Bulls n Bears Daily Market Commentary : 13 September 2019

Sun Sep 15 23:15:57 CAT 2019

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Bulls n Bears Daily Market Commentary : 13 September 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$ 7,057,583.15 with foreign buys at ZWL$1,832,731.70 and
foreign sales were ZWL$2,831,048.50 Total trades were 138.

The All Share index added a further 0.83 points ending at 166.75 points. OLD
MUTUAL LIMITED gained another $1.5918 to close at $25.0418, SIMBISA BRANDS
LIMITED rose by $0.0700 to close at $0.6500 and SEEDCO LIMITED  traded
$0.0100 higher at $1.3600. Other counters trading in the positive were
DAIRIBOARD ZIMBABWE LIMITED  which advanced by $0.0100 closing at $0.3100
and AFRICAN SUN which increased by $0.0040 to end at $0.3500.

Gains were offset by the following losses; OK ZIMBAWE LIMITED traded $0.0285
lower at $0.3215, ECONET WIRELESS  shed $0.0091 ending at $1.1701 and SEEDCO
INTERNATIONAL lost $0.0023 to close at $2.1800. Two more counters to lose
ground were AXIA  which eased $0.0015 to close at $0.3850 and DELTA  which
dropped $0.0008 ending at $2.9000.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

S.Africa's rand firms as trade optimism lifts risk assets, stocks up

(Reuters) - South Africa’s rand firmed against the dollar on Friday, as
signs of a thaw in U.S.-China trade tensions and monetary easing in the euro
zone and Turkey buoyed developing world currencies.

Stocks also rose, led by the banking sector.

At 1530 GMT, the rand was 0.55% firmer at 14.5200 per dollar.

China resumed purchases of U.S. farm products, a move seen as a goodwill
gesture before trade talks next month. U.S. President Donald Trump said on
Thursday he did not rule out the possibility of an interim pact, although he
said an “easy” agreement would not be possible.

Risk appetite was also boosted after the European Central Bank on Thursday
pledged indefinite stimulus to revive an ailing euro zone economy, setting
the stage for a 25 basis point reduction in key borrowing costs from the
U.S. Federal Reserve next week.

On the bourse, stocks gained with the broader All-share index up 0.6% to
57,124 points, while the benchmark Top-40 index rose 0.74% to 51,146 points.

The banking index was up 1.89%, with Investec rising 4.61% to 89.62 rand,
while Absa increased 3.05% to 167 rand, and Capitec rose 2.25% to 1,274.00
rand.

Nick Kunze, portfolio manager at Sanlam Private Wealth, said the stronger
rand had lifted financial stocks.

South Africa’s second biggest insurer, Old Mutual, gained 1.67% to 20.08
rand after it said it wasn’t backing down in a dispute with its fired CEO
Peter Moyo.

Bonds weakened, with the yield on the benchmark instrument due in 2026
adding 4 basis points to 8.14%. 

Kenya

Kenyan shilling holds steady against the dollar

(Reuters) - The Kenyan shilling was stable against the dollar on Friday with
inflows from diaspora remittances meeting thin dollar demand from
merchandise

importers, traders said. 

At 0917 GMT, commercial banks quoted the shilling at 103.70/90 per dollar,
the same as Thursday's close. 

       <mailto:info at bulls.co.zw> 

America

Stocks, bond yields lifted by U.S.-China trade hopes

(Reuters) - A gauge of global stocks rose for an eighth straight day and
benchmark government bond yields climbed on Friday after signs of progress
in U.S.-China trade talks, as well as a solid U.S. retail sales report,
allayed recession worries.

Stocks on Wall Street were little changed, as weakness in tech companies
Apple and Broadcom helped erase initial gains fueled by positive signals on
the trade war between the world’s two largest economies. Financials were
among the best performers, aided by the rise in bond yields.

Still, the benchmark S&P 500 rose for a third straight week and stood about
0.6% from its record closing high set on July 26.

U.S. President Donald Trump said on Thursday he was potentially open to an
interim trade deal with China, although he stressed an “easy” agreement
would not be possible. That was followed up on Friday by China’s official
Xinhua News Agency announcing the country would exempt some U.S.
agricultural products, such as pork and soybeans, from additional tariffs.

Reports showing solid U.S. retail sales and a measure of U.S. consumer
sentiment above expectations added to the optimism and eased concerns about
economic growth, although the Federal Reserve was still widely expected to
cut rates at its policy meeting on Wednesday. The Bank of Japan is to follow
with its announcement on Thursday.

