Bulls n Bears Daily Market Commentary : 09 September 2019

Tue Sep 10 02:48:01 CAT 2019

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Bulls n Bears Daily Market Commentary : 09 September 2019

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover ZWL$ 2,621,778.71 with foreign buys at ZWL$1,790.00 and
foreign sales were NL Total trades were 90.

The All Share index dropped 1.16 points to close at 162.89 points. CASSAVA
SMARTECH traded $0.0516 lower at $1.1984, DELTA (DLTA.zw) dropped $0.0350 to
close at $2.900. SEEDCO lost $0.0075 closing at $1.4425. AXIA CORPORATION
eased $0.0020 to close at $0.3900 and FIRST CAPITAL BANK (FCA.zw) shed
$0.0014 ending at $0.0686. 

Trading in the positive; OLD MUTUAL LIMITED advanced a further $0.4266 to
$18.3394, MEIKLES gained $0.0162 to close at $1.1362 and SIMBISA BRANDS
traded $0.0087 higher at $0.5800. Other counter trading in the positive was
OK ZIMBABWE which added $0.0054 to end at $0.3220.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South Africa's rand firms as Fed cut bets spur buying, stocks steady

(Reuters) - South Africa’s rand rallied to a 5-week high on Monday on global
demand for riskier assets as investors bet the United States central bank
would cut lending rates next week.

At 1600 GMT the rand was 0.4% firmer at 14.7650 per dollar, retreating from
a session-best 14.6700, but still its firmest level since Aug. 2.

Fed Chair Jerome Powell said on Friday the central bank will continue to act
“as appropriate” to sustain economic expansion in the world’s biggest
economy, a phrase financial markets have read as signalling further
interest-rate cuts.

Powell’s remarks came as the Chinese central bank moved on Friday to cut how
much cash banks must hold in reserve, releasing liquidity to shore up an
economy hit by the Sino-U.S. trade conflict.

The European Central Bank (ECB) is expected to introduce a new wave of
monetary stimulus on Thursday.

Bonds also ended firmer, with the yield on the benchmark 2026 issue down 2.5
basis points to 8.125%.

In equities, stocks were flat with the broader All-share index down 0.12% to
55,523 points, while the blue chip Top-40 index fell 0.14% to 49,602 points.

The bourse wobbled after e-commerce giant Naspers slipped 1% to 3528.34 rand
and gold stocks shed 5.01% as investors ditched the safe-haven asset.

Gold producer Harmony fell 5.48% to 48.46 rand, Gold Fields shed 5.37% to
75.84 rand, while Sibanye Stillwater fell 4.85% to 17.67 rand, and AngloGold
Ashanti declined 4.84% to 303.45 rand.

Telecoms firm MTN, which had to close some of its Nigerian stores last week
as protesters targeted it in retaliation for violence aimed at foreigners in
Johannesburg, was still feeling the aftermath.

Its shares were down 2.72% to 100.76 rand. 

Uganda

Uganda shilling holds steady as demand for dollars wanes

(Reuters) - The Ugandan shilling        was stable on Monday due to low
demand for dollars from importers and other market participants.

At 0904 GMT, commercial banks quoted the shilling at 3,675/3,685, unchanged
from Friday's closing rate. 

       <mailto:info at bulls.co.zw> 

America

Stocks little changed, pound hits 6-week high

(Reuters) - A gauge of global stocks held near flat on Monday after bouncing
between gains and losses as investors questioned whether likely stimulus
measures from the world’s central banks would be enough to deter slowing
growth, while the pound hit a six-week high in choppy trading.

After two straight weeks of gains that boosted the S&P 500 by 4.6%, stocks
on Wall Street closed near the unchanged mark as advances in energy and
financial shares were offset by a decline in tech and healthcare.

Earlier, data showed Japan’s economy grew at a slower pace than initially
estimated in the second quarter as the U.S.-China trade war prompted a
downward revision of business spending, intensifying calls for the central
bank to deepen stimulus this month.

