Bulls n Bears Daily Market Commentary : 06 June 2018

Wed Jun 6 16:38:03 CAT 2018

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Bulls n Bears Daily Market Commentary : 06 June 2018

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Zimbabwe Stock Exchange Update

Market Turnover $6,275,274.76 with foreign buys at $3,187,048.77 and foreign
sales were $811,330.24. Total trades were 198.

The All Share index extended further gains in midweek session as it went up
by 1.47 points  to close at 114.35 points. INNSCOR  gained $0.1000 to
$1.4500, DELTA  was $0.0723 stronger at $2.2826, BRITISH AMERICAN TOBACCO
added $0.0465 to close at $25.0072 and ECONET was $0.0243 firmer at $1.1226.
Other gains were in SIMBISA  increased by $0.0092 to settle at $0.4692 and
PADENGA moved up $0.0025 to trade at $0.6625.

OLD MUTUAL   losing streak continued at it lost a further $0.8928 to close
at $6.0700, cement maker PPC   shed $0.0975 to trade at $1.4000, ZB
FINANCIAL HOLDINGS lost $0.0125 to settle at $0.3475 and HIPPO   dropped
$0.0054 to close at $1.5026. 

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Global Currencies & Equity Markets

Uganda

Uganda shilling weakens further as bank dollar demand weighs

(Reuters) - The Ugandan shilling        posted further losses on Wednesday,
past another key psychological level of 3,800 on the back of strong dollar
demand from commercial banks  in anticipation of more depreciation for the
local currency. 

At 0935 GMT, commercial banks quoted the shilling at 3,795/3,805, weaker
than Tuesday's close of 3,785/3,795.

Kenya

Kenyan shilling steady amid high liquidity

  (Reuters) - The Kenyan shilling held steady against the dollar on
Wednesday due to remittances and investor inflows offsetting high shilling
liquidity in the money markets, traders said. 

At 0852 GMT, commercial banks quoted the shilling at 100.90/101.00 per
dollar, the same as Tuesday's close.  

The weighted average interbank lending rate fell to 3.9478 percent on
Tuesday from 4.1135 percent in the previous session.

Europe

Euro boosted but bonds and stocks sag after hawkish ECB comments

(Reuters) - The euro rose to a 10-day high on Wednesday after hawkish
comments from the European Central Bank, putting more upward pressure on
bond yields and sinking some stocks as worries over Italy also weighed.

Robust growth is making the central bank increasingly confident that
inflation is on its way back to target, ECB chief economist Peter Praet said
on Wednesday, raising the likelihood it may use a meeting next week to
reveal more about the end of its bond-buying programme.

Praet’s comments supported the euro, which rose 0.5 percent to 1.1769,
weakening the dollar and looking likely in part to help U.S. stocks, which
were set to open higher.

S&P 500 futures were up 0.2 percent as trade tensions with China also eased,
while the technology-focused NASDAQ was set to hit a record for the second
day in a row.

In Europe bonds sold off, with the yield on Germany’s benchmark 10-year bond
up nearly eight basis points to 0.44 percent, on track for their biggest
daily rise in nearly a year.

The continent’s benchmark Stoxx 600 index was flat, with interest
rate-sensitive consumer staples and utilities stocks among the heaviest
fallers.

Italian stocks underperformed, falling as much as 1.4 percent before
recovering some losses to trade down 0.3 percent.

Investors said the new government’s big-spending fiscal plans, a major worry
for markets over the last few weeks, were unlikely to be helped by the ECB
tightening its own policy.

Italian borrowing costs also rose more than most in Europe, with the 10-year
yield rising 20 basis points to 2.96 percent.

MSCI’s world equity index, which tracks shares in 47 countries, was up 0.27
percent, mainly as a result of a strong showing from Asian stocks. MSCI’s
broadest index of Asia-Pacific shares outside Japan rose 0.68 percent.

DOLLAR FALLS, EM STEADY

The euro’s rise put pressure on the U.S. dollar index , that measures
performance against six major currencies, with the main weighting given to
the euro. The index fell 0.3 percent.

The Mexican peso steadied on Wednesday, after falling to its weakest since
February 2017 late on Tuesday after the United States raised the possibility
of turning negotiations over the North American Free Trade Agreement into
bilateral talks.

