Bulls n Bears Daily Market Commentary : 30 July 2019

Wed Jul 31 02:56:27 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 : 30 July 2019

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover ZWL$ 9,456,748.66 with foreign buys at ZWL$ 1,783,659.60 and
foreign sales were ZWL$271,888.50 Total trades were 119.

The All Share index closed the day on a lower note losing 0.17 points to
close at 189.45 points. DELTA lost $0.0150 to $3.4800, SIMBISA traded
$0.0100 lower at $1.0000 and LAFARGE CEMENT decreased by $0.0100 to settle
at $1.1900. MASIMBA HOLDINGS also eased $0.0098 to end at $0.0900 whilst
INNSCOR AFRICA   was $0.0073 down at $2.2402. 

Trading in the positive; OLD MUTUAL LIMITED added $0.0981 to $16.2000,
ZIMPLOW LIMITED gained $0.0500 to end at $0.5000 and ECONET  was $0.0064
stronger at $1.6839. PPC LIMITED  also increased by $0.0050 to $1.9550 and
BINDURA NICKEL traded $0.0025 firmer at $0.1050.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South Africa's rand steadies, stocks down

(Reuters) - South Africa’s rand steadied on Tuesday as traders, eschewing
big transactions despite poor unemployment figures and a warning of another
loss from power utility Eskom, stayed on the sidelines ahead of a U.S.
monetary policy announcement. At 1515 GMT, the rand traded at 14.1800 per
dollar, not far off Monday’s close of 14.1650.

The unemployment rate jumped to its highest since the global financial
crisis more than a decade ago, piling more pressure on President Cyril
Ramaphosa’s pledge to turn around a shrinking economy.

Meanwhile, power utility Eskom said it expected to make a loss of around 20
billion rand ($1.4 billion) in the 2019/20 financial year, a similar loss to
the previous year due to a steep increase in debt-servicing and fuel costs.

Rating agencies Fitch and Moody’s last week both warned about fiscal
pressure on South Africa and highlighted Eskom as a risk, pressuring the
rand.

Equities closed weaker with the Johannesburg Stock Exchange’s all-share
index down 1.37% to 57,242 points, while the Top-40 index fell 1.48% to
51,207 points.

Leading the declines was South African retailer Massmart which fell almost
20% before closing down 15.45% at 49.80 rand per share after it warned
half-year operating profits would hit a 13-year low.

South Africa’s second biggest insurer Old Mutual fell 5.55% to 19.24 rand
after the High Court ruled its dismissal of former CEO Peter Moyo was
unlawful.

On the upside, Africa’s biggest retailer Shoprite closed up 5.75% at 157.22
rand after it forecast performance would improve in the second half.

In fixed income, the yield on the benchmark government bond due in 2026
edged down to 8.31%.

Uganda

Ugandan shilling seen weaker on interbank demand

(Reuters) - The Ugandan shilling        traded unchanged on Tuesday although
an uptick in interbank demand was seen putting the local unit under some
ressure.  

At 0929 GMT, commercial banks quoted the shilling at 3,700/3,710, same level
as Monday's close.

       <mailto:info at bulls.co.zw> 

America

Stocks slip on Trump's warning to China; sterling's slump carries on

(Reuters) - A gauge of global stock markets fell on Tuesday as the latest
round of U.S.-China trade talks began with a threat from President Donald
Trump, while concerns over a no-deal Brexit continued to drag the British
currency lower.

Trump warned China against waiting out his presidency before finalizing a
trade deal, saying if he wins re-election in November 2020, the outcome
could be no agreement or a harsher one.

Traders are also bracing for the Federal Reserve’s policy announcement on
Wednesday, for which markets have already fully priced in a quarter of a
percentage point rate cut. A 50 basis-point cut has a 1-in-5 chance,
according to futures markets.

Major Wall Street stock averages ended slightly lower. The Dow Jones
Industrial Average fell 23.33 points, or 0.09%, to 27,198.02, the S&P 500
lost 7.79 points, or 0.26%, to 3,013.18 and the Nasdaq Composite dropped
19.72 points, or 0.24%, to 8,273.61.

The pan-European STOXX 600 index lost 1.47% and MSCI’s gauge of stocks
across the globe shed 0.39%.

Emerging market stocks lost 0.25 percent. MSCI’s broadest index of
Asia-Pacific shares outside Japan closed 0.09 percent lower, while Nikkei
futures fell 0.7 percent.

In currencies, sterling continued to stumble against the dollar after
suffering its biggest decline in eight months on Monday. Prime Minister
Boris Johnson promised on Tuesday to lead Britain out of the European Union
on Oct. 31 “no matter what.”

Many investors say a no-deal divorce from the EU would tip Britain into a
recession and inject unwanted uncertainty into financial markets.

The pound fell to as much as $1.2121, its lowest since March 2017 and was
last trading at $1.215, down 0.55% on the day.

The dollar index tracking the greenback against six major currencies rose
0.03%, with the euro up 0.09% to $1.1154.

U.S. Treasury yields rose ahead of the Fed announcement after data showed
consumer confidence rebounded in July to its strongest level since November.

Benchmark 10-year Treasury notes last fell 2/32 in price to yield 2.0597%,
from 2.055% late on Monday.

In commodities trading, crude oil prices climbed as the Fed rate cut
anticipation boosted demand expectations, but further price action hinges on
the Fed’s language.

