Bulls n Bears Daily Market Commentary : 02 July 2018

Mon Jul 2 18:59:20 CAT 2018

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Bulls n Bears Daily Market Commentary : 02 July 2018

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

Zimbabwe Stock Exchange Update

The All Share index rebounded 0.77 points to settle at 102.87 points as four
counters gained ground. ECONET  added $0.0507 to close at $1.0949,
PROPLASTICS put on $0.0022 to end at $0.0952 while DELTA advanced by $0.0013
to trade at $1.8013. FIRST MUTUAL PROPERTIES was $0.0002 higher at $0.0442.

Losses were seen in OLD MUTUAL LIMITED  which  shed $0.0033 to $4.8500, OK
ZIMBABWE eased $0.0028 to trade at $0.1969 and AFRICAN SUN dropped by
$0.0027 to close at $0.0693. INNSCOR shed $0.0026 to end at $1.1774 while
SIMBISA  was $0.0022 lower at $0.4695.

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Global Currencies & Equity Markets

Kenya

Kenyan shilling holds firm against the dollar

(Reuters) - The Kenyan shilling was firm against the dollar on Monday due to
tight liquidity in the local money markets amid reduced demand from oil
importers and manufacturers, traders said. 

At 0837 GMT, commercial banks quoted the shilling at 100.80/101.00 per
dollar, little changed from Friday's close of 100.85/101.05.

Uganda

Uganda shilling unchanged amid slowdown in appetite for dollars

(Reuters) - The Uganda shilling        was unchanged on Monday, drawing
support from a slowdown in appetite for dollars from both commercial banks
and merchandise importers. 

At 0928 GMT, commercial banks quoted the shilling at 3,875/3,885, same level
as Friday's close. 

America

Dollar slips as EU migration deal boosts euro

(Reuters) - The dollar slipped to a three-day low against the euro on
Friday after European Union leaders reached an agreement on migration that
eased  pressure on German Chancellor Angela Merkel, but the greenback
remained on track to log  its best quarterly performance in six quarters.

European leaders reached a deal on migration in the early hours of Friday
after tortuous  talks, but details were vague, and German Chancellor Angela
Merkel conceded differences remained on an issue that threatens her
political career.

The summit took place in an atmosphere of political crisis, with Merkel
under intense  pressure at home to take a firmer stance on migration.

The euro was up 0.85 percent against the dollar at $1.1665.

The dollar index, which measures the greenback against a basket of six
currencies, was  down 0.77 percent at 94.653.

Schamotta also pointed to a rally in the British pound to a two-day high
after a better- than-expected revision to Britain’s first-quarter economic
growth raised hopes of monetary policy tightening in the coming months, as
pressuring the greenback.

Data on Friday showed consumer spending, which accounts for more than
two-thirds of U.S. economic activity, rose 0.2 percent in May. Data for
April was revised down to show spending rising 0.5 percent instead of the
previously reported 0.6 percent jump.

“That suggests that perhaps consumers are not as positive about the future
as had been hoped,” said Schamotta.

“One data point does not make a trend, but that damping of consumer spirits
is something that market participants are quite concerned about,” he said.

Still, the dollar index was on pace to finish the quarter up more than 5
percent, supported mainly by diverging monetary policy - the idea that the
U.S. Federal Reserve is going to normalize policy more quickly than other
major central banks.

The Mexican peso hit a one-month high against the U.S. dollar, ahead of
Mexico’s presidential election on Sunday.

The Canadian dollar strengthened to a 10-day high against its U.S.
counterpart after a surprise expansion of the domestic economy in April
raised expectations for a Bank of Canada interest rate hike next month.

China’s yuan was set for its biggest monthly fall on record, as investors
grappled with worries that a bitter Sino-U.S. trade row could rattle the
world’s second-biggest economy.

Commodities Markets

London copper strikes 3-month low as trade tensions simmer

(Reuters) - London copper slid to its lowest since late March on  Monday
after China’s manufacturing growth tempered in June, reflecting a slowdown
in  the real economy and simmering trade tensions with the United States.

Growth in China’s manufacturing sector slowed in June after a
better-than-expected  performance in May, official data showed at the
weekend, while a private survey on 

Monday showed that China’s factory growth cooled slightly.

It was a trend seen across the region as Asian exporters lost momentum even
before  tariffs on U.S. and Chinese goods kick in this week, in a worrying
sign the Trump  administration’s “America First” protectionist policies
could derail global growth.

s that China’s GDP growth will weaken further in H2 2018.”

* COPPER: London Metal Exchange copper slipped to $6,579 a tonne, as of 0745
GMT,  down 0.7 percent since Friday, and plumbing the weakest since March
26. Prices fell 3.3  percent in June, the biggest monthly loss since
September. Shanghai Futures Exchange  copper inched down by 0.4 percent to
51,210 yuan ($7,698) a tonne.

Copper hits 3-month low as U.S., China trade tensions rumble

(Reuters) - Copper prices hit three-month lows on Monday as the market
priced in weaker demand in top consumer China, which is embroiled in the
trade spat with  the United States even as its manufacturing sector slows.

Benchmark copper traded down 0.5 percent at $6,590 a tonne in official rings
from an  earlier $6,550 a tonne, its lowest since March 26. Prices of the
metal used widely in 

power and construction have tumbled 10 percent since June 7.

TRADE: U.S. President Donald Trump has this year sought to renegotiate some
of the  United States’ trading relationships, in particular with China. He
has imposed tariffs on  some imports, in turn sparking retaliatory action by
other countries, raising fears of a  global trade war.

SHORTS: Marex position estimates show short copper positions across COMEX,
Shanghai  Futures Exchange and the LME.

Short positions on the LME totalled 6.9 percent of open interest on the LME
- 11,600 lots  or 290,000 tonnes - at close of business on June 28, the
largest short since Sept. 16.

COPPER: China accounts for nearly half of global copper consumption
estimated this year  at around 24 million tonnes.

MANUFACTURING: Growth in China’s manufacturing sector cooled slightly in
June as firms  faced rising input costs and a decline in export orders amid
an escalating trade dispute 

with the United States, a private survey showed.

DOLLAR: A stronger U.S. currency also weighed on industrial metals as it
makes dollar- denominated commodities more expensive for non-U.S. firms.

CHINA MONEY: Monetary easing in China is expected to help support industrial
metals.

China’s central bank in April unexpectedly cut reserve requirement ratios
(RRR) for most  banks, in a move that was earlier and more aggressive than
expected, highlighting 

concerns over liquidity.

Many analysts expect further RRR cuts in coming months as China’s economic
growth  starts to cool under pressure from rising borrowing costs and a
regulatory crackdown on 

riskier lending practices.

PRICES: Aluminium was down 0.2 percent at $2,129 a tonne, zinc rose 0.2
percent to  $2,860.5 a tonne, lead fell 0.5 percent to $2,399 a tonne, tin
was little changed at  $19,755 a tonne and nickel lost 1.8 percent to
$14,620 a tonne.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Barclays

EGM to consider the change of registered statutory name to First Capital
Bank Limited

Meikles Hotel

03/07/2018 3pm

NicozDiamond

shares delist from the ZSE

06/07/2018

Zimbabwe

Heroes’ Day

Zimbabwe

13/08/2018

Zimbabwe

Defence Forces Day

Zimbabwe

14/08/2018

The Harare Agricultural Show

The Harare Agricultural Show

The Harare Agricultural Show

August 27- September 1

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.

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