Bulls n Bears Daily Market Commentary : 19 February 2020

Thu Feb 20 00:29:41 CAT 2020

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Bulls n Bears Daily Market Commentary : 19 February 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$22,356,349.47 with foreign buys at ZWL$6,965,853.00 and
foreign sales were ZWL$8,316,401.00 Total trades were 284

The All Share index dropped by a further 14.56 points to close at 502.41
points on the back of losses mainly in heavyweight counters. OLD MUTUAL
retreated by $2.748 to trade at $47.6145, DELTA  shed $0.4447 to close at
$8.0505 and ECONET eased $0.3158 to settle at $3.3602. other notable losses
were in CASSSAVA SMARTECH  which lost $0.3115 to $3.3335 and OK ZIMBABWE
which was $0.1423 lower at $2.2925.

Losses were partially offset by gains in HIPPO  which strengthened by
$0.8000 to close at $4.8000, NATFOODS  added $0.4500 to trade at $19.0000
and ZB FINANCIAL HOLDINGS  gained $0.2000 to close at $1.6000. CAFCA  ended
$0.1800 higher at $8.2800 and DAIRIBORD went up $0.1333 to close at $0.8158.

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

  Global Currencies & Equity Markets

Uganda

Ugandan shilling flat amid some charity flows

(Reuters) - The Ugandan shilling traded stable on Wednesday, supported by
some hard currency inflows from non-governmental organisations.

At 0812 GMT commercial banks quoted the shilling at 3,665/3,675, unmoved
from Tuesday’s close.

Kenya

Kenyan shilling under pressure against the dollar

(Reuters) - The Kenyan shilling was under pressure on Wednesday due to
increased dollar demand from merchandise importers and the energy sector,
traders said.

At 0820 GMT, commercial banks quoted the shilling at 101.20/40 per dollar,
compared with 101.00/20 at Tuesday's close.

EMERGING MARKETS

EM stocks reel under pressure from virus impact on businesses

(Reuters) - Emerging market equities lost ground on Tuesday, as Apple Inc’s
sales warning fanned fears of the impact from the coronavirus outbreak on
companies and global supply chains, while South Africa’s rand weakened due
to a dreary growth outlook.

The warning from the world’s most valuable technology company came as a
shock to markets that bounced on the back of China’s stimulus measures on
Monday.

Apple said it was unlikely to meet its March quarter sales forecast as
China’s coronavirus epidemic disrupted supply chains and delayed reopening
of factories after the extended Lunar New Year break.

MSCI’s index for emerging market equities fell more than 1%, heading for its
worst day so far this month. Throughout the month of February, markets
around the globe have swayed with headlines around the coronavirus epidemic.

Officials said the total death toll from the outbreak in China has climbed
to 1,868.

UK-based HSBC Holdings PLC also said the coronavirus epidemic had
significantly impacted staff and customers.

Among currencies, South Africa’s rand weakened against the dollar after
ratings agency Moody’s chopped its 2020 growth forecast for Africa’s most
industrialized economy to 0.7% from 1.5%.

The ratings agency is the last of the three big ones to have an investment
grade rating on South Africa, even as its economy remained stuck in low gear
due to lacklustre private sector demand at home.

Russia’s rouble and the Turkish lira also slipped against the dollar, while
the Czech crown and Poland’s zloty eased against the euro.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold back above $1,600/oz as Apple's virus warning lifts safety demand

(Reuters) - Gold surged over 1% on Tuesday to fetch more than $1,600 an
ounce as Apple Inc’s surprise warning about the impact of the coronavirus
outbreak fueled concerns about global economic weakness, driving investors
to lower-risk assets.

Palladium notched an all-time high, driven by short supplies of the
auto-catalyst metal.

Spot gold was up 1.3% at $1,601 per ounce as of 1:55 p.m. EST (1855 GMT)
after hitting $1,605.10, the highest since Jan. 8, earlier in the session.

U.S. gold futures settled 1.1% higher at $1,603.60 an ounce.

Apple, the world’s most valuable technology company, said it was unlikely to
meet its March-quarter sales forecast because the coronavirus outbreak was
pressuring its supply chain.

The surprise sales warning knocked global equities off record highs and fed
buying of safe-haven assets.

China’s central bank cut the interest rate on its medium-term loans on
Monday as policymakers sought to reduce the economic shock from the virus
outbreak.

The death toll in China had climbed to 1,868, the National Health Commission
said, and the World Health Organization said “every scenario is still on the
table” in terms of the epidemic’s evolution.

The dollar index climbed to a more than four-month high against key rivals,
also gaining from safe-haven interest.

Palladium gained 2.8% at $2,592 an ounce, after hitting an all-time high of
$2,592.02.

Silver rose 2.2% to $18.16 per ounce, while platinum surged 2.3% to $991.22.

Copper dips as inventory build raises fears of excess supply

(Reuters) - Copper prices fell on Tuesday as deliveries into exchange
warehouses raised fears that demand curbed by the coronavirus outbreak in
China could cause a supply glut.

Warnings from Apple and HSBC that the epidemic was damaging their businesses
sent global equities and most base metals lower, though lead prices rose on
a sharp tightening of nearby supply.

Benchmark copper on the London Metal Exchange (LME) ended 0.7% down at
$5,773 a tonne. The metal used in power and construction has lost 9% since
its January peak but has recovered from the Feb. 3 low of $5,523.

The virus and efforts to contain its spread have slowed Chinese industry,
reducing both consumption and production of metals in the world’s biggest
commodities market.

But increases in LME and Chinese exchange warehouses remained roughly in
line with seasonal norms, he said. “If there is a significant glut building,
it has yet to come into visible locations.”

STOCKS: Headline copper inventories in LME-registered warehouses rose by
5,075 tonnes to 166,475 tonnes, while stocks in Shanghai Futures Exchange
stores have jumped to 262,738 tonnes, the highest in nearly a year.
MCUSTX-TOTAL CU-STX-SGH

SPECULATORS: The net short in LME copper was at 5.8% of open contracts on
Friday, brokerage Marex Spectron said.

CORONAVIRUS: The death toll in China climbed to 1,868, the National Health
Commission said, with 72,436 cases of infection.

SMELTERS: Chinese refined copper production touched its lowest level in 20
months in January, according to an index based on satellite surveillance of
copper plants.

SHIPMENTS: Some overseas buyers of Chinese metal products have stopped
accepting shipments, while others are seeking damages over delays, a China
trade body said.

IMPORTS/PREMIUMS: China’s imports of refined copper are likely to fall this
year, research house Antaike found. Chinese Yangshan copper import premiums,
however, rose to $60 a tonne, up from $55 earlier this month and the highest
since December. SMM-CUYP-CN

GERMANY: The mood among German investors deteriorated far more than expected
in February, a survey showed.

DOLLAR: The U.S. currency strengthened towards last year’s 2-1/2 year high,
pressuring metals by making them costlier for buyers with other currencies.

LEAD: Benchmark lead finished 1.3% up at $1,898 a tonne as the premium for
cash metal over the three-month contract surged to $68 - its highest since
2011 - from only $6 a week ago, suggesting an acute shortage of nearby
metal. MPB0-3

Headline stocks in LME-registered warehouses at 66,725 tonnes are near
decade lows, with a handful of entities controlling the vast majority of LME
warrants and cash contracts. MPBSTX-TOTAL <0#LME-WHC>

PRICES: LME zinc finished 1.2% down at $2,145 a tonne, aluminium slipped
0.1% to $1,720, nickel was down 2.2% at $12,820 and tin closed with a 0.6%
decline at $16,500.

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
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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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