Bulls n Bears Daily Market Commentary : 14 September 2020

Mon Sep 14 16:02:44 CAT 2020

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Bulls n Bears Daily Market Commentary : 14 September 2020

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ZSE commentary

All Share Index falters in week opener. 

The ZSE faltered in week opening trades, breaking the thirteen-day rising
streak to see the mainstream All Share Index shed 2.13% to close at
1,727.06pts. Dragging the market into the red were losses in ZB Financial
holdings that let go 12.78% to $11.5131, followed by MedTech which retreated
11.63% to $0.0707. Property concern Dawn slipped 6.77% to $1.0000 while,
fast foods group Simbisa trimmed 4.44% to settle at $6.4445. Beverages group
Delta completed the top five shakers of the day on a 3.54% loss to close at
vwap of $21.5850.

The Industrials gained 0.54% to 5,686.78pts while, the ZSE Top Ten Index
added 0.18% to 1,201.48pts. The Mining Index improved 8.24% to end at
3,422.94pts, buoyed by Bindura and Riozim which jumped 9.82% and 3.58% to
close at $3.2949 and $10.5000 respectively. Ariston rose 12.78% to settle at
$1.8000 while, insurer FML grew 10.04% to $4.5115. Conglomerate Meikles
gained 9.85% to settle at $16.8000 while, SeedCo Limited put on 6% taking
its price to $23.4855. Thirty counters traded in Monday's session
distributed as fifteen gainers, nine fallers and six that traded unchanged.
Volume of shares traded ballooned 112.63% to 10.53m, yielding a turnover of
$50.99m which was a 30.98% surge from previous session. Dawn claimed 37.35%
of total volume traded while, Riozim, Padenga, CBZ and Econet contributed a
combined 48.78% to the value outturn. Foreigners were net sellers in the
session as sales stood at $7.82m against a nil buyer's
position.-efesecurities

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Sudan

Sudan declares economic emergency as currency plunges

AFP-Sudan has declared a state of emergency to avert economic downturn due
to the dramatic fall of its local currency against the US dollar and soaring
inflation. 

The decision - reported by official news agency SUNA - includes setting up
emergency courts, enacting laws to protect the economy, and imposing harsher
penalties on smugglers and a rising black market.

In a Thursday press conference, Finance Minister Heba Ali blamed the sharp
dollar rise on "systematic sabotage" by currency exchange market
manipulators, official news agency SUNA reported. 

The Sudanese pound has plunged from 50 to 240 against the dollar in the year
since a transitional government took over after the April 2019 fall of
autocrat Omar al-Bashir.

In July, Sudan recorded a year-on-year  inflation rate of 143 percent,
according to the central bank.

Economic hardship - which triggered the anti-Bashir protests in December
2018 that led to the longtime president's ouster - remains a pressing
challenge in Sudan.

The crisis was further aggravated by weeks-long virus lockdown measures in
the capital Khartoum and neighbouring cities. 

Gold is Sudan's leading export item, and 93 tonnes were produced in 2018,
but the country is a victim of massive smuggling of the precious metal.

On Thursday, Justice Minister Nasreddine Abdelbari said the government
hardened smuggling penalties from one month to 10 years in jail.

Government spokesman Faisal Salih said the hike in the exchange rate was the
result of "deliberate sabotage" and "a war on the revolution." 

Prime Minister Abdalla Hamdok had said his government needs $8 billion to
rescue the ailing economy.  

But in June, international donors pledged only $1.8 billion in aid to
Sudan's transitional authorities.

The Sudanese economy has suffered from the country's inclusion on
Washington's terror blacklist, decades-long US sanctions and the 2011
secession of the country' oil-rich south.

The transitional administration has been campaigning for Sudan's
reintegration into the international community to bolster its economy.

Ethiopia

Ethiopian government unveils new currency notes

Ethiopians have a three-month window within which they will be able to
exchange old currency notes for new ones from the banks after the government
demonetized its currency.

Ethiopia on Monday unveiled new Birr notes for 10, 50 and 100 denominations,
in addition to introducing a new Birr 200 note.

Ahmed added that enhanced security features on the new notes will also cease
counterfeit production.

Ahmed said this was a necessary action to take to prop up the economy which,
like several others, has also been battered by the effects of the
coronavirus pandemic.

Local banks were instructed to immediately begin issuing new notes, which
are also touted to have greater longevity than the old ones. About 3.7
billion birrs ($101.2 million) was spent to print the new currency,
according to Ahmed.

The new and old notes will remain in circulation for three months but the
notes of 10, 50 and 100 denominations will stand canceled thereafter.

