Bulls n Bears Daily Market Commentary : 14 February 2020

Sat Feb 15 01:41:42 CAT 2020

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Bulls n Bears Daily Market Commentary : 14 February 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$34,873,985.87 with foreign buys at ZWL$684,613.00 and
foreign sales were ZWL$20,721,916.76 Total trades were 235

The All Share index closed the week on a remarkable note, after gaining
71.83 points to close at 505.85 points. OLD MUTUAL LIMITED further advanced
by $5.9721 to $57.9732, NATIONAL FOODS LIMITED  added $3.0500 to $18.4500
and DELTA  was $1.4371 firmer at $8.6571. MEIKLES  rose by $1.1500 to
$6.9100 and INNSCOR AFRICA  was $1.1072 stronger at $6.6600.

No counter lost ground.

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

  Global Currencies & Equity Markets

South Africa

South Africa's rand firmer after Ramaphosa's speech, stocks flat

(Reuters) - South Africa’s rand firmed on Friday after President Cyril
Ramaphosa set out brief plans to stimulate economic growth during his state
of the nation address, although his speech was short on specifics and
timeframes.

At 1515 GMT the rand was 0.49% stronger at 14.8800 per dollar.

Ramaphosa acknowledged in an annual address to parliament on Thursday
evening that growth had stalled, exacerbating high levels of unemployment
and increasing hardship for millions of citizens.

He said that his government would shortly issue plans to procure more power
and increase generating capacity outside struggling power utility Eskom.

Eskom supplies more than 90% of South Africa’s electricity but is struggling
with high debts and power stations in need of refurbishment.

The utility has been forced to impose several rounds of severe power cuts in
the past year that have dented the country’s economic growth.

Stocks closed flat, with the Johannesburg Stock Exchange’s Top-40 index
0.01% up to 52,049.98 points and the broader all-share index up 0.05% at
57,861 points.

The biggest winner on the blue-chip index was miner Sibanye-Stillwater,
which closed 6.9% higher after flagging that its full-year headline loss was
set to shrink, with adjusted EBITDA growing 79% year-on-year.

In fixed income, the yield on benchmark 2030 paper was down 3 basis point to
8.865%.

Nigeria

Nigeria to pick advisers for $3.3 bln Eurobond via open bids -DMO

(Reuters) - Nigeria plans to appoint advisers for a $3.3 billion Eurobond
issue through an open competitive bid process and expects to complete an
approval process for the sale soon, the Debt Management Office (DMO) said on
Friday.

The new Eurobond will be used to partly fund the government’s 2020 budget
deficit and refinance an existing $500 million eurobond due in January next
year, the DMO said.

Citigroup, Standard Chartered Bank and local firm FSDH Merchant Bank acted
as financial advisers on the last Eurobond sale.

Nigeria has been considering a dollar bond issuance after staying away from
the international debt market in 2019 due to time constraints before the end
of its budget cycle.

The West African country held its last Eurobond sale in 2018, its sixth
outing, where it raised $2.86 billion.

Nigeria’s Eurobond plan comes after neighbouring Ghana sold a $3 billion
Eurobond last week that was five times oversubscribed. Investors are seeking
high-yielding debt despite the possible impact that the outbreak of
coronavirus in China could have on its major trading partners in Africa.

Nigeria has been borrowing to fund growth after a 2016 recession slashed
income and weakened its currency. In December, ratings agency Moody’s
downgraded Nigeria’s outlook to negative from stable, citing increased risk
to government revenue.

The DMO says Nigeria is mindful of rising debt cost.

Turkey

Foreigners dump Turkish local assets by close to record amounts

(Reuters) - Turkish local assets were hit last week by one of the largest
bouts of foreign disinvestment in the last five years, Deutsche Bank said on
Friday.

The outflow signalled bearish market sentiment towards Turkey, which has
seen the lira weaken in recent days, in part due to concern about a flare-up
in fighting in Syria’s Idlib region, to which Turkey has sent military
reinforcements.

The lira slipped 0.2% to 6.0570 on Friday and was on course to close at its
lowest level since late May.

