Bulls n Bears Daily Market Commentary : 23 October 2019

Thu Oct 24 01:22:09 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 : 23 October 2019

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover ZWL$7,064,810.76 with foreign buys at ZWL$ 1,015,846.24 and
foreign sales were ZWL$ 1,701,304.75 Total trades were 132

The All Share index gained 4.48 points  ending at 231.67 points. OLD MUTUAL
LIMITED   added $0.2573 to $33.5639, CASSAVA SMARTECH rose by

$0.1778 to $1.5787 and ECONET WIRELESS  traded $0.0542 higher at $1.7338.
DAIRIBOARD ZIMBABWE  also gained $0.0125 to $0.5625 and FIRST MUTUAL

PROPERTIES   was $0.0100 firmer at $0.2500.

Trading in the negative: SEEDCO  dropped by $0.0929 to end at $1.9127 whilst
ARISTON  was $0.0100 lower at $0.1400. PADENGA HOLDINGS  also decreased by
$0.0081 to end at $2.8898 and BINDURA  traded $0.0014 weaker at $0.1336.
DAWN PROPERTIES   also retreated by $0.0004 to end at $0.0806.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South African rand weaker after lower inflation reading

(Reuters) - South Africa’s rand dipped on Wednesday as consumer price data
fell more than expected in September to 4.1% in annual terms, raising the
prospect of further monetary policy easing.

At 1615 GMT, the rand was down around 0.3% at 14.64 per U.S. dollar,
slipping from its best level in a month touched on Tuesday.

The consumer price index (CPI), which came in below analysts’ forecasts of
4.2%, showed inflation remained comfortably within the central bank’s 3%-6%
target range.

South Africa’s economy is expected to grow by less than 1% this year, dented
by power cuts at struggling state utility Eskom as well as weak business
confidence. That’s a problem for President Cyril Ramaphosa, who has staked
his reputation on reviving Africa’s most industrialised economy.

The South African Reserve Bank (SARB) cut its main lending rate in July but
kept it on hold in September. Its next monetary policy committee meeting is
in mid-November.

The Johannesburg All-Share index fell 0.65% to 55,571 points, while the
Top-40 index shed 0.74% to 49,244 points, alongside global stocks as risk
sentiment took a hit after UK lawmakers pushed the pause button on Brexit.

The risk aversion pushed gold stocks such as AngloGold Ashanti up 5.53% to
315.07 rand, Sibanye-Stillwater up 5.27% to 25.79 rand and Gold Fields up
4.47% to 83.50 rand.

Government bonds were unchanged, with the yield on the benchmark 2026 bond
at 8.205%. 

Uganda

Ugandan shilling weakens on surge in banks' demand

(Reuters) - The Ugandan shilling weakened on Wednesday on the back of an
upsurge in demand from players in the interbank market looking to beef up
their positions.

At 0906 GMT commercial banks quoted the shilling at 3,695/3,705 against the
dollar, weaker than Tuesday’s close of 3,685/3,695.

       <mailto:info at bulls.co.zw> 

GLOBAL MARKETS

Stocks rise despite lackluster results; sterling creeps up as EU delays
Brexit decision

(Reuters) - World stock indexes climbed on Wednesday as investors brushed
aside some earnings disappointments, while the British pound inched up as
European Union leaders delayed a decision on whether to grant Britain a
three-month Brexit extension.

Shares of U.S. industrial bellwethers Boeing Co and Caterpillar Inc ended
the day up about 1% each despite big earnings misses.

Results have helped to shift investor focus toward earnings in recent
sessions.

But the market still ended higher because, for the most part, “investors
were already braced for that,” he said.

With results now in from about 125 of the S&P 500 companies, analysts still
expect earnings to have declined 2.9% year-over-year, according to IBES data
from Refinitiv.

Some areas of equities stayed weak, including an index of semiconductor
shares. It fell 1.9% following a weak-than-expected revenue forecast from
Texas Instruments .

Sterling stabilized from Tuesday, when it dropped after British lawmakers
again put the brakes on the government’s plans to exit the European Union.

EU member states on Wednesday delayed a decision on whether to grant Britain
a three-month Brexit extension. Prime Minister Boris Johnson said if the
deadline is deferred to the end of January, he would call an election.

Sterling was last trading at $1.2915, up 0.33% on the day.

The Dow Jones Industrial Average rose 45.85 points, or 0.17%, to 26,833.95,
the S&P 500 gained 8.53 points, or 0.28%, to 3,004.52 and the Nasdaq
Composite added 15.50 points, or 0.19%, to 8,119.79.

The pan-European STOXX 600 index rose 0.11% and MSCI’s gauge of stocks
across the globe gained 0.13%.

In commodity markets, oil jumped after government data showed a surprise
draw in U.S. crude stocks.