“We’ve had these small concessions back and forth, which at minimum gives
investors some confidence that things are moving in the right direction,”
said Joseph Sroka, chief investment officer at NovaPoint in Atlanta.

The Dow Jones Industrial Average rose 36.28 points, or 0.13%, to 27,218.73,
the S&P 500 lost 2.3 points, or 0.08%, to 3,007.27 and the Nasdaq Composite
dropped 17.75 points, or 0.22%, to 8,176.71.

European shares closed higher for a fourth straight session to notch their
fourth straight week of gains, as the positive tone surrounding the
U.S.-China trade talks pushed cyclical sectors such as banks and miners
higher.

The pan-European STOXX 600 index rose 0.34% and MSCI’s gauge of stocks
across the globe gained 0.20%. MSCI’s index notched its eighth straight day
of gains to mark its longest winning streak in nearly two years.

The U.S. economic data and easing of trade tensions helped lift bond yields
to multi-week highs, with yields on 10-year notes reaching a six-week high
and those on 30-year bonds touching their highest in five weeks.

Benchmark 10-year notes last rose 1-1/32 in price to yield 1.9046%, from
1.791% late on Thursday.

The euro gained against the dollar for a second day, although gains were
pared after the release of the U.S. data, as the European Central Bank on
Thursday exempted euro zone banks from a penalty charge, which analysts say
will reduce the currency impact of new stimulus.

The dollar index fell 0.12%, with the euro up 0.13% to $1.1075.

Oil prices dipped, and both Brent and WTI posted weekly declines. U.S. crude
settled down 0.44% at $54.85 per barrel and Brent was last at $60.22, down
0.26% on the day.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper touches 1-1/2 month high on optimism over trade talks

(Reuters) - Copper hit the highest in 1-1/2 months on Friday as investors
hoped an easing of trade tensions between the United States and China might
eventually boost metals demand.

Prices gained momentum during the session when speculators piled in after
key technical levels in copper were breached, including the 100-day moving
average, a trader said.

Lead also saw strong gains, hitting the highest in six months.

China will exclude some agricultural products from additional tariffs on
U.S. goods, China’s official Xinhua News Agency reported on Friday.

The move came after the two sides made conciliatory gestures on Thursday,
such as China renewing purchases of U.S. farm goods and Washington delaying
a tariff increase on certain Chinese goods by two weeks.

The prolonged trade war between the world’s two biggest economies has
weighed on global growth and the demand outlook for most industrial metals.

Three-month copper on the London Metal Exchange (LME) gained 2.5% in final
open-outcry trading to $5,975 a tonne, the highest since July 30.

Volumes were thinner than usual because the Shanghai Futures Exchange was
closed on Friday for the mid-autumn festival. It will resume trading on
Monday.

* NICKEL STOCKS: LME nickel fell 1.3% to close at $17,750 a tonne after LME
inventories rose 6.6% to 166,680 tonnes, the highest since June 24, easing
short-term shortages in LME warehouses.

* NICKEL SPREAD: The premium of LME nickel cash to the three-month contract
MNI0-3 had jumped to $163 a tonne by Thursday’s close, the highest since
2009, from $102 a tonne in the previous session, signalling tight nearby
supplies.

Traders said shortages had been exacerbated by a dominant position, with one
party holding over half of LME inventories and short-term futures.
<0#LME-WHT>

* VALE BRAZIL: Also pressuring nickel prices was news that Brazil’s supreme
court authorised Vale to restart nickel processing at its Onca Puma
operation in Brazil. Activity at the complex was suspended in June.

* INDONESIA COPPER: Indonesia’s energy ministry has approved a new
recommendation for a unit of Freeport McMoran Inc to raise copper
concentrate exports to 700,000 tonnes until March 2020.

* ALUMINIUM SHORT: The net speculative position for LME aluminium has
declined sharply from the recent peak of 31.7% of open interest on Sept. 3
to 6.8% on Wednesday, according to Marex Spectron estimates, the broker’s
Alastair Munro said in a note.

* PRICES: LME aluminium added 0.4% to finish at $1,810 a tonne while zinc
advanced 1.6% to $2,384, the highest since Aug. 2.

Lead climbed 1.4% to end at $2,106 after hitting $2,118 a tonne, the
strongest since March 15, and tin slid 3.8% to $16,475, the biggest one-day
fall since July 2.

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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