Bulls n Bears Daily Market Commentary : 07 October 2019

Tue Oct 8 00:41:08 CAT 2019

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Bulls n Bears Daily Market Commentary : 07 October 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$3,154,069.38 with foreign buys at ZWL$ 50,112.10 and
foreign sales were ZWL$ 1,714,457.10 Total trades were 143.

The All Share index started the week on a lower note after losing 0.53
points to close at 232.78 points. OLD MUTUAL LIMITED  dropped $0.4890 to
$34.5231, BINDURA   eased $0.0300 to close at $0.1300 and ECONET WIRELESS
LIMITED  traded $0.0226 lower at $1.8049. ZIMRE HOLDINGS  also decresed by
$0.0142 to settle at $0.0712 and SEEDCO INTERNATIONAL  was $0.0088 weaker at
$2.7000.

Trading in the positive:DAIRIBOARD ZIMBABWE LIMITED  advanced by $0.0653 to
$0.4500, MEIKLES   rose by $0.0333 to $1.5533 and OK ZIMBABWE LIMITED  was
$0.0181 stronger at $0.5800. ART CORPORATION   also increased by $0.0150 to
$0.1410 and DAWN PROPERTIES LIMITED   was $0.0100 firmer at $0.0700.

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  Global Currencies & Equity Markets

South  Africa

South African rand weakens as focus shifts to China-U.S. trade talks

(Reuters) - South Africa’s rand weakened against the dollar on Monday after
China was reported to be reluctant to agree to a broad trade deal with
Washington, casting doubts on trade talks due to start this week.

The United States and China are set to meet for trade negotiations in
Washington on Oct. 10-11, although latest reports suggest Beijing may be
looking to restrict the scope of any deal.

South Africa relies on exports to China and the United States for the bulk
of its revenue, and their trade dispute risks hurting the country’s already
weak economic prospects.

At 1659 GMT, the rand weakened 0.56% to 15.1550 per dollar, compared to its
close of 15.0700 on Friday.

Bishop said on the domestic front the medium-term budget policy statement on
Oct.30 was being seen as casting a pall over the rand’s fortunes as was a
potential review of the country in early November by credit rating agency
Moody’s.

In the equities market, pharmacy and healthcare retailer Clicks Group topped
the gainers after revising its earnings forecast range upwards, pushing its
shares up 13.54% to 247.75 rand.

Clicks now expects that diluted headline earnings per share for the year
ended Aug.31, will increase by between 15% and 18%, compared to the previous
forecast of between 10% and 15%.

Petrochemicals company Sasol was the second biggest gainer on the blue-chip
index, rising 6.47% to 268.52 as it benefited from rising oil prices.

Brent crude rose 78 cents or 1.3% to $59.15 a barrel by 1550 GMT, while U.S.
West Texas Intermediate (WTI) crude was at $53.74, up 93 cents or 1.8%.

The Johannesburg All-Share index closed 1.34% higher at 54,714 points, while
the Top-40 index climbed 1.38% to 48,635 points.

In fixed income, the yield on the benchmark government due in 2026 was up by
3 basis point to 8.215%.

Uganda

Ugandan shilling a touch weaker after central bank cuts key rate

(Reuters) - The Ugandan shilling was a touch weaker on Monday, after the
central bank cut its key lending rate by 100 basis points to 9.0%.

At 1116 GMT commercial banks quoted the shilling at 3,682/3,692, slightly
weaker than Friday’s close of 3,675/3,685.

       <mailto:info at bulls.co.zw> 

America

Stocks fall, dollar rises as investors worry about trade

(Reuters) - Wall Street equity indexes ended a volatile session lower on
Monday while oil prices gave up early gains and the dollar rose as investors
looked for safety ahead of U.S.-China trade talks.

U.S. Treasury yields rose as $78 billion in note and bond supply slated for
auction this week helped push prices lower after last week’s dramatic rise.

As deputy level U.S.-China trade talks kicked off on Monday, the White House
confirmed that high-level talks involving Chinese Vice Premier Liu He, U.S.
Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin
would start on Thursday.

Late in the session, Wall Street’s major indexes briefly turned higher after
positive tweets about the trade talks. But they then sank again as hopes for
progress faded.

Without a clear bet to make on the trade talks outcome, investors appeared
to see the dollar as the safest place, according to Shawn Cruz, manager of
trader strategy at TD Ameritrade in Jersey City, New Jersey.

The Dow Jones Industrial Average fell 95.7 points, or 0.36%, to 26,478.02,
the S&P 500 lost 13.22 points, or 0.45%, to 2,938.79 and the Nasdaq
Composite dropped 26.18 points, or 0.33%, to 7,956.29.

The pan-European STOXX 600 index rose 0.71% and MSCI’s gauge of stocks
across the globe shed 0.19%.

Emerging market stocks lost 0.35%.

Oil prices settled slightly lower, paring early gains as hopes of a
comprehensive U.S.-China trade deal faded and a new poll showed analysts
expect U.S. crude oil inventories to have risen last week. Hopes of
U.S.-China trade progress had helped lift oil prices earlier in the session.

Brent Crude futures settled down 2 cents at $58.35 and U.S. crude finished
down 6 cents at $$52.75.

