Bulls n Bears Daily Market Commentary : 15 July 2019

Mon Jul 15 23:24:46 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 : 15 July 2019

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover ZWL$ 4,107,207.94 with foreign buys at ZWL$ 1,847,675.00 and
foreign sales were NIL Total trades were 70.

The All Share index ended the day on a  higher note gaining 1.38 points  to
close at 191.36 points. PPC  added $0.3357 to end at $2.1957, OLD MUTUAL
LIMITED recovered by $0.2435 to end at $15.7259 and ECONET WIRELESS ZIMBABWE
LIMITED was $0.0793 stronger at $1.6988. SIMBISA BRANDS LIMITED traded
$0.0475 firmer at $1.0975 and ZIMRE HODLINGS LIMITED  gained $0.0072 to end
at $0.0432.

Trading in the negative; MEIKLES LIMITED shed $0.0500 to $1.1000, SEEDCO
dropped by $0.0494 to $1.5500 and BRITISH AMERICAN TOBACCO ZIMBABWE  was
$0.0391 weaker at $39.5000. SEEDCO INTERNATIONAL lost $0.0002 ending at
$2.1000.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South Africa's rand, stocks boosted by global risk-on sentiment

South Africa’s rand firmed on Monday as bets the Federal Reserve will cut
interest rates next week continued to boost the currency in the absence of
any local economic drivers, on a day dominated by ex-president Jacob Zuma’s
testimony at a graft inquiry.

At 1700 GMT the rand was 0.45% firmer at 13.8975 per dollar from a Friday
close of 13.9600.

Investors expect the Fed to reduce its key rate by 25 basis points and make
another cut in September. Lower yields in the United States boosts demand
for riskier high yielding assets like the rand.

Stronger-than-expected economic data from China also spurred risk bets. The
world’s no.2 economy reported industrial output rebounded in June from a
17-year low in May, while June retail sales surged 9.8% from a year earlier.

The rand rallied to a five-month high of 13.8200 last week but technical
resistance near 13.80 may stall its advance.

Bonds firmed, with the yield on the benchmark 2026 government issue down 5
basis points at 8.04%. Former president Zuma struck a defiant tone at the
public inquiry into maladministration during his nine-year tenure, saying he
was the victim of a “character assassination” by enemies who had tried to
get rid of him for more than 20 years.

Zuma, who was pushed out by the governing African National Congress (ANC) in
February 2018 and replaced by President Cyril Ramaphosa, is seen to still to
yield power inside the party, particularly with the faction opposing
Ramaphosa’s reform agenda.

Zuma has consistently denied wrongdoing.

On the bourse, stocks rose following encouraging production data out of
China on Monday boosting emerging markets.

The benchmark JSE Top-40 Index was up 0.5% to 51,447.25 points while the
broader All-Share Index crept up 0.27% to 57,432.75 points.

Tech heavyweight Naspers was among the leaders on the blue-chip index,
jumping 2.43% to 3,488.61 rand after strong gains by internet company
Tencent Holdings where it holds a 31 percent stake.

Among the losers pharmaceuticals company Aspen tumbled 3.77% and luxury
goods firm Richemont dipped 1.49%.

Uganda

Uganda shilling unchanged as tax payments trims demand

(Reuters) - The Ugandan shilling        was unchanged on Monday amid subdued
activity on the demand side as most firms were reserving their local
currency holdings to meet mid-month tax obligations, traders said.

At 0900 GMT commercial banks quoted the shilling at 3,690/3,700, same level
as Friday's close. 

       <mailto:info at bulls.co.zw> 

China

China data steadies stocks as U.S. earnings get underway

(Reuters) - A gauge of global stocks rose modestly on Monday after economic
data from China came in as expected, but equities on Wall Street slipped on
weakness in financials in the wake of Citigroup’s earnings report.

China’s second-quarter annual GDP growth rate fell to a 27-year low of 6.2%,
as expected, while June reports on industrial production, retail sales and
urban investment were above forecasts.

On Wall Street, major indexes were near flat, with the S&P kept in check
after its first close above the 3,000 mark by a 0.5% decline in financial
stocks following Citigroup earnings. The bank’s shares were last off 0.06%
after losing as much as 2.4%.

The Dow Jones Industrial Average rose 26.86 points, or 0.1%, to 27,358.89,
the S&P 500 gained 0.52 point, or 0.02%, to 3,014.29 and the Nasdaq
Composite added 14.04 points, or 0.17%, to 8,258.19.

Equities have rallied since a sell-off in May as investors have grown more
confident the U.S. Federal Reserve will cut its key interest rate by at
least a quarter point late this month. Improving economic data, however,
could complicate the Fed’s ability to lower rates.

