Bulls n Bears Daily Market Commentary : 07 February 2020

Mon Feb 10 01:56:09 CAT 2020

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Bulls n Bears Daily Market Commentary : 07 February 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$5,953,160.17 with foreign buys at ZWL$685,207.50 and
foreign sales were ZWL$2,307,297.25 Total trades were 161

The All Share index closed the week on a positive note adding 9.66 points to
close at 334.69 points. OLD MUTUAL LIMITED led the movers with a $1.1923
gain to close at $42.9780, DELTA  rose by $0.6044 to $5.2775 and BRITSIH
AMERICAN TOBBACCO traded $0.2500 higher at $66.2500. SEEDCO  also advanced
by $0.1861 to $3.2008 and PADENGA   traded $0.1124 stronger at $4.5014.

Gains were offset by losses in PPC  which decreased by $0.5000 to $4.5000,
DAWN eased $0.0152 to end at $0.0750 and ECONET was $0.0030 weaker at
$2.1931. CASSAVA  also went down by $0.0013 to $2.1972 and WILLDALE traded
$0.0012 lower at $0.0350.

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  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 to 3-month low, stocks down

(Reuters) - The South African rand plunged to a three-month low against the
U.S. dollar on Friday as a strong greenback weighed down emerging market
currencies, while domestic power cuts and weak economic growth added to the
pressure.

At 1500 GMT, the rand was 1.4% lower at 15.1100 per dollar, its weakest
since Nov. 1.

The South African currency’s slide follows a torrid January, during which it
lost around 8% against the greenback as fears about the global economic
impact of the coronavirus outbreak triggered heavy a sell-off of emerging
market assets.

The resumption of nationwide power cuts by South African state utility Eskom
last week rattled the remaining rand bulls, while a slide in the business
confidence index on Thursday further encouraged investors to sell the
currency.

The South African Chamber of Commerce and Industry’s monthly business
confidence index slipped to 92.2 in January from 93.1 in December.

On the stock market, the Top-40 index fell 0.42% to 51,396, while the
broader all-share was down 0.44% to 57,276.

In fixed income, the yield on the benchmark 2026 paper was up 4 basis points
to 7.99%.

China

Hong Kong dollar rises to 7.7598 per U.S. dollar, hits fresh 3-year high

(Reuters) - The Hong Kong dollar rose to its highest in nearly three years
against the U.S. dollar on Friday.

The currency is pegged to the greenback in a tight range of 7.75 to 7.85 per
U.S. dollar.

The Hong Kong currency rose on Friday to 7.7598 per U.S. dollar, its
strongest level since March 2017, before closing at 7.7600. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold gains as virus fears outweigh strong U.S. jobs data

(Reuters) - Gold prices rose on Friday as fears of an economic slowdown from
the coronavirus outbreak and lower interest rates globally offset strong
U.S. economic data.

Spot gold rose 0.3% to $1,570.52 per ounce by 1842 GMT, but was down about
1.2% this week. It was on track for the biggest weekly loss since early
November.

U.S. gold futures settled 0.2% up at $1,573.40.

U.S. nonfarm payrolls increased by 225,000 jobs last month, data showed,
higher than 160,000 jobs additions expected by a Reuters poll.

Fears of a global economic slowdown and uncertainty around the coronavirus
are keeping gold supported, Edward Moya, a senior market analyst at broker
OANDA.

The coronavirus outbreak in China, which has killed more than 600 people and
infected thousands, has dented investor interest in riskier assets.

Also supporting gold were low interest rates by major central banks across
the globe and their quantitative easing policy.

The U.S. Federal Reserve kept benchmark interest rates unchanged at its
January policy meeting, citing moderate economic growth and a strong jobs
market.

Gold is a safe haven that investors turn to in times of economic and
financial uncertainty, and lower interest rates reduce the opportunity cost
of holding the non-yielding metal.

Limiting gold’s advance, however, the dollar rose to its strongest against
major rivals since mid-October.

Elsewhere, palladium fell 1.2% to $2,319.23 an ounce but was on track for
its first weekly gain in three.

Silver slipped 0.6% to $17.71, set for its worst week in two months, while
platinum rose 0.5% to $966.36. 

Copper falls as spread of coronavirus stokes demand worries

(Reuters) - Copper prices fell on Friday on concerns that a rising death
toll from the coronavirus in China could lead to a bigger hit to economic
activity and metals'

demand.

Three-month copper on the London Metal Exchange (LME) ended 1.3% lower at
$5,663 an ounce.

However, prices ended the week 1.8% higher, marking the first weekly gain in
three on hopes for a cure for the virus. 

The death toll from the virus in mainland China rose to 636 on Friday, up by
73 from the previous day, the National Health Commission said. 

There have been two deaths outside mainland China, in Hong Kong and the
Philippines and nearly 320 cases have been reported in 27 other countries
and regions outside mainland China.

Metals prices mostly fell even as China's central bank pledged support for
the economy to cushion the blow from the virus outbreak.             

CHINA GROWTH: S&P Global Ratings cut its Chinese 2020 growth forecast to 5%,
down from 5.7% on Friday, saying the impact of the coronavirus outbreak
could take a heavy short-term toll.

FORCE MAJEURE: Guangxi Nanguo Copper smelter has declared force majeure on
deliveries of copper concentrate as a result of the outbreak, sources told
Reuters.             

 Nonferrous metal output in China will fall at least 10% in February but
operations are expected to normalise after the second quarter, the country's
metal association said.

MITSUBISHI: Japan's Mitsubishi Materials Corp bought a 30% stake in the
Mantoverde copper mine in Chile and associated copper project for $236
million to secure more

concentrates for its smelters, the company said.          

ALUMINIUM: Norsk Hydro          reported lower-than-expected fourth-quarter
earnings on falling metal prices and said it expects global supply of
aluminium to outstrip demand in 2020.

CHILE: Chile copper export revenue jumped 8.3% to $2.716 billion in January,
the central bank said.     

ZINC: Inventories of zinc in LME-approved warehouses jumped to 62,675
tonnes, data on Friday showed, the highest since Oct. 9.

Rising stocks have pushed down the premium of LME cash zinc over the
three-month contract to $4.50 a tonne, near its lowest in three-months. 

MZNSTX-TOTAL CMZN0-3     OTHER PRICES: LME aluminium         shed 0.6% to
$1,726 a tonne, zinc         dropped 2.8% to $2,145, lead         was down
1.5% to $1,817, tin         shed 3.1% to $16,175 and nickel         ended
2.2% lower to $12,775.

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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