Bulls n Bears Daily Market Commentary : 24 October 2019

Mon Oct 28 01:37:03 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 : 24 October 2019

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover ZWL$9,090,241.54 with foreign buys at ZWL$ 1,349,425.09 and
foreign sales were nil Total trades were 197

The All Share index ended the week on a lower note,dropping 1.87 points
ending at 229.80 points.OLD MUTUAL LIMITED  lost $0.5606 to end at $33.0033
whilst CASSAVA SMARTECH   was $0.0989 lower at $1.4798 and ECONET WIRELESS
also decreased by $0.0288 to end at $1.7050.Other  ounters to lose ground
were ART CORPORATION   and NMB BANK  which both traded $0.0140 weaker at
$0.1260 and $0.3586 respectively.

Trading in the positive:OK ZIMBABWE LIMITED  added $0.0480 to $0.7000,
MEIKLES   rose by $0.0443 to $1.6500 and ARISTON   traded $0.0249 higher at
$0.1505. PADENGA HOLDINGS   also gained $0.0076 to $2.8974 and INNSCOR
AFRICA   was $0.0026 firmer at $2.8226.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South Africa's rand firmer as investors await next week's budget

(Reuters) - South Africa’s rand firmed against the dollar on Friday, taking
advantage of buying interest from traders eyeing Finance Minister Tito
Mboweni’s medium-term budget speech and a Moody’s rating review next week.

At 1545 GMT, the rand was 0.86% firmer at 14.5720 per dollar compared to a
close of 14.6950 overnight in New York.

Mboweni is likely to raise the budget deficit because of costs related to
the state-owned power utility Eskom, a Reuters poll showed.

Treasury’s best option will be to rely heavily on expenditure cuts and the
lifting of economic growth through structural policy adjustments, said Old
Mutual’ s chief economist Johann Els.

In fixed income, the yield on the benchmark government bond due in 2026 was
down 4.5 basis points to 8.17%.

Stocks were down, with the Johannesburg Stock Exchange’s Top-40 Index
slipping 0.54% to 48,858 points, and the broader all share index closing
0.61% lower at 55,141 points.

Gold miners were the biggest winners of the blue-chip index for the second
day in a row, with Goldfields up 1.3%, followed by Sibanye-Stillwater and
AngloGold Ashanti , both up more than 1%.

The miners were benefiting from a rise in the gold price, which was set for
its best week in five weeks on Friday as uncertainty around Brexit, weak
U.S. economic data and worries about trade pushed investors towards safe
havens.

The biggest loser of the day was the world’s largest brewer Anheuser-Busch
InBev , whose Johannesburg-listed stock lost almost 10% after a profit
warning that wiped $13 billion of the company’s market value.

Uganda

Ugandan shilling a notch stronger on slowing demand by banks, importers

(Reuters) - The Ugandan shilling was on Friday a notch stronger compared to
the previous session on the back of slowing demand from both commercial
banks and importers.

At 0900 GMT commercial banks quoted the shilling at 3,725/3,735, compared to
Thursday’s close of 3,730/3,740.

       <mailto:info at bulls.co.zw> 

GLOBAL MARKETS

Stocks, dollar, yields climb on trade progress news

(Reuters) - Global stock indexes, the dollar and bond yields rose on Friday,
with the S&P 500 nearing a record high as the United States said it was
close to finalizing parts of a trade deal with China.

The U.S. Trade Representative’s office also said that deputy-level talks
would proceed “continuously.” Washington and Beijing are working to agree on
the text for a “Phase 1” trade agreement announced by U.S. President Donald
Trump on Oct. 11.

Trump has said he hopes to sign the deal with China’s President Xi Jinping
next month at a summit in Chile.

During the session, the S&P 500 surpassed its closing record of 3,025.86
from July 26 but ended at 3,022.55. The S&P 500’s total return index posted
an all-time high.

Strong results from companies including Intel also helped the S&P 500 even
as Amazon.com Inc shares sagged following the company’s forecast for revenue
and profit for the holiday quarter below expectations.

The majority of U.S. companies have beaten Wall Street expectations so far
this earnings season despite concern about the trade war.

The Dow Jones Industrial Average rose 152.53 points, or 0.57%, to 26,958.06,
the S&P 500 gained 12.26 points, or 0.41%, to 3,022.55 and the Nasdaq
Composite added 57.32 points, or 0.7%, to 8,243.12.

The pan-European STOXX 600 index rose 0.16% and MSCI’s gauge of stocks
across the globe gained 0.27%.

The world’s largest beer maker, Anheuser-Busch InBev, tumbled on
disappointing quarterly profit and a glum outlook.

The dollar index rose 0.2%.