Trump economic adviser Larry Kudlow also revived the possibility that the
president will seek to replace NAFTA with bilateral deals with Canada and
Mexico.

The threat of rising trade protectionism has already taken a toll on global
trade and could increase risks to growth, ANZ analysts Daniel Been and
Giulia Lavinia Specchia said in a note.

Most other emerging currencies strengthened against the dollar, already
lower versus the strong euro.

MSCI’s emerging market currency index ticked higher, rising 0.1 percent.

Oil prices steadied on Wednesday after Venezuela raised the prospect of a
halt to some crude exports, easing worries about oversupply after reports
that the U.S. government had asked Saudi Arabia and some other producers to
increase output. Brent crude was broadly flat at $75.31 per barrel.
(Reporting by Alasdair Pal, Additional reporting by Shinichi Saoshiro in
Tokyo

Commodities Markets

N. American gold ETF outflows up in May - World Gold Council

(Reuters) - Outflows of North American gold-backed exchange traded funds
(ETFs) rose in May, as volatility in the gold market dragged prices lower,
the World Gold Council said on Wednesday.

The ETFs lost nearly 30 tonnes worth $1.2 billion, compared with inflows of
43.7 tonnes worth $1.9 billion in April, as the dollar in which gold is
priced rose and prospects of higher U.S. interest rates made gold less
attractive because the metal does not draw interest.

European gold-backed ETF holdings inflows increased by roughly 26 tonnes
worth $1.2 billion, in May, up 2.8 percent from April. This was the second
consecutive month of inflows as political turmoil in Italy drove European
safe haven demand, the World Gold Council said. 

Copper hits 3-month high on strong growth, Chile supply concerns

(Reuters) - Copper hit a three-month high on Wednesday as the dollar
dropped, concerns lingered over possible supply disruptions in Chile and as
investors saw solid global economic growth boosting demand for the metal.

Nickel and zinc hit their highest in more than a month, meanwhile, tracking
the ferrous complex higher after a blast at an iron ore mine in China and
amid falling inventories.

Copper has risen nearly 4 percent this week after the union at BHP’s
Escondida mine in Chile, the world’s largest, said on Friday it had started
the latest round of wage negotiations.

Failure to reach a deal last year led to a strike that resulted in a near 8
percent drop in annual output.

Also boosting metals were signs of solid global growth, with trepidation
over trade wars and fractious European politics taking a backseat after data
this week showed ongoing expansion in global business activity.

The dollar hit a 10-day low versus the euro, which was lifted by hawkish
comments from the European Central Bank. A weaker dollar makes dollar-priced
metals cheaper for non-U.S. investors.

* LME COPPER: Three-month copper on the London Metal Exchange hit $7,163 a
tonne, its highest since Feb. 26, and stood at $7,153.50 a tonne at 1023
GMT, up 0.7 percent on the day.

Signs of slowing downstream demand in China, the world’s top copper
consumer, and the strength of the dollar mean copper “may continue to be
range-bound with periodic upside surprise on the newsflow of supply
disruptions,” Argonaut Securities said in a note.

* ALUMINIUM: LME aluminium rose 0.8 percent to $2,329.50, having hit $2,345
a tonne, the highest since May 10.

* ALUMINIUM PREMIUMS: Spot aluminium premiums in Asia have nearly halved in
recent weeks, even as U.S. premiums hold at three-year highs, driven down by
an influx of Chinese metal and bets that Russian producer Rusal will avoid
sanctions.

* FERROUS: Chinese iron ore futures climbed to their highest level in two
weeks after an iron ore mining accident, stirring concerns about potential
tight supply in the market. Steel rebar futures also gained.

* ZINC/NICKEL: Steelmaking ingredient zinc hit its highest since late April
at $3,220, while stainless steelmaking ingredient nickel hit its highest
since mid April at $15,845.

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

Edgars

AGM

Edgars Training Auditorium, 1st Floor, LAPF House, 8th Ave/Jason Moyo St,
Bulawayo

07/06/2018 9am

Turnall

AGM

Jacaranda Room, Rainbow Towers

07/06/2018 9am

FMHL

AGM

Royal Harare Golf Club

11/06/2018 2:30pm

RioZim

AGM

Head Office, 1 Kenilworth Road, Highlands

21/06/2018 10:30am

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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