Bulls n Bears Daily Market Commentary : 16 January 2020

Fri Jan 17 09:28:12 CAT 2020

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Bulls n Bears Daily Market Commentary : 16 January 2020

Zimbabwe Stock Exchange Update

Market Turnover ZWL$14,190,535.37 with foreign buys at ZWL$4,344,851.25 and
foreign sales were ZWL$10,998,065.38 Total trades were 128

The All Share index ended the day on a higher note after adding 0.32 points
to close at 237.04 points.DAIRIBORD further advanced by $0.0655 to settle at
$0.5260, MEKLES LIMITED  was $0.0500 stronger at $2.7500 and AXIA
CORPORATION  also increased by $0.0275 to $0.6825. Other counters to gain
were SIMBISA BRANDS  which traded $0.0250 higher at $1.3000 and ECONET
WIRELESS  which was up by $0.0201 to end at $1.5604.

Gians were offset by losses in OLD MUTUAL LIMITED  which further retreated
by $1.3495 to $35.1361, WILLDALE  which lost $0.0017 to $0.0298 and CASSAVA

SMARTECH  which was $0.0001 lower at $1.5098.

  Global Currencies & Equity Markets

Kenya

Kenyan shilling firms against the dollar

(Reuters) - The Kenyan shilling firmed against the dollar on Tuesday
supported by inflows from offshore investors buying stocks and government
debt amid thin importer demand, traders said. 

At 0830 GMT, commercial banks quoted the shilling at 101.25/45 per dollar,
compared with 101.40/60 at Monday's close.

Nigeria

Nigeria's central bank moves monetary policy committee meeting to Jan. 23
and 24 - cenbank Twitter

(Reuters) - Nigeria’s central bank has rescheduled its first monetary policy
committee meeting of 2020, it said in a tweet on Monday.

The bank moved the meeting to Jan. 23 and 24 after having previously been
scheduled to take place on Jan. 20 and 21. The bank did not give a reason
for the change and a central bank spokesman did not immediately respond to
phone calls seeking comment.

 <mailto:info at bulls.co.zw> 

Asia

Asian shares firm as China's GDP raises hopes of recovery

(Reuters) - Asian shares rose on Friday after global stock indexes and Wall
Street posted more records, and as China’s economic growth matched
expectations in spite of U.S. trade pressures.

The world’s second-largest economy grew 6.0% in the fourth quarter of 2019
from a year earlier, and 6.1% for the full year, official data showed on
Friday.

While China’s growth in 2019 was the slowest pace of economic expansion in
29 years, held back by anaemic domestic demand and the damaging trade war
with the United States, it was in line with analyst expectations and within
the government’s official target.

Recent data has pointed to an improvement in Chinese manufacturing and
business confidence as trade tensions eased, but analysts are not sure if
the gains can be sustained and Beijing is widely expected to roll out more
stimulus measures.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.1%.

China’s blue-chip CSI300 index was 0.27% higher, extending a rally fuelled
by hopes for improving relations with the United States that has seen it
gain 9% since the beginning of December.

Australian shares added 0.47% after setting four consecutive record closing
highs in previous days and Seoul’s KOSPI rose 0.12%. Japan’s Nikkei was up
0.49% after touching 15-month highs earlier in the session.

MSCI’s global share index touched new highs and was last up 0.03%.

But analysts say global equities may find it difficult to maintain momentum
from their recent rally as optimism over the U.S.-China trade truce gives
way to uncertainty over the next steps in trade talks.

While a Phase 1 deal signed by China and the United States on Wednesday is
seen as defusing the 18-month row that has hit global growth, experts say it
is unlikely to provide much balm for broader frictions between the two
countries. Most of the tariffs imposed during the dispute remain in place
and a number of thorny issues that sparked the conflict are still
unresolved.

In the United States on Thursday, a combination of upbeat earnings from
Morgan Stanley, rising U.S. retail sales, a strong labour market and robust
manufacturing data helped to lift Wall Street to record highs.

The Phase 1 deal and the U.S. Senate’s approval of a revamp to the
26-year-old North American Free Trade Agreement also boosted investor
spirits.

The Dow Jones Industrial Average rose 0.92% to 29,297.64, the S&P 500 gained
0.84% to 3,316.81 and the Nasdaq Composite added 1.06% to 9,357.13.

The U.S. data supported the dollar, which held steady on Friday. The
greenback hit eight-month highs against the yen before trimming its advance
to rise 0.05% to 110.20. The euro was little changed at $1.1136.