U.S. crude climbed 2.7% to settle at $55.97, while Brent rose 2.5% to
$61.17.

In the U.S. bond market, benchmark 10-year notes last fell 1/32 in price to
yield 1.7695%, from 1.766% late on Tuesday.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold gains on waning risk appetite; market eyes Fed meet

(Reuters) - Gold rose on Wednesday as risk sentiment took a hit after UK
lawmakers pushed the pause button on Brexit, while expectations of further
monetary easing by global central banks lent further support.

Spot gold was up 0.5% at $1,494.34 per ounce as of 10:48 a.m. EDT (1448
GMT). U.S. gold futures rose 0.7% to $1,497.50 per ounce.

World stock markets struggled as hopes faded that an exit deal would be
wrapped by next week and on concerns over a possible slowdown in the global
technology sector.

British Prime Minister Boris Johnson said on Tuesday it was up to the EU to
decide whether it wanted to delay Brexit and for how long, after a defeat in
parliament made ratification of his deal by an Oct. 31 deadline almost
impossible.

On the other hand, Chinese Vice Foreign Minister Le Yucheng said on Tuesday
Beijing and Washington had achieved some progress in trade talks.

The protracted trade conflict between both the countries has rattled
financial markets and stirred global recessionary fears.

Meanwhile, investors awaited the U.S. Federal Reserve’s month-end meeting,
with Federal Fund futures implying that traders see a 91% chance for a 25
basis-point rate cut by the central bank.

While increasing stimulus from larger central banks will be bullish for gold
in the longer term, the metal has recently struggled because of mixed
signals from Fed speakers, Moya added.

Elsewhere, silver was up 0.4% at $17.58 an ounce. Platinum rose 2.4% to
$912.07, while palladium was up 0.1% at $1,757.60 per ounce. 

Zinc gains as deficit pushes inventories to new lows

(Reuters) - Zinc prices rose on Wednesday as available stocks in London
Metal Exchange (LME) warehouses slipped to their lowest levels in more than
two decades despite expectations of increased supply.

Copper also ticked higher after protests disrupted some supply in top
producer Chile.

Benchmark zinc was up 0.2% at $2,473.50 a tonne at 1425 GMT, around the
highest since July and up from a three-year low of $2,190 on Sept. 3.

ZINC STOCKS: On-warrant inventories in LME-registered warehouses fell to
35,125 tonnes, the lowest since at least 1998. MZNSTX-TOTAL

SPREAD: Cash zinc traded at a $35 premium to three-month metal, up from
around zero over July-September, suggesting lower availability of nearby
material. MZN0-3

POSITIONING: Speculative positioning was largely flat after a bout of short
covering, brokers Marex Spectron said.

FUNDAMENTALS: The global zinc market saw a 106,000-tonne shortfall over
January-July, the International Lead and Zinc Study Group said this month.

COPPER: Benchmark copper was up 0.4% at $5,841 a tonne. Prices remain near
last month’s two-year low of $5,518, however, with gains capped by concerns
that weakening global growth will restrain demand.

CHILE DISRUPTION: Antofagasta warned that unrest could lower its output by
about 5,000 tonnes, equivalent to less than 3% of third-quarter production.

Codelco said one of its mines was shut and operations at a smelter
drastically reduced. Union workers at BHP’s Escondida copper mine downed
tools on Tuesday.

FUNDAMENTALS: The International Copper Study Group said the market would
return to a surplus of 281,000 tonnes in 2020 after a 320,000-tonne
shortfall this year.

FREEPORT: Miner Freeport McMoRan said its copper output fell 14% in the
third quarter.

NICKEL: LME nickel was 0.5% higher at $16,595 a tonne, with the premium for
cash metal versus the three-month contract tumbling to $2 from more than
$200 at the start of October, suggesting shortages of nearby material have
eased. MNISTX-TOTAL MNI0-3

LME PROBE: The LME has asked members to report any unusual activity in
nickel trading after prices lurched up and down in the wake of large
transactions last week, sources said.

ALUMINIUM: Miner Rio Tinto flagged a possible pullback or closure of New
Zealand’s Aluminium Smelter, citing weakness in the aluminium market and
high energy costs.

Tajikistan cut its aluminium output growth target for this year to 5% from
20%, a government source said.

Producer Norsk Hydro said it expected global aluminium demand growth to
hover around zero this year, down from 3.1% in 2018.

OTHER METALS: LME aluminium was up 0.6% at $1,729 a tonne, lead was down
0.4% at $2,209.50 and tin was 1.6% lower at $16,580.

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/20191024/dee01c02/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/20191024/dee01c02/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/20191024/dee01c02/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/20191024/dee01c02/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/20191024/dee01c02/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/20191024/dee01c02/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/20191024/dee01c02/attachment-0011.jpg>