Prices rose further after API data showed a larger-than-expected draw in
U.S. crude stockpiles.

U.S. crude rose 2.57% to $58.33 per barrel and Brent was last at $64.97, up
1.98% on the day.

Spot gold added 0.3 percent to $1,430.39 an ounce. Copper lost 1.33 percent
to $5,938.00 a tonne.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold steadies as investors await cues on future Fed rate cuts

(Reuters) - Gold prices steadied on Tuesday, a day before the conclusion of
the Federal Reserve’s two-day policy meeting, as investors awaited more
information on the outlook for interest rate cuts by the U.S. central bank.

Spot gold was up 0.2% at $1,429.38 per ounce as of 1:45 p.m. EDT (1745 GMT).

U.S. gold futures settled 0.7% up at $1,429.70

Market participants expect the U.S. central bank to cut its benchmark
interest rate for the first time since the financial crisis more than a
decade ago. Federal funds futures implied traders saw an 81% chance of a 25
basis-point rate cut.

The Federal Reserve is scheduled to announce its monetary policy decision at
2 p.m. EDT on Wednesday as well as issue a statement.

Lower interest rates reduce the opportunity cost of holding non-yielding
bullion and weigh on the dollar.

The dollar held close to a two-month peak against key rivals, making
greenback-denominated assets such as gold costlier for investors holding
other currencies.

On the technical front, “Gold is holding a narrow range ahead of the FOMC
meeting results with support standing at just below $1,420 per ounce and
more importantly at $1,410,” INTL FCStone analyst Rhona O’Connell said in a
note.

Meanwhile, investors will also keep a close eye on U.S.-China trade talks in
Shanghai this week.

Officials from both the countries restarted negotiations, after talks
stalled in May, in a bid to end a year-long tit-for-tat tariffs war.
Expectations of a breakthrough are low.

Reflecting investors’ appetite for bullion, holdings in the world’s largest
gold-backed exchange-traded fund, SPDR Gold Trust, rose 0.8% to 824.89
tonnes on Monday.

Holdings have risen for the second straight month, gaining nearly 4% so far
in July.

Among other precious metals, silver rose 0.5% to $16.53 per ounce, while
platinum fell 1.2% to $868.17 per ounce.

Palladium dropped 2.7% to $1,510.98 per ounce. 

Lead prices slip on rising stockpiles and weak factory output

(Reuters) - Lead prices fell on Tuesday after large deliveries of metal into
London Metal Exchange (LME) warehouses eased supply concerns and poor
economic data pointed to weakening demand.

Benchmark lead on the LME closed 2.4% down at $1,998 a tonne.

The metal used in batteries had rallied nearly 20% from early May to a high
of $2,117 last week as smelter outages in Australia and China curtailed
production.

But lacklustre projected demand from China, the biggest consumer of metals,
was undermining prices, said Macquarie analyst Vivienne Lloyd.

Lead is likely to fall to about $1,900 by the end of the year despite a
small deficit in the market, she said, adding that other base metals would
also slip unless China was able to step up stimulus spending.

LEAD STOCKS: Lead inventories in LME-registered warehouses rose by 11,850
tonnes to 67,325 tonnes but remain near their lowest in a decade.
MPBSTX-TOTAL

LEAD SPREAD: In a signal that nearby supply is not too tight, cash lead
moved back to a discount against three-month metal on the LME. CMPB0-3

KOREA: Month-long planned maintenance is being carried out at Korea Zinc’s
500,000 tonne Onsan lead refinery, a source at the company said on Tuesday.

POLL: Analysts polled by Reuters see cash lead averaging $1,947 this year
and $1,925 in 2020. They also marked down this year’s forecasts for copper
and other industrial metals.

FACTORIES: Underlining the weak demand outlook, a Reuters poll showed
factory activity in China is expected to have contracted for the third month
in a row in July.

The data will add to a slew of weak manufacturing readings in Europe, the
United States and Japan, where output tumbled the most in nearly 1-1/2-years
in June, data showed on Tuesday.

GERMANY: Consumer morale worsened in Germany for the third month in a row, a
survey showed.

TRADE WAR: Contributing to the slowdown in economic activity is a U.S.-China
trade war that shows no sign of ending as negotiators shift to Shanghai this
week for their first in-person talks since a G20 truce last month.

FED: Investors were looking to the U.S. Federal Reserve, which is expected
to lower borrowing costs this week for the first time in more than a decade.

Lower interest rates should support commodities prices by encouraging
economic growth and weakening the dollar, which has strengthened sharply in
recent weeks to make metals more expensive for buyers with other currencies.

JAPAN: The Bank of Japan held off from expanding stimulus on Tuesday but
committed to doing so “without hesitation” if a global slowdown jeopardises
the country’s economic recovery.

OTHER METALS: LME copper closed 1.2% down at $5,947.50 a tonne, aluminium
fell 0.4% to $1,803, zinc slipped 0.4% to $2,460, tin lost 0.9% to $17,450
and nickel finished unchanged at $14,360.

.

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

---
This email has been checked for viruses by Avast antivirus software.
https://www.avast.com/antivirus
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190731/fc3927ed/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/20190731/fc3927ed/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/20190731/fc3927ed/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/20190731/fc3927ed/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/20190731/fc3927ed/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/20190731/fc3927ed/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/20190731/fc3927ed/attachment-0011.jpg>