Bulls n Bears Daily Market Commentary : 20 September 2019

Mon Sep 23 02:44:09 CAT 2019

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Bulls n Bears Daily Market Commentary : 20 September 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$10,833,469.98 with foreign buys at ZWL$ 2,799,140.34 and
foreign sales were ZWL$ 3,019,701.62 Total trades were 158.

The All Share index continued to gain ground after adding 19.38 points  to
close at 196.37 points. OLD MUTUAL LIMITED added $5.6000 to close at
$33.7000, BRITISH AMERICAN TOBACCO ZIMBABWE  rose by $1.9000 to end at
$32.0000, while DELTA gained $0.4251 to end at $3.6264. Other counters
trading in the positive were PRETORIA PORTLAND CEMENT   which traded $0.4075
higher at $2.4600 and INNSCOR AFRICA  advanced by $0.3560 to close at
$2.3196.

PADENGA HOLDINGS LIMITED   was the only counter that lost ground,trading
$0.0621 lower at $1.7376. 

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Asia Gold-Demand tepid in top markets, India muted ahead of festivals

(Reuters) - Physical gold demand was lacklustre in most Asian hubs this week
as price dips were not enough to lure in buyers and the Indian retail market
saw little activity before a festival season.

Global benchmark prices slipped about 1% on Wednesday, moving between
$1,484.16 and $1,511.91 an ounce this week.

Dealers in the world’s biggest gold consumer charged a premium of about $10
an ounce over the benchmark, compared with $8-$11 a week ago.

Premiums in Hong Kong were unchanged at 50 cents to $1, as demand was weak
and buying only came from the investment side, said Ronald Leung, chief
dealer at Lee Cheong Gold Dealers.

In India, the world’s second biggest gold market, the fall in domestic
prices to their lowest in more than a month failed to lift demand because of
the Shradh period, which is considered inauspicious for buying bullion.

Gold futures were trading around 37,500 rupees per 10 grams on Friday after
falling to their lowest level since Aug. 13 earlier in the session.

Dealers were offering a discount of up to $47 an ounce over official
domestic prices this week compared with last week’s discounts of about $51,
the highest since August 2016.

The domestic price includes a 12.5% import tax and 3% sales tax.

Demand for gold usually strengthens in the final quarter as India gears up
for festivals such as Diwali and Dussehra, when buying gold is considered
auspicious.

Premiums in Singapore narrowed to $0.55-$0.75 an ounce from last week’s
$0.50-$0.80 range, although there was some interest from retailers and
wholesalers in the region, traders said.

Buying slowed and investors were monitoring global prices after a recent
correction, said Silver Bullion sales manager Vincent Tie.

In Japan, discounts narrowed to $0.25 per ounce from $0.50 last week as a
depreciation in the Japanese yen discouraged buyers, a Tokyo-based trader
said.

Gold priced in yen was holding closing to its highest on record, scaled
earlier in the month. 

BHP expects to meet iron ore commitments despite Jimblebar maintenance

(Reuters) - BHP Group said on Monday it expects to meet all customer
commitments on iron ore shipments, despite maintenance at its Jimblebar and
Newman mines in Western Australia.

BHP was commenting after speculation in China last week of problems at its
Jimblebar ore handing plant and reclaimer facilities, as well as port
maintenance, fanned supply concerns. 

       <mailto:info at bulls.co.zw> 

EMERGING MARKETS

India tax break, China rate cut lift stocks; FX rises

(Reuters) - A surge in Indian shares led emerging markets higher on Friday,
after the government announced deep cuts in corporate taxes to revive
flagging growth, while a widely expected domestic interest rate cut from
China added to the chipper mood.

Indian shares surged 5% and were set for their best day in over a decade
after Finance Minister Nirmala Sitharaman said the effective corporate tax
rate would be lowered to about 25% from 30% and scrapped the minimum
alternative tax for domestic companies.

The move is aimed at reviving private investment, which may help lift growth
for Asia’s third-largest economy from a six-year low that has caused job
losses and fuelled discontent.

Growth “will struggle to push that 7% threshold unless a large scale
stimulus package comes by,” he said.

That surge helped MSCI’s index for emerging market stocks rise 0.5%, with
the rupee also the star performer among emerging currencies, strengthening
0.6%.

Adding to stimulus hopes was a cut in China’s key domestic lending rate for
the second month in a row, aimed at lower borrowing costs for companies and
consumers in the slowing economy.

China’s two main share indexes moved 0.3% higher but ended the week lower as
Beijing’s stance on overall monetary easing was seen as cautious with
policymakers remaining reluctant to join a global stimulus wave.

Indices outside Asia were mixed with Moscow stocks shedding 0.4% but those
in Johannesburg and Istanbul moving 0.3% higher.

Most developing world currencies marched higher against as feeble dollar
with South Africa’s rand up 0.4%, recovering ground it lost in the previous
session after the central bank left its main interest rate on hold at 6.5%.

Russia’s rouble strengthened 0.3%, on course to deliver a third week of
gains as oil prices headed for their biggest weekly gain in months. 

 <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
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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