Bulls n Bears Daily Market Commentary : 26 September 2019

Fri Sep 27 09:10:42 CAT 2019

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Bulls n Bears Daily Market Commentary : 26 September 2019

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Zimbabwe Stock Exchange Update

Bullish impetus continues

The rising impetus continued in midweek session as the mainstream All Share
Index jumped 3.34% to 242.92pts while, the Industrials ticked up 3.28% to
close at 809.67pts. The ZSE Top Ten Index gained 2.75% to end at 233.12pts
on the back of firming demand in selected heavies. The Mining Index was up
6.34% at 317.75pts buoyed by Bindura that extended 15.38% to $0.1800.
Headlining the gainers of the day was Nampak that surged 20% to $0.5585,
trailed by National Foods which rose a similar 20% to trade at $8.4000.

SeedCo International and PPC added an identical 19.99% to settle at $2.7050
and $4.2475 apiece. Simbisa capped the top five risers of the day after
advancing 19.97% to close the session at $1.2750. Delta and Cassava emerged
as the only fallers as the duo let go 1.77% and 1.38% to end pegged at
$4.3213 and $2.0000 respectively. Overall, nineteen counters gained against
two fallers to set a positive market breadth of seventeen for the day.
Elsewhere, ZSE has lifted Falcon gold’s seven month suspension from trading.

Activity aggregates faltered in midweek session with volumes traded swelling
17.76% to 4.58m shares while, values trimmed 71.68% to $3.48m. Top volume
drivers of the day were OKZIM, Mash, Zimplow and Econet with a combined
contribution of 85.66%. Value outturn was propelled by Econet that accounted
for 10.93% of the aggregate. Local demand remained dominant as $37,065.40
worth of foreign inflows were recorded while, on the disposals side,
external players had $2.41m which accounted for 98.94% and 30.86% of the
day’s turnover.-Source EFE Securities

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  Global Currencies & Equity Markets

South  Africa

South African rand steadies, stocks close higher

(Reuters) - South Africa’s rand steadied against the dollar in afternoon
trade on Thursday, after hitting a new three-week low earlier in the session
as the greenback rose amid optimism over a trade deal between the United
States and China.

At 1540 GMT, the rand was flat at 14.9950 per dollar, after earlier hitting
a session low of 15.0850 - its weakest since Sept. 4.

Despite the opening of an impeachment inquiry into U.S. President Donald
Trump this week and mixed signals on a trade deal, the dollar has remained
resilient.

The potential for a trade deal between the world’s two largest economies was
on investors’ minds after Trump told reporters on Wednesday that the U.S.
and China were having “good conversations” and that an agreement “could
happen sooner than you think”.

Beijing confirmed on Thursday it was in talks with Washington to resolve
their tariff dispute.

The local bourse tracked emerging market shares higher on renewed Sino-U.S.
trade optimism, with the broader All-share index up 0.72% to 55,271 points,
while the blue chip Top-40 index rose 0.77% to 49,244 points.

Financials were among the big gainers, with the banking index rising 2.34%
as Standard Bank gained 2.79% to 180.91 rand, FirstRand rose 2.73% to 64.00
rand and Absa gained 2.22% to 160.50 rand.

Lender Capitec gained 0.44% to 1281.29 rand after it said profit for the
first half of the year grew 20%, in line with expectations, thanks to strong
customer growth and a smaller impairment charge.

In fixed income, the yield on the benchmark government bond due in 2026
dipped 3 basis points to 8.32%. 

Uganda

Ugandan shilling expected to weaken due to manufacturing sector demand

(Reuters) - The Ugandan shilling        was expected to weaken on Thursday
due to dollar demand from the manufacturing and retail sectors, traders
said.     At 1025 GMT, commercial banks quoted the shilling at 3,675/3,685,
compared with Wednesday's close of 3,670/3,680. 

       <mailto:info at bulls.co.zw> 

Asia

Asian shares drop to 3-week low, U.S. politics sours mood

(Reuters) - Asian shares slipped to three-week lows on Friday as the release
of a whistleblower complaint against U.S. President Donald Trump added to
worries about the global economy, already reeling from the China-U.S. trade
war.

MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.35%,
having fallen 1.65% so far this week, while Japan’s Nikkei slid 1.30%.

U.S. S&P 500 futures fell 0.13% in Asian trading after the index dropped
0.24% on Thursday.

European shares are expected to fare slightly better, with pan-European Euro
Stoxx 50 futures up 0.17%, German DAX futures rising 0.12% and FTSE futures
up 0.1%.

A whistleblower report released on Thursday said President Donald Trump not
only abused his office in attempting to solicit Ukraine’s interference in
the 2020 U.S. election for his political benefit, but that the White House
tried to “lock down” evidence about that conduct.

