Bulls n Bears Daily Market Commentary : 04 July 2019

Fri Jul 5 00:38:14 CAT 2019

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 04 July 2019

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover ZWL$ 5,323,842.24 with foreign buys at ZWL$ 1,676,215.00 and
foreign sales were ZWL$73,909.91 Total trades were 149.

The All Share index retreated by a further 2.78 points to close at 191.42
points. LAFARGE eased $0.1700 to close at $1.2000, INNSCOR slipped $0.1543
to close at $2.3284 and CASSAVA SMARTECH dropped $0.086 to settle at
$1.6498. Other losses were in ECONET which softened by $0.0799 to close at
$1.6490 and PADENGA shed $0.0199 to close at $2.0940.

On the upside, OLD MUTUAL added a further $0.7853 to close at $13.9967,
DELTA went up by $0.0619 to $3.4063 and Seed manufacturer SEEDCO  gained
$0.0362 to settle at $1.7997.  MASHONALAND HOLDINGS traded $0.0053 higher at
$0.0500 and AXIA inched up by $0.0015 to close at $0.5400.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South Africa's rand firms to 3-month high, stocks down

(Reuters) - South Africa’s rand rose against the dollar on Thursday to hit
its strongest in nearly three months, tracking fellow emerging market
currencies, as the dollar was dented by hopes of U.S. interest rate cuts.

Stocks were down after the U.S national holiday reduced volumes in local
equities, and the stronger currency curbed appetite for local commodities.

At 1510 GMT the rand was 0.2% firmer at 14.0375 per dollar. It hit a session
high of 13.9575, its strongest level since April 17.

Fuelling interest in riskier assets was a slew of soft U.S. data on
Wednesday that added to bets the Federal Reserve will cut rates as early as
July. Expectations that nominated European Central Bank chief Christine
Lagarde will keep to a dovish policy path also helped send the dollar down.

U.S. non-farm payrolls data due on Friday is set to give another indication
of whether the Federal Reserve could cut rates, and in lieu of any major
local data releases provides the main focus for investors.

On the stock exchange, the benchmark JSE Top-40 Index was down 0.41% to
51,747 points, while the broader All-Share Index dropped 0.34% to 57,816
points.

Among the fallers were platinum miners, down 1.75% as a group, with Anglo
American Platinum down 1.98% to 805.48 rand and Impala Platinum down 0.79%
to 73.21 rand.

In fixed income, the yield on the benchmark government paper due in 2026 was
down 3.5 basis points at 8.075%. 

Kenyan shilling to firm, Zambia kwacha to hold steady

(Reuters) - Kenya’s shilling is forecast to strengthen in the next week to
Thursday, while Zambia’s kwacha will be stable, traders said.

KENYA

The Kenyan shilling is seen gaining ground in the coming week from
Thursday’s 102.15/35, as commercial banks unwind long dollar positions amid
reduced dollar demand from oil importers, traders said.

TANZANIA

Tanzania’s shilling is expected to hold steady due to dollar demand from the
energy and manufacturing sectors being met by supply from agriculture and
mining sectors.

Commercial banks quoted the shilling on Thursday at 2,293/2,303 per dollar
compared with last Thursday’s close of 2,294/2,304.

ZAMBIA

The kwacha is expected to remain range-bound against the dollar in the
coming week, traders said.

On Thursday, commercial banks quoted the currency of Africa’s second-largest
copper producer at 12.8000 per dollar from a close of 12.9000 a week ago.

       <mailto:info at bulls.co.zw> 

America

Collapsing bond yields push world stocks to new highs

LONDON (Reuters) - Government bonds held near multi-year lows on Thursday on
bets the U.S. Federal Reserve would cut interest rates this month and that
other major central banks would embrace looser monetary policy, pushing
world stocks to new 18-month highs.

Germany’s 10-year government bond yield, a benchmark for euro zone debt,
fell to -0.4% and matched the European Central Bank’s deposit rate for the
first time — a sign that markets are expecting rate cuts.

Other benchmark debt yields also held near record lows in the wake of their
recent rally. U.S. 10-year Treasury notes had hit their lowest since
November 2016 on Wednesday, pushed down by bets that the European Central
Bank’s next head will maintain a dovish policy stance to buoy the euro zone
economy.

The fall in U.S. Treasuries came after a report showed U.S. companies added
fewer jobs than expected in June, raising concerns the labour market is
softening even as the current U.S. economic expansion marked a record run
last month.

With Wall Street closed for the Independence Day holiday, investors said
they were now focused on Friday’s U.S. non-farm payrolls, which economists
expect to have risen by 160,000 in June compared with 75,000 in May.

Separately, U.S. President Donald Trump on Wednesday repeated his call for
the United States to match what he says are efforts by China and Europe to
manipulate currencies and pump money into their economies.

Government borrowing costs in the euro zone have fallen to record lows after
EU leaders agreed late on Tuesday to name Christine Lagarde as the ECB’s new
president.

Lagarde, the current International Monetary Fund head, is widely expected to
maintain the dovish stance of current ECB President Mario Draghi.

The action in bond markets buoyed stocks. MSCI’s all-country world index
eked out a 0.1% gain after hitting its highest since February last year a
day earlier.

Equity markets across Europe were flat, with the Euro STOXX 600 unchanged
amid thin volumes. The three major U.S. stock indexes had finished at record
closing highs on Wednesday.

Italian 10-year bond yields stayed close to their lowest since late 2016
after the European Commission dropped its threat to discipline Rome over its
public finances, pushing the country’s main bourse to a new two-month peak.

In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan rose
0.2%.

