Bulls n Bears Daily Market Commentary : 05 March 2020

Fri Mar 6 02:49:05 CAT 2020

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Bulls n Bears Daily Market Commentary : 05 March 2020

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover ZWL$13,742,244.70 with foreign buys at ZWL$9,509,812.00 and
foreign sales were ZWL$5,479,453 Total trades were 204

The All Share index lost 5.73 points to close at 462.04 points. MEIKLES
LIMITED  dropped $1.4980 to $7.0000, DELTA eased $0.1821 to $5.8168 and
DAIRIBOARD

ZIMBABWE LIMITED  was $0.1600 weaker at $0.7000. PADENGA HOLDINGS also
decreased by $0.0968 to end at $5.9021 and ECONET WIRELESS LIMITED  lost
$0.0504 to $2.7015.

Upward movements were noted in RIO ZIM  which added $0.4000 to $5.1000, BAT
rose by $0.2857 to $84.2857 and CBZ HOLDINGS LIMITED  was $0.2125 stronger
at $1.2750. Two more counters to advance were NATIONAL FOODS LIMITED which
increased by $0.1000 to $20.2000 and INNSCOR AFRICA  was $0.0988 firmer at
$7.6495.

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

  Global Currencies & Equity Markets

Morocco

Morocco's Jan trade deficit widens 1.7% y/y

(Reuters) - Morocco’s trade deficit widened by 1.7% to 16.4 billion dirhams
($1.7 billion) in January compared with a year earlier, the foreign exchange
regulator said on Thursday.

Total imports grew 1.4% to 40.7 billion dirhams, outstripping exports of
24.3 billion dirhams, which rose 1.2%.

Foreign direct investments dived 32% to 1.4 billion dirhams, while
remittances from Moroccans living abroad dropped 2.8% to 5.62 billion
dirhams - both are significant factors for the flow of hard currency into
the country.

Morocco’s foreign exchange reserves edged up 0.3% to 241 billion dirhams by
the end of February, enough to cover five months of imports, according to
the central bank.

South Africa

Rand falls after South Africa confirms first coronavirus case

(Reuters) - South Africa’s rand weakened against the dollar on Thursday
after the government confirmed the country’s first case of coronavirus.

At 1500 GMT, the rand was 1.6% weaker at 15.5300 per dollar.

The confirmed case was a man who had visited Italy and the health minister
warned the arrival of coronavirus would test the country’s health system.

On the stock market, the Top-40 index was up 0.12% to 47,618 while the
broader all-share was largely flat at 52,936.

Petrochemicals group Sasol, however, was the biggest decliner on the
blue-chip index, falling nearly 9% as oil prices continued to drop with no
end in sight to the spread of coronavirus globally.

In fixed income, the yield on the 10-year 2030 government issue was down 1.5
basis points at 8.86%. 

GLOBAL MARKETS

Stocks tumble as coronavirus cases rise rapidly outside China

(Reuters) - Global equity markets tumbled and the dollar slid on Thursday as
the coronavirus spread quickly outside China, leading Britain to prepare for
a significant increase in cases and France to say it appeared “inevitable”
the outbreak would become an epidemic in the country.

HSBC in London sent more than 100 staff home and Italy’s UniCredit told some
staff the same, while companies began issuing profit warnings. Southwest
Airlines Co said it expected a hit of up to $300 million to first-quarter
operating revenue.

In Britain, regional airline Flybe collapsed, making it the industry’s first
big casualty of the outbreak, and broadcaster ITV fell 12.0% after warning
that ad revenue for April could fall about 10% as travel companies deferred
campaigns.

Three more people died from a coronavirus infection in France, taking the
total to seven, and Britain logged its first death from the pathogen. The
number of people in New York state who have tested positive for the virus
doubled to 22 following a significant increase in testing.

The Institute of International Finance cut its forecast for the U.S. and
Chinese economies, and warned that global growth could be the weakest since
the financial crisis.

Global growth in 2020 could approach 1%, far below last year’s 2.6%
expansion, the Washington-based financial industry association said. The
pandemic has spread to 80 countries and has killed more than 3,000
worldwide.