The dollar index, which tracks the greenback against a basket of six major
rivals, was a tick lower at 97.319.

The rally in equities was mirrored in U.S. benchmark 10-year Treasury notes,
which saw yields rise to 1.8266% from their close on Thursday at 1.809%.
Yields rise as prices fall.

Commodity markets were quiet, with Brent crude futures adding just 3 cents
to $64.58 per barrel. U.S. West Texas Intermediate crude futures were also 3
cents higher at $58.55 per barrel.

Gold added 0.05% to $1,553.35 per ounce on the spot market.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper picks up as key China data lifts sentiment

(Reuters) - London copper prices edged up on Friday after two sessions of
losses, lifted by better-than-expected data from China - the world’s biggest
consumer of the malleable metal.

China on Friday announced a slew of economic data for 2019, including gross
domestic product, industrial production and fixed-asset investments, which
are closely tracked by industrial metals participants.

Benchmark three-month copper on the London Metal Exchange (LME) was up 0.2%
at $6,290 a tonne, as of 0558 GMT.

The most-traded copper contract on the Shanghai Futures Exchange (ShFE)
recovered from early losses to trade flat at 49,240 yuan ($7,169.69) a tonne
following the release of the economic data.

Capping gains were concerns whether China’s recovery phase would sustain.

FUNDAMENTALS

* INDUSTRIAL PRODUCTION: Industrial output grew 6.9% in December from last
year, the strongest pace in nine months and beating analysts’ expectations
that growth would have dipped to 5.9% from 6.2% in November.

* INVESTMENT: Fixed-asset investment rose 5.4% for the full year, higher
than expectations of a 5.2% increase.

* GDP: China’s economic growth slowed to its weakest in nearly 30 years in
2019, but in line with expectation, while the economy ended the year on a
firmer note as trade tensions eased.

* PERU COPPER: Copper production last year in Peru, the world’s no.2 copper
producer, rose 4% annually to 2.5 million tonnes.

* ALUMINIUM: China’s annual aluminium production fell for the first time in
10 years in 2019 to 35.04 million tonnes on softer demand and large-scale
smelter outages, but December output of 3.04 million tonnes was the
second-highest monthly figure on record.

* EV BATTERY: Volkswagen AG is set to take a 20% stake in Chinese electric
vehicle battery maker Guoxuan High-tech Co Ltd as the German firm
accelerates its electric push into China.

* PRICES: LME aluminium eased 0.1% to $1,811 a tonne, nickel rose 0.8% to
$13,885 a tonne, zinc fell 0.5% to $2,409.50 a tonne, while lead declined
0.4% to $1,994 a tonne.

* SHANGHAI: ShFE aluminium climbed 1.2% to 14,280 yuan a tonne, nickel
dropped 2.5% to 108,420 yuan a tone while zinc rose 0.8% to 18,370 yuan a
tonne.

China 2019 crude steel output jumps 8.3%, sets 2nd straight annual record

(Reuters) - Crude steel production in China climbed to a record just shy of
1 billion tonnes in 2019, boosted by a resilient property market and robust
demand as Beijing beefed up infrastructure spending in a bid to weather a
slowdown in economic growth.

The world’s biggest steelmaker churned out 996.34 million tonnes of crude
steel in 2019, up 8.3% from 2018’s previous record, data from the National
Bureau of Statistics showed on Friday.

In December, China’s steel production surged 12% year-on-year to 84.27
million tonnes, the highest since August, according to the statistics
bureau. December’s average daily output was up 1.5% from November at 2.72
million tonnes, according to a Reuters calculation based on official data.

Steel demand in China stayed firm in 2019 despite the world’s second-largest
economy coming under pressure from slowing domestic growth and a bitter
trade war with the United States.

The property market was more resilient than expected, and a push on
infrastructure spending also fuelled demand for steel as a vital building
material.

China’s real estate investment increased 9.9% in 2019 on an annual basis,
outpacing a 9.5% gain in 2018. New construction starts measured by floor
area, meanwhile, rose 7.4% year-on-ear in December, according to the
statistics bureau.

Profit margins at steel mills also remained strong enough to encourage
greater output, according to analysts.

The average capacity utilisation rate at 247 major steel firms was 78.99% in
the week of Dec. 27, down slightly from the end of November but up from
76.80% at the end of 2018, according to data compiled by Mysteel
consultancy.

The China Iron and Steel Association said last week it expects further
growth this year, forecasting Chinese steel demand of about 890 million
tonnes for 2020, up 2% from 2019. 

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
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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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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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