Bulls n Bears Daily Market Commentary : 23 September 2019

Tue Sep 24 02:55:53 CAT 2019

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Bulls n Bears Daily Market Commentary : 23 September 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$5,021,064.97 with foreign buys at ZWL$ 1,171,796.70 and
foreign sales were ZWL$ 901,690.34 Total trades were 159.

The All Share index opened the week on a strong foot adding a significant
20.88 points to close at 217.25 points in a session mostly dominated by
heavyweight gains. BRITISH AMERICAN TOBACCO  rose by $3.0000 to $35.0000,
OLD MUTUAL LIMITED added $1.0514 to end at $34.7514 and DELTA was $0.6621
firmer at $4.2885.Other counters to advance include PPC  which increased by
$0.4900 to close at $2.9500 and ECONET was $0.2860 stronger at $1.7225.

POWERSPEED was the only counter losing ground easing $0.0301 to close at
$0.2505.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South African rand firmer against dollar, seen on backfoot

(Reuters) - South Africa’s rand firmed on Monday but traders expected gains
to be limited as uncertainty over the United States and China reaching a
trade deal any time soon and fears of a slowdown in global growth kept
investors on the sidelines.

The rand traded 0.6% firmer at 14.8450 per dollar at 1530 GMT.

Peregrine Treasury Solutions said in a note that while the rand had firmed
from a session low touched earlier, it had still started the week on the
“backfoot” as investors waited for more clarity over the U.S.-China talks.

Although Washington and Beijing labelled two days of talks last week as
“productive” and “constructive”, a deal appeared elusive after Chinese
officials unexpectedly cancelled a visit to farms in the U.S. on Friday.

Weaker-than-expected global economic data added to investor worries over the
trade dispute’s effects on the world economy.

The Top-40 stock index closed 1.55% lower at 49,559 points while the broader
all-share was down 1.39% at 55,622 points.

However, bucking the declines were mining shares, led by gold miners as
price of bullion rose.

Shares in Sibanye-Stillwater jumped 5.68%, Gold Fields shares rose 4.39%,
while AngloGold Ashanti was up 3.18%.

The yield on the benchmark 2026 government bond dipped 1 basis point to
8.285%. 

Kenya

Kenya central bank holds lending rate at 9.0% - statement

(Reuters) - Kenya’s central bank held its benchmark lending rate at 9.0% on
Monday, saying inflation expectations were within the target range, and that
the economy was operating close to its potential.

       <mailto:info at bulls.co.zw> 

America

Facebook currency   

Facebook was quick to promise that its Libra cryptocurrency would have the
stability of real-world money behind it, but whose money will dominate?

It’s now particularly clear. Facebook sent a letter to German politician
Fabio De Masi explaining that the US dollar will represent 50 percent of the
backing for Libra.

The remaining support will come from the euro (18 percent), Japanese yen (14
percent), British pound (11 percent) and Singapore dollar (7 percent).

If you were hoping for currency representation from more parts of the world,
you’ll be disappointed.

This isn’t surprising given Facebook’s home turf and the usual strength of
the US dollar. The absence of certain currencies might work in Libra’s
favor, too.

The absence of China’s yuan could appease American politicians scrutinizing
the currency by assuaging their fears of Chinese influence. US officials
have long accused China of softening the yuan to help its exports, and
Libra’s mix would make that a non-issue.

Whether or not this balance (or rather imbalance) helps is another matter.
The backing should prevent the volatility that has plagued Bitcoin and other
cryptocurrencies, but France, Germany and other countries are worried Libra
might undermine their own financial systems. 

 <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
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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
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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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