Bulls n Bears Daily Market Commentary : 11 October 2019

Mon Oct 14 00:54:23 CAT 2019

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Bulls n Bears Daily Market Commentary : 11 October 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$13,235,826.52 with foreign buys at ZWL$ 2,247,382.10 and
foreign sales were ZWL$ 800,380.00 Total trades were 123.

The All Share index ended the week on a lower note after losing 1.77 points
to close at 231.53 points. Cement maker PPC  retreated further by $0.1797 to
close at $3.3636, OLD MUTUAL LIMITED  eased $0.0926 to $33.9074 and ECONET
traded $0.0396 lower at $1.7475. OK ZIMBABWE  also eased $0.0396 to $0.6122
and CASSAVA SMARTECH   was $0.0331 weaker at $1.5474.

Losses were offset by gains in TSL   which added $0.0500 to $0.7500, MEIKLES
gained $0.0138 to close at $1.5800 and PADENGA rose by $0.0109 to $2.9100.
ZPI   and FBC HOLDINGS  both increased by $0.0050 to settle at $0.0350 and
$0.6150 respectively.

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  Global Currencies & Equity Markets

South Africa

S.Africa's rand races to 3-week high on easing trade war, Brexit tensions

(Reuters) - South Africa’s rand powered to a 3-week best on Friday as
emerging market currencies were boosted by thawing trade tensions between
United States and China.

At 1545 GMT the rand was 1.91% firmer at 14.7525, its best level since Sept.
20, leading a rally of emerging market currencies sparked by U.S. President
Donald Trump’s comments that trade talks with Beijing were going well.

China and the U.S are in the second day of top-level negotiations aimed at
rolling back tensions between the world’s two largest economies.

Risk demand globally was also soothed by the European Union and Britain
agreeing on Friday to hold intense talks over the next few days to secure a
deal for Britain’s departure from the bloc as the Oct. 31 deadline looms.

The lira was the EM laggard, dragged down as Istanbul intensified air and
artillery strikes in northeast Syria.

In fixed income, the yield on the benchmark government bond due in 2026
dipped 2 basis points to 8.205%.

On the stock market, the Top-40 index closed 0.76% higher at 49,404 points
while the broader all-share was up 0.84% to 55,537 points.

Financial shares boomed, with boutique bank Investec up nearly 8%, while
Nedbank and Absa climbed more than 3% on the day, boosted by the firmer
currency.

On the downside, gold producers were hit by the improvement in global risk
demand as investors ditched the metal typically considered a safe haven,
along with the dollar.

Anglogold Ashanti was 6% lower at 296.14 rand, while fellow bullion
producers Sibanye Gold and Gold Fields were both down more than 4%, to 23.35
rand and 80.90 rand respectively. 

Uganda

Ugandan shilling weakens as rate cut spurs banks to beef up positions

(Reuters) - The Ugandan shilling weakened on Friday as players in the
interbank market beefed up their positions after the central bank this week,
in a surprise move, cut its policy rate by 100 basis points to 9%.

At 0933 GMT commercial banks quoted the shilling at 3,697/3,707, compared to
Thursday’s close of 3,680/3,700.

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GLOBAL MARKETS

Stocks rise with eyes on trade talks; pound rallies

(Reuters) - Stocks rose on Thursday after U.S. President Donald Trump said
he would meet with China’s top trade negotiator on Friday, while the British
pound rallied after the prime ministers of Britain and Ireland revived hopes
of a possible Brexit deal.

A drop in the U.S. currency, also tied to trade talks, supported
dollar-denominated commodity prices, including oil, which rose after OPEC
pledged to make a decision on supply in December.

Markets were expected to remain highly volatile as high-level U.S.-China
trade negotiations were due to continue through Friday. Trump’s comments
after the close on Wall Street, calling negotiations “very, very good,” sent
S&P 500 futures higher.

The euro hit its highest since Sept. 20 versus the dollar as the greenback
turned weaker across the board, partly due to a Bloomberg report about a
U.S.-China currency pact to stop the yuan’s devaluation. China’s offshore
yuan hit its strongest levels in more than two weeks.

Sterling jumped just shy of 2%, on track for its largest gain against the
dollar in seven months, after Irish Prime Minister Leo Varadkar said a
Brexit deal could be clinched by the end of October after what he called a
very positive meeting with Boris Johnson.

The risk-on environment weighed on the greenback, and even harder on Japan’s
yen.

The dollar index fell 0.4%, with the euro unchanged at $1.1004.

Sterling settled at $1.2440, up 1.9% on the day. The safe-haven yen suffered
through a risk-on session and dropped 0.46% to the greenback at 107.96 per
dollar.

TRADE THE TWEETS

Trump’s tweet announcing his Friday meeting with Liu gave “market
participants a reason to believe that perhaps a trade deal or at least a
partial trade deal might be announced as early as tomorrow,” said Robert
Pavlik chief investment strategist at SlateStone Wealth LLC in New York.

