Bulls n Bears Daily Market Commentary : 30 October 2019

Thu Oct 31 01:43:58 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 : 30 October 2019

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover ZWL$16,807,277.41 with foreign buys at ZWL$ 260.15 and
foreign sales were ZWL$555,366.66 Total trades were 118

The All Share index further advanced by 0.98 points to close at 231.43
points. MEIKLES LIMITED gained $0.0600 to end at $1.7100, NAMPAK added
$0.0500 to $0.6025 and RIOZIM  was $0.0400 firmer at $2.1500. SEEDCO  also
increased by $0.0299 to $1.5800 and PPC LIMITED   traded $0.0222 higher at
$4.000.

Gaines were offset by losses in OK ZIMBABWE  which decreased by $0.0072 to
$0.6702, ARISTON  which lost $0.0010 to end at $0.1589 and INNSCOR AFRICA
was $0.0007 weaker at $2.9000. 

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Kenya

Kenyan shilling inches up due to offshore investor inflows

(Reuters) - The Kenyan shilling edged up on Wednesday on the back of
increased inflows into the local debt and stock markets from investors
abroad, traders said.

At 1102 GMT, commercial banks quoted the shilling at 103.15/35 per dollar,
compared with 103.30/50 at Tuesday's close.

South Africa

South African rand steady in wait-and-watch trade

JOHANNESBURG  - South Africa’s rand was flat against the dollar on Wednesday
as investors kept a cautious stance ahead of the finance minister’s budget
speech, U.S. economic data and an interest rate decision by the Federal
Reserve.

* Rand was at 14.6300 versus the greenback, as of 0505 GMT, 0.01% lower
compared with previous session’s close.

* Finance Minister Tito Mboweni, who will deliver his medium-term budget
policy statement at 1200 GMT on Wednesday, is expected to reveal a wider
government deficit and higher debt.

* Globally, expectations of further U.S. monetary policy loosening also
emboldened investors, with a reduction of 0.25 percentage points at the
conclusion of the Fed’s two-day meeting later on Wednesday almost seen as a
done deal.

* However, that sentiment was countered by worries that a Sino-U.S.
first-stage trade deal could be delayed, prompting a slip in shares in Asian
markets.

* Government bonds were slightly weaker, with the yield on benchmark 2026
instrument inching up 1 basis points to 8.21% percent. 

       <mailto:info at bulls.co.zw> 

Asia

Asia Stocks Look to Gain; Treasuries Climb on Fed: Markets Wrap

Stocks in Asia looked set to gain after U.S. equities rose to a fresh record
high following the Federal Reserve’s decision to cut interest rates and
indicate it is unlikely to move in either direction any time soon. Treasury
futures extended gains in Asia trading.

Equity contracts rose in Japan and Hong Kong, while shares in Sydney dipped
at the open. The S&P 500 turned higher when Fed Chairman Jerome Powell said
rate hikes won’t occur as long as inflation remains persistently cool. That
fueled a rally in Treasuries and sent the dollar lower. The offshore yuan
climbed. After the close of trading, Apple and Facebook advanced after
posting results. The yen was steady ahead of the Bank of Japan’s policy
decision.

Stocks rise to record after Powell hints Fed won't raise rates for a while

Fed officials reduced interest rates by a quarter-percentage point for the
third time this year and signaled a pause in further cuts unless the
economic outlook changes materially. Up in the air remains the next step in
the trade war after Chile canceled next month’s APEC meeting where the U.S.
and China intended to sign a partial trade pact. Earnings continue to roll
on, while data on U.S. GDP and private hiring topped estimates.

Here are some key events coming up this week:

*         Earnings include: Mitsubishi Heavy on Thursday; Exxon Mobil and
Macquarie Group on Friday.

*         The Fed’s preferred inflation metric, the core PCE deflator, is
due Thursday.

*         The Bank of Japan sets policy on Thursday and Governor Haruhiko
Kuroda will hold a news conference.

*         Friday brings the monthly U.S. non-farm payrolls report.

These are some of the main moves in markets:

Stocks

*         Futures on the S&P 500 Index were flat as of 8:05 a.m. in Tokyo.
The underlying gauge rose 0.3% on Wednesday.

*         Futures on Japan’s Nikkei 225 advanced 0.4%.

*         Hang Seng futures earlier added 0.2%.

*         n Australia’s S&P/ASX 200 Index slid 0.1%.

Currencies

*         The yen was at 108.80 per dollar.

*         The offshore yuan traded at 7.0448 per dollar after climbing 0.3%.

*         The Bloomberg Dollar Spot Index was little changed.

*         The euro bought $1.1153.

Bonds

*         Futures on 10-year Treasuries rose 0.1%. The yield on 10-year
Treasuries lost seven basis points to 1.77% on Wednesday, when the two-year
yield slipped four basis points to 1.60%.