Foreigners sold $632 million in the week ending Feb. 7, including $549
million in local bonds and $83 million in equities, Deutsche Bank said in a
note, citing Turkish official data, noting it was the largest amount of
foreign disinvestment from local assets since October 2019.

The outflow, particularly from the bond market, was even more meaningful
given how low foreign ownership is already, it said. With last week’s
outflows, the amount of domestic debt held by foreigners was down to $14.4
billion, excluding repos, taking the share of foreign holdings to a record
low of 9.4%.

Within equities, the share of foreign holdings to market capitalisation of
the index was close to its all-time low, Deutsche Bank said.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Asia Gold-China premiums near 1-1/2 year lows as virus saps demand

(Reuters) - Physical gold demand was tepid in most Asian hubs this week,
with premiums in China sliding to their lowest level since at least July
2018, as the coronavirus epidemic bruised businesses in the world’s top
bullion consumer.

Gold was sold at a premium around $1 an ounce over benchmark prices in
China, compared with $2.5-$4.5 an ounce last week.

There has been more than 60,000 confirmed coronavirus cases so far in
mainland China, with 121 new deaths reported on Friday.

In Hong Kong, premiums of $0.30-$0.50 an ounce were charged, little changed
from last week’s $0.30-$0.80, while premiums in Singapore were unchanged at
$0.50-$0.60.

Benchmark spot gold prices were on track for a weekly rise as the
coronavirus fears kept demand for safe-haven assets elevated.

In India, demand improved due to a jewellery exhibition, although near
record high prices capped retail demand.

The Gem & Jewellery Export Promotion Council’s exhibition, where jewellers
display their designs to buyers, kicked off in Mumbai on Thursday.

Dealers offered discounts of up to $3 an ounce over official domestic prices
this week, down from $6 last week. The domestic price includes a 12.5%
import tax and 3% sales tax.

Gold futures were trading around 40,650 rupees per 10 grams on Friday, after
hitting a record high of 41,293 rupees last month.

In Japan, gold was sold from flat to a premium of $0.50 an ounce, compared
with last week’s $0.50 an ounce premium to a $0.30 discount range. 

Stocks dip as virus impact weighed, oil gains for the week

(Reuters) - Major world stock indexes edged lower on Friday as investors
further assessed the economic fallout of China’s coronavirus outbreak, while
oil prices registered their first weekly gain since early January.

Chinese health authorities reported more than 5,000 new cases of coronavirus
on Friday.

A recent Reuters poll showed the world’s second-biggest economy will grow at
its slowest pace since the financial crisis in the current quarter, but the
downturn will be short-lived if the outbreak is contained.

Some investors said they thought the economic impact of the outbreak would
not be as deep as feared, with some also noting the spread beyond China has
not been as rapid as feared.

MSCI’s gauge of stocks across the globe shed 0.09%.

The Dow Jones Industrial Average fell 93.87 points, or 0.32%, to 29,329.44,
the S&P 500 lost 1.74 points, or 0.05%, to 3,372.2 and the Nasdaq Composite
dropped 0.71 points, or 0.01%, to 9,711.26.

An upbeat forecast from Nvidia helped to limit some of the losses in
equities.

The pan-European STOXX 600 index lost 0.13%.

Oil rose and chalked up its first weekly gain since early January, backed by
expectations producers will implement deeper output cuts to offset slowing
demand in China caused by the coronavirus outbreak.

Brent crude futures gained 98 cents to settle at $57.32 a barrel, while U.S.
crude rose 63 cents to settle at $52.05.

In currency markets, the dollar index rose 0.06%, with the euro down 0.02%
to $1.0838.

Concerns about growth in the eurozone are expected to keep weighing on the
single currency.

U.S. Treasury yields declined as investors bought safe-haven government debt
ahead of a long holiday weekend after soft retail sales data and amid the
continuing virus concerns in China.

Benchmark 10-year notes last rose 9/32 in price to yield 1.5883%, from
1.617% late on Thursday.

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
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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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