Bulls n Bears Daily Market Commentary : 16 September 2020

Wed Sep 16 16:49:04 CAT 2020

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Bulls n Bears Daily Market Commentary : 16 September 2020

 <http://www.zb.co.zw/> 

ZSE commentary

Market Turnover ZWL$58,703,680.04 with foreign buys at Nil and foreign sales
were ZWL $6,821,010.00 Total trades were 244.

The ZSE All Share Index eased another 18.46 points to close at 1,682.59
points. CBZ lost $2.1207 to settle at $53.8793, SEEDCO dropped $1.0018 to
end at $22.4911 and DELTA was $0.4701 weaker at $17.9589. NATFOODS also
decreased by $0.4500 to end at $49.2000 and INNSCOR  traded $0.4365 lower at
$20.3331.

Trading in the positive; RIOZIM added $1.5075 to $12.0075; FBC HOLDINGS
gained $0.4840 to $12.0000 and MEIKLES was $0.4191 firmer at $17.3191.
PADENGA  also went up by $0.1764 to $15.9505 and NMB  was $0.1000 higher at
$3.2000.

 <http://www.finsec.co.zw/> 

Global Currencies & Equity Markets

Zambia

Zambia's central bank to address volatility in exchange rate to ensure
financial stability

(Xinhua) -- Zambia's central bank said on Tuesday that addressing volatility
in the exchange rate is critical in achieving and maintaining price and
financial system stability.

The Bank of Zambia (BoZ) said it will continue to use all available monetary
and foreign exchange intervention options to address adverse developments in
the foreign exchange market.

The Kwacha, the local currency, has come under intense pressure in recent
weeks, depreciating by 8.0 percent, largely reflecting imbalances in the
foreign exchange market, the central bank added.

It noted in a release that this has mainly been due to lower foreign
exchange sales from the mining industry as well as foreign financial firms
who typically invest in government bonds.

According to the release, the reduced mining sector supply was consistent
with the gradual general reduction in exports in general, which has been
worsened by the COVID-19 pandemic.

Nigeria 

Nigeria to Regulate Crypto-Currencies to Protect Investors

Nigeria's Securities and Exchange Commission said it will regulate trade in
digital currencies to provide protection for investors and to ensure that
transactions are transparent.

The authorities in the West African nation had in the past declined to
recognize digital currencies as legal tender, with Central Bank of Nigeria
saying in 2018 that crypto-currencies including Bitcoin, Ripples, Monero,
Litecoin, Dogecoin and Onecoin, weren't regarded as money.

 <http://www.zb.co.zw/> 

EMERGING MARKETS

Yuan at 16-month high, lira tries to come off lows before Fed decision

(Reuters) - Emerging market currencies scaled seven-month highs on
Wednesday, with the Chinese yuan reaching a 16-month peak and the Turkish
lira recovering slightly from new lows, as investors awaited the U.S.
Federal Reserve's policy announcement.

Details are anticipated after the Fed unveiled a policy shift in August
allowing for greater tolerance towards inflation. Traders bet an
ultra-accommodative Fed in the face of a coronavirus-induced recession would
weigh on the U.S. dollar, which traded steady before the decision due at
1800 GMT.

Russia's rouble was holding steady after a three-session losing streak, and
South Africa's rand was on course for gains for a fourth successive session.
Central bank meetings in both countries later this week are also on the
radar.

China's yuan climbed 0.3% as the People's Bank of China signalled greater
tolerance for gains in the currency.

Turkey's lira made marginal gains after slipping to new lows against the
dollar earlier in the session.

Tensions with Athens, a Moody's downgrade and worries about depleting
foreign exchange reserves are among factors that have weighed on the lira
this year. It is one of the worst performing among emerging market peers,
with a nearly 21% decline.

Among emerging markets in central and eastern Europe, the Czech crown
stabilised after sinking to the weakest level against the euro in more than
two months after a rise in coronavirus cases.

The Polish zloty rose 0.3%, a day after the central bank left interest rates
unchanged, saying it saw economic recovery continuing in coming months.

