Bulls n Bears Daily Market Commentary : 17 September 2020

Thu Sep 17 16:57:50 CAT 2020

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:bulls at bulls.co.zw> Views & Comments
<http://www.bullszimbabwe.com> 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 : 17 September 2020

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

ZSE commentary

Heavies drag ZSE .

The ZSE falling streak persisted on the bourse, mainly in heavy capitalized
stocks. The mainstream All Share Index retreated 0.71% to end lower at
1,670.68pts. The Industrial Index let go 0.65% to 5473.24pts while, the ZSE
Top Ten Index slipped 1.02% to 1,122pts. The Mining Index lost 2.38% to end
at 3,960.33pts weighed down by Bindura which eased 3.10% to $3.8274. The
major casualty of the day was SeedCo Limited that succumbed 9.95% to
$20.2535, trailed by hotelier African Sun that dropped 6.73% taking its
price to $1.5000. Crocodile skin producers Padenga closed at a vwap of
$14.9967 after a 5.98% decline. Banking group First Capital trimmed 5.02% to

$0.8952 while, Dairibord competed the top five shakers on a 5.02% loss to
$10.4000.

Headlining the gainers' pack was Turnall that jumped 17.05% to $0.9364,
followed by construction group Masimba that gained 14.01% to $2.0000. Life
assurer Fidelity put on 11.11% to $0.9000 while, Zimplow improved 10.49% to
$4.1986. FBC completed the top five risers of the day having jumped 8.40% to
close at $13.0081. Falling stocks outweighed gainers by a count of eight
establishing a negative market breadth. Volumes traded advanced 42.54% to
5.49m shares yielding a turnover of $37.81m which was a 35.63% dip from
prior session. Volume leaders of the day were Cassava, Zimplow and Econet
which contributed 22.29%, 14.58% and 10.22% respectively. Anchoring the
value outturn of the day was Padenga, Delta, Cassava and Innscor which
claimed a combined 55.73% of the aggregate. Foreign sales amounted to
$10.21m while, purchases stood at $7.32m, leaving the market with a net
funds outflow position of $2.89m.- efesecurities

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

Global Currencies & Equity Markets

South Africa

South Africa's currency will rally into year-end with risks already priced
in, strategist says

Despite losing around 5% to the rand over the past three months, the U.S.
dollar is still up by more than 16.5% against Africa's most liquid currency
since the turn of the year. As of Wednesday afternoon, the rand was changing
hands at around 16.3285 to the dollar.

The South African rand will see a significant appreciation against the U.S.
dollar by the end of the year, as much of the macroeconomic risk facing the
country is already priced in, according to Absa CIB Head of Currency
Strategy Mike Keenan.

The currency plummeted in late March as the coronavirus began to spread
throughout the world, sending riskier markets into an historic tailspin.
Despite losing around 5% to the rand over the past three months, the U.S.
dollar is still up by more than 16.5% against Africa's most liquid currency
since the turn of the year. As of Wednesday afternoon, the rand was changing
hands at around 16.3285 to the dollar.

Compounding the impact of the crisis on the rand, beyond the natural
expectations of a fall in emerging market currencies in a global economic
downturn, were a host of pre-existing macroeconomic factors. Already
blighted by low growth and rising debt, Moody's in March downgraded the
country's last investment-grade sovereign credit rating to "junk."

Keenan suggested that it was this "perfect storm" of factors that drove the
currency up to 19.35 to the dollar in March.

Devil in the data detail

South African GDP (gross domestic product) contracted by an annualized 51%
in the second quarter, with the beginnings of a rebound anticipated in the
third quarter as lockdown measures continue to ease. Keenan anticipates that
some sectors, such as tourism and hospitality, will take longer to return to
pre-Covid levels, while others such as property have shown signs of pent-up
demand coming through in light of lockdowns being lifted.

Unemployment remained high in South Africa even before the pandemic, and
Keenan suggested that signs of a recovery in mass employment sectors such as
manufacturing and mining would be key.

However, these sectors also face struggles predating Covid-19, with Finance
Minister Tito Mboweni seeking to overcome opposition within the ruling ANC
on much touted reform of state-owned enterprises, and the government
embroiled in a legal battle with trade unions over public sector wage
freezes in order to secure more fiscal space.

Ethiopia:Experts congratulate currency alteration timeliness

ADDIS ABABA - Economic experts have stated that the measure the Ethiopian
Government has taken to alter the existing Birr note is a plausible hedge to
the myriads of problems and helps the nation achieve the economic reform it
has recently commenced.