The dollar edged higher against a basket of major currencies, but Turkey’s
lira slid to its lowest level against the dollar in more than a month after
the White House said Ankara would soon launch unilateral military operations
in northeast Syria.

The Turkish lira lost 2.45% versus the U.S. dollar at 5.84, its weakest in
over a month. A move above 5.8577 would send the currency to its weakest
since June.

U.S. President Donald Trump later threatened to “totally destroy and
obliterate the Economy of Turkey” if Ankara does anything “off limits.”

The dollar index rose 0.17%, with the euro down 0.05% to $1.097.

The Japanese yen weakened 0.31% versus the greenback at 107.30 per dollar,
while Sterling was last trading at $1.2294, down 0.30% on the day.

U.S. Treasury yields drifted higher, with benchmark 10-year notes last down
14/32 in price to yield 1.5614%, from 1.514% late on Friday.

Spot gold dropped 0.8% to $1,492.26 an ounce. U.S. gold futures fell 0.98%
to $1,491.40 an ounce.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Oil rises with eyes on Iraq; stocks, dollar drift higher

(Reuters) - Oil prices jumped on Monday as supply issues took center stage
following a week of sharp losses, while stocks and the dollar drifted higher
with eyes on the upcoming Sino-U.S. trade talks.

Oil was bid higher as deadly anti-government unrest gripped Iraq, the
second-largest producer among the Organization of the Petroleum Exporting
Countries.

The unrest in Iraq has begun to bring the so-called risk premium that
supports prices back into focus, after supply concerns had eased in the wake
of Saudi Arabia’s faster-than-expected recovery from attacks key oil
facilities last month, said John Kilduff, a partner at Again Capital LLC in
New York.

U.S. crude rose 0.11% to $52.87 per barrel and Brent was last at $58.51, up
0.24% on the day.

Remarks by Federal Reserve Chairman Jerome Powell and minutes from the most
recent Fed meeting will later this week keep traders searching for signs on
what the central bank is considering in its upcoming meeting.

On Wall Street, major stock indexes edged higher clinging to comments from
White House economic adviser Larry Kudlow regarding the state of the trade
war with China.

Stocks were hit last week on concerns that softening U.S. manufacturing and
services sector data were a harbinger for a slide to recession in the
world’s largest economy. Strong jobs data on Friday softened the blow.

The Dow Jones Industrial Average rose 75.04 points, or 0.28%, to 26,648.76,
the S&P 500 gained 6.54 points, or 0.22%, to 2,958.55 and the Nasdaq
Composite added 25.13 points, or 0.31%, to 8,007.61.

The pan-European STOXX 600 index rose 0.71% and MSCI’s gauge of stocks
across the globe gained 0.21%.

Emerging market stocks lost 0.15%.

The dollar was little changed against a basket of its peers, but Turkey’s
lira slid to its lowest level against the dollar in more than a month after
the White House said Ankara would soon launch unilateral military operations
in northeast Syria.

The Turkish lira lost 2.39% versus the U.S. dollar at 5.84, its weakest in
over a month. A move above 5.8577 would send the currency to its weakest
since June.

U.S. President Donald Trump later threatened to “totally destroy and
obliterate the Economy of Turkey” if Ankara does anything “off limits.”

The dollar index rose 0.15%, with the euro down 0.02% to $1.0974.

The Japanese yen weakened 0.42% versus the greenback at 107.41 per dollar,
while Sterling was last trading at $1.2303, down 0.23% on the day.

U.S. Treasury yields drifted higher, with benchmark 10-year notes last down
12/32 in price to yield 1.5528%, from 1.514% late on Friday.

Spot gold dropped 0.9% to $1,491.56 an ounce. U.S. gold futures fell 1.07%
to $1,490.10 an ounce.

Gold eases as dollar firms; caution sets in ahead of trade talks

(Reuters) - Gold prices eased on Monday as the dollar firmed after a report
said China was reluctant to agree to a broad trade deal with Washington, but
bullion held a tight range as investors took a wait-and-see approach ahead
of U.S.-China talks this week.

Spot gold was down 0.3 % at $1,499.79 per ounce at 1129 GMT. Prices firmed
0.5% last week on concerns of slowing global growth.

U.S. gold futures slipped 0.5% to $1,505.30 per ounce.

The United States and China are set to meet for trade negotiations in
Washington on Oct. 10-11, although latest news reports suggest Beijing may
be looking to restrict the scope of any deal.

The Fed Open Market Committee’s minutes from its September meeting are due
on Wednesday.

The dollar edged up against rivals after four straight days of losses last
week, with China’s offshore yuan and the euro both pressured.

A higher U.S. currency makes dollar-denominated gold more expensive for
holders of other currencies, which could subdue demand.

However, limiting gold’s downside, European shares dipped as a fall in
German industrial orders underscored concerns about a looming recession in
Europe’s largest economy.

Meanwhile, data out of the United States on Friday showed jobs growth slowed
in September and wage growth stalled, even as unemployment dropped to a
50-year low.

But that did little to change market expectations that the Federal Reserve
will likely cut interest rates at its next policy review on Oct. 29-30 to
support the economy.

Elsewhere, platinum was down 0.1% to $877.18, silver dipped 0.6% to $17.45
and palladium fell 0.3% to $1,660.29. 

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
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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
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
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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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