Bulls n Bears Daily Market Commentary : 04 June 2019

Wed Jun 5 03:46:52 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 : 04 June 2019

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 18,270,040.07 with foreign buys at RTGS$ 8,127,866.71
and foreign sales were RTGS$ 11,618,296.90. Total trades were 273.

The All Share index added 1.00 point to close at 189.76 points. PADENGA
gained $0.2998 to end at $1.9500, POWERSPEED rose by $0.0340 to settle at
$0.2040 and DAIRIBORD  was $0.0315 stronger at $0.1920. TSL also added
$0.0300 to close at $0.6000 and SEEDCO  was $0.0158 firmer at $1.6158.

Gains were partially offset by losses in SEEEDCO INTERNATIONAL LIMITED which
decreased by $0.1400 to end at $1.5100, ZB FINANCIAL HOLDINGS  eased $0.0300
to close at $0.4800 and CBZ was $0.0188 weaker at $0.4111. CASSAVA SMARTECH
was $0.0076 down at $1.7458 and ECONET traded $0.0071 lower at $1.7448.

.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South Africa's rand slumps after GDP shocker, stocks up

(Reuters) - South Africa’s rand slumped on Tuesday after data showed the
worst quarterly economic contraction in a decade at the start of 2019, while
stocks gained.

The rand was also hammered by news that South Africa’s governing party has
agreed to expand the central bank’s mandate to include employment and growth
as well as inflation.

Investors are nervous about any changes that could curb the independence of
the South African Reserve Bank (SARB).

At 1530 GMT, the rand was 1.8% weaker at 14.7000 per dollar.

The statistics office said gross domestic product contracted a quarterly
3.2% in the first three months of 2019, lagging the 1.7% decline economists
had expected and showing President Cyril Ramaphosa’s growth drive is
struggling to gain traction.

Bonds also weakened, with the yield on the benchmark 10-year issue up 3
basis points to 8.45%.

In equities, stocks strengthened as the rand weakened on the poor GDP
numbers.

The broader All-Share index closed stronger 0.38% to 56,500 points, while
the blue-chip Top-40 index increased 0.48% to 50,452 points.

Leading the blue chips was luxury brand Richemont, which gained 5.57% to
112.74 rand, while mining company Gold Fields climbed 5.010% to 71.46 rand
on the back of a near three-month gold price peak. On the downside, banking
stocks took a hit slipping 3.83% to 94.45 rand. Standard Bank shed 4.21% to
193.97 rand, while Absa fell 4.210% to 165.99 rand.

The weak GDP numbers weighed quite heavily on the banks, although the
heavyweights were up, said Michele Sanpangelo, a portfolio manager at
Independent Securities.

Kenya

Kenyan shilling steady against the dollar

(Reuters) - The Kenyan shilling held steady against the dollar on Monday
with inflows from non governmental organisations and diaspora remittances
matching dollar demand from merchandise importers, traders said. 

At 0750 GMT, commercial banks quoted the shilling at 101.20/40 per dollar,
the same as Friday's close. 

       <mailto:info at bulls.co.zw> 

Asia

Asian shares catch Wall Street's Fed cheer; dollar remains weak

(Reuters) - Asian shares tracked the Wall Street rally on Wednesday after
U.S. central bank comments pointed to the increasing prospects of an
interest rate cut, boosting investor sentiment and pushing the dollar lower.

The rebound in stock prices also prompted U.S. bond yields to step up from
their recent lows, with the 10-year yield off its 21-month low hit earlier
in the week.

MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.4%,
while Japan’s Nikkei average climbed 1.9%.

Supporting the market cheer, Federal Reserve Chairman Powell on Tuesday
dropped his standard reference to the central bank being “patient” in its
approach to any rate decision, instead saying the Fed would respond “as
appropriate” to the risks posed by a global trade war and other recent
developments.

The comments were interpreted by investors as a clear nod to a policy
easing.

On Wall Street, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq
Composite clocked their biggest one-day gains in five months.