In Wuhan, the Chinese epicenter of the epidemic, an expert with the
country’s top panel battling the illness said the city will likely see new
infections drop to zero by the end of March. Total cases in China rose to
80,409.

In Italy, where the virus has hit Europe the hardest, the Civil Protection
Agency said the death toll rose by 41 from Wednesday to 148, with the
contagion showing no sign of abating.

U.S. stocks fell sharply and European equities snapped a three-day winning
streak as the epidemic’s advance darkened the mood. A day earlier, Wall
Street rose on former Vice President Joe Biden’s strong performance in the
Democratic nomination campaign and the U.S. House of Representatives’
approval of an $8.3 billion funding bill to combat the coronavirus. The
Senate passed the legislation on Thursday.

MSCI’s gauge of stocks across the globe shed 1.89%, while emerging market
stocks were little changed.

The pan-European STOXX 600 index lost 1.43%.

On Wall Street, the Dow Jones Industrial Average fell 969.58 points, or
3.58%, to 26,121.28. The S&P 500 lost 106.18 points, or 3.39%, to 3,023.94
and the Nasdaq Composite dropped 279.49 points, or 3.1%, to 8,738.60.

The benchmark S&P 500 closed down 10.7% from its closing all-time high
recorded Feb. 19.

The dollar index slipped to an eight-week low as traders bet the U.S.
Federal Reserve will cut interest rates further, and gold prices climbed
about 1.5% to the highest in more than a week.

The Fed cut rates by one-half percentage point on Tuesday. Money markets are
pricing in another 25d-basis-point cut at the next Fed meeting in two weeks
and a 50-basis-point cut by April.

The dollar index fell 0.826%, with the euro up 0.89% to $1.1233, a 2020
high.

The Japanese yen strengthened 1.38% versus the greenback at 106.09 per
dollar.

U.S. Treasuries rallied as investors worried about the economic implications
of increasing quarantines.

Corporate mergers could shrink in number by as much as 25% this year as
executives fret about the coronavirus and the impact of this year’s U.S.
election, said Blair Effron, co-founder of major M&A adviser Centerview
Partners

U.S. economic data still does not show the impact from the coronavirus. The
number of Americans filing for unemployment benefits fell last week. Labor
market strength was underscored by other data showing planned job cuts by
U.S.-based employers fell sharply in February.

The epidemic’s impact is not showing up in data but the storm is
approaching, Kelly said.

Benchmark 10-year notes rose in price to push their yield lower to 0.912%.

Oil prices edged lower, but losses were limited as the Organization of the
Petroleum Exporting Countries (OPEC) agreed on deeper output cuts to bolster
prices.

Brent crude settled down $1.14 at $49.99 a barrel. U.S. West Texas
Intermediate slid 88 cents to settle at $45.90.

U.S. gold futures settled 1.5% higher at $1,668 an ounce.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold jumps to over 1-week high as virus fears spark rush to safety

(Reuters) - Gold climbed over 1% to a more than one-week high on Thursday as
worries over the global spread of the coronavirus spurred safe-haven flows
and raised hopes of further monetary policy easing by major central banks.

Spot gold had gained 1.4% to $1,657.78 per ounce by 09:59 a.m. EST (1459
GMT). U.S. gold futures jumped 1% to $1,658.80.

Equity markets tanked after California declared an emergency over the
epidemic as the death toll rose in the United States.

There are now more than 90,000 COVID-19 coronavirus cases globally, with
over 3,000 deaths.

The International Monetary Fund said on Wednesday the global spread had
crushed hopes for stronger growth this year, while a Fed report showed there
were signs the epidemic had begun to weigh on U.S. business sentiment.

The U.S. Fed and Bank of Canada have both responded by cutting interest
rates by 50 basis points. Markets in the euro zone are pricing in a 90%
chance that the European Central Bank will cut its deposit rate next week.

Further supporting bullion, the dollar index slipped 0.5% to a near
two-month low against a basket major of currencies, while the U.S. 10-year
treasury yield fell back below 1%.

Elsewhere, palladium dropped 3.6% to $2,484.86 per ounce.

Silver gained 0.7% to $17.30 per ounce, while platinum slipped 1.4% to
$860.23.

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
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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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