Corporate earnings are also moving into focus with a slew of banks scheduled
to follow Citi this week, including JP Morgan , Goldman Sachs and Wells
Fargo. According to Refinitiv data, S&P 500 companies’ earnings are expected
to show a decline of 0.3 percent for the quarter.

Other major companies scheduled to post results this week include Netflix,
Microsoft and Honeywell .

The pan-European STOXX 600 index rose 0.23% and MSCI’s gauge of stocks
across the globe gained 0.14%.

Germany’s Economy Ministry said it expected the economy to turn in a weak
second quarter and said significant risks remain, buoying expectations the
European Central Bank would take further easing measures at its meeting next
week. Germany’s DAX closed up 0.52%.

Later in the week, U.S. retail sales and industrial production data will
provide clues about the health of the world’s largest economy. The Fed will
release its “Beige Book” on Wednesday and investors will look to it for
insight on how trade tensions are affecting the business outlook.

U.S. Treasury yields were lower with investors eyeing the retail sales data
due on Tuesday. Benchmark 10-year notes last rose 5/32 in price to yield
2.0887%, down from 2.106% late on Thursday.

Oil prices lost ground on signals the impact of Tropical Storm Barry on the
U.S. Gulf Coast would have a short-term impact on production. U.S. crude
settled down 1.05% at $59.58 per barrel and Brent was last at $66.48, down
0.36% on the day.

 <mailto:info at bulls.co.zw> 

Commodities Markets

China iron ore, coke rise on demand outlook; steel rebounds

(Reuters) - China’s iron ore and coke prices rose on Monday on expectations
of an increase in demand for both steelmaking inputs, while steel futures
rebounded from three-week lows touched earlier in the session.

The most-traded September iron ore contract on the Dalian Commodity Exchange
ended up 2.3% at 895 yuan ($130.22) a tonne, edging closer to its record
intraday high 911.5 yuan hit on July 3.

Tight supply conditions also supported iron ore prices, with imported stocks
at China’s ports hovering near the lowest level since early 2017. The port
inventory fell to 115.35 million tonnes, as of July 12, from 115.6 million
tonnes a week before, data compiled by SteelHome consultancy showed.
SH-TOT-IRONINV

Demand for iron ore could pick up as steel mills’ stocks have dwindled, said
Darren Toh, steel and iron ore data scientist at Singapore-based Tivlon
Technologies.

This indicates that steel production in China remains brisk, despite output
curbs in some of the country’s steel hubs, amid “very strong” demand for the
commodity for the country’s infrastructure projects, Toh said.

China’s daily crude steel output rose to record levels in June, according to
Reuters calculations, even as anti-pollution restrictions pushed whole-month
production slightly lower, official data showed on Monday.

Dalian coke futures climbed 2.8% to 2,167.50 yuan a tonne, after hitting
2,172.50 yuan a tonne earlier in the day, their highest in almost five
weeks.

FUNDAMENTALS

* Benchmark construction steel rebar for October delivery on the Shanghai
Futures Exchange closed nearly 1% higher at 4,030 yuan a tonne, after
dropping 1.8% in early trade.

* Hot rolled coil, the steel used in cars and home appliances, also
rebounded from earlier losses to close 1.2% higher at 3,898 yuan a tonne.

* Overall demand outlook for steel in China is clouded, however, with the
country’s economic growth slowing to 6.2% in the second quarter from a year
earlier, the weakest pace in at least 27 years and dampened by the trade war
with the United States.

* “Although we believe Chinese stimulatory measures should support the
commodity imports in (the second half), further trade tensions remain a
downside risk for demand,” ANZ said in a note.

* Dalian coking coal edged down 0.1% at 1,398 yuan a tonne.

* Benchmark spot 62% iron ore for delivery to China, SH-CCN-IRNOR62 rose
0.8% to $120.50 a tonne on Friday, near the five-and-a-half-year high of
$126.50 hit on July 3, according to data tracked by SteelHome consultancy.

* China will continue to enforce production restrictions in heavy industry
in winter this year and will tighten its emission assessment on steel mills
when granting exemptions from curbs already in place, an environment
ministry official said on Saturday.

* For the top stories metals and other news, click or

($1 = 6.8731 yuan)

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

 <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/20190715/7a6b2bdc/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/20190715/7a6b2bdc/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/20190715/7a6b2bdc/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/20190715/7a6b2bdc/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/20190715/7a6b2bdc/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 29465 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190715/7a6b2bdc/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/20190715/7a6b2bdc/attachment-0011.jpg>