Bulls n Bears Daily Market Commentary : 25 September 2019

Thu Sep 26 01:43:33 CAT 2019

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Bulls n Bears Daily Market Commentary : 25 September 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL3,484,793.73 with foreign buys at ZWL$ 37,065.40 and
foreign sales were ZWL$ 2,409,532.90 Total trades were 168.

The All Share index continues with its bullish trend after gaining 7.86
points to close at 242.92 points. BRITISH AMERICAN TOBACCO gained $6.8676 to
close at $42.2500, NATIONAL FOODS rose by $1.4000 to $8.4000 and PPC traded
$0.7075 higher at $4.2475. SEEDCO INTERNATIONAL LIMITED also added $0.4507
to end at $2.7050 and PADENGA HOLDINGS traded $0.3843 firmer at $2.3172.

Trading in the negative:DELTA CORPORATION traded $0.0778 lower at $4.3213
and CASSAVA SMARTECH ZIMBABWE LIMITED lost $0.0279 closing at

$2.0000

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  Global Currencies & Equity Markets

South Africa

South African rand weaker on U.S. inquiry into Trump impeachment, stocks
fall

(Reuters) - South Africa’s rand weakened on Wednesday after the launch of a
formal impeachment inquiry against U.S. President Donald Trump rattled
global markets.

At 1515 GMT, the rand was down 1.03% at 15.0150 versus the dollar.

The move by Democrats in the U.S. Congress on Tuesday to launch a formal
impeachment inquiry of Trump unnerved global investors, dampening demand for
riskier assets.

Trump also fanned U.S.-Sino trade fears on Tuesday delivered a stinging
rebuke to China’s trade practices at the United Nations General Assembly,
though he told reporters after the South African stock market close on
Wednesday that a trade deal could happen sooner than expected.

Locally, the country’s central bank said on Wednesday South Africa saw
larger foreign direct investment (FDI) inflows in the second quarter of the
year, worth 26.3 billion rand ($1.75 billion).

In fixed income, government bond prices slipped, with the yield on the
benchmark note maturing in 2026 up 0.5 basis points at 8.35%.

On the bourse, stocks fell with the broader All-share index down 1.3% at
54,877 points, while the blue-chip Top-40 index weakened 1.4% to 48,865
points.

Dragging the bourse lower were financials which declined 2.2%, with
RandMerchant Bank down 3.3% to 75.51 rand, while FirstRand fell 2.87% to
62.30 rand, and Absa closed down 2.8% at 157.01 rand.

Bullion miners rose 2.66%, benefiing from safe haven buying.

Gold Fields increased 4.1% to 81.20 rand, Sibanye-Stillwater gained 3.6% to
20.83 rand, and AngloGold American strengthened 2.2% to 312.31 rand.

Clover Industries Ltd shares rose 4.75% to 23.59 rand after South Africa’s
competition watchdog on Wednesday approved its takeover by Milco SA, for 4.8
billion rand.

“I think there’s been so much speculation about this deal being on and off.
It seems like it’s going to go through. They’ve passed all the hurdles...so
it’s looking good,” said Gerhard Parkin, portfolio manager at BP Bernstein.
($1 = 15.0290 rand)

Kenya

Kenyan shilling steady, remittances help meet end-month demand

(Reuters) - The Kenyan shilling was stable on Wednesday and was forecast to
trade in a narrow range with inflows from diaspora remittances expected to
match end month dollar demand from the energy and manufacturing sectors,
traders said.

At 0922 GMT, commercial banks quoted the shilling at 103.75/95 per dollar,
compared with 103.80/104.00 at Tuesday's close. 

       <mailto:info at bulls.co.zw> 

America

Stocks rise, investors cool to impeachment talk

(Reuters) - The dollar rose and stocks on Wall Street lifted a gauge of
global equities on Wednesday on robust U.S. housing data and the notion a
strong economy would overcome any investor skittishness over a possible
impeachment of President Donald Trump.

European shares cut losses and U.S. stock indexes turned higher early in the
session after Trump said a trade deal with China could happen sooner than
expected.

Trump made the remarks to reporters a day after delivering a stinging rebuke
to China’s trade practices at the United Nations General Assembly, saying he
would not accept a “bad deal.”

Stocks in Europe were pressured by political uncertainty after Democrats in
the U.S. House of Representatives moved to launch a formal impeachment
inquiry of Trump.

But Wall Street shrugged off an impeachment investigation, with the
benchmark S&P 500 posting its biggest daily gain in two weeks. Yields on
U.S. Treasury long-dated debt rose after falling for seven straight
sessions.

