Bulls n Bears Daily Market Commentary : 19 September 2019

Fri Sep 20 01:23:06 CAT 2019

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Bulls n Bears Daily Market Commentary : 19 September 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$ 6,325,517.76 with foreign buys at ZWL$1,121,258.54 and
foreign sales were ZWL$1,669,371.00 Total trades were 143.

The All Share index continues to gain ground after adding 3.47 points to
close at 176.99 points. PADENGA HOLDINGS LIMITED  rose by $0.1524 to end at
$1.7997, SEEDCO LIMITED traded $0.1017 higher at $1.6017 while DELTA  put on
$0.1001 to end at $3.2013. Other counters trading in the positive were
INNSCOR AFRICA  which advanced by $0.0636 to close at $1.9636 and NMB
HOLDINGS which gained $0.0630 to close at $0.3780.

Trading in the negative; ARISTON  lost $0.0154 to end at $0.0786 and ZIMRE
HOLDINGS  traded $0.0091 lower at $0.0374. 

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  Global Currencies & Equity Markets

South Africa

South African rand slips back as central bank holds key rate, stocks down

(Reuters) - South Africa’s rand was slightly weaker on Thursday after the
central bank left its main interest rate on hold as expected.

At 1403 GMT, the rand was 0.2% weaker and trading at 14.7275 per U.S.
dollar, slipping back from gains made in earlier trading.

The South African Reserve Bank (SARB) kept the repo rate at 6.5% in a
unanimous decision on Thursday, in line with market expectations.

South Africa’s inflation outlook has been relatively benign, with price
rises well within the SARB’s 3%-6% target range. But economic growth this
year has been sluggish.

Future rate cuts could hinge on an important credit rating review in
November, a Reuters poll found.

Stocks traded weaker, with the broader All-share index down 0.17% to 56,124
points while the benchmark Top-40 index fell 0.11% to 50,078 points.

Retailers fell, with Woolworths down 2.31% to 57.48 rand, the Foschini Group
slipping 1.96% to 162.50, and Clicks declining 1.78% to 215.86 rand.
Shoprite also fell 0.61% to 127.70 rand.

Mr Price, however, gained 0.79% to 159.05 rand despite announcing it faces a
potential loss of up to 20 million rand ($1.36 million) following an
internal investigation into allegations of non-compliance.

Government bonds remained unchanged, with the yield on the 2026 bond at
8.21%. ($1 = 14.6934 rand)

Uganda

Ugandan shilling holds steady due to even dollar demand

(Reuters) - The Uganda shilling        was stable on Thursday as importer
demand for dollars remained broadly unchanged. At 0944 GMT, commercial banks
quoted the shilling at 3,670/3,680, compared with Wednesday's close of
3,665/3,675. 

       <mailto:info at bulls.co.zw> 

America

Shares edge up after Fed rate cut, oil prices gain

(Reuters) - A gauge of global equity performance edged higher on Thursday, a
day after the Federal Reserve cut interest rates, but crude oil prices
climbed higher on concerns last weekend’s attacks on Saudi Arabia’s oil
facilities pose supply risks.

Iran warned U.S. President Donald Trump against being dragged into all-out
war in the Middle East after the attacks, which Washington and Riyadh blame
on Tehran.

About half of Saudi crude production was disabled, putting severe limits on
the country’s spare capacity, a cushion for global oil markets if an outage
occurs.

Brent crude futures, the global benchmark, gained 80 cents to settle at
$64.40 a barrel, while U.S. West Texas Intermediate crude settled up 2 cents
at $58.13 a barrel.

European banking shares rose 1.9% and the Swiss franc posted its biggest
gain in two weeks after the Swiss National Bank declined to match the
European Central Bank and the Fed in easing monetary policy.

Major central banks have been loosening policy, mostly by cutting rates, to
stem a slowdown in global growth.

Upbeat U.S. data suggests the U.S. economy is still on a moderate growth
path. The number of Americans filing for unemployment benefits increased
less than expected last week, pointing to strong labor market conditions.

The pan-regional FTSEurofirst 300 index of leading European shares closed up
0.64%. MSCI’s gauge of stocks across the globe rose 0.08%, paring gains that
put the index within 1% of its record high.

MSCI’s emerging markets index fell 0.6%.

Gains in Microsoft Corp pushed the S&P 500, the U.S. equity benchmark,
closer to its record high, while a rally in bank stocks lifted European
shares after the Fed set a higher bar for further rate reductions on
Wednesday.

Microsoft, the biggest U.S. stock by market cap, valued at $1.08 trillion,
hit $142.37 before paring some gains to close up 1.8% at $141.07. The S&P
500 at one point traded 6 points below its all-time peak of 3,027.98 set in
July.

