Bulls n Bears Daily Market Commentary : 27 September 2019

Mon Sep 30 08:17:47 CAT 2019

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Bulls n Bears Daily Market Commentary : 27 September 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$15,124,090.90 with foreign buys at ZWL$ 1,460,268.25 and
foreign sales were ZWL$ 1,356,300.00 Total trades were 219.

The All Share ended the week on a lower note, retreating by 0.81 points to
end at 232.04 points. OLD MUTUAL LIMITED  lost another $4.9057 to close at
$25.0500, PADENGA HOLDINGS LIMITED   shed $0.1998 to close at $2.2502 and
SEEDCO INTERNATIONAL LIMITED   traded $0.1181 lower to end at $2.6840.
SEED-CO

LIMITED ZIMBABWE also lost $0.0879 to $2.1342 and ECONET WIRELESS   traded
$0.0692 weaker at $1.8958.

Trading in the positive: BRITISH AMERICAN TOBACCO advanced by $7.7500 to
close at $50.0000, INNSCOR AFRICA traded $0.5077 firmer at $3.0612 and
SIMBISA BRANDS  added $0.1893 to end at $1.4675. MEIKLES LIMITED advanced by
$0.1289 to end at $1.4814 while PROPLASTICS LIMITED  added

$0.1140 to close at $0.6900.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Uganda

Ugandan shilling flat as thin volumes, liquidity mop-up offer support

(Reuters) - The Ugandan shilling was unchanged on Friday amid thin trading
volumes on both counters, while a mop-up of excess local currency liquidity
in the previous session was expected to offer additional support.

At 0828 GMT commercial banks quoted the shilling at 3,675/3,685, same level
as Thursday’s close.

South Africa

South African rand knocked by U.S.-China tensions

(Reuters) - The rand dropped against the U.S. dollar on Friday, knocked by
reports that U.S. President Donald Trump’s administration was weighing new
restrictions on China, a major trading partner for South Africa.

At 1440 GMT, the rand was at 15.1700 versus the dollar , 0.8% weaker than
its previous close.

The U.S. government is considering the possibility of delisting Chinese
companies from U.S. exchanges, a source briefed on the matter said on
Friday, in what would be a radical escalation of trade tensions between the
U.S. and China.

The move would be part of a broader effort to limit U.S. investments into
China, the source said, confirming an earlier report by Bloomberg.

The South African currency was on course for losses of around 1.5% against
the dollar this week, also hurt by longstanding worries over the health of
the domestic economy.

President Cyril Ramaphosa has found it hard to lift the growth rate from a
deep slump, despite the optimism that accompanied his rise to power in
February 2018.

Peregrine Treasury Solutions said in a research note that 15.20 to the
dollar could be a near-term target for the rand after recent weakness.

But the rand is highly volatile, given that some investors use it as a proxy
for emerging market risk.

South African government bonds were little changed on Friday, with the yield
on benchmark 2026 bond dipping 2.5 basis points to 8.295%.

The Johannesburg Stock Exchange’s All-share index closed down 0.11% at
55,209 points.

Gold stocks lost their shine, down 4.54%, as investors sought safety in the
strong U.S. dollar.

AngloGold Ashanti declined 6.68% to 288.26 rand, Gold Fields shed 4.68% to
77.80 rand and Harmony fell 2.14% to 44.77 rand.

       <mailto:info at bulls.co.zw> 

Asia

Asian shares mostly flat, Japan hurt by Sino-U.S. tensions

(Reuters) - Asian stock markets, including China’s, were little changed on
Monday, shrugging off news that the U.S. administration is considering
delisting Chinese companies from U.S. stock exchanges.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.05%
while China’s Shanghai stock index slipped 0.2%, barely responding to any of
the concerns around the latest Sino-U.S. tensions that caused the Nasdaq
index to fall more than 1% on Friday.

Risk assets took a hit in U.S. trade on Friday following news the Trump
administration is considering radical new financial pressure tactics on
Beijing, including the possibility of delisting Chinese companies from U.S.
stock exchanges.

The report knocked Chinese shares listed on U.S. exchanges, with Alibaba
Group Holding falling 5.15% and JD.com 5.95% on Friday.

Worries such an escalation would hurt Japan the most however weighed on the
Nikkei, which shed 0.45%. U.S. stock futures gained 0.44%, paring most of
Friday’s 0.53% fall in the index.

