday but still far above the
long-term average. MZN0-3

Benchmark zinc did not trade but was bid down 1.8% at $2,277 a tonne,
approaching a three-year low reached last month.

ALUMINIUM: LME aluminium traded up 0.3% at $1,711 after touching $1,704.85,
the lowest since January 2017, on Wednesday.

Aluminium is the “worst affected of all the metals on the demand side,” said
Deutsche Bank’s Snowdon. Prices were likely to grind lower until either
demand perked up or smelters began to curb supply, he said.

POSITIONING: Speculators held a net short position in LME aluminium equal to
23% of open contacts as of Tuesday, brokers Marex Spectron said.

SHFE: The Shanghai Futures Exchange was closed as part of China’s Golden
Week Holidays and will reopen on Tuesday.

OTHER METALS: Nickel traded up 0.7% at $17,610 a tonne, lead was bid 0.2%
higher at $2,104 and tin was bid down 0.8% at $16,425.

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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