Bulls n Bears Daily Market Commentary : 17 February 2020

Tue Feb 18 02:56:46 CAT 2020

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Bulls n Bears Daily Market Commentary : 17 February 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$37,178,554.49 with foreign buys at ZWL$17,866,848.95 and
foreign sales were ZWL$9,201,170.60 Total trades were 265

The All Share index opened the week on a positive note adding 20.26 points
to close at 526.11 points. HIPPO VALLEY ESTATES  bounced back from
suspension and led the movers by $2.0500 to close at $4.0000, MEIKLES rose
by $1.3725 to $8.2825 and SEEDCO INTERNATIONAL LIMITED  traded $0.9525
stronger at $5.7150. CAFCA  also increased by $0.7850 to $6.7500 and INNSCOR
was $0.3389 firmer at $6.9989.

Gains were offset by losses in OLD MUTUAL LIMITED  which eased $2.9712 to
$55.0020, PPC  which lost $0.5000 to end at $5.5000 and ZPI  which was
$0.0117 lower at $0.1005. OK ZIMBABWE also decreased by $0.0002 to end at
$2.4648.

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

  Global Currencies & Equity Markets

South Africa

S.African rand falls as Moody's cuts growth forecast, stocks firm

(Reuters) - South Africa’s rand weakened on Monday, as ratings agency
Moody’s cut its forecast for the country’s economic growth due to lacklustre
private sector demand at home and power cuts.

As of 1510 GMT, the rand was 0.4% weaker at 15.00 against the dollar.

Moody’s cut its 2020 GDP growth forecast to 0.7% from a forecast of 1.5% set
in September, due in part to the detrimental impact of widespread power
outages on manufacturing and mining activity.

Moody’s is the last of the major international agencies to keep an
investment grade rating on the sovereign and is scheduled to review that
assessment in March.

South African President Ramaphosa acknowledged in his annual address to
parliament on Thursday that growth had stalled, promising to fix its
strained public finances and procure more renewable energy to address a
power crisis.

Investors await Finance Minister Tito Mboweni’s 2020 budget presentation
next week.

On the bourse, stocks were lifted by a positive earnings report from Anglo
American Platinum (Amplats) and Friday’s trading statement from
Sibanye-Stillwater.

Amplats, which also has operations in Zimbabwe, jumped 5.4% to 1,329.99 rand
after it said higher metal prices had driven its annual headline earnings
per share - the main profit measure used in South Africa - nearly 2-1/2
times higher at 70.87 rand, versus 28.93 rand a year earlier.

Sibanye continued to surge after saying on Friday it expects to swing to a
433 million rand profit in the year ended December, versus a 2.5 billion
rand loss in 2018, due to significantly higher platinum group metals and
gold prices and the inclusion of Lonmin’s Marikana operations.

Shares in the miner surged to a 3-1/2-year high, closing 5.89% firmer at
44.58 rand. Amplats and Sibanye topped the Johannesburg All-Share index as
well as the Top-40 index.

The Johannesburg All-Share index ended the day 0.56% firmer at 58,187
points, while the Top-40 index climbed 0.59% to 52,357 points.

Government debt weakened, with the yield on the benchmark bond due in 2030
adding 5 basis points to 8.9%. 

EMERGING MARKETS

EM stocks rise as China's stimulus measures calm nerves

(Reuters) - Emerging market equities kicked off the week on firm footing on
Monday as China’s move to cut its medium-term lending rate soothed
investors’ anxiety around the economic blow from a coronavirus outbreak.

China’s decision is expected to pave the way for a reduction in the
country’s benchmark interest rate as policymakers sought to ease the damage
from the virus outbreak that has severely disrupted activity.

MSCI’s index for emerging market stocks rose 0.2%, after ending two
consecutive weeks in the black on Friday.

However, the outbreak continued to rage as officials said the total number
of coronavirus cases rose by 2,048 to 70,548, with 1,770 deaths as of
Monday.

Currencies in the developing world eked out a 0.1% gain after logging their
first weekly increase in four on Friday.

The Russian rouble firmed against the dollar, as it tracked the global
risk-on mood while also receiving a boost from the month-end tax period that
began on Monday.

