Bulls n Bears Daily Market Commentary : 04 September 2019

Thu Sep 5 04:23:29 CAT 2019

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Bulls n Bears Daily Market Commentary : 04 September 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$ 12,178,946.18 with foreign buys at ZWL$1,656,140.25 and
foreign sales were ZWL$1,658,144.35 Total trades were 189.

The All Share index retreated further by 0.08 points to close at 166.10
points. INNSCOR lost $0.0351 to end at $1.8707, DELTA   dropped $0.0248 to
close at $2.9997 and RIOZIM LIMITED  eased $0.0200 closing at $2.2000.
CASSAVA SMARTECH ZIMBABWE LIMITED also eased $0.0058 to settle at $1.2768
and MEIKLES  was $0.0036 weaker at $1.2000.

Trading in the positive; OLD MUTUAL LIMITED added $0.0669 to $17.5409, PPC
put on $0.0500 to close at $2.0500 and OK ZIM   traded $0.0126 higher at
$0.3136. Other counters trading in the positive were SIMBISA   which added
$0.0125 toend at $0.5725 and ECONET WIRELESS which gained $0.0101 to close
at $1.2471.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South Africa's rand extends rally to 4-week high, stocks up

(Reuters) - South Africa’s rand rose to a four-week high on Wednesday backed
by a better-than-expected jump in second-quarter growth and improved risk
sentiment globally, brushing off concerns over anti-immigrant protests.

Stocks gained led by Naspers.

At 1545 GMT the rand was 1.91% firmer at 14.8025 per dollar, its firmest
level since Aug. 6, extending the previous session’s rally.

Gross domestic product in the three months to June expanded by 3.1%, after a
3.1% contraction in the first quarter. Economists polled by Reuters had
forecast an expansion of 2.4% for the quarter.

The positive growth data helped soothe sentiment battered by recent signs of
weak activity and concerns that an additional 59 billion rand ($3.9 billion)
for state power firm Eskom had made a credit downgrade a near-certainty.

President Cyril Ramaphosa told officials and business leaders on Wednesday
that he was committed to quelling attacks on foreigners that have threatened
to cast a cloud over an economic forum aimed at boosting intra-African
trade.

Police have arrested almost 300 people and confirmed at least five deaths
after riots in Johannesburg and the capital Pretoria in recent days, when
roving groups attacked shops mainly owned by migrants from the rest of
Africa.

On the bourse, the broader All-share index rose 0.3% to 54,907 points, while
the blue chip Top-40 closed 0.32% up to 49,031 points.

Leading the blue chips was e-commerce giant Naspers , up 2.69% to 3594.00
rand after gains in Hong Kong stocks boosted Tencent, in which Naspers has a
stake.

“Naspers is such a big component of the JSE and its sibling child Tencent is
listed in Hong Kong...People think the worst of the protests in Hong Kong
are over. That lifted all the stocks really,” said Greg Davies, a trader at
Cratos Capital.

Further gains were restrained by the bullion sector , down 5.09%, with
Sibanye-Stillwater down 4.94% to 19.44 and AngloGold Ashanti 5.09% lower at
334.91%.

Bonds also firmed, with the yield of the benchmark paper due in 2026 down 5
basis points to 8.095%.

$1 = 15.2369 rand 

Kenya

Kenyan shilling weakens against the dollar

(Reuters) - The Kenyan shilling weakened against the dollar on Wednesday due
to excess liquidity in the local money market and increased dollar demand
from oil importers, traders said.

At 1021 GMT, commercial banks quoted the shilling at 103.75/95 per dollar,
compared with 103.65/75 at Tuesday’s close.

       <mailto:info at bulls.co.zw> 

EMERGING MARKETS-

HK stocks, China data boost emerging market shares; FX higher

(Reuters) - Hong Kong stocks led a rally in emerging market shares on
Wednesday after reports that the government may withdraw a controversial
extradition bill, while upbeat Chinese data somewhat allayed fears over
sluggish global growth.

The possible withdrawal of a bill that would have allowed extraditions to
mainland China ushered in a sense of respite after months of unrest that has
thrown the Chinese-administred city into its worst crisis in decades.

Hong Kong authorities have not confirmed the reports.

Shares in the Hang Seng index jumped nearly 4%, helping MSCI’s index for
emerging market stocks to scale a fresh three-week high.

Further boosting sentiment was upbeat data from China reflecting the
services sector’s fastest expansion rate in three months in August, easing
some concerns of a slowdown in the world’s second largest economy.

Asian markets took heart from the positive data, with mainland Chinese
shares closing at near five-week highs.

A similarly upbeat service sector report for August in Russia helped the
country’s stocks move higher, while a rise in oil prices pushed the crude
exporter’s currency higher.

Mumbai-listed stocks underperformed the broader market, after data showed
that India’s dominant services industry expanded at a slower pace in August.

Developing world currencies broadly rose after weak U.S. manufacturing
readings dented the dollar.

Turkey’s lira jumped 1%, continuing to take comfort from inflation figures
released on Tuesday that are likely to pave the way for lower interest rates
before year-end.

South Africa’s rand hit a near four-week high following a
better-than-expected jump in second-quarter economic growth and shrugging
off the latest data which showed private sector activity contracted in
August.

In emerging Europe, the Hungarian forint rose 0.5% against the euro to
outperform its regional peers after data showed retail sales rose by an
annual 6.4% in July after a revised 5.4% increase in June.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold steadies near multi-year peak as U.S. yields slip

(Reuters) - Gold on Wednesday steadied near its highest in over six years as
focus returned to economic woes with 10-year U.S. Treasury yields slumping
to a three-year low, while a slight improvement in risk sentiment slowed
bullion’s advance.

Spot gold fell 0.03% to $1,546.25 per ounce at 11:00 am EDT (1500 GMT),
still near last week’s $1,554.56, its highest since April 2013.

U.S. gold futures remained unchanged at $1,555.70.

U.S. Treasury yields fell as the benchmark 10-year yield hit its lowest
since July 2016, after U.S. manufacturing data showed the first contraction
since 2016 on worries about a weakening global economy and U.S.-China trade
tensions.

U.S. President Donald Trump threatened on Tuesday that he would be “tougher”
on Beijing in a second term as president if talks dragged on.

However, global stock markets gained after a parliamentary vote raised
chances of another delay to Brexit while a political gridlock in Italy
seemed to have eased.

Investors also kept a close watch on developments in Hong Kong, after the
region’s leader Carrie Lam withdrew a controversial extradition bill that
had triggered months of violent protests in the Asian financial hub.
However, some lawmakers said it still remains uncertain if this action would
help end the protests.

Meanwhile, traders fully priced in a 25 basis point interest rate cut at the
U.S. Federal Reserve’s meeting later this month, according to CME’s FedWatch
tool.

Lower interest rates reduce the opportunity cost of holding non-yielding
bullion and weigh on the dollar. The dollar fell against a basket of
currencies.

Indicative of sentiment, holdings of SPDR Gold Trust, the world’s largest
gold-backed exchange-traded fund, rose to 890.04 tonnes on Tuesday, their
highest since November 2016.

Spot silver rose 0.4% to $19.31 per ounce, after hitting $19.57 earlier, its
highest since September 2016.

Elsewhere, spot platinum gained 2.3% to $980.00 per ounce after jumping 3%
at $986 earlier in the session, it’s highest since February 2018. Palladium
was up 0.7% at $1,553.25. 

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
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
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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.

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