Still, barring a major announcement on trade developments between the United
States and China, stock movements were likely to be muted ahead of the next
policy announcement by the Federal Reserve on Sept. 18. Investors have begun
to question whether central banks even have enough measures at their
disposal to support economic growth.

The European Central Bank is expected to introduce new stimulus measures at
its meeting on Thursday.

But he said, “for the market to move significantly higher from here, we’d
really need to see something happen on trade.”

Federal Reserve Board Chairman Jerome Powell said the central bank would
continue to “act as appropriate” to sustain U.S. economic expansion.

The Dow Jones Industrial Average rose 38.05 points, or 0.14%, to 26,835.51,
the S&P 500 lost 0.28 points, or 0.01%, to 2,978.43 and the Nasdaq Composite
dropped 15.64 points, or 0.19%, to 8,087.44.

European shares ended lower as Britain’s export-heavy FTSE index tumbled due
to a stronger pound, while selling in defensive sectors such as healthcare
and utilities dented early gains in markets.

The pan-European STOXX 600 index lost 0.28% and MSCI’s gauge of stocks
across the globe shed 0.01%.

Sterling hit a six-week high of $1.2382 as investors saw the likelihood of a
“no-deal” Brexit lessening and data that indicated Britain’s economy picked
up more than anticipated in July.

British Prime Minister Boris Johnson will ask Parliament a second time for
an early national election but was likely to be defeated in a vote at around
2230 GMT on Monday. He will then suspend Parliament until Oct. 14.

Sterling’s gains were briefly pared sharply as John Bercow, speaker in
Britain’s House of Commons, announced he would stand down from the role.

Sterling was last trading at $1.2343, up 0.50% on the day.

The dollar index fell 0.1%, with the euro up 0.19% to $1.1048.

Oil prices jumped after the new Saudi energy minister, Prince Abdulaziz bin
Salman, confirmed expectations he would stick with his country’s policy of
limiting crude output to support prices. 7

U.S. crude rose 2.35% to settle at $57.85 per barrel and Brent settled at
$62.59, up 1.71% on the day.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper slides, demand doubts reinforced by China data

(Reuters) - Copper prices slipped on Monday as expectations of weak demand
in top consumer China were reinforced by data showing a surprise fall in its
exports, but losses were limited by the likelihood of policy stimulus to
shore up growth.

Benchmark copper on the London Metal Exchange (LME) traded down 0.7% to
$5,795 a tonne in official rings. Prices of the metal, used widely in power
and construction industries, hit $5,518 last week, the lowest in more than
two years.

EXPORTS: China’s August exports fell 1% from a year earlier, the biggest
fall since June. Analysts had expected a 2% rise after July’s 3.3% gain.

STIMULUS: China’s central bank on Friday cut banks’ reserve requirements for
a seventh time since early 2018 to free up more funds for lending.

Beijing is widely expected to announce more support measures in coming weeks
to avert the risk of a sharper economic slowdown including the first cuts in
some key lending rates in four years.

TRADES: August saw dramatic escalations in the bitter year-long trade row,
with Washington announcing 15% tariffs on a wide range of Chinese goods from
Sept. 1. Beijing hit back with retaliatory levies.

The world’s two largest economies have agreed to hold high-level talks in
early October in Washington, the first in-person discussions since a failed
U.S.-China trade meeting at the end of July.

LEAD: One company holding between 50% and 79% of lead warrants has fuelled
concern about nearby supplies on the LME market <0#LME-WHL> CMPB0-3.

This can be seen in the premium for the cash over the three-month lead
contract at $7.5 a tonne from a discount last week.

Three-month lead was down 0.1% at $2,075.

ALUMINIUM: Talk of Indonesia looking into a ban on exports of bauxite, a
feed stock for aluminium, helped prices of the transport and packaging metal
to three-week highs of $1,801 a tonne. It was last up 0.3% to $1,796.

A break of the 50-day moving average at $1,795 saw aluminium test the
100-day moving average at $1,800.

PRICES: Zinc was down 1.0% at $2,305, tin fell 1.2% to $17,170 and nickel
gained 0.7% to $17,820.

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
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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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