Tax payments generally prompt export-focused companies to convert foreign
currency revenues to meet local liabilities.

Investors in Russia also awaited industrial output data for the moth of
January and the central bank’s release of its monetary policy report.

The Turkish lira traded in a tight range as investors are eying a possible
flare up in tensions between Ankara and Moscow after heavy shelling of
Aleppo by Russian forces on Sunday.

Currencies in central and eastern Europe, including Hungary’s forint and the
Czech crown firmed slightly against the euro.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper edges up as China cuts rates on medium-term loans

(Reuters) - Copper prices edged up on Monday after China’s central bank
lowered the interest rate on its medium-term loans to support an economy
jolted by disruptions to logistics and factory output due to the coronavirus
outbreak.

Three-month copper on the London Metal Exchange (LME) was up 0.5% at $5,788
a tonne by 0216 GMT, while the most-traded copper contract on the Shanghai
Futures Exchange (ShFE) edged up 0.1% to 45,910 yuan ($6,582.27) a tonne.

The People’s Bank of China (PBOC) said it was lowering the rate on 200
billion yuan ($28.65 billion) worth of one-year medium-term lending facility
loans to financial institutions, paving the way for a cut of the benchmark
loan prime rate, due to be announced on Thursday.

The PBOC said on Saturday Chinese lenders will tolerate higher levels of bad
loans to support firms hit by the epidemic, which has killed over 1,700
people and infected about 70,550 in China, where it is severely disrupting
business activities.

FUNDAMENTALS

* PRICES: LME aluminium rose 0.2% to $1,725.50 a tonne, nickel advanced 0.8%
to $13,115 a tonne, zinc increased 0.6% to $2,162 a tonne, while ShFE
aluminium dipped 0.4% to 13,640 yuan a tonne and ShFE nickel fell 0.8 to
104,750 yuan a tonne.

* SHANGHAI STOCKS: Copper and zinc inventories in warehouses tracked by ShFE
climbed to their highest in 11 months, as the outbreak sapped demand in top
metals consumer China.

* AUTOS: China’s auto market, the world’s largest, could see sales slide
over 10% in the first half of 2020 due to the epidemic, its top auto
industry body said.

* FIRST QUANTUM: Copper miner First Quantum Minerals Ltd said talks to sell
minority stakes in its Zambian mines have stalled amid the virus outbreak.

* LME WEEK: The LME canceled its annual Asia Week dinner in Hong Kong, a
major metal event, and postponed the seminar that would have taken place on
the same day due to the epidemic.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Asian shares stepped back from three-week highs as investors weighed the
near-term hit on global growth from a fast-spreading coronavirus outbreak in
China, although expectations of further policy stimulus helped stem losses.

Gold holds near 2-week high on uncertainty over virus impact

(Reuters) - Gold prices on Monday held near a two-week high scaled in the
previous session as uncertainty prevailed over the impact of the coronavirus
outbreak on the global economy.

Spot gold was little changed at $1,582.08 per ounce, as of 0701 GMT, having
touched its highest since Feb. 3 at $1,584.65 on Friday. U.S. gold futures
were down about 0.1% at $1,585.30.

The death toll from the outbreak in mainland China reached 1,770 by Sunday,
up by 105 from the previous day, the country’s National Health Commission.

Premiums for physical gold in China, the world’s biggest bullion consumer,
slid to their lowest since at least July 2018 last week.

The epidemic pushed Singapore to downgrade its 2020 economic growth
forecast, while a Reuters poll showed Japanese manufacturers remained
pessimistic in February.

The U.S. Federal Reserve had also flagged concerns regarding the potential
impact on the U.S. economy.

Cleveland Fed Bank President Loretta Mester said on Friday the epidemic
could be a drag on the U.S. economy this quarter.

Speculators increased their bullish positions on COMEX gold in the week to
Feb. 11.

Asian shares, however, moved back toward a three-week high on China’s
efforts to cushion the blow from the virus, while the dollar hovered near a
more-than four-month high.

Elsewhere, palladium rose 0.6% to $2,446.39 an ounce, silver was up 0.6% at
$17.83, while platinum gained 0.6% to $968.69.

Trading is expected to be light as financial markets in the United States
will be shut for a public holiday.

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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