Bulls n Bears Daily Market Commentary : 11 February 2020

Thu Feb 13 02:51:59 CAT 2020

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Bulls n Bears Daily Market Commentary : 11 February 2020

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Zimbabwe Stock Exchange Update

The All Share index continued its bullish sentiments, after advancing by
21.22 points to close at 388.47 points. OLD MUTUAL LIMITED added a further
$5.1698 to end at $50.6500, NATIONAL FOODS LIMITED gained $2.5500 to end at
$15.3000 and MEIKLES LIMITED was $0.7985 firmer at $4.8000.CAFCA  added
$0.6900 to end at $4.1450 and SEEDCO INTERNATIONAL traded $0.6600 to settle
at $3.9700.

Two counters lost ground : TSL LIMITED traded $0.1000 lower at $1.000 and
ZIMPLOW  eased $0.0032 to $1.0000.

 <http://www.nicozdiamnond.co.zw/> 

  Global Currencies & Equity Markets

South Africa

South Africa's rand falls after dismal data, stocks rise

(Reuters) - South Africa’s rand fell against the dollar in late afternoon
trade on Wednesday, giving up gains from earlier in the session, following a
string of dismal economic data.

At 1530 GMT, the rand was 0.3% weaker at 14.8700 per dollar, retreating
after sailing to a session best of 14.7320.

Data on Wednesday showed retail sales in December fell 0.4% year-on-year,
lagging market expectations for an increase of 1.5%.

The disappointing retail figures came after data on Tuesday showing
unemployment remained at an 11-year peak in the fourth quarter and
manufacturing output for December shrank 5.9% year-on-year.

Mining output data will be released on Thursday before President Cyril
Ramaphosa gives a speech opening parliament. He is expected to give details
on government plans for ailing power utility Eskom.

On the stock market, the Top-40 index rose 1.56% to 52,000. The broader
all-share was up 1.34% to 57,744.

Shares in telecoms giant MTN Group jumped 6% to 88.10 rand after the company
posted a 2019 profit jump of up to 50%.

Bullion miner Harmony Gold closed up 3.66% to 43.33 rand after AngloGold
Ashanti said it would sell its remaining South African assets for about $300
million to Harmony.

AngloGold shares recouped some losses earlier in the day to close down 0.75%
at 283.87 rand after headline earnings per share), the main profit measure
in South Africa, for the year to December of 86 cents to 96 cents, up from
53 cents in 2018, missing market expectations.

In fixed income, the yield on the 2030 government issue was up 1.5 basis
points to 8.88%. 

KENYA

Kenyan shilling weakens due to importer dollar demand

(Reuters) - The Kenyan shilling weakened on Wednesday due to dollar demand
from merchandise importers and multinational companies, traders said.

At 0753 GMT, commercial banks quoted the shilling at 100.65/85 per dollar,
compared with 100.55/75 at Monday's close, Kenya's financial markets were
closed on Tuesday for a public holiday.

EMERGING MARKETS

EM stocks gain as drop in new virus cases boosts confidence

(Reuters) - Emerging market stocks rose for the second straight session on
Wednesday, as a drop in new coronavirus cases raised hopes that the fallout
of the epidemic on the world’s second biggest economy might not be as bad as
previously feared.

On Wednesday, China reported its lowest number of new cases of the flu-like
virus since late January, lending weight to a prediction from its senior
medical adviser that the outbreak, which has now killed over 1,100 people,
could be over by April.

A basket of emerging market stocks was up 0.6%, with Chinese equities ending
higher for the seventh day in a row. Shanghai’s main index has now recovered
most of its losses from Feb. 3, when it slumped nearly 8% on reopening after
the extended Lunar New Year holidays.

Demand for riskier assets has stabilised this week after see-sawing since
late January, as China’s central bank stepped in to cushion the blow of the
outbreak on factory activity and consumer spending. Broader confidence in
economic growth has also sent global equities back near record highs.

An index of emerging market currencies firmed 0.1% on Wednesday and was on
track to gain for the third straight session.

The South African rand, among the highest yielding currencies in the
developing world, rose about 0.4% to its highest level in nearly a week,
despite data showing unemployment remained at an 11-year peak in the fourth
quarter.

Russia’s rouble added about half a percent, tracking oil prices higher,
while equities in the country were lifted by a 2.3% gain for Gazprom.

Turkey’s lira eased slightly to the dollar, but the stock index jumped over
1%. Aerospace and defence company Aselsan soared 13% to its highest level in
over a year after reporting a strong quarterly profit.

Currencies in central and eastern European economies, including Hungary and
Poland, were relatively unchanged versus the euro.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold slips as stronger dollar, risk-on sentiment weighs

(Reuters) - Gold prices dipped on Tuesday as the dollar held firm and
investors opted for riskier assets after a fall in the number of new
confirmed cases of coronavirus eased some of fears over global economic
impact.

Spot gold was down 0.4% at $1,565.09 per ounce by 11:44 a.m. EST (1644 GMT),
having touched its highest since Feb. 4 at $1,576.76 on Monday.

U.S. gold futures shed 0.7% to $1,568.40 an ounce.

However, “dips in gold are still been fairly bought very readily... given
the strength seen in global equities and the fact that gold continues to
hold up so well.”

Global financial markets scaled new highs as the number of new coronavirus
cases slowed in China and the country’s factories slowly returned to work.

After more than 1,000 deaths, the China’s foremost medical adviser on the
epidemic said infections may be over by April, with the number of new cases
already declining in some places.

Further limiting gold’s appeal, the dollar hit a four-month high against a
basket of rivals on safety buying and Federal Reserve Chair Jerome Powell’s
upbeat view of the U.S. economy.

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

Powell also cited a potential threat from the virus and concerns about the
economy’s long-term health in his latest testimony to the house panel.

“Gold’s longer-term bullish backdrop will remain primarily supported on
physical demand from central banks and rising risks to the global growth
that will trigger another wave of worldwide stimulus,” Edward Moya, a senior
market analyst at broker OANDA, said in a note.

Gold, which is used as an insurance against economic risks, tends to
appreciate on expectations of lower interest rates, which reduce the
opportunity cost of holding non-yielding bullion.

Among other precious metals, palladium fell 0.8% to $2,334.75 an ounce,
silver dropped 0.9% to $17.59, while platinum rose 0.8% to $967.97.

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

 <mailto:info at bulls.co.zw> 

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
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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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