Bulls n Bears Daily Market Commentary : 16 July 2019

Wed Jul 17 04:10:54 CAT 2019

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Bulls n Bears Daily Market Commentary : 16 July 2019

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$ 18,664,599.85 with foreign buys at ZWL$ 472,275.00 and
foreign sales were ZWL$23,625.00 Total trades were 132.

The All Share index added another 0.97 points  to close at 192.33 points.
MEIKLES  gained $0.1000 to close at $1.2000, OK ZIMBABWE rose by $0.0548 to
$0.4559 and RIOZIM  was $0.0300 stronger at $2.3000. Other counters to
advance include OLD MUTUAL LIMITED which put on $0.0241 to end at $15.7500
and ECONET traded $0.0212 stronger at $1.7200.

Trdaing in the negative; EDGARS lost $0.0199 to $0.1801, AMALGAMATED
REGIONAL TRADING eased $0.0150 to $0.0800 and AXIA was $0.0083 lower at
$0.4917. CASSAVA SMARTECH also decreased by $0.0007 to end at $1.6500 and
STAR AFRICA  was $0.0004 weaker at $0.0180.

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  Global Currencies & Equity Markets

Tunisia

Tunisia's foreign currency reserves rise after it sold bond

(Reuters) - Tunisia’s foreign reserves have risen after it sold a 700
million euro bond last week, and are now enough to pay for 87 days of
imports, official data showed on Tuesday, up from a previous level of 73
days.

Central bank figures showed that Tunisia’s foreign exchange reserves now
stand at 15.596 billion dinars ($5.42 billion).

The North African country’s economy has been in crisis since the toppling of
autocrat Zine al-Abidine Ben Ali in 2011, with unemployment and inflation
shooting up. It has struggled with tough economic reforms to reduce public
spending.

Last week, Tunisia sold a seven-year euro-denominated bond worth 700 million
euros at an interest rate of 6.37 percent. ($1 = 2.8756 Tunisian dinars) 

Uganda

Uganda shillings firms on ebbing importer appetite

(Reuters) - The Ugandan shilling        was firmer on Tuesday on the back of
ebbing appetite for hard currency from large importers like manufacturing
firms and fuel retailers, traders said.

At 0924 GMT commercial banks quoted the shilling at 3,685/3,695, a touch
firmer than Monday's close of 3,690/3,700. 

       <mailto:info at bulls.co.zw> 

America

U.S. retail sales data dents stocks, lifts Treasury yields

(Reuters) - A gauge of global equities lost ground on Tuesday and U.S.
Treasury yields moved higher as a stronger-than-anticipated report on retail
sales raised the possibility the Federal Reserve could adopt a less dovish
stance.

U.S. retail sales rose 0.4% in June, as households stepped up purchases of
motor vehicles and a variety of other goods. The solid number comes on the
heels of recent data showing a strong labor market and a pickup in consumer
prices.

While the Fed is still largely expected to cut rates by a quarter of a
percentage point at its July 30-31 policy meeting, expectations for a more
aggressive half a percentage point cut have been scaled back.

Other data showed manufacturing output in the United States picked up steam
in June, while import prices declined the most in six months.

The data boosted U.S. Treasury yields, while the improving economic picture
has seen the U.S. yield curve steepen in the past week.

The Dow Jones Industrial Average fell 23.53 points, or 0.09%, to 27,335.63,
the S&P 500 lost 10.25 points, or 0.34%, to 3,004.05 and the Nasdaq
Composite dropped 35.39 points, or 0.43%, to 8,222.80.

With earnings season underway, banking shares were in focus after a mixed
bag of results from JPMorgan, Goldman Sachs and Wells Fargo. The S&P banks
sector was off 0.5%.

Stocks also moved lower following comments from U.S. President Donald Trump
that the U.S. still has “a long way to go” to conclude a trade deal with
China, and could impose tariffs on an additional $325 billion in Chinese
goods.

Benchmark 10-year notes last fell 7/32 in price to yield 2.1148%, compared
with 2.092% late on Monday.

European equities rose as disappointing data out of Germany and new concerns
over Brexit helped boost expectations for stimulus from the European Central
Bank, along with strong gains from shares of British fashion brand Burberry.

Germany’s ZEW indicator showed that the mood among investors in Europe’s
largest economy deteriorated more than expected in July, with the survey
pointing to the unresolved China-U.S. trade dispute and to political
tensions with Iran.

