Bulls n Bears Daily Market Commentary : 02 January 2020

Fri Jan 3 04:27:03 CAT 2020

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 02 January 2020

Zimbabwe Stock Exchange Update

Market Turnover ZWL$3,064,215.15 with foreign buys at ZWL$92,368.00 and
foreign sales were NIL Total trades were 60

The All Share index opened the year on a positive note adding a marginal
0.01 points  to close at 230.09 points. SEEDCO INTERNATIONAL LIMITED  gained
$0.0950 to end at $3.1000, PADENGA  added $0.0825 to $2.5325 and MEIKLES
was $0.0300 stronger at $2.5400. ECONET  also increased by $0.0226 to settle
at $1.4944 and INNSCOR  traded $0.0207 firmer at $3.5424.

Trading in the negative; OLD MUTUAL LIMITED eased $0.4276 to $36.0727,
SEEDCO  dropped $0.3025 to close at $1.600 and AXIA  traded $0.0380 weaker
at $0.6020. FIRST CAPITAL LIMITED  also lost $0.0102 to $0.0893 and
TRUWORTHS  was $0.0038 lower at $0.0190.

  Global Currencies & Equity Markets

Kenyan shilling seen rising, Zambia's kwacha under pressure

(Reuters) - Kenya’s shilling is expected to strengthen in the coming week,
while the Tanzanian and Ugandan currencies are seen stable and Zambia’s
kwacha is likely to remain under pressure, currency traders told Reuters.

KENYA

The Kenyan shilling is forecast to be supported by inflows from diaspora
remittances and market players trimming their long dollar positions as
business resumes after the holiday season, traders said.

Commercial banks quoted the shilling at 100.85/101.05 per dollar, unchanged
from Friday’s close.

UGANDA

The Ugandan shilling is seen trading stable in the next few days amid thin
demand as the pace of business slowly picks up after the Christmas and New
Year holidays.

Commercial banks quoted the shilling at 3,660/3,690, unchanged from
Tuesday’s close.

He said the shilling would probably oscillate around the 3,660-3,675 level
for the next week.

TANZANIA

The Tanzanian shilling is expected to hold steady next week as most
businesses and traders return gradually from holidays.

Commercial banks quoted the local currency at 2,293/2,303, the same levels
recorded a week earlier.

He said market activity was expected to return to normal in the second week
of January.

ZAMBIA

The Zambian kwacha is likely to remain under pressure against the U.S.
dollar next week because of sustained demand for hard currency.

On Thursday, commercial banks quoted the currency at 14.1900 per dollar from
a close of 13.7390 a week ago.

       <mailto:info at bulls.co.zw> 

America

Stocks hit record as rally enters new year, dollar rebounds

(Reuters) - Global stock markets jumped on the first day of trading in 2020
as a shot of Chinese stimulus and economic data drove a gauge of world
equity performance to the latest in a series of record highs, while the
dollar snapped a four-day losing streak.

Wall Street’s three major indexes closed at records highs on Thursday, with
the benchmark S&P 500 setting its 11th high in 14 sessions.

Gold hit a three-month peak while yields on U.S. Treasuries and Germany’s
10-year bond tumbled on optimism about the world economy after positive
Chinese manufacturing data and the move to increase liquidity dulled fixed
income’s safe-haven status.

News that China’s central bank was freeing another 800 billion yuan ($115
billion) to prop up a slowing economy added to an improving outlook for
economic growth, which has been fueled by easing U.S.-Sino trade tensions.

China’s factory activity expanded at a slower clip in December, pulling back
from a three-year high the previous month as new orders softened. But
production continued to grow at a solid pace and business confidence shot
up.

The Caixin/Markit Manufacturing Purchasing Managers’ Index for December
eased to 51.5 from 51.8 in November, yet remained above the 50-mark that
separates expansion from contraction for the fifth straight month.

In another piece of positive data, the number of Americans filing claims for
jobless benefits edged lower last week, helping to offset recent signs in
the U.S. labor market that new claims may be trending slightly higher.

MSCI’s gauge of stocks across the globe gained 4.51 points, or 0.8%, to an
all-time high, while the pan-European STOXX 600 index rose 0.93%.

The double dose of Chinese news helped Europe’s main markets in London,
Frankfurt and Paris jump 0.82% to 1.06%, outpacing overnight gains in Asia
and setting them on course for their best opening day of a year since 2013.

On Wall Street, the Dow Jones Industrial Average rose 330.36 points, or
1.16%, to 28,868.8. The S&P 500 gained 27.07 points, or 0.84%, to 3,257.85
and the Nasdaq Composite added 119.59 points, or 1.33%, to 9,092.19.

Emerging market stocks rose 1.20%, as the Bovespa index in Brazil advanced
2.5% to an all-time high and Mexico’s bolsa index rose 2.1%.

Earlier in Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan
closed 0.94% higher.