The report came after the Speaker of the U.S. House of Representatives Nancy
Pelosi launched an impeachment inquiry into him this week.

On trade issues, news headlines were too mixed for investors to show a clear
reaction.

CNBC reported that trade war talks were scheduled for Oct. 10-11 in
Washington, citing people familiar with the arrangements, and China’s top
diplomat said China was willing to buy more U.S. products.

But other media reports on Thursday that the United States is unlikely to
allow American firms to supply China’s Huawei Technologies undermined hopes
of a complete deal between the countries.

The damage is already evident as Micron Technology Inc , a major Huawei
supplier, forecast first-quarter profit below Wall Street targets, pushing
its share prices down 7% in after-hours trade.

That in turn hit chip-related shares in Asia such as Samsung Electronics, SK
Hynix and Tokyo Electron .

In the currency market, the euro hovered near a 2-1/2-year low amid concerns
about sluggish growth in the currency bloc, with rising fear of recession in
its biggest economy, Germany.

The euro stood at $1.0922 after earlier falling to $1.0904, the lowest since
May 12, 2017.

The gloomy outlook in Europe was in contrast to the United States, where
despite some pockets of weakness — such as manufacturing and consumer
sentiment — growth remained relatively robust, with the jobless rate at the
lowest in nearly 50 years.

Some market participants suspect the dollar was also helped by continued
tightness in dollar funding after U.S. short-term borrowing costs shot up
last week.

The dollar traded at 107.67 yen, down slightly after climbing to 107.96 on
Thursday.

Sterling traded at $1.2330, near two-week low of $1.2303 hit on Thursday, as
investors waited for the British parliament’s next attempt to break the
Brexit impasse.

The Mexican peso weakened to a 2-1/2-week low of 19.680 to the dollar after
Mexico’s central bank cut its key interest rate on Thursday, with more cuts
seen on the horizon.

Oil prices fell on Friday as signs of the rapid return of output from Saudi
Arabia, the world’s biggest exporter, after a Sept. 14 attack on its
production facilities reduced concerns about potential supply disruptions.

Brent crude futures fell 0.89% to $62.18 a barrel but stayed above
Wednesday’s low of $61.23, while U.S. West Texas Intermediate (WTI) crude
lost 0.57% to $56.08 per barrel, off their low of $55.41 on Thursday. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold set for weekly loss as dollar firms on safe-haven inflows

(Reuters) - Gold traded flat early on Friday but the metal was poised to end
the week lower, as investors preferred the safety of the dollar in the wake
of political uncertainties in the United States.

FUNDAMENTALS

* Spot gold was unchanged at $1,505.74 per ounce, as of 0133 GMT. Prices
were down 0.7% for the week, after rising about 2% last week.

* U.S. gold futures were 0.2% lower at $1,512.6 per ounce.

* The dollar was holding near multi-week highs against most major
currencies, while Asian shares were on course for a second straight weekly
loss.

* A whistleblower report released on Thursday said President Donald Trump
not only abused his office in attempting to solicit Ukraine’s interference
in the 2020 U.S. election for his political benefit, but that the White
House tried to “lock down” evidence about that conduct.

* U.S. inflation expectations are currently in line with the central bank’s
2% goal, Federal Reserve Vice Chair Richard Clarida said on Thursday, a
remark that suggests he does not see a pressing need for new rate cuts to
push inflation back up.

* U.S. business investment contracted more sharply than previously estimated
in the second quarter and corporate profit growth was tepid, casting a
shadow on an economy that is being stalked by financial market fears of a
recession.

* China’s top diplomat said on Thursday that China was willing to buy more
U.S. products, and said trade talks would yield results if both sides “take
more enthusiastic measures” to show goodwill and reduce “pessimistic
language” in their trade dispute.

* U.S. is unlikely to extend a waiver allowing American firms to supply
China’s Huawei Technologies, Bloomberg reported on Thursday, citing a
government official.

* Britain has yet to provide “legal and operational” proposals that could
break the impasse over its departure from the European Union, the EU’s
Brexit negotiator Michel Barnier said on Thursday.

* China’s net monthly gold imports via Hong Kong in August surged nearly
61%, after falling to their lowest in more than eight years in July, the
Hong Kong Census and Statistics Department data showed on Thursday.

* Gold production in Russia for the first five months of this year rose to
101.44 tonnes from 92.56 tonnes in the same period a year earlier, Russia’s
finance ministry said on Thursday.

DATA AHEAD 0645 France CPI (EU Norm) Prelim YY Sept 0900 EU Consumer Confid.
Final Sept 1230 US Consumption, Adjusted MM Aug 1230 US Durable Goods Aug
1230 US U Mich Sentiment Final Sept 

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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