Wall Street closed little changed, with the Dow Jones Industrial Average
falling 52.29 points, or 0.19%, to 27,094.79. The S&P 500 gained 0.06
points, or 0.00%, to 3,006.79 and the Nasdaq Composite added 5.49 points, or
0.07%, to 8,182.88.

The U.S. dollar fell against the euro, the Swiss franc and the Japanese yen
after the Fed cut rates by 25 basis points on Wednesday to provide insurance
against the risk of weaker global growth and resurgent U.S-China trade
tensions.

Sterling jumped, rising 0.64% to $1.2548, after European Commission
President Jean-Claude Juncker said a Brexit deal is possible.

The dollar index fell 0.21%, with the euro up 0.12% to $1.1042. The Japanese
yen strengthened 0.39% versus the greenback at 108.05 per dollar.

U.S. Treasury yields fell after division appeared among policymakers on
whether the Fed would cut rates further and as pressures in the short-term
funding markets eased.

Benchmark 10-year notes fell 3/32 in price to push their yield down to
1.7944%.

U.S. gold futures settled down about $9, or 0.6%, to $1,506.20 an ounce.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold gains support from weaker dollar after less-dovish Fed

(Reuters) - Gold prices gained on Thursday, helped by a weaker dollar and as
investors looked for clarity on future U.S. interest rates after the Federal
Reserve on Wednesday signaled a higher bar to further reductions in
borrowing costs.

Spot gold was up 0.2% to $1,497.30 per ounce at 11:24 a.m. EDT (1524 GMT),
after falling to $1,484.16, a one-week low, in the previous session.

U.S. gold futures dipped 0.7% to $1,504.90 an ounce.

The Fed cut interest rates for the second time this year on Wednesday to
help sustain economic expansion, but signaled a higher bar to further
reductions as the labor market remained strong.

Helping bullion, the dollar index dipped against a major basket of
currencies, as it struggled to gain in the face of the less dovish Fed
meeting.

Lower interest rates decrease the opportunity cost of holding non-yielding
bullion.

Central banks from around the world face increasing pressure to offer
monetary support as the U.S.-China trade war hurts global growth.

Gold also witnessed some safe haven demand after Iran warned the United
States against any direct combat in the Middle East following an attack on
Saudi oil facilities that Washington and Riyadh blamed on Tehran.

Separately, palladium climbed 2% to $1,625.79, hovering close to the record
peak of $1,626.81 touched on Monday.

U.S. and Chinese deputy trade negotiators were set to resume face-to-face
talks for the first time in nearly two months on Thursday.

Silver edged 0.1% higher to $17.76 an ounce, while platinum rose 0.9% to
$938.96.

LME copper declines on weak demand and a guarded Fed

(Reuters) - Copper prices eased on Thursday as the market focused on weak
demand in top consumer China and a meeting in Washington between Chinese and
U.S. officials aimed at resolving a prolonged trade dispute.

Benchmark copper on the London Metal Exchange was untraded in official rings
but was bid 0.5% down to $5,785 a tonne.

TRADE: U.S. and Chinese officials resume face-to-face talks for the first
time in nearly two months as the world’s two largest economies try to bridge
policy differences and find a way out of their bitter trade war.

The negotiations on Thursday and Friday are aimed at laying the groundwork
for high-level talks in early October that will determine whether the two
countries are working towards a solution or are headed for new, higher
tariffs on each other’s goods.

RATES: The U.S. Federal Reserve cut interest rates on Wednesday to help to
sustain a record-long economic expansion but signalled a higher bar to
further reductions to borrowing costs.

Describing the U.S. economic outlook as “favourable”, Fed Chair Jerome
Powell said the rate cut was designed “to provide insurance against ongoing
risks” including weak global growth and resurgent trade tensions.

TECHNICALS: Price support for copper comes in at the 21-day moving average
around $5,760. Upside moves face the 50-day moving average around $5,830
followed by the 100-day moving average at $5,900.

NICKEL: The premium for cash nickel over the three-month contract ended at
$105 a tonne on Wednesday after flaring out to $150, near the $163 hit last
week, its highest since April 2009.

Traders said the rise was because of nervousness about availability of the
steelmaking ingredient on the LME market owing to one company holding large
numbers of warrants <0#LME-WHL> and falling stocks in LME-approved
warehouses. MNISTX-TOTAL

Three-month nickel was down 0.5% at $17,110 a tonne.

PRICES: Aluminium gained 0.2% to $1,790, zinc fell 0.9% to $2,298, lead rose
1% to $2,091 and tin was down 1% at $16,475. 

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
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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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