The White House released a summary of a telephone call between Trump and
Ukraine’s president, who said he was not pushed to investigate former Vice
President Joe Biden, the front-runner for the 2020 Democratic presidential
nomination.

MSCI’s gauge of stocks across the globe rose 0.01%. The pan-European STOXX
600 index closed down 0.58% while in London, the FTSE 100 index fell 0.02%.

Michael Antonelli, market strategist at Robert W. Baird in Milwaukee, said
good economic data is fighting with political noise and good data is
winning.

Sales of new U.S. single-family homes rebounded more than expected in
August, the latest sign that lower mortgage rates were starting to boost the
struggling housing market.

The Dow Jones Industrial Average rose 162.94 points, or 0.61%, to 26,970.71.
The S&P 500 gained 18.25 points, or 0.62%, to 2,984.85 and the Nasdaq
Composite added 83.76 points, or 1.05%, to 8,077.38.

The dollar benefited from a sharp pullback for the pound amid worries about
nagging Brexit- and election-related risks.

The dollar index rose 0.71%, with the euro down 0.69% to $1.0942. The
Japanese yen weakened 0.67% versus the greenback at 107.81 per dollar.

Most yields on 10-year euro zone bonds yields rose in late trade following
Trump’s comment U.S.-China trade.

Germany’s 10-year Bund yield rose 2 bps at -0.58% .

Yields on U.S. 10-year Treasury notes rose 27/32 in price to yield 1.7302%.

Oil prices fell for a second day as U.S. crude inventories unexpectedly
surged 2.4 million barrels in the week to Sept. 20, according to the Energy
Information Administration, instead of declining 249,000 barrels as analysts
expected.

Crude prices fell after Trump said on Tuesday he saw a path to peace with
Iran, easing supply fears after the Sept. 14 attack on Saudi Arabia’s oil
facilities that halved its output. The kingdom and the United States have
blamed Iran for the attack.

Brent crude futures settled down 71 cents at $62.39 a barrel. U.S. West
Texas Intermediate crude fell 80 cents to settle at $56.49 a barrel.

U.S. gold futures settled down 1.8% at $1,512.3 an ounce.

 <mailto:info at bulls.co.zw> 

Commodities Markets

China's stainless steel futures slip on debut as trade war worries bite

(Reuters) - Chinese stainless steel futures fell as much as 2% in their
first day of trading on Wednesday as the latest episode in the bruising
trade war between Washington and Beijing fanned concerns about ferrous
metals demand.

The front-month February 2020 stainless steel contract fell to a low of
15,280 yuan ($2,147.45) on the Shanghai Futures Exchange (ShFE) from a base
price of 15,585 yuan, before closing down 0.1% at 15,575 yuan.

In a speech on Tuesday at the United Nations General Assembly, U.S.
President Donald Trump said he would no longer tolerate China’s trade
practices, and that he would not accept a “bad deal” in their trade
negotiations.

China’s foreign minister and state councilor Wang Yi said Beijing would not
bow to threats, including on trade, while expressing hopes that a round of
high-level trade talks next month would produce positive results.

The trade dispute, which has darkened the economic growth outlook for China
and developing Asia, could well persist into 2020, the Asian Development
Bank said on Wednesday.

China is in no rush to follow other countries in significantly loosening
monetary policy, though it has ample options to help prop up slowing growth,
its central bank head said on Tuesday.

Stainless steel’s market debut saw trading volume reached 186,460 lots of
five tonnes each, with only a few companies participating in the first batch
of trade.

China’s stainless steel inventory has been rising amid a downbeat demand
outlook, putting further pressure on prices.

FUNDAMENTALS

* China’s stainless steel stockpiles have doubled from the start of the year
and stood at 588,000 tonnes as of Sept. 12, according to data from Argonaut
Securities, up 37% year on year.

* Coke, a steelmaking raw material, led losses in China’s ferrous metals
futures markets as demand slowed amid output curbs on steel and coke due to
a stricter anti-smog campaign ahead of China’s National Day celebrations
next week.

* The most-traded coke contract on the Dalian Commodity Exchange closed down
2.3% at 1,895.50 yuan a tonne, after dropping as much as 3.3% earlier in the
session.

* Dalian coking coal extended losses into a seventh session, falling nearly
1% to 1,256 yuan a tonne.

* Dalian iron ore ended 1.7% lower at 624.50 yuan a tonne.

* Shanghai steel futures retreated after Tuesday’s gains, with construction
steel rebar down 0.5% at 3,498 yuan a tonne.

* Hot-rolled steel coil, used in cars and home appliances, slipped 0.3% to
3,511 yuan a tonne.

($1 = 7.1154 yuan)

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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