Bulls n Bears Daily Market Commentary : 09 July 2019

Wed Jul 10 00:18:38 CAT 2019

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Bulls n Bears Daily Market Commentary : 09 July 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$ 7,097,558.89 with foreign buys at ZWL$ 92,414.06 and
foreign sales were ZWL$98,004.00 Total trades were 105.

The All Share index recovered 3.06 points to close at 191.43 points. ECONET
added $0.1683 to end at $1.6975, CASSAVA SMARTECH gained $0.0525 to $1.7017
and DELTA  rose by $0.0397 to close at $3.5003. MEIKLES also increased by
$0.0200 to settle at $1.1500 and OLD MUTUAL LIMITED was $0.0167 stronger at
$14.0167.

Trading in the negative; PADENGA eased $0.0267 to settle at $1.9734, EDGARS
lost $0.0236 to $0.2000 and FIRST MUTUAL PROPERTIES LIMITED   was $0.0126
weaker at $0.0504. MASHONALAND HOLDINGS also decreased by $0.0094 to end at
$0.0406 and DAWN PROPERTIES was $0.0085 lower at $0.0400.

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  Global Currencies & Equity Markets

Kenya

Kenyan shilling firms, helped by investors buying bonds

(Reuters) - The Kenyan shilling firmed against the dollar on Tuesday,
supported by inflows from non-governmental organisations and offshore
investors buying Treasury bills and bonds, traders said. 

At 0846 GMT, commercial banks quoted the shilling at 102.60/80 per dollar,
compared with 102.70/90 at Monday's close.

South Africa

South Africa's rand steady as traders eye Fed, stocks down

(Reuters) - South Africa’s rand steadied against the dollar on Tuesday,
struggling for momentum as investors awaited clues on U.S. monetary policy
from the Federal Reserve officials and domestic data. Stocks closed lower.

At 1500 GMT the rand was trading at 14.1700 per dollar, after closing at
14.1900 on Monday.

Trading was largely muted ahead of U.S. Federal Reserve Chairman Jerome
Powell’s testimony to the Congress and release of minutes on Wednesday from
the U.S. central bank’s last policy meeting.

Emerging markets have enjoyed capital inflows this year on signs major
central banks will embrace a looser monetary policy as a result of trade
disputes and growth concerns.

However, strong U.S. jobs data on Friday all but ended expectations of a
bold interest rate cut from the Fed at its meeting this month, leaving
investors in search of hints on where rates are headed.

On the bourse, the Top-40 index fell 1.43% while the broader all-share was
down 1.37%.

In fixed income, the yield on the benchmark 2026 government issue fell 1.5
basis points to 8.105%. 

       <mailto:info at bulls.co.zw> 

America

Stocks drop as trade dims earnings outlook; Mexican peso tumbles

(Reuters) - A gauge of stock markets around the world fell on Tuesday as
trade tensions weighed on the outlook for corporate earnings, while Mexico’s
peso tumbled after the country’s finance minister resigned.

European and U.S. stocks dropped early after German chemicals giant BASF
warned of a 30% fall in its adjusted annual profit, citing trade friction
and a global slowdown in growth.

On Wall Street, an analyst downgrade of 3M Co contributed to a drop in the
Dow Jones Industrial Average . However, the benchmark S&P 500 index edged
higher and the Nasdaq posted gains as the tech-related FAANG stocks rose.

Even so, MSCI’s gauge of stocks across the globe shed 0.10%.

The Mexican peso slid as much as 2.25% against the dollar after Finance
Minister Carlos Urzua resigned, citing deep differences over economic
issues. It was last down 1.2%.

Some encouraging news on trade came as the United States and China were set
to relaunch talks this week after a two-month hiatus. White House economic
adviser Larry Kudlow said talks with the European Union to move forward on a
trade agreement were also in progress.

However, skepticism remained among market participants on how much progress
the United States and China have made toward resolving their differences.

The Dow Jones Industrial Average fell 22.65 points, or 0.08%, to 26,783.49,
the S&P 500 gained 3.68 points, or 0.12%, to 2,979.63 and the Nasdaq
Composite added 43.35 points, or 0.54%, to 8,141.73.

Benchmark 10-year notes last fell 8/32 in price to yield 2.0613%, from
2.034% late on Monday.

The potential reaction to monetary policy at the world’s top central banks
also remained in focus ahead of Federal Reserve Chairman Jerome Powell’s
testimony before the U.S. Congress on Wednesday and Thursday.

Money market futures are still fully pricing in a 25-basis-point cut at the
Fed’s July 30-31 meeting, but have almost priced out a larger
half-percentage-point move that had been seen as a real possibility just a
couple of weeks ago.

In currency markets, Britain’s sterling dropped to a six-month low and was
last 0.4% lower against the dollar at $1.2462 amid a worsening economic
outlook and rising fears about a no-deal exit for Britain from the European
Union.

The dollar index, which measures the greenback against a basket of six major
currencies, rose 0.13%, while the euro dipped 0.1% to $1.1206.

Oil prices firmed as OPEC supply cuts and Middle East tensions outweighed
the U.S.-China trade dispute that has been dragging down the global economy
and oil demand.

Brent crude futures settled up 5 cents to $64.16. U.S. West Texas
Intermediate crude settled up 17 cents to $57.83.

Spot gold ticked 0.1% higher to $1,397.06 an ounce.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Congo's Jan-May copper output rises 11%, cobalt up 3%

(Reuters) - Copper production in Democratic Republic of Congo, Africa’s top
producer, rose by 11.2% year-on-year in the January to May period, while
cobalt output increased 2.8%, the central bank said on Tuesday.

Copper output for the first five months of 2019 stood at 552,044 tonnes
compared to 496,468 tonnes in the same period of last year, the bank said.
Cobalt production was 44,522 tonnes, compared to 43,291 tonnes last year.

Gold production fell 6.4% to 13,511 kg. 

Gold dips to one-week low on strong dollar; focus on Fed

(Reuters) - Gold fell to a one-week low on Tuesday as the U.S. dollar
rallied on expectations of a less aggressive interest rate cut by the
Federal Reserve this month, while investors awaited Fed Chair Jerome
Powell’s testimony on monetary policy.

Spot gold fell 0.4% to $1,390.21 per ounce at 10:42 a.m. EDT (1442 GMT). The
session trough of $1,386.11 was its lowest since July 2.

U.S. gold futures for August delivery shed 0.5% to $1,392.50 per ounce.

Powell’s two-day testimony before the U.S. Congress starts on Wednesday.

Market expectations of a 25-basis-point cut were at 98%, with chances for a
50-basis-point cut reduced to 5.9% from 25% last week. Investors also think
there is a higher chance the Fed will not cut rates in September.

The dollar held near a three-week high versus a basket of major currencies,
supported also by news the United States and China were set to relaunch
trade talks this week.

However, the outlook for gold remained positive, with analysts citing
support from Middle East tensions, the trade war and buying by central
banks.

Top gold consumer China’s reserves jumped to $87.27 billion from $79.83
billion at end-May.

On the technical front, gold is consolidating around $1,400, plus or minus
$20 per ounce, said Samson Li, a Hong Kong-based precious metals analyst at
Refinitiv GFMS.

Meanwhile, hedge funds and money managers raised their bullish stance in
COMEX gold in the week to July 2.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded
fund, fell 0.15% to 795.80 tonnes on Monday.

Among other precious metals, silver was little changed at $15.02 per ounce.

Palladium was down 1% at $1,546.11, and platinum fell 0.9% to $806.07 per
ounce. 

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
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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
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investigation into the business, financial condition and future prospects of
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for guideline purposes only and sourced from third parties.

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