*         Australia’s 10-year yield fell two basis points to 1.12%.

*         Commodities

*         Gold was at $1,495.56 an ounce.

*         West Texas Intermediate crude declined 0.2% to $54.96 a barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper slips as U.S. official warns of trade deal delay

(Reuters) - Copper prices fell on Wednesday after a U.S. official dampened
hopes that a trade deal with China will soon be announced and a big delivery
into London Metal Exchange (LME) warehouses pointed to ample supply.

Benchmark copper on the LME ended 0.3% lower at $5,908 a tonne.

The U.S.-China trade dispute has slowed global economic growth, pushing
prices of the metal used in power and construction down by 20% since June
last year.

Prices are likely to remain little changed until we get some sort of trade
deal confirmed, said WisdomTree analyst Nitesh Shah.

TRADE WAR: An interim trade agreement between the United States and China
might not be completed in time for signing in Chile next month as expected,
a U.S. official said, emphasising that this does not mean the accord is
falling apart.

U.S. ECONOMY: Growth in the U.S. economy slowed less than expected in the
third quarter.

COPPER STOCKS: Headline stocks in LME-registered warehouses rose by 19,575
tonnes to 270,325 tonnes. Inventories have nearly doubled since the start of
the year, suggesting that supply is adequate. MCUSTX-TOTAL

FUNDAMENTALS: The roughly 25 million tonne a year copper market should see a
deficit of 320,000 tonnes this year and a surplus of 281,000 tonnes in 2020,
the International Copper Study Group (ICSG) said last week.

CHILE DISRUPTION: BHP said its Escondida copper mine, the world’s largest,
was operating at a “reduced rate” after union workers walked off the job for
part of Tuesday.

The strike was in solidarity with an anti-government protest movement across
Chile, the world’s biggest copper producer, that has so far had limited
impact on output.

CHILE OUTPUT: Chile’s mining production in September fell because of a drop
in copper ore levels and iron production, government data showed on
Wednesday.

ALUMINIUM: The discount for cash aluminium over the three-month contract on
the LME fell to $3 from more than $30 in mid-September, pointing to
tightening nearby supply. MAL0-3

LME aluminium fell 0.3% to $1,760 a tonne after touching a five-week high of
$1,763.50.

ADVERTISEMENT

Aluminum Corp of China reported a 10.4% year-on-year fall in aluminium
production for the July-September period to 950,000 tonnes and said sales
fell 13.8% to 940,000 tonnes, indicating lacklustre demand in top consumer
China.

INDONESIA NICKEL: Indonesia could resume nickel ore exports in one to two
weeks once an investigation into violations of export rules is completed, a
minister said.

OTHER METALS: LME zinc traded down 0.6% at $2,529 a tonne, nickel edged down
0.3% at $16,780, lead was down 2.5% to $2,208 and tin was down 0.3% to
$16,800. 

Gold firms as investors await Fed verdict

(Reuters) - Gold prices rose on Wednesday, having touched a one-week low in
the previous session, as investors awaited a decision by the U.S. Federal
Reserve on a widely expected rate cut.

Spot gold was up 0.4% at $1,493.94 an ounce by 1207 GMT. U.S. gold futures
edged 0.3% higher to $1,495.40.

The U.S. central bank is set to share the statement of a two-day monetary
policy meeting at 1800 GMT. Investors expect the Fed to lower rates by a
quarter of a percentage point for a third time this year.

A weaker greenback makes dollar-denominated gold cheaper for holders of
other currencies.

Supporting gold, a rally in global shares stalled on worries that a Phase 1
trade deal between the United States and China could be delayed, after a
U.S. administration official said an agreement might not be completed in
time for signing in Chile next month.

Data released on Tuesday showed U.S. consumer confidence fell for a third
straight month in October, further helping gold.

Technically, “we would have a first bearish signal only below $1,480, while
a rebound above $1,500 could open space for another recovery to $1,520”,
ActivTrades’ chief analyst Carlo Alberto De Casa said in a note.

Investors also kept a close watch on Brexit developments, with Britain set
to hold a December election after Prime Minister Boris Johnson won approval
from parliament for an early ballot.

Elsewhere, silver rose 0.8% to $17.94 an ounce, platinum was up 0.2% at
$922.02 and palladium gained 0.4% to $1,788.26. 

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/20191031/03cd2a83/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/20191031/03cd2a83/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191031/03cd2a83/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image007.jpg
Type: image/jpeg
Size: 3256 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191031/03cd2a83/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image008.jpg
Type: image/jpeg
Size: 29436 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191031/03cd2a83/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image009.jpg
Type: image/jpeg
Size: 29447 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191031/03cd2a83/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image010.jpg
Type: image/jpeg
Size: 29478 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20191031/03cd2a83/attachment-0011.jpg>