Bulls n Bears Daily Market Commentary : 08 July 2019

Tue Jul 9 01:48:00 CAT 2019

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Bulls n Bears Daily Market Commentary : 08 July 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$ 1,408,774.71 with foreign buys at ZWL$ 379,050.00 and
foreign sales were ZWL$2,800.00 Total trades were 93.

The All Share index opened the week on a lower note losing 0.33 points to
close at 188.37 points. PADENGA  eased $0.0899 to $2.0001, PPC dropped
$0.0400 to close at $1.8600 and INNSCOR was $0.0060 weaker at $2.2500. ZIMRE
HOLDINGS also decreased by $0.0039 to $0.0450 and SIMBISA  ended $0.0024
lower at $1.0951.

Losses were offset by gains in DELTA which added $0.0092 to $3.4606, RIOZIM
gained $0.0060 to close at $2.2700 and CASSAVA SMARTECH  was $0.0051 higher
at $1.6492. FIRST CAPITAL BANK  also increased by $0.0010 to $0.0650 and
FIRST MUTUAL PROPERTIES  ended $0.0006 stronger at $0.0630.

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  Global Currencies & Equity Markets

South Africa

South Africa's rand steady as Fed cut bets fade

(Reuters) - South Africa’s rand steadied against a firmer dollar in
afternoon trade on Monday, after last week’s strong U.S. jobs data lowered
expectations of a sharp Federal Reserve interest rate cut.

Stocks closed slightly higher.

At 1505 GMT the rand was trading at 14.1525 per dollar, not far off its
close of 14.1800 on Friday.

South African-focused investors are this week waiting for mining and
manufacturing data for the month of May for clues on the health of the
economy after GDP contracted in the first quarter.

On the stock market, the Top-40 index closed 0.21% higher while the broader
all-share was up 0.25%.

Shares in Impala Platinum rose more than 3% after the mining firm said it
expected to swing back to annual profit, thanks to an improved platinum
metals’ basket price and higher sales volumes.

Shares in retailer Steinhoff fell 3.10% after it said its chief financial
officer would step down.

In fixed income, the yield on the benchmark government bond due in 2026
dipped by 5 basis points to 8.12%. 

Uganda

Ugandan shilling unchanged as energy and manufacturing demand flat

(Reuters) - The Ugandan shilling was unchanged on Monday on the back of flat
appetite for dollars from energy and manufacturing firms.

At 0852 GMT, commercial banks quoted the shilling at 3,695/3,705, same level
as Friday’s close.

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GLOBAL MARKETS

Tempered expectations of Fed rate cut sink stocks globally

(Reuters) - A strong U.S. jobs report that tempered expectations of an
aggressive interest rate cut by the Federal Reserve later this month and
weak economic data in Germany helped push global stock indices lower on
Friday after hitting record highs earlier this week.

Yields on benchmark 10-year Treasury notes rose back above 2.0% after
hitting their lowest since November 2016 on Wednesday.

Nonfarm payrolls increased by 224,000 last month as government employment
rose by the most in 10 months, the U.S. Labor Department reported.

The better-than-expected showing reduced the likelihood the Fed will cut
interest rates at its next meeting later this month. Expectations of an
equity-friendly rate cut helped push the S&P 500 to record highs earlier
this week.

Expected report is likely to throw cold water on those fairly dovish
expectations,” said Candice Bangsund, asset allocation manager at Fiera
Capital.

MSCI’s gauge of stocks across the globe shed 0.42%.

On Wall Street, the Dow Jones Industrial Average fell 43.88 points, or
0.16%, to 26,922.12, the S&P 500 lost 5.41 points, or 0.18%, to 2,990.41 and
the Nasdaq Composite dropped 8.44 points, or 0.1%, to 8,161.79.

Market volume in the U.S. was light due to the holiday-shortened week.

The losses in the U.S. market followed broad dips in European equities after
German data showed industrial orders had fallen far more than expected in
May, and a warning from the economy ministry that this sector of Europe’s
largest economy was likely to remain weak in the coming months.

The pan-European STOXX 600 index lost 0.72%.