Separately, Chinese state news agency Xinhua reported Liu said Beijing was
willing to reach an agreement with Washington to prevent any further
escalation of the trade war.

The Dow Jones Industrial Average rose 150.66 points, or 0.57%, to 26,496.67,
the S&P 500 gained 18.73 points, or 0.64%, to 2,938.13 and the Nasdaq
Composite added 47.04 points, or 0.6%, to 7,950.78.

The pan-European STOXX600 index rose 0.65% and MSCI’s gauge of stocks across
the globe gained 0.56%.

Emerging market stocks rose 0.35%. MSCI’s broadest index of Asia-Pacific
shares outside Japan closed 0.17% higher, while Nikkei futures rose 0.74%.

Treasury yields also rose on hopes of a trade resolution between the United
States and China. However, some investors highlighted the difficulty of
using the rapidly shifting headlines on trade to direct investment strategy.

Benchmark 10-year notes last fell 24/32 in price to yield 1.6698%, from
1.587% late on Wednesday.

The two-year note <US2YT=RR last fell 5/32 in price to yield 1.5464%, from
1.474% late on Wednesday.

Safe-haven gold fell; spot gold dropped 0.8% to $1,493.85 an ounce.

Copper posted its largest daily gain in a month, up 1.70% to $5,780.50 a
tonne.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold slides as safe-haven demand dips on Brexit, Sino-U.S. trade hopes

(Reuters) - Gold prices fell 1% on Friday, on track for a weekly loss, as
optimism around the U.S.-China trade talks and the possibility of a Brexit
deal diminished some save-haven interest in bullion, while palladium scaled
a new record peak.

Spot gold fell 0.6% to $1,485.53 per ounce at 1323 GMT, after touching their
lowest in over week at $1,479.31, heading towards a weekly decline of about
1%. U.S. gold futures slid 0.7% to $1,490.20.

Global shares basked in optimism over signs of a detente in the U.S.-China
trade war and hopes that Britain was moving closer to a smooth exit from the
European Union.

The talks between U.S. and Chinese negotiators fed hopes that the two sides
could dial down the 15-month dispute and delay a U.S. tariff hike scheduled
for next week.

The chief Brexit negotiators of the EU and Britain met on Friday, hours
after Prime Minister Boris Johnson and his Irish counterpart unexpectedly
said they had found a pathway to a possible deal at last-ditch talks.

Gold denominated in sterling slid about 2.5% to 1,168.35 pounds an ounce.

Gold investors were also watching for fallout from an attack on an
Iranian-owned oil tanker on Friday that added to global geopolitical
uncertainty. The vessel was struck by two missiles in the Red Sea off Saudi
Arabia’s coast, Iranian state television said.

Elsewhere, deficit-hit palladium rose 0.1% to $1,701.39 an ounce, having hit
a record peak of $1,705.84 earlier in the session. It gained about 2% so far
this week.

Platinum fell 1.5% to $885.58 an ounce, while silver climbed 0.3% to $17.54.

Copper touches two-week high on hopes of partial trade deal

(Reuters) - Copper rose to its highest in more than two weeks on Friday as
the market awaited further news on U.S.-Sino trade talks amid optimism that
a partial deal can be reached.

Zinc climbed to its strongest in more than two months on worries about
shortages after a shutdown of a production facility in Namibia.

A Chinese state newspaper on Friday said that a “partial” trade deal would
benefit China and the United States after day one of the first trade talks
in more than two months.

The 15-month trade dispute between the United States and China has slowed
global growth and dimmed the demand outlook for base metals.

U.S. President Donald Trump said his plans to meet China’s Vice Premier Liu
He at the White House on Friday was a good sign.

Three-month copper on the London Metal Exchange gained 0.3% to $5,796.50 a
tonne in official open-outcry trading after touching its highest since Sept.
24 at $5,809.50. It had risen 1.7% in the previous session, its strongest
advance in nearly four weeks.

* ZINC: LME zinc failed to trade in official rings but was bid up 0.6% at
$2,403 a tonne after hitting $2,416, the highest since Aug. 1. It surged
more than 4% in the previous session after news of a production shutdown.

* MINE CLOSURE: Vedanta Resources said on Thursday that it would shut its
Skorpion zinc operations in Namibia from early November until the end of
February 2020 because of technical problems.

* ZINC STOCKS: LME zinc stocks MZNSTX-TOTAL last stood at 62,475 tonnes,
having dropped by more than half since the start of 2019. Stocks touched a
record low of 50,425 tonnes in April.

* ALUMINIUM STOCKS: LME on-warrant aluminium inventories, those not
earmarked for delivery, rose to 797,650 tonnes, the highest since May 15.

LME aluminium, the only metal in the red, slid 1.5% to trade at $1,726 a
tonne in official activity.

Capital Economics expects aluminium to end the year at $1,650.

* PRICES: LME nickel rose 0.4% to $17,690 a tonne in official trading, lead
was bid up 0.9% at $2,178 and tin added 0.5% to trade at $16,525.

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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for guideline purposes only and sourced from third parties.

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