Zafu Eyesuswork Zafu, an economic expert, said that since there is a huge
amount of money operating in the country out of the banking system, the
measures are of significantly useful in addressing a range of challenges
emanating from financial hurdles.

He said, "Illicit cash flow has adversely influenced the economy of the
country. Hence, in addition to introducing new currency note, banning the
over 1.5 million Birr cash holding at individual or company level is very
decisive to control illegal activities in the financial sector in the
country and it is instrumental in limiting the amount of cash out of the
banking system."

He stressed that as illegal currency flow has been leading the market of the
country and causing the booming of contraband trading, altering notes is
quite helpful to get people who have engaged in these activities back to the
banking service.

As to him, the introduction of the new currency is supportive to halt the
outflowing of foreign currency from the country through illegal means.

Sharing the idea of Zafu, TekleBirhan Gebremichael, an economist, on his
part said that as the highest note is made to be 200 Birr today, the newly
introduced currency may enable to print mass currency with less printing
cost.

According to TekleBirhan, note alteration has multifaceted advantages as it
will enable the country reduce inflation rate, get the price of dollar
lowered, reduce public tendency to exchange currency at black market,
contain forgery and the likes. However, the Birr already changed in to
dollar either legally or illegally may be taken out of the country unless
series protective measures are undertaken.

He also underscored that the government needs to implement the already
pipelined measure as urgently as possible in order to tackle any sort of
crime that may happen in the country following currency adjustment.

The Ethiopian Herald  

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

China

China currency nudges toward best quarter since 1981

China is witnessing a rapid advance in the yuan, as traders push the
currency toward its largest quarterly numbers on record. The yuan has
strengthened 4.4 per cent since the end of June to 6.7620 per dollar, set
for the biggest ever quarterly gain since 1981.

The currency is the best performer in Asia in the third quarter, with the
buying momentum close to the strongest since January.

The rise of the yuan is being supported by a slump in the dollar, while
Chinese media has been attributing the gains to the nation's economic
recovery. The People's Bank of China has also helped by not standing in its
way, which for some in the market is an incentive for the currency to push
higher. Beijing's daily fixings have tracked the spot rate, and officials
have not expressed any concern over the currency's strength.

 <mailto:info at bulls.co.zw> 

Commodities Markets

LME copper falls most in seven sessions on stronger dollar

(Reuters) - London copper fell by the most in seven sessions on Thursday as
the dollar climbed after the U.S. Federal Reserve said it expected the
post-coronavirus recovery to gain steam in the world's largest economy.

FUNDAMENTALS

* LME COPPER: London Metal Exchange copper fell as much as 1.5% to $6,676 a
tonne, before paring losses to trade at $6,693 a tonne by 0345 GMT,
reversing gains from the previous session. Prices on Tuesday came within $1
of 26-month highs of $6,830 from the start of the month.

* SHFE COPPER: Shanghai Futures Exchange copper eased by 0.8% to 51,360 yuan
($7,579) a tonne, hitting its lowest in four sessions.

* OTHER METALS: LME nickel fell 1.5%, LME zinc slipped 1.3%, LME lead fell
0.7% and LME tin declined by 0.8%.

* U.S. POLICY: The Fed signaled on Wednesday it expected the U.S. economic
recovery from the coronavirus crisis to accelerate, with unemployment
falling faster than its forecast in June.

* DOLLAR: Following the Fed's comments, the dollar index rose to a more than
one-week high against its rivals, diminishing the buying power of commodity
consumers paying with other currencies.

* COPPER: Freeport-McMoRan Inc does not want to be distracted by any buyout
offers and is focused on expanding its Grasberg copper-and-gold mine in
Indonesia and boosting cash flow, Chief Financial Officer Kathleen Quirk
said on Tuesday.

($1 = 6.7765 Chinese yuan) '

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 at 1600 GMT, 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 in more than
a year 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 $21.40 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 up 0.2% at $6,776.50 a tonne, aluminium was
0.1% higher at $1,791, nickel gained 0.2% to $15,230, lead fell 0.7% to
$1,895 and tin was up 0.2% at $18,250. (Reporting by Peter Hobson;
Additional reporting by Naveen Thukral; Editing by Jan Harvey and Em

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

Invest Wisely!

Bulls n Bears 

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.bullszimbabwe.com> www.bullszimbabwe.com  

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bullszimbabwe.com/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 

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.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200917/4aed700c/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/20200917/4aed700c/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 26695 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200917/4aed700c/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 26595 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200917/4aed700c/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 741325 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200917/4aed700c/attachment-0009.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/20200917/4aed700c/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200917/4aed700c/attachment-0011.jpg>