Bulls n Bears Daily Market Commentary : 03 March 2020

Wed Mar 4 00:42:18 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 : 03 March 2020

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover ZWL$11,917,385.01 with foreign buys at ZWL$1,464,964.46 and
foreign sales were ZWL$4,846,573.50 Total trades were 179

The All Share index recovered 3.51 points  to close at 474.51 points. BAT
added $10.5906 to $84.1357, CAFCA   rose by $2.3400 to $14.2500 and OLD
MUTUAL LIMITED   was $2.0328 stronger at $50.2818. HIPPO VALLEY ESTATES
also increased by $1.3756 to $8.2900 and INNSCOR  was $0.2280 firmer at
$7.4880.

Gains were offset by losses in DELTA  which dropped $0.2017 to $6.2983, OK
ZIMBABWE  eased $0.1051 to $1.6949 and BINDURA  was $0.0400 weaker at
$0.5000. CASSAVA SMARTECH  also decreased by $0.0329 to end at $2.7571 and
PADENGA  lost $0.0100 to $5.9900.

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

  Global Currencies & Equity Markets

South Africa

South Africa's rand falls as economy slips into recession

(Reuters) - South Africa’s rand weakened on Tuesday as data showed the
economy entered its second recession in two years in the final quarter of
last year, while stocks edged higher.

At 1716 GMT the rand was 0.55% weaker at 15.4700 per dollar, after hitting a
session low of 15.6250 in the immediate aftermath of the recession news.

The recession is another setback for President Cyril Ramaphosa’s efforts to
revive the economy and stave off a downgrade of the country’s sovereign debt
to below investment grade by rating agency Moody’s.

Moody’s is the last of the top three agencies to rate the country’s debt at
investment level, and it is set to assess the rating in March.

Stocks closed higher, with the Johannesburg Stock Exchange’s Top-40 index
rising 2.2% to 47,671 points and the broader all-share index closing up
2.16% at 52,958 points.

The rise was led by miners AngloGold Ashanti, which rose 7.45%, and Anglo
American Platinum, up just over 6%.

Nedbank was the only company on the index whose shares fell on Tuesday,
after it reported a near 7% drop in profits. Its shares closed down 2.28%.

Bonds were firmer, with the yield on the benchmark 2026 government issue
down 21 basis points to 7.945%. 

Nigeria

Nigeria's bourse to become listed company, appoints board

(Reuters) - The Nigerian Stock Exchange said on Tuesday it has won approval
from members to become a listed company and has appointed a board of
directors.

It would now re-register as a profit-making entity owned by shareholders
called the Nigerian Exchange Group Plc with a share capital of 1.25 billion
naira ($4 million), from being a not-for-profit entity.

GLOBAL MARKETS

Stocks slide, 10-year Treasury yield hits record low after Fed's emergency
rate cut

(Reuters) - Global equity markets slid on Tuesday and the yield on 10-year
U.S. Treasuries fell below 1% for the first time after the Federal Reserve
cut interest rates in an emergency move to shield the U.S. economy from the
impact of the fast-spreading coronavirus.

Gold prices surged and the dollar sank as markets reacted to the Fed’s
surprise cut of the federal funds rate by a half percentage point, to a
target range of 1.00% to 1.25%.

Yields on U.S. government debt fell across the board as investors grabbed
Treasuries and other safe-have assets, such as gold, amid the uncertainty
sparked by the rate cut.

The slide in stocks and rise in safe-havens suggested markets found the
Fed’s action inadequate to an epidemic that has killed more than 3,000
people worldwide and threatens to significantly slow global growth.

Demand is falling and supply chains have been disrupted, symptoms that lower
interest rates do not cure, Arone said.

The unanimous decision by policymakers to cut rates before their next
scheduled policy meeting on March 17-18 reflects the urgency with which the
Fed felt it needed to act to prevent a potential global recession.

Stocks on Wall Street initially spiked more than 2% on the Fed’s surprise
statement. But the Dow Jones industrial average , Nasdaq composite index and
S&P 500 fell sharply in afternoon trading.

President Donald Trump said his administration was working with Congress to
pass an emergency spending measure to ramp up the U.S. response to the
coronavirus, adding that he expected lawmakers to authorize about $8.5
billion.

The Fed’s announcement largely validated expectations from investors for
aggressive policy action, said Candice Bangsund, a global asset allocation
strategist at Fiera Capital in Montreal.

Shares in Europe rose more than 2%, while MSCI’s all-country world index
rose almost 1%.