Emerging stocks rose 0.3% to a two-week high, extending gains for a fourth
straight session.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Rising Chinese demand pushes zinc towards 16-month high

(Reuters) - Zinc prices on Wednesday pushed towards the 16-month highs hit
earlier this month as resurgent Chinese industry bolstered the outlook for
demand and the yuan strengthened, making metals more affordable for Chinese
buyers.

Benchmark zinc on the London Metal Exchange (LME) was up 1.2% at $2,526 a
tonne in official trading, its fourth consecutive daily gain. It reached a
high of $2,583 on Sept. 1.

Prices of the metal used to galvanise steel are up 34% from their low in
March as manufacturing, steel production and infrastructure building
accelerate in China, the largest consumer.

YUAN: China's currency reached its strongest against the dollar since May
2019 after rising 6% in four months.

ECONOMY: The OECD upgraded its forecast for the global economy this year to
a 4.5% contraction from a 6% contraction.

TRADE WAR: The World Trade Organization said the United States had breached
global trading rules by imposing tariffs on China, drawing anger from
Washington.

STOCKS: Zinc inventories in LME-registered warehouses have risen to 219,625
tonnes from 50,000 tonnes in January, but stocks in Shanghai Futures
Exchange sheds have slipped to 58,453 tonnes from 170,000 tonnes in March.
MZNSTX-TOTALZN-STX-SGH

SPREAD: The discount of cash zinc to the three-month contract on the LME
shrank to $21.50 a tonne from $31 earlier this month, suggesting tighter
nearby supply. MZN0-3

SURPLUS: The roughly 13 million tonne a year zinc market saw a 205,000 tonne
surplus in the first six months of 2020, the International Lead and Zinc
Study Group said last month.

OUTPUT: China's output of copper, lead and zinc rose strongly in August.
Kazakh production of copper increased while its zinc output fell.

ALUMINUM: The Trump administration said it will remove its 10% U.S. tariffs
on raw Canadian aluminum.

OTHER METALS: LME copper was down 0.1% at $6,757 a tonne, aluminium was 0.5%
higher at $1,798, nickel fell 0.1% to $15,183, lead rose 0.2% to $1,912 and
tin was up 0.3% at $18,266.

Gold prices head for third straight gain ahead of Fed policy statement 

Gold futures climbed on Wednesday, with commodity investors positioning
prices for a third straight gain ahead of a Federal Reserve statement that
is likely to prove mostly bullish for long-term metals investors.

Investors are expecting the Fed to indicate continued support even if the
central bank isn't expected to change interest rates Wednesday from a range
between 0% and 0.25%. The Fed's statement will come about a half-hour after
precious metals prices settle on Comex.

Against that backdrop, December gold GCZ20, +0.07% GC00, +0.07% picked up
$7.10, or 0.4%, at $1,973.30 an ounce, with most-active contract prices
looking to again settle at their highest Sept. 1, according to FactSet data.

Investors will look to the Fed statement for "hints on how long rates may
remain low or if negative rates are being considered," said Colin
Cieszynski, chief market strategist at SIA Wealth Management, who believes
the Federal Open Market Committee's "economic forecasts may attract the most
attention from investors looking for insight into the health of the U.S.
economy and its recovery momentum."

Looking further ahead for gold, however, "U.S. elections headlines,
U.S.-China tensions, stimulus legislation" are among the factors that can
add volatility to the yellow metal, said Gero.

Prices for gold initially fell, then moved up Wednesday in the wake of U.S.
retail sales data, which revealed a rise of 0.6% in August for a third month
in a row, but momentum appears to be waning after a burst of demand earlier
in the summer once the country opened for business.

Meanwhile, December silver SIZ20, -0.32% SI00, -0.32% rose 3 cents, or 0.1%,
at $27.495, following a 0.4% climb in the previous session.

Also on Comex, December copper HGZ20, -0.37%  shed .1% to $3.06 a pound.

October platinum PLV20, -0.55%  lost 0.4% to $978.60 an ounce, but December
palladium PAZ20, -0.13%  inched up by 0.2% to $2,418.50 an ounce, holding
ground at the highest most-active contract prices since March. -Marketwatch

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
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
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