The pan-European STOXX 600 index rose 0.35% and MSCI’s gauge of stocks
across the globe shed 0.27%. The decline snapped a four-day winning streak
for MSCI’s index.

The dollar strengthened versus the euro as a result of the disparate data
while a debate between the two candidates to become Britain’s next prime
minister sent the pound tumbling because of heightened worries about a
no-deal Brexit.

The dollar index rose 0.45%, with the euro down 0.42% to $1.121. Sterling
was last trading at $1.2407, down 0.87% on the day.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold eases as robust U.S. data trims aggressive rate cut hopes

(Reuters) - Gold prices fell on Tuesday after better-than-expected U.S.
retail sales data lowered expectations of an aggressive interest rate cut by
the U.S. Federal Reserve, boosting the dollar.

Spot gold inched down 0.4% to $1,408.74 per ounce as of 1:36 p.m. EDT (1736
GMT). U.S. gold futures settled about 0.2% lower at $1,411.20.

The U.S Commerce Department said retail sales rose 0.4% last month as
households stepped up purchases of motor vehicles and a variety of other
goods.

The dollar rose 0.5% against major rivals on the upbeat U.S. data, making
greenback-denominated assets costlier for investors holding other
currencies.

Meanwhile, spot palladium fell over 3% to touch its lowest in three weeks at
$1,510 per ounce. The metal was last down about 3.3% at $1,516.43 per ounce.

U.S. President Donald Trump said Washington still has a long way to go to
conclude a trade deal with China but could impose tariffs if needed.

Trump earlier said that slowing economic growth in the world’s second
largest economy showed U.S. tariffs were having “a major effect” and
Washington could add pressure.

The auto-catalyst metal briefly surpassed a key psychological level of
$1,600 on Thursday, a level last touched in March. The failure to sustain
above the recent high has caused a bout of profit taking, Meger said.

Among other precious metals, silver rose 1.5% to $15.62 per ounce, after
touching its highest since Feb. 28 at $15.69 earlier in the session.

Platinum was up 0.2% at $840.98, after touching its highest since May 15 at
$850.62. 

Nickel jumps to one-year peak on industrial and fund buying

(Reuters) - Nickel prices surged to their highest in a year on Tuesday,
propelled by buying from speculators and industrial consumers worried about
potential future shortages.

A key ingredient in batteries for electric vehicles (EVs), nickel could be
subject to increasingly heavy demand with an expected shift from diesel and
petrol cars in the coming years.

Current estimates peg the future supply situation as less critical than
forecasts from a year ago, but industrial buyers remain nervous about
availability, Snowden said.

As nickel prices ramped up, buying from speculators extended the rally, one
broker said. “It’s CTA (commodity trading advisers) momentum buying ... that
is pushing things (nickel) higher.”

CTA funds often base trading decisions on chart patterns and technical
levels, including momentum.

Benchmark three-month nickel on the London Metal Exchange (LME) climbed 3.2%
to $14,090 a tonne in closing open outcry activity after touching $14,200,
its highest since last July.

Prices of nickel, mainly used in the stainless steel industry, have also
been boosted by worries of restricted ore supplies from major producer
Indonesia because of a planned 2022 export ban.

LME nickel has been the best-performing base metal this year with gains of
31% while most other base metals have fallen.

* RIO TINTO COPPER: LME copper closed 0.5% firmer at $6,012 a tonne, having
hit a two-week high of $6,037.50 after Rio Tinto flagged a cost blowout of
up to $1.9 billion and a delay of up to 30 months at its Oyu Tolgoi
underground copper mine in Mongolia, the miner’s key growth project.

* ZINC/LEAD BALANCES: During the first five months of the year the global
zinc deficit increased to 123,000 tonnes from 103,000 in the same period
last year, data showed. The lead deficit, meanwhile, rose to 42,000 tonnes
from 34,000 tonnes.

* ALUMINIUM STOCKS/ALUMINA: LME three-month aluminium ended 0.4% higher at
$1,850 a tonne after touching a two-month peak of $1,856.50 despite data
showing LME on-warrant aluminium inventories grew by 9% over the past two
days. MALSTX-TOTAL

China’s June alumina output rose 5.4% to 6.41 million tonnes, the aluminium
raw material’s highest in more than two years.

* PRICES: LME zinc finished 1.6% up at a two-week high of $2,482 a tonne,
lead firmed by 0.2% to $1,985 after touching the highest since April 4 at
$1,995, while tin was up 0.6% at $18,000. 

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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