Trading in Chinese markets was quiet ahead of a long break. Chinese share
markets will trade only on Monday this week ahead of the country’s National
Day holiday, which runs until Oct. 7.

There were mixed signals from China’s manufacturing surveys on Monday, which
showed sustained weakness in exports and surprising improvement in domestic
consumption indicators, and a Chinese central bank statement briefly hinting
at plans for more stimulative policies.

China’s yuan was little moved at 7.1192 yuan per dollar, while the offshore
yuan rallied a bit from Friday’s three-week low of 7.1520.

The delisting of Chinese companies from U.S. stock exchanges was part of a
broader effort to limit U.S. investment in Chinese companies, two sources
briefed on the matter told Reuters.

A U.S. Treasury official said the United States does not currently plan to
stop Chinese companies from listing on U.S. exchanges, Bloomberg reported on
Saturday.

“While China runs a current account surplus and is a net creditor nation,
Chinese companies are net debtors and rely on foreign capital,” Koji Fukaya,
president of Office Fukaya Consulting.

“Washington seems to be trying to limit Chinese companies’ activities by
putting pressure on their funding,” he said.

Still, with trade talks between the United States and China expected to be
held Oct. 10-11, many market players are hoping such drastic measures on
capital markets will be avoided.

U.S. data on Friday showed consumer spending barely rose in August and
business investment remained weak, suggesting the American economy was
losing momentum as the trade dispute drags on.

Industrial output in Japan and South Korea, released Monday morning, dropped
more than expected, underscoring the headwinds from the trade war.

Investors are also keeping a wary eye on U.S. politics.

U.S. House Speaker Nancy Pelosi said public opinion is now on the side of an
impeachment inquiry against Trump following the release of new information
about his conversations with Ukrainian President Volodymyr Zelenskiy.

Major currencies were little changed in early trade.

The yen traded flat at 107.94 yen.

The euro hovered around $1.0932, having sunk to a 28-month low of $1.0904 on
Friday as concerns about tepid growth in Europe weighed on the common
currency.

Sterling traded at $1.2285, not far from Friday’s low of $1.2270, its lowest
since Sept. 9.

Boris Johnson said on Sunday he would not quit as Britain’s prime minister
even if he fails to secure a deal to leave the European Union, insisting
only his Conservative government can deliver Brexit on Oct. 31.

Oil prices slightly rebounded after last week’s slide.

Saudi Arabia’s crown prince warned in an interview with CBS program “60
Minutes” aired on Sunday that crude prices could spike to “unimaginably high
numbers” if the world does not come together to deter Iran.

But Crown Prince Mohammed bin Salman said he would prefer a political
solution to a military one, adding the Sept. 14 attacks on the kingdom’s oil
facilities were an act of war by Iran.

Brent crude futures rose 0.05% to $6.94 a barrel while U.S. West Texas
Intermediate (WTI) crude gained 0.25% to $56.05 per barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Oil, shares fall on potential limit on China investments

(Reuters) - Oil prices and a gauge of global equity markets fell on Friday
on media reports that the administration of President Donald Trump may limit
U.S. portfolio investments into China, a move that would mark an escalation
of U.S.-Sino trade tensions.

The delisting of Chinese companies from U.S. stock exchanges was part of a
broad effort to limit U.S. investment in Chinese companies, two sources
briefed on the matter told Reuters.

Shares on Wall Street pared gains to close down. The benchmark S&P 500
posted its biggest weekly loss since Aug. 23, and the Nasdaq posted its the
biggest weekly loss since Aug. 2.

Chinese shares listed on U.S. exchanges tumbled, with Alibaba Group Holding
falling 5.15% and JD.com 5.95%. Baidu slipped 3.67%.

Renewed high-level trade talks between Washington and Beijing are scheduled
for next month.

“If our policies spark a major sell-off in Shanghai where that creates
problems for China, that could negatively impact the trade negotiations,”
said Michael O’Rourke, chief market strategist at JonesTrading in Greenwich,
Connecticut.

Gold pared some losses, after falling more than 1%, as investors opted for
the safety of bullion following the delisting reports.

MSCI’s world equity index, which tracks shares in 47 countries, had
rebounded earlier in the session on optimism the U.S.-China trade row might
be easing. Markets largely brushed off concerns about impeachment moves
against Trump.

