Bulls n Bears Daily Market Commentary : 12 September 2019

Thu Sep 12 23:59:58 CAT 2019

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Bulls n Bears Daily Market Commentary : 12 September 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$ 21,058,199.92 with foreign buys at ZWL$1,227,090.00 and
foreign sales were ZWL$1,885,363.44 Total trades were 124.

The All Share index added 2.65 points  ending at 165.92 points. OLD  MUTUAL
LIMITED gained a further $3.8857 to close at $23.4500, MEIKLES LIMITED  rose
by $0.0600 to close at $1.2000 and PADENGA HOLDINGS  traded $0.0495 higher
at $1.5500. Other counters trading in the positive were CASSAVA  SMARTECH
LIMITED  which advanced by $0.0254 closing at $1.2196 and OK ZIMBABWE
LIMITED   which increased by $0.0250 to end at $0.3500.

Gains were offset by the following losses; AFRICAN DISTILLERS LIMITED traded
$0.2000 lower at $1.6000, SEEDCO LIMITED  shed $0.0800 ending at  $1.3500
and ZIMPLOW HOLDINGS  lost $0.0300 to close at $0.4700. Two more  counters
to lose ground were ECONET WIRELESS   which eased $0.0079 to close at
$1.1792 and INNSCOR AFRICA   which dropped $0.0013 ending at $1.8500.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

S.Africa's rand firms on ECB decision, trade hopes, stocks gain

(Reuters) - South Africa’s rand rallied in afternoon trade on Thursday as
the European Central Bank’s new stimulus measures and mutual concessions by
the United States and China in their trade dispute buoyed risk appetite,
while stocks also gained.

At 1530 GMT, the rand was 0.55% firmer at 14.5900 per dollar.

The ECB cut rates deeper into negative territory and restarted its programme
of bond buying, known as quantitative easing, with a formulation that
suggests purchases could go on for years.

The ECB news further buoyed riskier bets, already boosted by signs of
detente in the U.S.-China trade war.

In mutual concessions, U.S. President Donald Trump had moved to delay an
increase in tariffs on Chinese goods by two weeks, while China exempted some
U.S. drugs and other goods from tariffs.

In equities, stocks jumped to a more than one-month high, with the
Johannesburg All-share index was up 0.96% to 56,782 points, and the blue
chips Top-40 index was 0.81% firmer to 50,769 points.

Leading stocks was South African drugmaker Aspen Pharmacare Holdings Ltd,
which gained 10.97% to 94.25 rand after it lowered its full-year debt, which
had concerned investors as levels moved close to breaching debt covenants.

Resources also gained with the platinum index up 5.76%, benefiting from high
prices. Platinum producer Impala Platinum Holdings Ltd gained 6.37% to 90
rand, while Anglo American Platinum Ltd rose 5.72% to 897.05 rand.

Bucking the trend was Naspers spin-off Prosus which declined 2.88% to 1,168
rand a day after it made its Johannesburg Stock Exchange debut.

Bonds firmed, with the yield on the benchmark instrument due in 2026 falling
5.5 basis points to 8.105%.

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 0802 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> 

America

Stocks climb, bond yields off lows, on trade progress hopes

(Reuters) - A gauge of global stock markets touched its highest since late
July on Thursday after fresh hints of progress in the U.S.-China trade
dispute, sending bond yields off lows hit earlier in the wake of the
European Central Bank’s new stimulus measures.

On Wall Street, major equity indexes climbed to session highs after a
Bloomberg report said Trump administration officials have considered
offering a limited trade deal to China that would delay or possibly roll
back some tariffs, in exchange for assurances on intellectual property and
agricultural purchases.

The report comes on the heels of recent signs of a thaw in negotiations
between the world’s two largest economies, including the announcement by
China of some tariff exemptions on Wednesday.

Polcari noted the recent statements on trade between the two countries were
“all little steps towards coming up with something, that is why the headline
is not necessarily so surprising because you could almost feel like they
wanted to say something.”

