Bulls n Bears Daily Market Commentary : 11 September 2019

Thu Sep 12 22:18:56 CAT 2019

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Bulls n Bears Daily Market Commentary : 11 September 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$ 2,784,614.53 with foreign buys at ZWL$1,345,976.50 and
foreign sales were ZWL$1,275,239.00 Total trades were 98.

The All Share index advanced by 0.33 points to close at 163.27 points. OLD
MUTUAL LIMITED  added a further $0.5658 to close at $19.5643, ARISTON
HOLDINGS LIMITED  rose by $0.0130 to close at $0.0784 and TSL traded $0.0070
higher at $0.7400. Other counters trading in the positive were MEIKLES
LIMITED  which increased by $0.0038 closing at $1.1400 and OK ZIMBABWE
LIMITED  which gained $0.0014 to end at $0.3250.

Gains were offset by the following losses; PPC LIMITED traded $0.0474 lower
at $2.0500, SEEDCO LIMITED lost $0.0099 to close at $1.4300 and ECONET
WIRELESS  shed $0.0052 to close at $1.1871. Two more counters to lose ground
were PADENGA HOLDINGS   which dropped $0.0051 to close at $1.5005 and
SIMBISA BRANDS   which eased $0.0050 ending at $0.5800.

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  Global Currencies & Equity Markets

South Africa

South Africa's rand falls on growth worries, Naspers slumps

(Reuters) - South Africa’s rand weakened on Wednesday after data showing
business confidence in the country has collapsed, undermining a push by
President Cyril Ramaphosa to kick-start growth after a decade of stagnation.

Stocks rose, despite a plunge is bourse heavyweight Naspers Ltd, as the
prospect of increased stimulus in major economies underpinned risk-on buying
in emerging markets.

At 1540 GMT the rand was 0.79% weaker at 14.7525 per dollar, giving up some
of its recent gains spurred by better-than-expected second-quarter economic
growth data and comments by ratings firm Moody’s that a downgrade to
sub-investment was unlikely in the near term.

The South African Chamber of Commerce and Industry’s monthly business
confidence index fell to its lowest level in 34 years in August, hurt by a
sharp drop in export volumes and a weaker currency, the business body said.

On the other hand, the Rand Merchant Bank business confidence index compiled
by the Bureau for Economic Research plunged to a 20-year low in the third
quarter.

On the bourse, the Johannesburg All-Share Index was up 1.64% to 56,243
points, while the benchmark top-40 index gained 1.77% to 50,359 points.

Naspers tumbled 30% to 2,465 rand, following the market debut of its
spin-off Prosus in Amsterdam, acting similar to a share that has gone
ex-dividend.

Prosus comprises Naspers’ global empire of consumer internet assets, with
the jewel in the crown a 31% stake in Chinese tech titan Tencent Holdings
Ltd.

Naspers is retaining a controlling 75% stake in Prosus. The Tencent stake
has been worth more than Naspers itself for years and dominated the $103
billion group’s finances. One motivation for spinning off Prosus was to
narrow that value gap.

In fixed income, the yield on the benchmark paper due in 2026 was up 3 basis
points to 8.16%. 

Uganda

Ugandan shilling expands gains amid depressed dollar appetite

(Reuters) - The Ugandan shilling was stronger on Wednesday mainly
underpinned by depressed appetite for hard currency from both commercial
banks and merchandise importers.

At 080 2 GMT commercial banks quoted the shilling at 3,657/3,667, compared
to Tuesday’s close of 3,665/3,675.

       <mailto:info at bulls.co.zw> 

Asia

Asian stocks rise on hopes for U.S.-China trade, monetary stimulus

(Reuters) - Asian stocks rose on Thursday on hopes for a thaw in U.S.-China
trade frictions and expectations that the European Central Bank will kick
off another wave of monetary easing by global central banks.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2% and
Japan’s Nikkei stock index rose 1%. Australian shares were up 0.41%.

U.S. stock futures jumped and safe-havens such as the yen and gold fell
after U.S. President Donald Trump agreed to delay an additional increase in
tariffs on Chinese goods by two weeks at the request of China’s Vice Premier
Liu He “as a gesture of good will.”

Oil prices rose in Asia, rebounding from a tumble on Wednesday, on hopes
OPEC members will cut output to support prices.

Any easing of concerns about the bruising trade war is likely to help
equities extend their rally this month after a tumultuous August.