The world index closed down 0.41%, while on Wall Street the Dow Jones
Industrial Average fell 73.28 points, or 0.27%, to 26,817.84. The S&P 500
lost 17.2 points, or 0.58%, to 2,960.42 and the Nasdaq Composite dropped
90.06 points, or 1.12%, to 7,940.60.

Major equity indexes in Europe earlier closed higher, even as data showed
slowing growth around the world.

U.S. data showed consumer spending barely rose in August and business
investment remained weak, suggesting the American economy was losing
momentum as trade tensions linger.

Still, the Commerce Department reports likely do not signal a recession is
looming as consumer spending remains supported by solid income growth thanks
to the lowest unemployment rate in nearly 50 years and massive savings.

A strong rally in mining shares propped up European shares, but they ended
the week lower for the first time in five weeks as concerns about economic
growth and trade, as well as political worries, kept a lid on gains.

The pan-European STOXX 600 index closed up 0.47% and the FTSEurofirst 300
index of leading regional shares gained 0.41%.

Earlier in the day, Asia-Pacific shares outside Japan were buffeted by the
political worries in the United States and shed 0.3%.

Oil prices fell and posted a weekly loss on faster-than-expected recovery in
Saudi output, while investors also worried about global crude demand amid
slowing Chinese economic growth.

During a volatile session, Brent crude futures fell 83 cents to settle at
$61.91 a barrel.

U.S. West Texas Intermediate (WTI) crude futures fell 50 cents to settle at
$55.91 a barrel.

In China, the world’s second-largest economy and biggest importer of crude
oil, industrial companies reported a contraction in profits in August.

“If the global economy weakens, for which there are already some signs, we
may lower oil demand expectations,” IEA Executive Director Fatih Birol told
Reuters.

Bond yields in France and Spain posted their biggest weekly decline in six
weeks, while a key market gauge of the euro zone’s inflation expectations
fell to its lowest level since early July at 1.188%, heading back toward
record lows hit in June.

French and Spanish 10-year bond yields were down 6-9 basis points this week,
their biggest weekly decline in six weeks .

U.S. Treasury prices traded little changed after U.S. data was weaker than
expected and as month- and quarter-end rebalancing increased demand for
safe-haven U.S. debt.

Benchmark 10-year notes traded at break-even to yield 1.6853%.

The dollar index fell 0.05%, with the euro up 0.2% to $1.0943. The Japanese
yen weakened 0.06% versus the greenback at 107.92 per dollar.

U.S. gold futures settled down 0.6% to $1,506.40 an ounce.

Gold cuts losses after reports say U.S. mulling delisting China stocks

(Reuters) - Gold pared some losses on Friday, after falling more than 1%, as
investors opted for the safety of the metal following reports the United
States is considering delisting Chinese companies from U.S. stock exchanges.

Spot gold was down 0.5% at $1,498.07 an ounce as of 02:33 p.m. EDT (1833
GMT) after touching its lowest since Sept. 18 at $1,486.60 earlier in the
session. The metal was still down about 1.2% for the week.

U.S. gold futures settled down 0.6% to $1,506.40 an ounce.

U.S. President Donald Trump’s move to delist Chinese companies from U.S.
stock exchanges would be a part of a broader effort to limit U.S.
investments into China, a source briefed on the matter said.

Earlier in the session, gold prices had slipped as much as 1.3% as the
dollar rose to a three-week peak amid doubts whether the U.S. Federal
Reserve will cut interest rates again in October.

“Central bank easing is being called into question as many Fed officials are
saying that maybe we don’t need as much ongoing stimulus in the market,”
said David Meger, director of metals trading at High Ridge Futures.

On Thursday, Fed Vice Chair Richard Clarida said U.S. inflation expectations
are currently in line with the central bank’s 2% goal, an indication that he
does not see a pressing need for new rate cuts to boost inflation.

“The U.S. durable goods number also came better than expected and people are
getting out of gold here just because that data does not support another
rate cut,” said Bob Haberkorn, senior market strategist at RJO Futures.

Data earlier on Friday showed U.S. durable goods orders rose 0.2% in August
versus an expectation of -1%.

Among other precious metals, silver fell 1.5% to $17.54 an ounce.

Platinum slipped 0.1% to $929.02 and was on track for its worst week in over
a month.

Palladium was up 0.9% to $1,682.56 an ounce. The auto-catalyst metal, which
is in short supply, was up nearly 2.5% for the week and on track for a
eighth straight weekly gain.

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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