Bulls n Bears Daily Market Commentary : 08 September 2020

Tue Sep 8 17:03:04 CAT 2020

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Bulls n Bears Daily Market Commentary : 08 September 2020

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ZSE commentary

ZSE closes in the black

The market closed Tuesday’s session in the black with the All Share Index
gaining 1.01% to 1,590.07pts while, the Industrials advanced 1.24% to
5,217.15pts. The Top Ten Index added 0.99% to close at 1,097.96pts. Mash led
the gainers of the day on a 14.75% jump to settle at $0.7000, trailed by
property concern FMP that surged 9.97% to close at $2.2545. Ariston put on
6.67% to $1.6000 while, SeedCo improved 5.89% to $19.3675 closing well-bid
at $19.5000. Other notable gainers were Padenga (3.76%), Innscor (2.21%),
Cassava (1.46%) and Delta (1.08%).

The Mining Index let go 6.19% to 3,587.26% on the back of losses in Bindura
which succumbed 7.50% to end pegged at $3.7000. Banking group NMB shed 1.61%
to $3.0500 while, Turnall was down 0.58% to $0.8000. Art trimmed 0.33% to
close at $2.2000 while, banking group First Capital completed the fallers of
the day on a 0.02% loss to $1.0200. Twenty-five stocks registered price
movements distributed into twenty risers and five fallers  to see the market
close with a positive breadth of fifteen. Activity aggregates faltered in
the session as seen in turnover that dipped 55.34% to $30.12m while, volumes
traded dropped 72.81% to $4.84m. OKZIM, Cassava and  Econet claimed a
combined 54.99% of the volume aggregate. Value outturn was anchored by OKZIM
(22.87%), Delta (17.62%), Innscor (9.97%), Econet (9.54%) and Cassava
(9.17%)..-efesecurities

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

S.African rand falls ahead of GDP data; Turkish lira hits new lows

(Reuters) - South Africa’s rand fell on Tuesday with investors bracing for
dismal GDP data due later in the day, while most other emerging market
currencies made muted

move against a stronger dollar, with Turkey’s lira hitting new lows.

Stocks in the developing world were back in positive territory for the first
time in a week, with the MSCI index gaining 0.3% as market participants
waited to see if Wall Street can continue a tech rally after an extended
weekend.

But anti-Chinese rhetoric from U.S. President Donald Trump, who again mooted
the prospect of de-coupling the U.S. and Chinese economies, kept fears of an
escalation in

tensions between Washington and Beijing alive.

The dollar gained amid the uncertainty, pressuring riskier currencies.

South Africa’s rand erased early gains to trade down 0.3%, with data at 0930
GMT expected to show the recession-hit economy contracted at its worst pace
ever - 44.5% on an annualised basis - in the second quarter.

South African stocks were up 0.4%, in line with most other emerging market
peers.

Turkey’s lira fell 0.2% as tensions with Greece over energy resources in the
eastern Mediterranean grew. Athens plans to acquire arms, boost its armed
forces and revamp its defence industry, the government’s spokesman said on
Monday.

Subdued oil prices kept Russia’s rouble flat, while in central and eastern
Europe, currencies made minor moves against a weaker euro which eyed a
European Central Bank meeting on Thursday.

Romania’s leu was flat, caught between data that showed the economy
contracted 10.5% on the year in the second quarter, while separate data
showed net average wages in the country rose in July on a year-on-year basis
as well as from June.

 <mailto:info at bulls.co.zw> 

EMERGING MARKETS

Stocks extend losses on trade,

(Reuters) - Emerging market currencies weakened on Monday with eyes this
week on GDP data from Russia and South Africa, while a strong open for
western European bourses helped an index of developing market shares cut
some losses after a weak handover from Asia.

A pull-back on Wall Street on Friday, mixed trade data from China, and fears
of an escalation in U.S.-China tensions after news of potential U.S.
sanctions against China’s biggest chipmaker SMIC, pushed MSCI’s index of EM
shares to a fourth straight session of losses.

But the index partially recovered from a fall of 0.6% as stock indexes in
Turkey, South Africa, Russia , Hungary and Poland, all rose between 0.2% and
0.1%, tracking a near 1% gain in Europe’s STOXX 600 .

