Bulls n Bears Daily Market Commentary : 07 June 2018

Thu Jun 7 15:54:27 CAT 2018

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Bulls n Bears Daily Market Commentary : 07 June 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $10,859,943.51 with foreign buys at $1,786,580.12 and
foreign sales were $1,101,137.10. Total trades were 183.

The All Share index went further up by 1.07 points to close at 115.42
points. BRITISH AMERICAN TOBACCO  added $0.1928 to close at $25.2000 , DELTA
increased by $0.0455 to close at $2.3281 whilst NATFOODS  closed at $5.4500
after gaining $0.0300. Other gains were in  ECONET   which closed  firmer at
$1.1467 after adding $0.0241 and OK ZIMBABWE  closed at $0.2250 after a
marginal increase of $0.0049.

Trading in the negative was  OLD MUTUAL  which slumped further by $0.2286 to
close at $5.8414 and  ZB FINANCIAL HOLDINGS  lost $0.0155 to settle at
$0.3320. HIPPO   and AXIA   both dropped a marginal $0.0001 to close at
$1.5025 and $0.2475 respectively. 

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Kenya

Kenyan shilling edges up against the dollar

(Reuters) - The Kenyan shilling strengthened slightly against the dollar on
Thursday with some support from hard currencies sent in from its nationals
who live abroad, traders said.

At 0826 GMT, commercial banks quoted the shilling at 100.70/90 per dollar,
compared with 100.95/101.05 at Wednesday's close. 

Uganda

Uganda shilling weakens further due to demand from oil companies,
manufacturers

(Reuters) - The Ugandan shilling extended losses on Thursday to a new record
low, as commercial banks, oil companies and manufacturers bought dollars in
anticipation of further weakening.

At 0919 GMT commercial banks quoted the shilling at 3,805/3,815, weaker than
Wednesday’s close of 3,800/3,810.

Europe

Euro and bond yields extend rally on ECB while risk appetite grows

(Reuters) - The euro and bond yields rose on Thursday as investors priced in
an early wind-down of European Central Bank stimulus, while renewed risk
appetite drove world stocks to a 3-1/2 week high.

The selloff in safe-haven Bunds and U.S. Treasuries drove money into riskier
assets, especially financial stocks, despite investor anxiety over how a G7
leaders summit that kicks off on Friday will pan out in view of divisions
over global trade.

Bank stocks, which tend to gain from higher bond yields, drove European
shares up. The pan-European banks index jumped 0.5 percent, supporting the
STOXX 600.

Banks remain the worst-performing sector in Europe year-to-date, however,
having been dented by political risk in Italy.

MSCI’s index of world stocks rose 0.2 percent to its highest since May 14.

Wall Street was also set for a positive open with Dow Jones and S&P 500
index futures up 0.1 to 0.2 percent. The tech-heavy Nasdaq, however, was set
for a dip from its record high.

In Europe the single currency hit its highest level since May 15 at $1.1838,
and traded up 0.4 percent at $1.1815 in its fourth straight session of
gains. It helped drive the dollar index down 0.4 percent to 93.295.

Germany’s benchmark 10-year bond yield rose in step with the euro, breaching
0.50 percent for the first time in two weeks on signs that the European
Central Bank could soon call an end to its stimulus programme.

The selloff in German Bunds spread across the Atlantic as the U.S. benchmark
10-year yield hit a 2-1/2 week high of 2.9940 percent, edging closer to the
3 percent level it breached a month ago.

The ECB’s Chief Economist Peter Praet said on Wednesday that robust growth
made the bank increasingly confident inflation was on its way back to
target, raising chances it may reveal more about the end of the bond-buying
programme at next week’s meeting.

Praet’s comments took the market by surprise, given a recent slowdown in the
euro zone economy.

Data on Thursday showed German industrial orders plunged unexpectedly in
April, a fourth consecutive monthly drop.

Analysts at Bank of America Merrill Lynch said Praet’s speech showed the
central bank was willing to look through the recent soft patch in euro zone
data.

TOO BULLISH?

The risk-on moves across markets coincided with a calendar of potentially
destabilising political events.

The run-up to the G7 summit has been dominated by a widening divide over
trade between U.S. President Trump and the club’s remaining six members.

But gauges of investor anxiety, including stock volatility, showed little
sign of strain, flummoxing some investors.

The VIX, which measures volatility on the S&P 500, was last trading at
11.79. It has fallen from more than 50 to less than 12 in just 83 days - a
record decline, traders said.

Commodities continued to climb thanks to a still strong global economy and
tight supply.

Copper hit its highest level this year at $7,295 per tonne, driven up as
much as 0.8 percent by supply concerns over disruption at the Escondida mine
in Chile. It was on track for its sixth straight day of gains, its longest
run since December.

Oil prices also rose as plunging exports from OPEC member Venezuela crimped
supply in the market.

Brent crude futures traded up 1.4 percent at $76.46 a barrel and U.S. West
Texas Intermediate (WTI) crude up 1 percent at $65.39.

Gold prices edged higher, with spot gold trading at $1,298.75 per ounce, up
0.2 percent.

In emerging markets, stocks climbed 0.4 percent to a three-week high,
supported by the weaker dollar. UBS analysts declared “buying time” for
emerging stocks, upgrading Mexico, Poland and Colombia, while downgrading
Brazil.

Commodities Markets

Copper hits 4-1/2 year peak on Chile supply fears, upbeat risk appetite

(Reuters) - Copper hit a 4-1/2 year high on Thursday, lifted by concerns
over the potential for wage negotiations at the world’s biggest copper mine
to disrupt supply and by healthy appetite for cyclical assets as stock
markets rallied.

Union leaders at the Escondida mine in Chile operated by BHP submitted wage
demands late last week, sparking fears of a possible strike.

Failure to reach a labour deal during last year’s negotiations led to a
44-day stoppage at the mine, which accounts for 5 percent of global supply.
Worries over fresh disruption have helped to lift copper by 6 percent this
week.

* COPPER PRICES: Three-month copper on the London Metal Exchange rallied
more than 1 percent on Thursday to hit $7,325 a tonne, its highest since
January 2014. It was last up 0.5 percent in official trading at $7,257 a
tonne.

* SPREADS: The premium of three-month copper over the cash contract MCU0-3
remained depressed at $6.50 a tonne, down from $22.25 two weeks ago. On
Monday it touched its lowest since March 2017 at $1.75, signalling tightness
in near-term supply.

* COPPER STOCKS: On-warrant copper inventories at LME warehouses -
representing metal not earmarked for delivery and therefore available to the
market - increased by 6,625 tonnes to 237,275, exchange data showed on
Thursday.

* TECHNICALS: LME copper could test resistance at $7,305 a tonne, Reuters
technical analyst Wang Tao said on Thursday, a break above which could lift
the price to $7,373.

* FINANCIAL MARKETS: World stocks hit a three-week high and the euro and
German Bund yields also rose as investors priced in a potentially earlier
than expected winding down of stimulus from the European Central Bank.

* ALUMINIUM: Aluminium was 0.4 percent down at$2,336.50 in official rings.

* ALUMINIUM TECHNICALS: LME aluminium looks neutral in a range of
$2,323-$2,341 a tonne, Reuters technical analyst Wang Tao said. A break
above $2,341 could bring a gain to $2,352.

* OTHER METALS: LME zinc was flat at $3,191.50 a tonne in official trading,
while lead was up 0.9 percent at $2,550 and nickel advanced by 0.8 percent
to $15,755. Tin was up 0.6 percent at $21,105. 

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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