Trading was volatile, as stocks quickly pared gains after a CNBC reported a
White House official denied the U.S. was considering such a deal.

The Dow Jones Industrial Average rose 76.5 points, or 0.28%, to 27,213.54,
the S&P 500 gained 10.59 points, or 0.35%, to 3,011.52 and the Nasdaq
Composite added 42.06 points, or 0.51%, to 8,211.74.

Stocks in Europe were whipsawed by the trade reports as well after climbing
on the earlier ECB policy statement, with the broad STOXX 600 index rising
as much as 0.75%.

The European Central Bank promised an indefinite supply of fresh asset
purchases and cut interest rates deeper into negative territory in an effort
to buttress the euro zone economy.

The pan-European STOXX 600 index rose 0.18% and MSCI’s gauge of stocks
across the globe gained 0.41%.

Euro zone bond yields fell and the euro weakened following the ECB
announcement but both eventually reversed course as the stimulus measures
failed to live up to dovish market expectations as well as a reaction to the
trade headlines.

After falling as low as a negative 0.124%, 30-year German yields were last
at a negative 0.022% after moving into positive territory earlier this week.

The dollar index, tracking the unit against six major currencies, fell
0.18%, with the euro up 0.3% to $1.1042.

Trade optimism also pushed yields on U.S. Treasuries higher after earlier
declines that were in sync with European bonds.

Benchmark 10-year notes last fell 6/32 in price to yield 1.7524%, from
1.733% late on Wednesday.

With the ECB decision in the rear view, attention now turns to the U.S.
Federal Reserve, which is widely expected to cut rates next Wednesday.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper rises to 6-week high as Trump delays tariffs

(Reuters) - Copper jumped to its highest level in six weeks on Thursday
after the United States said it would delay imposing a new round of tariffs
on China, raising hopes of a thawing of tensions that could bode well for
demand for the metal.

U.S. President Donald Trump welcomed China’s decision to exempt some U.S.
anti-cancer drugs and other goods from tariffs and announced a short delay
to scheduled tariff hikes on Chinese goods.

The world’s two largest economies have levied tariffs on hundreds of
billions of dollars worth of goods in a bitter trade war that has raised the
spectre of a global recession, with further tariffs slated to take effect in
coming months.

Copper, mainly used in power and construction, is seen as a bellwether for
the health of the global economy and has suffered amid softer growth. It is
also mainly consumed in China.

But he cautioned that Thursday’s gains may be short lived. “We have seen
some signs of easing in the trade dispute on a number of occasions, however
in each case these hopes were always disappointed.”

Benchmark copper on the London Metal Exchange (LME) gained 1% to $5,832
tonne after touching its highest level since Aug. 1 at $5,898.

STIMULUS: Copper prices dropped briefly after the European Central Bank
promised an indefinite supply of fresh asset purchases and cut interest
rates deeper into negative territory in an effort to prop up the ailing
economy.

TALKS: Lower-level U.S. and Chinese officials are expected to meet within
days in Washington ahead of talks between top trade negotiators in early
October.

INVENTORIES: Headline copper inventories in LME-approved warehouses eased
5,475 tonnes to 299,750, the lowest in a month. But that is still about 97%
higher this year. MCUSTX-TOTAL

SPREADS: The discount of LME cash copper over the three-month price hit $34
a tonne, its biggest since May 22, signalling plentiful supply. CMCU0-3

STOCKS: On the LME, the world’s largest and oldest metal trading platform,
on-warrant stocks of nickel available to the market fell 5,718 tonnes to
their lowest since Dec. 2008, at 77,628 tonnes. MNISTX-TOTAL

SPREADS: This helped to propel the premium of cash nickel over the
three-month contract to $102 a tonne, just below the decade-high of $104
seen on Aug. 30. CMNI0-3

OTHER METALS: Aluminium ended 1.2% lower to $1,803 a tonne, zinc eased 0.7%
to $2,347, lead shed 0.8% to 2,090, while tin lost 3.7% to $17,125 and
nickel added 0.5% to $17,990.

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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