Bulls n Bears Daily Market Commentary : 01 July 2019

Tue Jul 2 00:43:21 CAT 2019

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Bulls n Bears Daily Market Commentary : 01 July 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$ 3,615,182.56 with foreign buys at ZWL$ 302,042.00 and
foreign sales were ZWL$ 3,100.00 Total trades were 123.

The All Share index ended the day lower at 194.17 points after shedding
10.58 points . OLD MUTUAL  LIMITED eased $0.6986 to end at $13.0514, BRITISH
AMERICAN TOBACCO ZIMBABWE  LIMITED fell by $0.5000 settling at $39.5000 and
CASSAVA SMARTECH ZIMBABWE LIMITED dropped $0.2420 ending at $1.7345. DELTA
CORPORATION LIMITED  shed $0.2037 to trade at $3.1975 and ECONET WIRELESS
ZIMBABWE LIMITED  retreated by a further $0.1373 to close at $1.6977.

Two counters gained ground; POWERSPEED ELECTRICAL LIMITED added $0.0500 to
trade at $0.3000 and FIRST MUTUAL HOLDINGS LIMITED recovered $0.0300 to
settle at $0.2400.

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  Global Currencies & Equity Markets

South Africa

South African rand flat as dollar rebound blocks surge to 14 mark

(Reuters) - South Africa’s rand inched firmer on Monday, clinging on to a
month’s worth of gains towards the crucial 14.00 mark despite the dollar
recovering from its recent slump as trade tensions between Washington and
Beijing thawed.

At 1500 GMT, the rand was 0.1% firmer at 14.0750 per dollar, backtracking
slightly after reaching a session-strongest 14.0375 before bids stalled just
shy of the 14.00 technical resistance mark seen by traders as key to moves
in either direction.

After tumbling to 15.170 on June 7, the rand has advanced more than 7% to
its firmest since mid-April, mostly aided by a dollar slide following the
Federal Reserve’s dovish tone on lending rates.

The rand, however, faces pressure as demand switches back to the greenback
following a reported truce between the United States and China on the
sidelines of the G20 summit over the weekend.

President Donald Trump offered concessions including no new tariffs and an
easing of restrictions on tech company Huawei in order to reduce tensions
with Beijing.

On Monday, the dollar rose to two-week highs against a basket of major
currencies.

Bonds were weaker, with the yield on the benchmark paper due in 2026 up 3
basis points to 8.125%.

On the Johannesburg Stock Exchange, the benchmark Top 40 Index ended up
0.51% at 52,465 points, while the broader All-Share Index gained 0.61% at
58,560.

Global stocks rallied as the United States and China agreed to restart trade
talks, leading investors to cut back wagers on aggressive policy easing by
the major central banks.

Among the gainers was bourse heavyweight Naspers, which rose 2.92% to
3,519.20 rand.

Further gains were curbed by the bullion sector which fell 5.64% weighed
down by the spot gold price.

AngloGold Ashanti fell 6.78% to 236.79 rand, Harmony Gold lowered 3.88% to
30.51 rand and Gold Fields closed down 4.63% to 73.20 rand.

Uganda

Ugandan shilling inclined on weaker side as importer demand picks up

(Reuters) - The Ugandan shilling was inclined on the weaker side on Monday,
undermined by a slight pick up in demand for dollars from some merchandise
importers.

At 0914 GMT commercial banks quoted the shilling at 3,695/3,705, compared to
Friday’s close of 3,690/3,700.

       <mailto:info at bulls.co.zw> 

GLOBAL MARKETS 

U.S.-China trade truce lifts global stocks, gold falls

(Reuters) - Global stocks rose and bonds retreated on Monday after the
United States and China agreed to restart trade talks at the G20 summit over
the weekend, leading investors to bet that a breakthrough between the
world’s two largest economies would jumpstart global economic growth.

The United States and China agreed on Saturday to resume trade negotiations
after U.S. President Donald Trump offered concessions to his Chinese
counterpart Xi Jinping when the two met at the sidelines of the Group of 20
summit in Japan.

Those included no new tariffs and an easing of restrictions on Chinese tech
company Huawei Technologies Co Ltd. China agreed to make unspecified new
purchases of U.S. farm products and return to the negotiating table.

Broad gains in Europe and Japan pushed MSCI’s broadest global index up 0.6%,
adding to a rally that has been one of the global stock market’s best first
halves to a year ever.

The benchmark S&P 500 index briefly surpassed its previous record high of
2,964.15, set on June 21, before giving back some gains.

On Wall Street, the Dow Jones Industrial Average rose 117.47 points, or
0.44%, to 26,717.43, the S&P 500 gained 22.57 points, or 0.77%, to 2,964.33
and the Nasdaq Composite added 84.92 points, or 1.06%, to 8,091.16.

The Dow had been up more than 200 points in earlier trading.

China’s CSI300 index of blue-chip stocks jumped 2.6% to their highest since
late April and Germany’s export-heavy DAX gained 1.5% to its highest since
August. The Huawei hiatus and M&A activity drove Europe’s tech sector to a
one-year peak.

