Bulls n Bears Daily Market Commentary : 18 September 2020

Fri Sep 18 18:33:12 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 : 18 September 2020

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

ZSE commentary

ZSE losses extend

The ZSE continued to plummet for the fifth consecutive session to end the
week in the red. The Mining Index was the major casualty after shedding
2.68% to close at 3,854.30pts while, the ZSE Top Ten Index followed as it
dropped 1.16% to 1,109.02pts. The All Share Index was down 0.43% at
1,663.47pts while, the Industrial Index trimmed 0.36% to 5,453.46pts.
Conglomerate Meikles headlined the fallers of the day on a 16.95% decline to
$14.0500, trailed by Innscor that eased 9.19% to $18.2600. Insurer FML lost
8.86% to end pegged at $4.1000 while, retailer OKZIM lost 6.97% to close at
$4.3322. SeedCo Limited completed the top five shakers of the day after
retreating 5.14% to $19.2131.

Banking group FBC topped the gainers’ list on a 16.56% surge to $15.1618
while, apparel retailer Edgars gained 10.99% to $1.0000. TSL improved 8.14%
to $5.4808 while, financial services group ZB added 7.14% to close at
$15.0000. Ariston capped the top five risers’ pack after advancing 6% to
$1.7700. The market closed with a negative breadth of six as eighteen
counters traded in the red against twelve that gained. Activity aggregates
faltered in Friday’s session as reflected in volumes that succumbed 37.90%
to 3.41m shares while, turnover dipped 19.58% to $30.41m. Top volume drivers
of the day were Innscor (20.76%), Cassava (16.64%), Econet (14.30%) and
Delta (11.70%). Innscor and Delta contributed a combined 64.83% to the value
aggregate. Local purchases claimed 99.99% of the turnover while, sales
contributed 53.39% of the same.-efesecurities

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

Global Currencies & Equity Markets

African currencies seen under pressure next week

The Nigerian naira is expected to weaken against the dollar in the week
ahead mainly due to shortages of hard currencies while the Zambian kwacha
will also be under pressure.

NAIROBI, (Reuters) - The Nigerian naira is expected to weaken against the
dollar in the week ahead mainly due to shortages of hard currencies while
the Zambian kwacha will also be under pressure.

NIGERIA

Nigeria's naira NGNFX=BDCN could weaken on the black market next week as a
dearth of foreign exchange on the official market spills over into the
parallel market, traders said.

The naira eased 1.08% to 465 naira per dollar on the unofficial black market
on Thursday.

The central bank has resumed the sale of dollars to foreign investors stuck
in Nigeria following a coronavirus-induced oil price crash, which drove
volatility in the currency market.

The naira traded at 386.05 on the over-the-counter spot market NAFEX=FMDQ,
widely quoted by investors and importers, on volumes in excess of $280
million on Wednesday.

The naira was quoted at 381 per dollar on the official market, which is
supported by the central bank.

KENYA

The Kenyan shilling KES=, is expected to remain under pressure against the
dollar next week.

The currency of East Africa's biggest economy was trading at 108.35/55 per
dollar on Thursday, compared with 108.40/60 a week earlier.

ZAMBIA

The kwacha ZMW= is likely to remain under pressure next week due to a drop
in the supply of hard currency, amid growing demand for dollars.

On Thursday, commercial banks quoted the currency of Africa's second largest
copper producer at 19.8600 per dollar, down from a close of 19.7500 a week
ago.

Hard currency sales by mining companies has dropped and demand was rising to
pay for health, energy and agricultural sector imports, traders said.

UGANDA

The Ugandan shilling UGX= is expected to inch down as a planned re-opening
of the country's international borders, which were closed due to the
coronavirus crisis, boosts importer appetite for hard currency.

At 1034 GMT, commercial banks quoted the shilling at 3,687/3,697, compared
with last Thursday's close of 3,695/3,705.

International flights will resume on Oct. 1 for the first time since March.

TANZANIA

Tanzania's Shilling TZS= is expected to hold steady next week as the demand
for dollars by importers is evenly matched by the available supplies of the
hard currency.

Commercial banks quoted the Shilling at 2,315/2,325 per dollar, unchanged
from its closing level last Thursday.

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

China

China’s currency on track for best week in 10 months

China’s currency was on track for its best week in 10 months as the
country’s economic prospects have brightened and investors shift into its
domestic bond market.

The onshore-traded renminbi firmed 0.1 per cent to Rmb6.7551 per dollar on
Friday, taking the currency’s gains to about 1.2 per cent this week and
putting it on course for its biggest weekly rise since November 2019.

The Chinese currency has rallied in recent months as export growth and
investor appetite for onshore debt have sent flows of dollars into the
country. The rise in the renminbi, which has come during a period of
weakness for the greenback, means the currency is heading for its best
quarter on record.