Ahmed also spoke about the steps the government had taken to stabilize the
economy since it came to power in 2018.

He said that the government had also lowered Ethiopia's sovereign debt from
35 percent to 25 percent of its GDP.

 <mailto:info at bulls.co.zw> 

Iran

Iran's currency hits new record low against the dollar

TEHRAN, Iran - Iran's currency on Saturday dropped to its lowest value ever
against the dollar, and has seen its value fall by 30 percent since June
amid severe US sanctions imposed on Tehran.

Money exchange shops traded the Iranian rial 262,000 for a dollar. The rial
had traded at 256,000 to $1 on Thursday, and markets were closed Friday, the
start of the weekend in Iran.

The rial has tumbled from a rate of 200,000 in late June. Iran's currency
was at 32,000 rials to the dollar at the time of Tehran's 2015 nuclear deal
with world powers.

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The currency unexpectedly rallied for some time after US President Donald
Trump's decision more than two years ago to withdraw the US from the nuclear
deal and reimpose crippling trade sanctions on Iran.

The sanctions have caused Iran's oil exports, the country's main source of
income, to fall sharply.

On Friday, the head of Iran's central bank Abdolnasser Hemmati said the
government was trying its best to control the situation in the currency
market.

Iranian officials for months have warned exporters to bring their foreign
earnings home from abroad or face having their export licenses revoked, and
the central bank has warned it would publish the names of violators.

In June, the central bank reported that Iranian companies export more than
$40 billion in non-oil products per year, and officials say some 50% of that
remains abroad.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Demand cheer helps copper hold near 26-month peak

(Reuters) - Copper prices slipped on Monday as funds took profits on long
positions, but strong demand in top consumer China, historically low
inventories and a lower dollar are expected to fuel further buying over
coming days.

Benchmark copper on the London Metal Exchange (LME) was down 0.3% at $6,718
a tonne at 1005 GMT.

Prices of the metal used widely in the power and construction industries
earlier touched $6,792.5, not far from the 26-month of $6,830 hit at the
start of September.

DEMAND: Clues to the strength of Chinese demand will come from August
industrial production and urban investment data due on Tuesday.

DOLLAR: A lower U.S. currency makes dollar-priced metals cheaper for holders
of other currencies, which could boost demand. It also raises costs for
miners in other currencies, so higher prices are required to protect
margins.

These relationships are used by funds to generate buy and sell signals from
numerical models.

INVENTORIES: Stocks of copper MCUSTX-TOTAL in LME-approved warehouses, at
74,875 tonnes, are at their lowest since 2005, when the commodity price bull
run took off, triggered by accelerating Chinese demand.

Also fuelling worry about supplies on the LME are large holdings of warrants
<0#LME-WHL> and cancelled warrants - metal earmarked for delivery and so no
longer available to the market - at more than 50% of the total.

This is why since early July cash copper has traded at a premium to the
three-month contract CMCU0-3. It closed at an 18-month high of $31.50 a
tonne on Friday.

OTHER METALS: Aluminium was up 0.5% at $1,784 a tonne, zinc fell 0.1% to
$2,468, lead was little changed at $1,889, tin added 0.2% to $18,070 and
nickel gained 0.6% to $15,180.

Gold edges up on weaker dollar, dovish U.S. Fed policy bets

(Reuters) - Gold edged higher on Monday, helped by a weaker dollar and
expectations that the U.S. Federal Reserve will reiterate its dovish
monetary policy stance this week

Spot gold was up by 0.1% at $1,943.58 per ounce by 1135 GMT. U.S. gold
futures rose 0.1% to $1,950.10 per ounce.

The dollar retreated on Monday, bolstering gold's appeal for investors
holding other currencies, ahead of the Fed's policy decision due on
Wednesday.       

Market participants are also waiting for the Bank of Japan and the Bank of
England's policy decisions due on Thursday.

Investors also took stock of uncertainty surrounding the UK's Brexit deal,
as Prime Minister Boris Johnson's plan breaching parts of the treaty faces
vote in parliament later in the day.   

Capping gold's gains, AstraZeneca Plc resumed its Phase-III trial,
rekindling hopes for a potential vaccine against COVID-19 and giving a boost
to global stock markets.

Gold is likely to remain trapped in a range in the near term due to the
conflicting forces buffeting the commodity with major headwinds in the form
of rising vaccine hopes and positive economic data from major economies,
FXTM's Otunuga said.   

Silver gained 0.3% at $26.83 per ounce, platinum rose 1.3% to $937.35, while
palladium slipped 0.2%

to $2,315.29. 

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
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