Fed funds futures dropped over five ticks as the market scaled back the
probability of a half-point interest rate cut this month to around 15%, from
nearer 50% a week ago.

In currency markets, safe havens like the yen and Swiss franc gave up some
recent gains. The dollar rose 0.4% on the yen to 108.26 and 0.7% on the
Swiss franc to 0.9830 franc.

The dollar added 0.4% on a basket of major currencies to 96.531. The
dollar’s gains hurt gold, which fell 1.5% to $1,388 per ounce.

Oil prices rose as much as $1 a barrel before giving up some of their gains
after OPEC and its allies looked set to extend supply cuts at least until
the end of 2019. Iraq joined top producers Saudi Arabia and Russia in
endorsing the policy. Brent crude futures rose 10 cents, or 0.2%, to $64.64
a barrel. U.S. crude gained 18 cents, or 0.3%, to $58.65.

 <mailto:info at bulls.co.zw> 

Commodities Markets

U.S.-China trade truce propels copper to 6-week peak

(Reuters) - Copper prices hit six-week highs on Monday as sentiment turned
positive after the United States and China agreed a trade truce, but weak
manufacturing data reinforced expectations of slowing economic activity and
demand.

Benchmark copper on the London Metal Exchange ended down 0.6% at $5,955 a
tonne. Prices of the metal, used widely in power and construction
industries, earlier touched $6,075, the highest since May 20.

TRADE: The United States and China agreed on Saturday to restart trade talks
after President Donald Trump offered concessions including no new tariffs
and an easing of restrictions on technology company Huawei.

But no deadline was set for progress on a deal, and the world’s two largest
economies remain at odds over significant parts of an agreement.

PMIS: China’s factory activity unexpectedly shrank in June as domestic and
export demand faltered, a private sector business survey showed on Monday,
pointing to further strains on its vast manufacturing sector.

Manufacturing activity also shrank in most Asian and European countries in
June.

Growth in U.S. manufacturing activity slowed to its lowest level in more
than a 2-1/2 years in June, with a measure of new orders received by
factories tumbling, according to the Institute for Supply Management (ISM).

TECHNICALS: Upside resistance for copper comes in at $6,080-$6,090, near the
50-day moving average.

ALUMINIUM: Aluminium stocks at 989,125, a drop of 22% since early May, and
one company holding large amounts of warrants — between 40% and 49% — is
fuelling concern about nearby supplies on the LME market. <0#LME-WHL>
MALSTX-TOTAL

Worries are reinforced by cancelled warrants — metal earmarked for delivery
— at 35% of total stocks.

This can be seen in the narrowing discount for the cash over the three-month
contract, which closed at $20 a tonne CMAL0-3 on Friday from levels near $31
on June 14.

Three-month aluminium slipped 0.3% to $1,794 a tonne. Last month it touched
a 2-1/2 year low of $1,745.

PRICES: Zinc closed down 1.3% at $2,462, lead fell 1.3% to $1,906, tin rose
0.4% to $18,900 and nickel was down 2.7% at $12,350 a tonne.

NICKEL: Traders said nickel’s large losses on Monday were due to
profit-taking after large gains this year and a break of the 100-day moving
average around $12,540.

Gold falls 2% as China-U.S. trade hopes hit safe-haven demand

(Reuters) - Gold prices fell as much as 2% on Monday as the dollar rallied
after the United States and China agreed to restart trade talks, boosting
investor appetite for riskier assets and taking the fizz out of the precious
metal’s recent rally.

Spot gold was down 1.3% at $1,391 per ounce as of 1142 GMT, after falling to
its lowest since June 20 at $1,381.51.

U.S. gold futures dropped 1.3% to $1,394.60.

The United States and China agreed on Saturday to resume trade negotiations
after President Donald Trump offered concessions to his Chinese counterpart
Xi Jinping when the two met at the sidelines of the G20 summit in Japan.

The dollar index jumped to a more than one-week high, making non-interest
bearing gold more expensive for holders of other currencies.

Hansen, however, was cautious.

No deadline was set for a trade deal and much damage has already been done,
with two surveys of Chinese manufacturing showing activity contracting.

Gold prices hit a six-year high last week at $1,438.63 an ounce, driven by a
dovish outlook from major central banks and an escalation of tensions
between the United States and Iran.

While gold has shed about $50 dollars since then, some analysts see it as a
healthy correction and an opportunity to buy.

Meanwhile, holdings of the SPDR Gold Trust, the world’s largest gold-backed
exchange-traded fund, fell 0.22% on Friday. Holdings had still risen nearly
7% in June as of last week.

Among other precious metals, silver fell 0.2% on Monday to $15.29 per ounce,
while palladium rose 0.5% to $1,545.35.

Platinum gained 0.6% to $838.21 an ounce, but was off a six-week peak
touched in the previous session.

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

ZHL

AGM

Aquarium Room, Crowne Plaza Monomotapa Hotel

30 June 2019, 10am

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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
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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
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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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