For an interactive version of Bund yield set to fall below ECB deposit rate,
click here tmsnrt.rs/2YtKj7d.

FLAT DOLLAR, EURO

Expectations for rate cuts by the Fed saw the dollar drift away from recent
highs, though currencies were by and large quiet in early European trade.

The dollar index against a basket of six major currencies was unchanged at
96.711.

The euro traded at $1.1284, a touch higher than its two-week low of $1.1268
touched on Wednesday.

FX strategists said that although the drop in U.S. Treasury yields overnight
was negative for the dollar, softness in other currencies was lending some
support.

In commodity markets, oil fell on data showing a smaller-than-expected
decline in U.S. crude stockpiles and worries about the global economy.

Brent crude futures, the international benchmark for oil prices, were flat
at $63.84 per barrel by 1109 GMT.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Zinc slides to 2-week low as Chinese supply rises

(Reuters) - Zinc prices fell to their lowest in two weeks on Thursday as
rising Chinese production and a collapse in the premium for cash metal on
the London Metal Exchange (LME) pointed to a better supplied market.

Benchmark zinc on the LME ended down 1% at $2,425 a tonne, within a whisker
of last month’s level of $2,412, the lowest in 5-1/2 months.

The metal used to galvanize steel has tumbled more than 30% from a high
early last year as a U.S.-China trade war weakened the demand outlook and
traders braced for a surge of refined metal to end a supply shortfall.

Rising Chinese output, rumours that zinc is moving from Chinese bonded
storehouses into the LME warehouse system and a big fall in the premium for
LME cash zinc were pushing prices lower, Deutsche Bank analyst Nick Snowdon
said.

DEFICIT: Higher output by Chinese smelters is expected to end a deficit that
according to the International Lead and Zinc Study Group (ILZSG) amounted to
97,000 tonnes during the first four months of this year.

CHINESE OUTPUT: Chinese refined zinc output at 480,000 tonnes was up 7.4% in
May compared to the same month in 2018.

Global production of zinc is around 13.5 million tonnes a year.

SPREAD: The premium for cash zinc over the three-month contract on the LME
fell to $9.50, down from more than $150 in May and the lowest since March,
suggesting greater availability of nearby metal. MZN0-3

STOCKS: Zinc inventories in LME and Shanghai Futures Exchange (ShFE)
warehouses fell in recent months to the lowest in more than a decade, but
levels have begun to recover. MZNSTX-TOTAL ZN-STX-SGH

TRADE WAR: Top representatives of the United States and China are organising
a resumption of talks for next week to try to resolve a year-long trade war
between the two countries, Trump administration officials said.

GLOBAL FACTORIES: Data this week showed factory activity weakening in major
economies around the world.

U.S. ECONOMY: The United States added fewer jobs than expected in June and
its trade deficit jumped in May, suggesting economic growth slowed sharply
in the second quarter.

OTHER METALS: LME copper closed flat at $5,920 a tonne, aluminium rose 1% to
$1,807 and tin finished up 0.2% at $18,350.

Nickel did not trade in closing rings but was bid down 0.1% at $12,340. Lead
also did not trade and was bid 0.1% lower at $1,878.

Emirates Global Aluminium (EGA) eyes Bosnia's indebted Aluminij

(Reuters) - Emirates Global Aluminium (EGA), one of the largest industrial
firms in the United Arab Emirates, has expressed interest in Bosnia’s
debt-laden aluminium smelter Aluminij Mostar, Bosnia’s regional energy and
mining minister said on Thursday.

Bosnia’s sole aluminium smelter and one of the country’s biggest exporters
on Wednesday threatened it would halt production on July 6 unless the
government of Bosnia’s autonomous Bosniak-Croat Federation, helps it stay
afloat.

It has been in trouble for years over debt accumulated because of high
alumina and electricity prices.

EGA will now asses Aluminij’s value, said Nermin Dzindic, the Federation
energy and mining minister, before it starts talks with Aluminij’s
shareholders about a possible takeover.

Aluminij is 44-percent owned by the Federation government, with small
shareholders holding another 44 percent and the Croatian government the
remainder.

Dzindic said that EGA pledged to double output at Aluminij from the current
130,000 tonnes a year and was ready to negotiate the power purchase deal
with Bosnia’s three power utilities to secure continuous production for up
to ten years.

He also said the government would resume talks tomorrow with a consortium
led by London-listed miner and commodity trader Glencore which had also
expressed an interest in Aluminij and was ready to improve its previous
offer.

Aluminij, which employs 900 workers, has been trying to reach a deal with
the regional government on subsidised electricity prices.

Its closure would put at risk some 10,000 jobs, taking into account its
contractors and the aluminium processing firms it supplies with the metal.

Aluminij’s total debt amounted to nearly 380 million Bosnian marka ($220
million), of which 280 million marka was to the state power utility, EPHZHB,
which last month stopped supplying it with power at favourable prices agreed
with the government last December. 

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

ZHL

AGM

Aquarium Room, Crowne Plaza Monomotapa Hotel

30 June 2019, 10am

 <mailto:info at bulls.co.zw> 

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.

(c) 2019 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

Invest Wisely!

Bulls n Bears

Telephone:    <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 719 441 674

Alt. Email:              <mailto:info at bulls.co.zw> info at bulls.co.zw 

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:                 @bullsbears2010

LinkedIn:              Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:                  Bulls.Bears 

Whatsapp Group:   <https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> Click
Here to Join

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190705/4a828696/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190705/4a828696/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 29436 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190705/4a828696/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29460 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190705/4a828696/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190705/4a828696/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29478 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190705/4a828696/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 3256 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190705/4a828696/attachment-0011.jpg>