Copper prices rose to their highest levels in two years due to strong demand
in China, the world's largest consumer of the metal. Copper rose to a high
of $6,850 a tonne, the highest level since June 2018, before falling back to
$6,781 on the London Metal Exchange.

US equities drifted higher at the opening bell on Wall Street, with the S&P
500 up 0.1 per cent and the Nasdaq Composite rising 0.3 per cent. Both
indices were hovering around their week-ago level, having reversed gains
made mid-week when shares in big technology companies dropped.

In Europe, upbeat UK data released on Friday added to the encouraging China
data: retail sales in August rose 0.8 per cent on a monthly basis, slightly
beating analysts’ expectations. In July sales overtook their pre-pandemic
level to rise year on year, a trend that continued into August with a 2.8
per cent annual increase.

But households would save more of their incomes than they did last year, he
said, meaning “a sustained V-shaped recovery in households’ spending is out
of reach”.

European equities drifted lower, with the Stoxx 600 and London’s FTSE 100
off 0.4 per cent and Italy’s FTSE Mib down 0.8 per cent.

Financials fared particularly badly, with the Stoxx 600 banks index
accelerating losses and falling to its lowest level since May. Investors
were spooked after the Bank of England said on Thursday it was examining how
a negative interest rate “could be implemented effectively,” as well as by
renewed concerns about lockdowns and the heightened risk of a no-deal
Brexit.

The BoE’s announcement “is a clear signal that the [monetary policy
committee] intends to use this tool,” said Brian Hilliard, chief UK
economist at Société Générale.

The pound lost some ground against the dollar, falling 0.2 per cent to
$1.2947 after a choppy session on Thursday.

In the Asia-Pacific region, mainland China’s CSI 300 index ended the day 2.1
per cent higher while Hong Kong’s Hang Seng climbed 0.6 per cent. Japan’s
Topix index closed up 0.5 per cent while Australia’s S&P/ASX 200 shed 0.3
per cent.-ft

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper hits two-year peak on speculative buying and China hopes

LONDON, (Reuters) - Copper touched its highest in more than two years on
Friday as speculators extended their buying spree on a recovery in top
metals consumer China while the dollar weakened.

Benchmark copper on the London Metal Exchange (LME) hit $6,850 a tonne, its
highest since June 2018, before paring gains to $6,788 by 1410 GMT for a
rise of 0.1%.

Copper has surged by 55% since hitting 45-month lows in March.

Data this week showed that China’s industrial output accelerated the most
for eight months in August while the OECD upgraded its economic growth
outlook for China.

* The dollar index eased after downbeat U.S. data cast a shadow over the
economic outlook, making it cheaper to buy metals using other currencies.

* Physical copper premiums in China continued to fall, losing $4.50 on
Friday to $59 a tonne, data showed, extending a decline from highs of $100
six weeks ago. That is the lowest level since the start of April.
CU-BMPBW-SHMET

* LME zinc gained 0.4% to $2,525 a tonne. The net long has risen to 7.8% of
open interest by Wednesday’s close from 4.9% a day earlier, according to
estimates by broker Marex Spectron. Buying has continued by Commodity Trade
Advisor funds, Alastair Munro at Marex said in a note.

* LME aluminium rose 0.3% to $1,785.50 a tonne while lead fell 0.2% to
$1,906, nickel shed 1.6% to $14,840 and tin eased by 0.2% to $18,150.

Silver falls; here's how others may fare

NEW DELHI: Barring CPO all commodities were trading with cuts on Thursday as
the US Fed disappointed the Street as it did not announce any additional
stimulus measure.

Gold was down 0.69 per cent while silver dipped 1.28 per cent. In the base
metal block, all counters were down with nickel falling the most at 1.21 per
cent. Crude oil was down 0.75 per cent and its peer natural gas was down
0.35 per cent.

Bullion: Bullion counters may post correction from higher levels where gold
may test Rs 51,200 and facing resistance near Rs 52,200 while silver may
test Rs 67,580 and facing resistance near Rs 69,100.

Base metals: Base metals may trade sideways with a bearish bias where Copper
can move towards Rs 520 and facing resistance near Rs 532. Zinc may move
towards Rs 192 and face resistance near Rs 196. Lead can move towards Rs 145
while facing resistance near Rs 149. Nickel may trade bearish bias where
Silver may test Rs 67,580 and facing resistance near Rs 69,100.

Aluminum may move towards Rs 146 while taking support near Rs 143.

Energy: Crude oil may again witness selling pressure where it may take
support near Rs 2,810 and resistance is seen near Rs 3,020. Natural gas may
again witness selling pressure where resistance is seen near Rs 173 and
support near Rs 162.

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/20200918/78db8759/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/20200918/78db8759/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/20200918/78db8759/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/20200918/78db8759/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/20200918/78db8759/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/20200918/78db8759/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/20200918/78db8759/attachment-0011.jpg>