China’s blue-chip CSI300 index, one of the world’s best performers last
year, rose 1.4%, reaching its highest since February 2018. Hong Kong’s Hang
Seng added 1.25%.

Alibaba Group Holding Ltd rose 3.6% on news that China’s Ant Financial, an
affiliate of the e-commerce giant, has joined the race for a digital banking
license in Singapore, the company said in a statement.

Gold prices were boosted by doubts about the lasting strength of Wall
Street’s stock rally, said Jeffrey Christian, managing partner of CPM Group.

U.S. gold futures settled 0.3% higher at $1,528.10 an ounce. Spot gold hit a
three-month high of $1,531.20.

The dollar recovered from a six-month low after a downbeat December left an
index that tracks the greenback versus a basket of six major trading
currencies near flat at the end of 2019.

The dollar index rose 0.42%, with the euro down 0.35% to $1.1171. The
Japanese yen strengthened 0.14% versus the greenback at 108.55 per dollar.

Sterling posted its biggest daily loss in two weeks as euphoria after last
month’s UK election gave way to anxiety over the risk of a no-deal Brexit at
the end of 2020.

The pound last traded at $1.314, down 0.86% on the day.

Benchmark 10-year U.S. Treasury notes rose 10/32 in price to yield 1.8754%.

Germany’s 10-year bond yield briefly hit -0.16% on optimism better
U.S.-China trade relations will spur global growth, denting safe-haven
assets.

The yield on the bund, a benchmark for European lending, soon slid to
-0.23%.

Oil prices steadied after early gains as signs of improving U.S.-China trade
relations eased demand concerns and rising tensions in the Middle East
provided support.

Brent crude futures settled up 25 cents at $66.25 a barrel, while U.S. West
Texas Intermediate (WTI) crude rose 12 cents to settle at $61.18 a barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Zambia plans to compel copper miners to account for gold

(Reuters) - Zambia plans to make copper mining companies account for the
gold they produce as it seeks to boost revenue from its mineral resources, a
senior ministry of mines official said on Thursday.

Ministry of Mines Permanent Secretary Barnaby Mulenga told a news conference
that Zambia, Africa’s second-largest copper producer, was missing out on a
lot of revenue because only one large mine was declaring its gold output.

First Quantum Minerals’ Kansanshi Mine, the only mine that has been
declaring its gold production, produced 4,200 kg of gold last year.

Mining accounts for more than 70 percent of Zambia’s foreign exchange
earnings and other companies operating in the southern African nation
include Barrick Gold Corp, Glencore and Vedanta Resources.

Mulenga said Zambia’s target for gold production next year was 40,000 kg and
that would come from primary and secondary sources, including artisanal and
small-scale miners.

Mulenga said some mining companies had not been declaring any gold
production, arguing that the quantities mined were very insignificant and
therefore sold as copper.

Zambia’s mining investment company ZCCM-IH would invest in exploration,
mining, processing and trading in gold, its chief executive officer Mabvuto
Chipata said at the same briefing.

ZCCM-IH had undertaken initial exploration work in northwestern Zambia in
collaboration with the mines ministry and was likely to start mining in the
first quarter of next year, Chipata said.

ZCCM-IH had also started to set up centres for buying gold in strategic
areas with deposits as a first step in a bid to formalise artisanal and
small scale miners, he said.

Chipata said ZCCM-IH would provide technical expertise to artisanal miners
on mine planning and safety and give them access to earth moving machinery
and processing plants. 

China's Yunnan Aluminium backs 210,000 T second phase for Heqing smelter

* Yunnan Aluminium said on Thursday its board of directors had unanimously
approved building a 210,000 tonne per year second phase at its aluminium
smelting project in Heqing county, Yunnan province, southwest China

* The company, which commissioned a first phase of the same capacity earlier
this year, said in a filing to the Shenzhen Stock Exchange it would invest
1.3 billion yuan ($185.8 million) in the project

* Yunnan Aluminium, controlled by state-owned Chinalco, currently has 2.1
million tonnes of annual aluminium production capacity, all of which uses
hydropower for the energy-intensive smelting process

* The filing did not provide a timeframe for the start of construction and
production of the second phase but projected annual net profits of 96.2
million yuan ($1 = 6.9961 Chinese yuan renminbi) 

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
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.

(c) 2020 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

Invest Wisely!

Bulls n Bears

Telephone:    <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 719 441 674

Alt. Email:              <mailto:info at bulls.co.zw> info at bulls.co.zw 

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:                 @bullsbears2010

LinkedIn:              Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:                  Bulls.Bears 

Whatsapp Group:   <https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> Click
Here to Join

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200103/df2f79ef/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200103/df2f79ef/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 47171 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200103/df2f79ef/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 34958 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200103/df2f79ef/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200103/df2f79ef/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29478 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200103/df2f79ef/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 3256 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200103/df2f79ef/attachment-0009.jpg>