Benchmark 10-year notes last fell 24/32 lower in price to yield 2.0373%,
from 1.955% late on Wednesday.

The dollar index rose 0.5%, with the euro down 0.53% to $1.1224.

Brent crude futures, the international benchmark for oil prices, gained 1.5%
to $64.27 per barrel while U.S. crude rose 0.4% to $57.59.

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Commodities Markets

Gold edges lower as aggressive rate cut views fizzle

(Reuters) - Gold prices edged lower on Monday as increasing expectations
that the U.S. Federal Reserve will not aggressively cut interest rates later
this month boosted the dollar, making gold expensive for holders of other
currencies.

Spot gold fell 0.2% to $1,396.56 per ounce at 01:44 p.m. EDT (1744 GMT).
U.S. gold futures settled at $1,400 per ounce.

Stronger than expected jobs data reported on Friday reduced the likelihood
of a steep rate cut at the Fed’s July 30-31 meeting and lifted the dollar to
three-week highs.

However, the central bank was still expected to cut rates by a quarter
point, given modest wage gains and other economic data suggesting the U.S.
economy was losing steam.

Markets are now looking ahead to Fed Chairman Jerome Powell’s semi-annual
testimony to the U.S. Congress on the economy this week for clues on the
near-term outlook for monetary policy.

Gold hit $1,438.63 for the first time in six years last month and has been
trading above key technical levels, supported by expectations of a rate cut
by major central banks and lingering concerns about the global economy.

The Chinese central bank increased its gold reserves for a seventh straight
month in June, data showed. China is the world’s biggest consumer of the
yellow metal.

Adding to existing tensions between the United States and Iran, Tehran said
on Sunday it will shortly boost its uranium enrichment above a cap set by a
landmark 2015 nuclear deal, prompting a warning “to be careful” from U.S.
President Donald Trump.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded
fund, fell 0.18% to 796.97 tonnes on Friday from 798.44 tonnes on Wednesday.

Among other precious metals, silver gained 0.4% to $15.03 per ounce, while
palladium dipped 0.4 % to $1,560 per ounce and platinum rose 1.6% to $817
per ounce. 

Copper slides as focus shifts to U.S.-China trade dispute

(Reuters) - Copper prices slipped on Monday as sentiment was dominated by
the protracted U.S.-China trade dispute and subsequent damage to global
growth and demand, and a stronger dollar.

Benchmark copper on the London Metal Exchange ended down 0.2% at $5,892 a
tonne.

REVERSAL: Traders said a break of the 21-day moving average at $5,925
triggered stop levels, which earlier in the session took prices to a session
high at $5,946.50.

Reinforcing this was a drop in copper stocks MCUSTX-TOTAL in LME warehouses,
which fell 4,675 tonnes to 298,300 tonnes.

Funds and dealers trading headline stocks had taken bets on lower prices
after LME copper inventories last week rose above 300,000 tonnes from
239,925 tonnes.

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

The Trump administration has accused China of engaging in unfair trade
practices that discriminate against U.S. firms, forced technology transfers
and intellectual property rights theft, all charges Beijing has denied.

CHINA: Chinese industry accounts for about half of global consumption of
industrial metals. Markets are looking ahead to China data on bank loans.

New bank loans in China are expected to have picked up to a five-month high
in June, a Reuters poll showed, as Beijing kept ample liquidity in the
financial system to support the slowing economy.

DOLLAR: A higher U.S. currency makes dollar-denominated metals more
expensive for importers in other currencies, which potentially could subdue
demand.

ZINC: Prices of the metal used to galvanise steel have recently come under
pressure from expectations of rising supply and the likelihood of a second
half balanced market or surplus.

Zinc was down 1.2% at $2,378 a tonne, a six-month low.

Receding worries about zinc shortages on the LME market can also be seen in
the discount for the cash over the three-month CMZN0-3 contract, which is
around $2.60 a tonne, against a premium of more than $160 a tonne late May.

PRICES: Aluminium gained 0.3% to $1,809, lead gained 0.8% to $1,884, tin
added 0.7% to $18,490 and nickel was up 1.9% to $12,720 a tonne.

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

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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
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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