Bulls n Bears Daily Market Commentary : 06 February 2020

Fri Feb 7 01:26:43 CAT 2020

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Bulls n Bears Daily Market Commentary : 06 February 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$6,273,376.15 with foreign buys at ZWL$15,173.57 and
foreign sales were ZWL$335,580.00 Total trades were 272

The All Share index ended the day on a higher note, after realising 7.91
points to close at 325.03 points. BRITSIH AMERICAN TOBBACCO  led the movers
by a $6.0000 gain to end at $66.0000, OLD MUTUAL LIMITED traded $1.7857
higher at $41.7857 and PADENGA  advanced by $0.1890 closing at $4.3890.Two
more counters to advance were DELTA   which rose by $0.1686 to $4.6731 and
CASSAVA SMARTECH ZIMBABWE LIMITED  which added $0.1111 to close at $2.1985.

Trading in the negative was DAIRIBOARD  which eased $0.1400 ending at
$0.5600, ECONET WIRELESS  dropped $0.0531 to $2.1961 and AXIA CORPORATION
which traded $0.0433 lower at $1.1542. BINDURA lost $0.0330 to $0.2070 and
WILLDALE retreated by $0.0008 weaker at $0.0362.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Egypt

Egypt's net foreign reserves rise to $45.457 bln in January - c.Bank

(Reuters) - Egypt’s net foreign reserves rose to $45.457 billion in January
from $45.42 billion in December, the central bank said on Thursday.

Reserves climbed sharply after Egypt embarked in 2016 on a three-year,
IMF-backed economic reform programme. They have seen smaller increases since
the summer of 2018.

South Africa

South African rand falls, stocks up as Gold Fields shines

(Reuters) - South Africa’s rand weakened on Thursday, as data showed
business confidence in the economy fell at the start of the year, while
concerns over the coronavirus in China and its impact on the global economy
also weighed.

At 1515 GMT the rand was 1.0% weaker at 14.9000 per dollar, retreating after
three consecutive days of gains following a torrid January that saw the
currency shed nearly 8% on its way to a two-month low.

A survey showed on Thursday that South African business confidence fell in
January, resuming the downward trend seen for much of 2019.

Africa’s most advanced economy has struggled to emerge from a deep slump in
the two years since President Cyril Ramaphosa took the helm with promises to
reform and is now on the cusp of losing its last investment-grade rating
from Moody’s, and billions of rands of investment with it.

The state-owned power utility last week resumed nationwide blackouts, which
are likely to continue through the weekend as the firm carries out
long-delayed maintenance on its creaking fleet of coal plants, threatening
already slack consumer demand and business activity.

Traders are looking forward to Ramaphosa’s ‘state of the nation’ address
next week for clues on reform, the budget speech on Feb. 26 and Moody’s
credit review shortly after that.

On the stock market, the Top-40 index was up 0.25%to 51,612 while the
broader all-share edged 0.18% higher to 57,531.

Gold Fields was the biggest gainer on the blue-chip index, rising 3.33% to
94.86 rand, after the company flagged higher full-year earnings.

In fixed income, the yield on the benchmark 2026 paper was down 1.5 basis
points at 7.910%. 

EMERGING MARKETS

Stocks hit over 1-week high on China's tariff cut for U.S. imports

(Reuters) - Stocks in emerging markets rose to a more than one-week high on
Thursday, as China’s announcement to halve additional import tariffs on some
U.S. goods supported hopes that an economic hit from the coronavirus
outbreak could be dodged.

China’s finance ministry said from Feb. 14, additional tariffs levied on
some U.S. goods will be cut to 5% from 10% and others lowered to 2.5% from
5%.

MSCI’s index for emerging market stocks climbed 1.3%, heading for a third
straight session of gains and its best week in 15 months.

Risk assets in the developing world enjoyed a round of buying after the
world’s two biggest economies called truce in their trade war, with the
emerging markets equity index posting a 7% rise in December, its biggest
monthly gain in 11 months.

Despite the general tone of optimism in financial markets, Sayed said the
risks were still high as the impact from the epidemic in China remained
elusive.

The death toll from the fast-spreading virus in mainland China jumped by 73
to 563, with more than 28,000 confirmed infections there.

Turkish stocks rose 0.7%, with the country’s third-largest bank, Yapi Kredi,
leading the advance.

However, Italy’s top bank UniCredit said it would place on the market a 12%
stake in the Turkish bank.

Shares of Turkey’s Pegasus Airlines slipped over 4% after an accident a day
earlier at Istanbul’s Sabiha Gokcen airport that killed three people and
injured 180.

Major emerging market currencies - Turkey’s lira, Russia’s rouble and South
Africa’s rand - eased against the dollar.

The Polish zloty also eased a day after rising to a two-week high as the
central bank reiterated that its main interest rate will most likely stay at
a record low until 2022.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold gains on bets for low central bank rates as virus woes persist

(Reuters) - Gold rose on Thursday as expectations of central banks keeping
interest rates low and uncertainties around the economic impact of the
coronavirus epidemic fueled appetite for the safe-haven metal.

Spot gold gained 0.6% to $1,565.42 per ounce by 1907 GMT, having dropped on
Wednesday to its lowest since Jan. 21 at $1,546.90. U.S. gold futures
settled 0.5% up at $1,570.

Lower interest rates reduce the opportunity cost of holding the non-yielding
bullion.

The death toll from the virus in mainland China jumped to 563, with experts
stepping up efforts to combat a disease that has shut down Chinese cities
and forced thousands more into quarantine around the world.

The World Health Organization on Wednesday played down reports of
“breakthrough” drugs being discovered to treat infected people.

China said it would halve additional tariffs levied against U.S. goods and
has already signed off on more government spending, tax relief and subsidies
for virus-hit sectors.

Gold’s gains came despite a record run in Wall Street, a stronger dollar and
better-than-expected weekly U.S. jobless claims data.

For future market direction, investors eye the U.S. non-farm payrolls report
due on Friday.

Elsewhere, palladium fell 3.2% to $2,353.66 . The metal surged to an
all-time high of $2,582.19 on Jan. 20.

Both platinum and palladium, used in emissions-controlling autocatalysts,
are seeing some profit-taking due to the weaker sales reported by major U.S.
carmaker Ford Motor Co, RBC’s Gero said in a note.

Silver rose 1.2% to $17.81, while platinum slipped 2.4% to $957.83 after
touching a one-week high of $987.60. 

INVESTORS DIARY 2020

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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