Investors also await an ECB meeting later on Thursday to see how far
policymakers will go to support a flagging economy, given the risks posed by
Britain’s divorce from the European Union, commonly referred to as Brexit.

U.S. stock futures rose 0.57% in Asia on Thursday after the S&P 500 ended
0.72% higher in New York on Wednesday.

The dollar briefly rose to a six-week high of 108.04 yen before paring gains
slightly to trade up 0.12% at 107.36 yen.

Spot gold fell 0.23% to $1492.80 per ounce.

Trump’s delay of additional tariffs on Chinese goods comes one day after
China said it would exempt 16 types of U.S. products from import tariffs.

The world’s two largest economies have been locked in a year-long battle
over Beijing’s trade practices that has threatened to push other economies
into recession.

The gestures of goodwill raise hopes both sides can narrow their differences
before working-level resume talks in mid-September and high-level trade
negotiations that are expected in October.

The euro held steady at $1.1013 but traded near a one-week low. The ECB is
set to unveil fresh stimulus measures on Thursday but its exact moves are
far from certain.

Germany is at risk of falling into recession and inflation expectations
sliding, but ECB President Mario Draghi, who hands over the leadership of
the central bank to Christine Lagarde at the end of October, will face
resistance to aggressive easing from more conservative ECB members.

U.S. crude ticked up 0.77% to $56.18 in Asia on Thursday. Futures tumbled
more than 2% on Wednesday following a report that Trump is considering
easing sanctions on Iran, which could potentially boost oil supplies.

Asian traders were likely focused on OPEC’s decision on Wednesday to cut its
forecast for global oil demand in 2020. OPEC also said all producers have a
shared respo nsibility to support the oil market..

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper falls as slumping China auto sales signal weak demand

(Reuters) - Copper prices dipped on Wednesday after a sharp fall in Chinese
auto sales underlined fears of weaker demand from the world's largest
consumer of

metals. 

Concerns over China's economic outlook outweighed any optimism from a
decision by Beijing to exempt some U.S. goods from additional tariffs,
potentially easing tensions in a damaging trade dispute.             

Benchmark copper         on the London Metal Exchange (LME) did not trade in
closing rings but was bid down 0.9% at $5,772 a tonne, moving toward a
two-year low of $5,518 hit earlier this month. 

Unless a U.S.-China trade deal is reached, prices will likely remain around
current levels as weaker demand is offset by constraints on supply, said
Saxo Bank analyst Ole Hansen. 

CHINA CARS: China's total auto sales fell 6.9% from the same month a year
earlier to 1.96 million, the China Association of Automobile Manufacturers
said, warning of weak sales ahead.

The figures follow a string of weak Chinese manufacturing data. China has
made some moves to stimulate activity, including a cut to bank reserve
requirements announced last week.

CHINA OUTPUT: Refined copper cathode production by major Chinese smelters
fell by 0.5% in August from a month earlier, a survey by research house
Antaike showed.             

PERU: An indefinite strike by mining unions in Peru that started on Tuesday
has failed to draw large numbers of workers and has not affected output at
mines in the world's No.2 copper, zinc, and silver producer, an industry
association said.

NICKEL: LME nickel         closed down 0.8% at $17,900 a tonne even as the
premium for cash metal over the three-month contract surged to a 10-year
high of $107, pointing to tighter nearby supply. MNI0-3     Benchmark nickel
leaped to a five-year high of $18,850 this month after top supplier
Indonesia said it would ban ore exports next year.             

STOCKS: On-warrant stocks of nickel available to the market in
LME-registered warehouses fell to 83,346 tonnes, down from around 250,000
tonnes at the start of 2018 and the lowest since 2011. MNISTX-TOTAL

One entity holds between 80% and 89% of warrants. 

PHILIPPINES: Nickel miners in the Philippines are likely to ramp up ore
output by next year, but their production capacity is limited, a local
industry lobby group said.             

The Philippines' mining watchdog meanwhile recommended lifting the
suspension of a small-sized nickel miner. 

LEAD: China's primary lead output rose 3.6% year-on-year to 242,000 tonnes
in August, while recycled lead production was up 9.1% year-on-year at
196,000 tonnes, Antaike said.             

Benchmark lead         finished down 0.4% at $2,093 a tonne. 

OTHER METALS: LME aluminium         closed up 0.3% at $1,825 a tonne, zinc
gained 1.1% to $2,363 and tin         rose

2.2% to $17,775. 

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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