The Group of Seven finance officials said in Tokyo they would use all
appropriate policy tools to achieve strong, sustainable global growth and
safeguard against downside risks posed by the coronavirus.

The Fed’s rate cut and the G7 statement came after global stocks last week
suffered their worst rout in a decade on fears that disruptions from the
epidemic to supply chains, factory output and global travel could seriously
slow the world economy.

The pan-European STOXX 600 index rose 1.37%

The Dow Jones Industrial Average fell 745.82 points, or 2.79%, to 25,957.5,
the S&P 500 lost 81.08 points, or 2.62%, to 3,009.15, and the Nasdaq
Composite dropped 260.59 points, or 2.91%, to 8,691.58.

Gold surged. U.S. gold futures settled 3.1% higher at $1,644.40 an ounce.

The dollar fell across the board.

The dollar index fell 0.415%, with the euro up 0.46% to $1.1183. The
Japanese yen strengthened 1.01% versus the greenback at 107.25 per dollar.

Oil prices closed mixed.

Brent crude fell 4 cents a barrel to settle at $51.86, off a session high of
$53.90 hit immediately after the rate cut. U.S. West Texas Intermediate
(WTI) added 43 cents a barrel to settle at $47.18, after trading as high as
$48.66 a barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold jumps, stocks slide after Fed's rate cut

(Reuters) - Global equity markets fell more than 3% while gold prices surged
on Tuesday after the Federal Reserve cut interest rates in an emergency move
to shield the U.S. economy from the impact of the coronavirus.

The 10-year U.S. Treasury note fell below 1% as markets reacted to the Fed’s
surprise cutting of its federal funds rate by a half percentage point to a
target range of 1.00% to 1.25%.

The slide in stocks and rise in safe-haven gold suggested markets found the
Fed’s action an inadequate response to an epidemic that has killed more than
3,000 people worldwide.

Demand is falling, supply chains have been disrupted and lower interest
rates do not cure those two symptoms, Arone said.

The unanimous decision by policymakers to cut rates before their next
scheduled policy meeting on March 17-18 reflects the urgency with which the
Fed felt it needed to act to prevent a potential global recession.

Stocks on Wall Street initially spiked more than 2% on the Fed’s surprise
statement. But the Dow Jones industrial average , Nasdaq composite index and
S&P 500 fell sharply in afternoon trading.

President Donald Trump said his administration was working with Congress to
pass an emergency spending measure to ramp up the U.S. response to the
coronavirus, adding that he expected lawmakers to authorize about $8.5
billion.

The Fed’s rate cut “spooked investors after the strong rebound (on Monday)
because it was made right away and it was 50 basis points,” said Alan Lancz,
president of Alan B. Lancz & Associates Inc in Toledo, Ohio.

The Fed’s announcement largely validated expectations from investors for
aggressive policy action, said Candice Bangsund, a global asset allocation
strategist at Fiera Capital in Montreal.

Shares in Europe rose more than 2% on the day, while MSCI’s all-country
world index rose almost 1%.

The Group of Seven finance officials said in Tokyo they would use all
appropriate policy tools to achieve strong, sustainable global growth and
safeguard against downside risks posed by the coronavirus.

The Fed’s rate cut and G7 statement came after global stocks last week
suffered their worst rout in a decade on fears that disruptions from the
epidemic to supply chains, factory output and global travel could seriously
slow the world economy.

The pan-European STOXX 600 index rose 1.37%

The Dow Jones Industrial Average fell 745.82 points, or 2.79%, to 25,957.5,
the S&P 500 lost 81.08 points, or 2.62%, to 3,009.15 and the Nasdaq
Composite dropped 260.59 points, or 2.91%, to 8,691.58.

Gold surged. Spot gold added 2.7% to $1,633.30 an ounce.

The dollar fell across the board.

The dollar index fell 0.415%, with the euro up 0.46% to $1.1183.

The Japanese yen strengthened 1.01% versus the greenback at 107.25 per
dollar.

Oil prices rose but remained below session highs.

Brent crude rose 19 cents a barrel to $52.09, off a session high of $53.90 a
barrel hit immediately after the rate cut. U.S. West Texas Intermediate
(WTI) added 31 cents a barrel to $47.06 a barrel, after trading as high as
$48.66.

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 77 344 1674

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 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200304/2a2c250b/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/20200304/2a2c250b/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 30155 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200304/2a2c250b/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 30141 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200304/2a2c250b/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 35850 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200304/2a2c250b/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200304/2a2c250b/attachment-0011.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 30131 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200304/2a2c250b/attachment-0012.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image007.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200304/2a2c250b/attachment-0013.jpg>