Volumes remained thin due to an U.S. holiday.

Against a stronger dollar, South Africa’s rand was flat despite fresh data
showing net foreign exchange reserves rose in August. The second-quarter
gross domestic product data, due on Tuesday, is expected to show the already
recession-hit economy likely suffered its deepestever contraction following
a strict coronavirus lockdown.

A return of nationwide power cuts last week by state utility Eskom and signs
of tension inside the ruling African National Congress have seen the rand
lag its emerging market peers.

A fall in oil prices following price cuts by Saudi Arabia added to the
pressure for petrolinked currencies, with Russia’s rouble softening 0.3%.
GDP data due on Wednesday  expected to show Russia’s economy held its ground
in the April-June quarter.

Turkey’s lira eased 0.2%, just shy of new lows. President Tayyip Erdogan
told European Council President Charles Michel on Sunday that the EU’s
stance towards the East

Mediterranean would be a test of its sincerity, calling on it to take an
impartial stance in Turkey’s row with Greece.

In Belarus, data showed gold and foreign exchange reserves fell by $1.4
billion to $7.5 billion in August due to central bank efforts of propping up
the rouble amid widespread protests in the country last month against the
disputed election of leader Alexander Lukashenko.

Belarus bonds were mixed, while the currency traded flat to higher.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper dips as sizzling rally loses some of its heat

(Reuters) - Copper fell on Tuesday as U.S.-China tensions rose and the
dollar strengthened, but prices remained near two-year highs as London Metal
Exchange (LME) warehouse system stockpiles hit 15-year lows and speculators
bet on a further rally.

Benchmark copper on the LME was down 1% at $6,723.50 a tonne at 1030 GMT.

The metal reached $6,830 on Sept. 1 -- up than 50% from a low in March -- as
demand from top consumer China revived and speculative investors raised
their punt on higher prices to the biggest since June 2018.

U.S.-CHINA: President Donald Trump on Monday again raised the idea of
separating the U.S. and Chinese economies. Shares in Chinese chipmaker SMIC
plunged after news of

potential U.S. sanctions against it.

MARKETS/DOLLAR: European share prices fell and the dollar strengthened,
making dollarpriced metals more expensive for buyers with other currencies.

STOCKS: Copper inventories in LME-registered warehouses fell 1,000 tonnes to
76,550 tonnes, the lowest since December 2005, and a steep premium for cash
copper over threemonth metal pointed to a tight market. MCUSTX-TOTAL Stocks
in Comex-registered warehouses in the United States are also declining, but
inventories in Shanghai Futures Exchange and Chinese bonded warehouses are
up since June. 

CHINA: China’s new bank loans are expected to have risen in August as the
central bank spurred liquidity. Copper’s rally has further to run if the
link between Chinese demand and credit availability fully reasserts itself,
analysts say.

GERMANY: Weak German export data for July pointed to a slow economic
recovery.

OTHER METALS: LME aluminium was down 1% at $1,780 a tonne, zinc fell 2.2% to
$2,453.50, nickel slipped 0.3% to $15,135, lead lost 1.1% to $1,949.50, and
tin was down 0.4% at $18,250.

Gold, silver and platinum try to rally

This morning gold, silver and platinum are trying to rally. All three are at
support levels and a rally is expected. The overall pattern remains bearish
and should break to the downside once the consolidation pattern resolve
itself. Consolidation itself is one of the most challenging patterns to
trade and always resolves into the next trend.

The metals do not look good overall and we expect a much bigger selloff
based on our algorithms. However, we also understand that markets can
change, reverse and going opposite directions of our original positions.
Until the trend changes, we will stay short across the board.

The price action in gold, silver and platinum looks weak which coincides
with our positions. All three are bouncing from support. Although gold is
already returned to unchanged and is trading on both sides indicating its
headed lower.

Silver and platinum are little stronger than gold, however, they are all in
the same pattern and likely to head the same way which for now, we believe
is lower. We remain you do not confuse a trade with an investment, we are
holding our physical without worry. In other words, in paper gold or
futures. we are short is traders but will always remain long as
investors.-kitco.com

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

Invest Wisely!

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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
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