Bulls n Bears Daily Market Commentary : 05 September 2019

Fri Sep 6 01:09:28 CAT 2019

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Bulls n Bears Daily Market Commentary : 05 September 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$ 9,246,865.30 with foreign buys at ZWL$1,537,488.33 and
foreign sales were ZWL$978.75 Total trades were 151.

The All Share index lost 1.73 points to close at 164.37 points. NATIONAL
FOODS  lost $0.1000 to end at $6.9000, MEIKLES   dropped $0.0800 to close at
$1.1200. TSL LIMITED   and ECONET WIRELESS LIMITED both eased $0.0390
closing at $0.7240 and $1.2090 respectively. DELTA   also traded $0.0360
weaker at $2.9640.

Trading in the positive; OLD MUTUAL LIMITED gained a further $0.2710 to
$17.8120, ARISTON gained $0.0060 to close at $0.0600 and PPC  traded $0.0040
higher at $2.0540. Other counters trading in the positive were OK ZIMBABWE
which added $0.0030 to end at $0.3170. AXIA   and FIDELITY LIFE  both shed
$0.0010 to close at $0.3920 and $0.0850 respectively.

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  Global Currencies & Equity Markets

South Africa

South Africa's rand falls after poor current account data, stocks rise

(Reuters) - South Africa’s rand weakened on Thursday after data showed the
current account deficit widened in the second quarter from the first,
dampening positive economic momentum generated on Tuesday by data showing
GDP grew more than forecast.

By 1525 GMT the rand was 0.44% weaker at 14.8700 per dollar, retreating from
a four-week high of 14.7400 touched earlier in the session.

The current account deficit was 4% of gross domestic product (GDP), the
South African Reserve Bank said, wider than the average 3% forecast by
economists surveyed by Reuters and than the 2.9% shortfall in the first
three months.

In equities, the broader All-Share index climbed 1.04% to 55,476 points,
while the blue chips Top-40 index gained 1.11% to 49,576 points.

South Africa’s biggest insurer Sanlam rose 2.75% to 73.87 rand after its
interim results were bolstered by its pan-African strategy. FirstRand gained
1.67% to 61 rand after it reported a rise in full-year profits.

In fixed income, the yield on the benchmark government bond due in 2026
added 3.5 basis points to 8.13%.

Kenya

Kenyan shilling loses ground due to energy, manufacturing sector demand

(Reuters) - The Kenyan shilling weakened on Thursday due to surging dollar
demand from the energy and manufacturing sector and excess liquidity in the
money markets, traders said. 

At 0833 GMT, commercial banks quoted the shilling at 103.80/104.00 per
dollar, compared with 103.70/90 at Wednesday's close.

       <mailto:info at bulls.co.zw> 

America

Stocks rally, Treasury yields rise on easing trade fears

(Reuters) - U.S. stocks followed worldwide equities to one-month highs and
Treasury yields rose sharply on Thursday as renewed U.S.-China trade
optimism and upbeat U.S. economic data stoked risk appetite and lured
investors away from safe-haven assets.

The announcement that top negotiators from the United States and China will
meet in early October in Washington raised hopes of a possible resolution to
the two countries’ brutal trade war that has shaken markets and wreaked
havoc on the global economy.

But Massocca noted that over the last 16 months, good news on the trade
front can be undone by a tweet.

U.S. private payrolls increased in August at their fastest pace in four
months, according to ADP, blowing past analyst estimates ahead of Friday’s
more comprehensive jobs report from the Labor Department.

A separate report showed the U.S. services industry rebounded last month to
its fastest expansion since February, bouncing back from a three-year low,
according to the Institute for Supply Management’s non-manufacturing
purchasing managers index (PMI).

Market participants now look to Friday’s closely-watched jobs report and
expected remarks from Federal Reserve chair Jerome Powell.

The Dow Jones Industrial Average rose 372.68 points, or 1.41%, to 26,728.15,
the S&P 500 gained 38.19 points, or 1.30%, to 2,975.97 and the Nasdaq
Composite added 139.95 points, or 1.75%, to 8,116.83.

Euro zone and emerging markets stocks charged higher on the renewed trade
hopes.

The pan-European STOXX 600 index rose 0.72% and MSCI’s gauge of stocks
across the globe gained 1.14%.

Emerging market stocks rose 1.21%. MSCI’s broadest index of Asia-Pacific
shares outside Japan closed 1.13% higher, while Japan’s Nikkei rose 2.12%.

News of the impending U.S.-China talks sent U.S. Treasury yields higher on
hopes a trade deal might remove an impediment to growth.

Benchmark 10-year notes last fell 31/32 in price to yield 1.5636%, from
1.459% late on Wednesday.

The 30-year bond last fell 74/32 in price to yield 2.0557%, from 1.957% late
on Wednesday.

The yen slipped and the dollar edged lower against a basket of world
currencies following the positive trade developments and upbeat U.S. jobs
data.

The pound sterling, however, rose to its highest level against the greenback
in over a month on hopes that a no-deal Brexit could be avoided.

The dollar index fell 0.05%, with the euro up 0.03% to $1.1036.