Sterling was lower on the day. The European Union agreed to London’s request
for a Brexit deadline extension but set no new departure date. That gave
Britain’s divided parliament time to decide on Prime Minister Boris
Johnson’s call for a snap election.

Sterling was last trading at $1.2829, down 0.16% on the day.

In the U.S. bond market, yields rose following the trade news.

Benchmark 10-year notes last fell 10/32 in price to yield 1.7995%, from
1.766% late on Thursday.

Oil prices climbed, supported by optimism on the trade front and by falling
U.S. crude stocks.

U.S. crude rose 43 cents to settle at $56.66 a barrel, while Brent gained 35
cents to settle at $62.02.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Zinc gains as inventories fall, shrugs off hidden stock

(Reuters) - Zinc prices rose on Friday as London Metal Exchange inventories
touched the lowest level in 12 years, though analysts said the higher prices
failed to reflect large amounts of hidden stock.

Inventories in LME-registered warehouses MZNSTX-TOTAL fell to 58,525 tonnes,
their lowest since October 2007 after sliding by half this year.

The bulk of zinc production is used for galvanising steel.

LME benchmark zinc gained 0.8% in final open-outcry trading to $2,510 a
tonne. LME zinc touched a four-month peak of $2,567.35 on Monday.

* ZINC: The premium for LME cash zinc over the three-month contract MZN0-3
touched its highest in nearly a month at $41.25 a tonne, indicating tight
nearby supplies in the LME system.

* CHILE UNREST: Copper prices were supported after mining companies in top
producer Chile said nationwide riots had mostly spared production but
operations had been affected by the hobbling of port facilities, public
transportation and supply chains.

LME copper rose 0.8% in closing rings to $5,924 a tonne, the highest since
Sept. 16, in a third straight week of gains.

* COPPER SPREAD: The LME cash copper discount to the three-month contract
CMCU0-3 fell to its lowest in nearly two months at $16.25 a tonne,
indicating tightening nearby supplies.

* GLENCORE: Miner and trading giant Glencore on Friday reported a 4% drop in
copper output so far this year and trimmed full-year guidance as it prepared
to suspend some operations in the Democratic Republic of Congo.

* NICKEL: China’s nickel ore imports in September rose 24.6% from the
previous month to their highest since at least 2016, data showed, as
stockpiling accelerated ahead of a January ban on shipments from top miner
Indonesia.

* PRICES: LME aluminium added 0.2% to close at $1,728 a tonne, nickel lost
0.5% to $16,775, and tin dropped 0.6% to $16,675.

Lead shed 0.1% to end at $2,223, retreating after touching an intraday high
of $2,246, the strongest since July last year.

Asia Gold-Indian demand lights up on Dhanteras, Diwali

(Reuters) - Jewellers and retail consumers boosted gold demand in India this
week as they stepped up purchases for the festivals of Dhanteras and Diwali,
while higher prices dimmed activity in other Asian hubs.

Dhanteras, one of the busiest gold buying days in India, when demand peaks
as bullion is considered auspicious, saw retailers dole out a wide array of
offers to attract buyers.

Dealers offered discounts of up to $4 an ounce over official domestic prices
this week, the lowest since the first week of June.

Discounts have been falling due to lower imports in the last few months, but
could widen again if demand falters after the festival, said Mukesh Kothari,
director at Mumbai bullion dealer RiddiSiddhi Bullions.

Discounts of $8 were offered last week. The domestic price includes a 12.5%
import tax and 3% sales tax

However, high prices could push Diwali demand this weekend lower by 20% from
last year, Anantha Padmanabhan, chairman of All India Gem and Jewellery
Domestic Council said.

Gold futures were trading around 38,372 rupees per 10 grams on Friday,
having hit a record 39,885 rupees last month en route to a roughly 22% gain
so far in 2019.

Meanwhile, global benchmark prices eyed their best week in five.

At top consumer China, bullion was sold at a premium of $5-$6 per ounce,
versus last week’s $4.75-$5.25, while long-drawn protests blotted out
activity in Hong Kong, with premiums of $0.30-$0.50 being charged versus
$0.45-$0.55 last week.

Premiums in Singapore were at $0.70-$1 an ounce, against last week’s
$0.50-$0.60, with Diwali demand mostly muted compared with previous years,
traders said.

In Japan, bullion was sold at par with the benchmark for the fifth-straight
week as higher taxes marred demand, a Tokyo-based trader said. 

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/20191028/1d58e61a/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/20191028/1d58e61a/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/20191028/1d58e61a/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29460 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191028/1d58e61a/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/20191028/1d58e61a/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/20191028/1d58e61a/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/20191028/1d58e61a/attachment-0011.jpg>