Bulls n Bears Daily Market Commentary : 08 June 2018

Fri Jun 8 17:10:51 CAT 2018

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Bulls n Bears Daily Market Commentary : 08 June 2018

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

Zimbabwe Stock Exchange Update

Market Turnover $2,211,539.38 with foreign buys at $866,106.47 and foreign
sales were $401,760.10. Total trades were 121.

The All Share index continued in the upward trend adding 0.31 points to
settle at 115.73 points. OLD MUTUAL  put on $0.1125 to close at $5.9539,
INNSCOR  added $0.0134 to end at $1.4673 and DELTA  went up by $0.0094 to
trade at $2.3375. ZB FINANCIAL HOLDINGS rose by $0.0080 to $0.3400, ECONET
shifted up by $0.0033 to settle at $1.1500 while AXIA   closed at $0.2500
following a $0.0025 gain.

However, only two counters lost ground as PPC LIMITED  shed $0.0980 to close
at $1.3020 and DAIRIBORD HOLDINGS LIMITED  eased $0.0268 to end at $0.1250.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Kenya

Kenyan shilling weaker, undercut by surge in importer demand

(Reuters) - The Kenyan shilling weakened against the dollar on Friday due to
demand from merchandise importers making end-week payments on goods due for
shipping, traders said.

At 0919 GMT, commercial banks quoted the shilling at 100.95/101.15 per
dollar, compared with 100.70/90 at Thursday's close. 

South Africa

South African rand slumps to near 6-month low, bonds weaken

(Reuters) - South Africa’s rand slumped more than 2 percent to a near
six-month low against the dollar and government bonds weakened sharply on
Friday, dragged down by weak economic growth and global investors shying
away from riskier assets.

At 0844 GMT, the rand traded at 13.2400 per dollar, 1.7 percent weaker than
its close on Thursday, after earlier falling more than 2 percent to session
low of 13.2875.

The currency was at its weakest level against the dollar since Dec. 18,
Thomson Reuters data showed, extending losses suffered in the previous
session.

The yield for the benchmark government bond due in 2026 rose 21 basis points
to 9.04 percent, its weakest since December.

Wider appetite among investors for riskier assets has waned on bets that
Europe’s massive monetary stimulus is nearing an end, compounded by
uncertainty over trade relations ahead of a key meeting of global leaders.

Analysts said the local unit suffered the most as sentiment was also hurt by
concerns over the economy.

Data on Tuesday showed South African first-quarter gross domestic product
(GDP) shrank 2.2 percent, led by a slowdown in agriculture, mining and
manufacturing.

NKC African Economics analysts said the rand’s performance also reflected
“waning ‘Ramaphoria’”, referring to optimism around the election of
President Cyril Ramaphosa in February.

After Jacob Zuma was forced out as leader by the ruling party in February,
Ramaphosa pledged to clean up governance, deal with high unemployment and
improve basic services, igniting a wave of optimism.

But the recent poor economic data has eroded some of the enthusiasm in
Africa’s most industrialised economy.

On the stock market, the Top-40 index was down 0.6 percent while the broader
all-share fell 0.5 percent.

Bidvest, seen a barometer for the South African economy, topped the
decliners list on the benchmark index, falling nearly 3 percent. Shortly
after the market closed on Thursday, the industrial group said trading
profit was growing at a slower pace than reported in December. 

Europe

Euro Falls, Dollar Rises Ahead of G7 Summit

Investing.com - The dollar was higher while the euro retreated from earlier
gains on Friday, as traders looked ahead to the G7 summit.

The U.S. dollar index, which measures the greenback’s strength against a
basket of six major currencies, was up 0.19% to 93.61 as of 5:17 AM ET (9:17
GMT).

All eyes are on the G7 meeting, which kicks off on Friday in Quebec, as
trade tensions between the U.S. and its key allies remain. France and
Germany warned the U.S. that they would not sign a joint statement without
concessions, but the American top economic adviser Larry Kudlow warned this
week that U.S. President Donald Trump would not back down from his tough
stance on trade.

Trump showed no signs of conciliation late Thursday when he accused France
and Canada of “charging the U.S. massive tariffs and create non-monetary
barriers”.

The Federal Reserve's two-day monetary meeting next week was also in focus,
with a 90% chance of a rate hike.

The euro remained under pressure despite easing political tensions and
expectations for the European Central Bank to announce the end date of its
quantitative easing program at its policy meeting next week.

EUR/USD slumped 0.29% to 1.1764, from an earlier high of 1.1810.

The dollar was lower against the safe-haven yen, with USD/JPY decreasing
0.36% to 109.30. In times of uncertainty, investors tend to invest in the
Japanese yen, which is considered a safe asset during periods of risk
aversion.

The pound dipped down, with GBP/USD falling 0.12% to 1.3405.

Elsewhere, the Australian dollar was lower, with AUD/USD down 0.73% at
0.7567, while NZD/USD slumped 0.13% to 0.7017. The loonie fell, with USD/CAD
up 0.39% to 1.3022.

Commodities Markets

Lead slides after inventories jump; copper retreats

(Reuters) - Lead prices slumped on Friday after inventories rose, a sign
that shortages in China were starting to ease.

Copper retreated after a six-day rally that pushed the metal to its
strongest in 4-1/2 years in the previous session as fears eased about a
potential strike at top mine Escondida, an analyst said.

Benchmark lead was the biggest mover on the London Metal Exchange, bid down
2.3 percent at $2,475 a tonne in official open outcry activity after failing
to trade.

LME lead had gained 14 percent when it touched the highest in more than
three months at $2,555.50 on Thursday after rallying for slightly over a
month.

The gains were largely fuelled by worries about shortages in China due to
rolling environmental inspections on the secondary lead processing sector
that resulted in some smelter closures.

But LME data on Friday showed a 19 percent jump MPBSTX-TOTAL in on-warrant
lead inventories - stocks that are not earmarked for delivery.

That was due to holders of stocks reversing earlier decisions to take
material out of warehouses, potentially to ship to China.

* COPPER: Three-month LME copper shed 0.9 percent to trade at $7,266 a tonne
in official rings, off a session low of $7,211. Copper touched $7,348 on
Thursday, its loftiest since January 2014, and has risen 5 percent so far
this week, the most since mid-February.

* COPPER SPREADS: Many speculators had jumped on the bandwagon after wage
talks at Escondida in Chile raised prospects of a strike at the world’s
biggest copper mine, Nugent said. But that had largely been a convenient
excuse for a rally and the main driver had been a tightening of spreads, he
added.

The benchmark spread between LME cash and three months CMCU0-3 has raced to
a contango of $1.50 a tonne, the lowest contango since January 2017 and
compared to a contango of $38.50 in mid-May. This would usually indicate a
shortage of copper for immediate delivery.

* CHINA COPPER IMPORTS: Helping to cap losses was data showing China
imported 475,000 tonnes of unwrought copper and copper products last month,
the largest since December 2016 and the highest May figure for at least a
decade.

* DOLLAR: A slightly firmer dollar index weighed on metals markets, making
commodities priced in the greenback more expensive for buyers using other
currencies.

* PRICES: Aluminium traded down 0.5 percent at $2,299 a tonne in official
activity, zinc also gave up 0.5 percent to be bid at $3,166, nickel was bid
1.4 percent lower at $15,300 and tin traded down 0.9 percent at $21,125.

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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