The Japanese yen weakened 0.56% versus the greenback at 107.01 per dollar,
while Sterling was last trading at $1.2327, up 0.63% on the day.

Oil prices crept higher, lifted by the tide of trade optimism and a decrease
in U.S. crude inventories.

U.S. crude oil futures edged up 0.07% to settle at $56.30 per barrel, while
Brent crude oil futures settled at $60.95 per barrel, a 0.41% increase.

Gold prices dropped on the signs of a thaw in trade tensions and the upbeat
U.S. data that sent investors to riskier assets.

Spot gold dropped 2.2% to $1,518.23 an ounce.

Copper rose 1.60% to $5,840.00 a tonne.

Three-month aluminum on the London Metal Exchange rose 0.90% to $1,791.00 a
tonne.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper rebounds as U.S., China resume trade talks

(Reuters) - Copper prices rose on Thursday to the highest since Aug. 19
after China and the United States agreed to hold high level trade talks,
reviving hopes for an end to a dispute that has weakened global economic
growth and consumption of metals.

Benchmark copper on the London Metal Exchange (LME) was up 1% at $5,807 a
tonne at 1036 GMT, from a two-year low of $5,518 on Tuesday.

He forecast copper at $5,800 at the end of the year and said supply deficits
were likely to push prices higher after that.

TRADE WAR: “Lead negotiators from both sides had a really good phone call
this morning,” China’s commerce ministry said. “We’ll strive to achieve
substantial progress during the 13th Sino-U.S. high-level negotiations in
early October.”

MARKETS/YUAN: Global stock markets rallied. The yuan strengthened against
the dollar, helping metals by making them cheaper in China, the world’s
biggest metals consumer.

But Chinese authorities are likely to allow the yuan to weaken further as
the country’s economy slows, a Reuters poll of strategists showed.

CHINA EXPORTS: China’s exports likely rose slightly in August but imports
contracted for a fourth straight month, a Reuters poll showed, pointing to
further strains on the economy.

GERMAN FACTORIES: German industrial orders fell more than expected in July,
data showed, suggesting the country could tip into a recession in the third
quarter.

TARIFFS: The U.S. Commerce Department said on Wednesday it imposed duties on
Chinese and Mexican structural steel.

ZINC: Cash zinc on the LME has flipped to a $14.50 premium against the
three-month contract, pointing to tighter nearby supply. MZN0-3

Benchmark zinc was up 1.7% at $2,349.50 a tonne from a three-year low of
$2,190 reached on Tuesday.

NICKEL: The premium for cash nickel over three month metal MNI0-3 fell to
$14.50, continuing a rapid fall from ten-year highs.

The benchmark contract was down 2.6% at $17,530 a tonne after news of an ore
export ban by top producer Indonesia this week rocketed prices to a
five-year high of $18,850.

TIN: LME tin was 1.1% higher at $17,390 a tonne after Yunnan Tin, the
world’s biggest producer, said it was cutting production as part of a joint
action by Chinese smelters in response to tight ore supply.

OTHER METALS: LME aluminium was up 0.2% at $1,778 a tonne and lead was 0.7%
higher at $2,065.

Gold slips from six year peak on Sino-U.S. trade optimism

(Reuters) - Gold retreated on Thursday as investors booked profits after the
metal rallied to a six-year peak in the previous session and hopes of a thaw
in U.S.-China trade ties spurred demand for riskier assets.

Spot gold fell 0.6% to $1,542.51 per ounce as of 1143 GMT, having scaled
$1,557 on Wednesday, its highest since April 2013.

U.S. gold futures dropped 0.6% to $1,551.30 per ounce.

China’s Commerce Ministry said its trade team would hold talks with U.S.
counterparts in mid-September in preparation for high-level negotiations in
early October, while the ministry spokesman said Beijing opposed any
escalation in the trade war.

European shares rose to a one-month high, with further support coming from a
decision by British lawmakers to vote against a no-deal Brexit and the
withdrawal of an extradition bill that had triggered months of protests in
Hong Kong.

However, “just because the U.S. and China have agreed to restart talks, it
doesn’t detract from the extent to which that dispute has escalated and
deepened, adding to a sense that global growth would slow,” Newman said,
adding there was still tremendous uncertainty about Brexit.

Gold has jumped about 20% this year as the bruising trade war between the
world’s two largest economies has sparked fears of a deceleration in global
economic growth and encouraged interest rate cuts by major central banks
around the world.

Analysts also said the likelihood of further easing in monetary policy and
negative yielding debts around the world provided support for bullion,
keeping it close to its recent six-year peak.

Federal fund futures imply traders see a 89% chance of a 25 basis point rate
cut by the U.S. Federal Reserve this month.

Lower interest rates and Treasury yields reduce the opportunity cost of
holding non-yielding bullion.

Among other precious metals, silver eased about 1.7% to $19.25 per ounce,
but was near a three-year high of $19.64 it touched in the previous session.

Platinum dipped 0.9% to $976.61, having touched its highest since February
2018 earlier in the session, while palladium was up 0.1% to $1,555 per
ounce, holding close to its highest in more than 1-1/2 months hit on
Wednesday. 

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
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.

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