Uncertainties over how, or if, the United States will settle its trade
conflict with its key trade partners, notably China, has kept many investors
on edge.

U.S. Treasury Secretary Steven Mnuchin meets with People’s Bank of China
Governor Yi Gang at the G20 finance leaders meeting this weekend in Japan, a
Treasury spokesman said on Tuesday.

Chinese President Xi Jinping said the country’s economy is stable, healthy
and well placed to meet all risks and challenges, according to a transcript
published by the Xinhua news agency.

In the foreign exchange market, major currencies were on the sidelines for
now.

The greenback hit a seven week-low of 96.995 against a basket of six major
currencies overnight. The index was last quoted at 97.096, little changed on
the day. The euro fetched $1.1258, almost steady on the day.

The pound recovered on Tuesday, after suffering its 4th consecutive week of
losses against the euro, but concerns about a disorderly departure from the
European Union meant gains were minimal, amid promises from U.S. President
Donald Trump of a “phenomenal” post-Brexit trade deal. Sterling was last
quoted at $1.2701.

Other major currencies were relatively calm, with the safe-haven yen still
supported but not aggressively so. The dollar was holding at 108.13 yen,
flat on the day.

In commodity markets, oil prices ended as much as 1% higher on Tuesday after
a global stock market rally pulled Brent crude from a four-month low touched
earlier in the session.

In early Asian trade, U.S. crude retreated 0.3% to $53.33 a barrel and Brent
crude futures stood almost flat at $61.95 per barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold steadies after hitting near 3-month peak on rate cut hopes

(Reuters) - Gold steadied below a three-month peak on Tuesday on news China
was open to negotiating its trade dispute with the United States, while
rising expectations the U.S. Federal Reserve will cut interest rates
provided underlying support.

China’s commerce ministry on Tuesday urged dialogue and negotiation to
resolve the trade differences, which have roiled financial markets.

Spot gold eased 0.1% to $1,324.01 per ounce as of 1:43 p.m. EDT (1743 GMT),
after touching its highest since Feb. 27 at $1,328.98 earlier in the
session. U.S. gold futures settled up 0.1% at $1,328.70 per ounce.

Gold prices were also pressured by a rally in equities after Fed Chair
Jerome Powell said the central bank would act “as appropriate” in the face
of trade war risks, leaving the door open for a possible rate cut.

Wall Street’s main indexes have shed more than 6% in May on fears of a
recession as U.S.-China trade tensions showed little signs of easing.

Meanwhile, gold has climbed over 4% since hitting a one-week low of
$1,274.44 an ounce last week, mainly on the back of escalating trade
tensions and expectations the Fed would cut rates to offset the impact of
the U.S.-China trade war.

Lower interest rates cut the opportunity cost of holding non-yielding
commodities, while gold also tends to benefit from growth concerns as an
alternative to cyclical assets like stocks.

Reflecting increased investor interest in bullion, holdings of SPDR Gold
Trust, the world’s largest gold-backed exchange-traded fund, rose 2.2% on
Monday, its biggest one-day percentage gain since July 2016.

Elsewhere, silver rose 0.1% to $14.79 per ounce, after touching a three-week
high of $14.84 in the session.

Platinum fell 0.2% to $818.75 per ounce after hitting a more than two-week
high of $825.78. The metal had marked its biggest intraday percentage gain
in 2-1/2 years on Monday.

Palladium jumped 1.6% to $1,344.15 per ounce. 

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

Dairibord

AGM

Steward Room, Meikles

31 May 2019, 12pm

Lafarge

AGM

Manresa Club, Arcturus

05 June 2019 , 12pm

CBZ

AGM

Stewart Room, Meikles

05 June 2019 , 3pm

 <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/20190605/4aab9580/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/20190605/4aab9580/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/20190605/4aab9580/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29447 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20190605/4aab9580/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/20190605/4aab9580/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/20190605/4aab9580/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/20190605/4aab9580/attachment-0011.jpg>