Bulls n Bears Daily Market Commentary : 02 July 2019

Wed Jul 3 00:30:44 CAT 2019

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Bulls n Bears Daily Market Commentary : 02 July 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$ 22,198,829.20 with foreign buys at ZWL$ 617,240.50 and
foreign sales were ZWL$ 4,592,678.55 Total trades were 303.

The All Share index recovered 2.82 points closing the day at 196.99 points.
DELTA CORPORATION LIMITED  added $0.1530 to end at $3.3505, ECONET WIRELESS
ZIMBABWE LIMITED recovered by $0.1263 settling at $1.8240 and CASSAVA
SMARTECH ZIMBABWE LIMITED advanced by  $0.0593 ending at $1.7938. Other
counters to top up were EDGARS STORES LIMITED which rose by $0.0240 to trade
at $0.2640 and NAMPAK ZIMBABWE LIMITED which increased by  $0.0075 to close
at $0.4000.

Counters on the downside; RIOZIM  LIMITED shed $0.3365 to trade at $2.0135,
INNSCOR AFRICA LIMITED lost $0.1533 to settle at $2.3827 and OLD MUTUAL
LIMITED retreated by $0.0407 ending at $13.0107.PADENGA HOLDINGS LIMITED
also dropped by $0.0400 closing at $2.1500 and SEEDCO LIMITED decreased by
$0.0390 to end at $1.7508.

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  Global Currencies & Equity Markets

South Africa

South Africa's rand firms as dollar slips, stocks down

(Reuters) - South Africa’s rand firmed against the U.S. dollar on Tuesday,
helped by a weaker greenback as optimism about easing trade tensions between
the United States and China faded, while stocks fell due to profit-taking.

At 1535 GMT, the rand was 0.35% firmer at 14.0900 per dollar, as the U.S.
currency slipped from two-week highs.

A trade truce between the United States and China on the sidelines of the
G20 summit over the weekend had calmed fears and boosted the dollar, but
negotiations are ongoing.

The tone changed after U.S. President Donald Trump said any deal would need
to be somewhat tilted in favour of the United States, arguing that China has
long had a trade advantage.

The rand had gained strongly in the previous month along with other emerging
assets as the greenback slumped over the likelihood of lower U.S. lending
rates.

On the bourse, stocks weakened with the Top-40 index down 0.71% to 52,093
points while the broader All-Share Index fell 0.65% to 58,095 points.

Profit-taking and waning investor optimism over the trade talks saw local
equities, alongside most emerging market peers, lose some of the gains they
had made on Monday.

Fashion retailer Truworths fell 5.03% to 68.85 rand after it said its
British footwear chain Office has entered debt restructuring talks with its
lenders amid tough trading conditions.

In fixed income, the yield on the benchmark 10-year government issue
<ZAR186= > added 2.5 basis points to 8.15%.

Kenya

Kenyan shilling weakens on uptick in importer demand

(Reuters) - The Kenyan shilling weakened against the dollar on Tuesday on
the back of increased dollar demand from oil and merchandise importers,
traders said. 

At 0701 GMT, commercial banks quoted the shilling at 102.75/95 per dollar,
compared with 102.55/75 at Monday's

       <mailto:info at bulls.co.zw> 

America

Dollar dips after price data, focus shifts to G20 meeting

LONDON (Reuters) - The dollar dipped on Friday after U.S. economic data
confirmed the likelihood of a July interest rate cut, although foreign
exchange markets seemed on hold as investors awaited the meeting between the
United States and China at the G20 summit in Japan.

The core U.S. personal consumption expenditure price index rose 0.2% in May,
as expected, reinforcing investor expectations that the Federal Reserve will
cut rates by 25 basis points to 2.25% at the next meeting.

As result, the dollar reaction to the data was limited and it last traded
0.1% lower at $1.1381, though it has fallen by around 1.7% in the past
couple of weeks.

“In the big themes today, the data doesn’t change the July cut,” said
Kenneth Broux, head of corporate research at Societe Generale.

The euro was on track for its biggest monthly gain in 17 months on the back
of broad-based dollar weakness.

Moreover, it remains unclear whether U.S. President Donald Trump and Chinese
President Xi Jinping will agree on a truce or escalate their trade conflict
further, leaving investors unsure about how to trade the dollar.

Still, markets are hoping that a meeting between the two government heads at
the G20 in the Japanese city of Osaka will bring progress on trade.

Negotiations between the world’s two largest economies have been fraught,
however, and traders and analysts caution that a resolution at the G20
summit is far from certain.

However, any falls in the dollar are unlikely to become sustained and so
“the euro at $1.14 is a sell,” Rochester said.

While inflation expectations in the United States and Europe have declined
in recent weeks, as measured by forward-starting swaps, U.S. gauges have
stabilised after the Federal Reserve opened the door to rate cuts last week.

In comparison, policy interest rates in Europe are already in negative
territory and Europe’s most widely watched measure of inflation expectations
- the five-year, five-year forward rate - has started declining again.

The dollar index, which measures the U.S. currency against six of its peers,
was at 96.110, broadly unchanged on the week.

The dollar traded at 107.77 yen, little changed on the day but on course for
a 0.3% gain this week as the greenback mounted a recovery from a five-month
low of 106.77 yen reached on Tuesday.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold jumps 1.5% as yields dropped on global on growth concerns

(Reuters) - Gold prices rose 1.5% on Tuesday, a day after posting the
biggest one-day percentage fall in 2-1/2 years, as U.S. Treasury yields fell
on worries over global growth and renewed concerns over global trade.

Spot gold jumped 1.55% to $1,405.53 per ounce at 1:33 p.m. EDT (1733 GMT),
after falling 1.8% on Monday, its biggest one-day percentage decline since
November 2016.

U.S. gold futures settled 1.3% higher at $1,408 per ounce.

U.S. yields were also pressured by a drop in British yields to 2-1/2-year
lows after Bank of England Governor Mark Carney cited risks from Brexit and
trade conflicts in a speech that prompted speculation the BOE may lower
interest rates in the next 12 months.

White House trade adviser Peter Navarro said on Tuesday U.S. trade talks
with China are heading in the right direction and it will take time to get
the right deal made.

The U.S. government also threatened tariffs on $4 billion of additional
European Union goods in a long-running dispute over aircraft subsidies.

Data showed manufacturing activity slowed last month, weakening appetite for
risk.

Gold prices hit a six-year high last week at $1,438.63 an ounce on dovish
outlooks from major central banks and an escalation of U.S.-Iran tensions.

The market is focusing on U.S. non-farm payrolls data due on Friday, which
should help investors better assess whether the Fed will cut interest rates
later this month.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded
fund, rose 0.78% to 800.20 tonnes on Monday.

Silver was up 0.47% at $15.21 per ounce, while palladium rose 0.87% to
$1,560.51 per ounce.

Platinum fell 0.2% to $828.75 an ounce, after touching a near seven-week
high on Monday. 

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
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
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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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