Bulls n Bears Daily Market Commentary : 12 June 2019

Thu Jun 13 03:23:58 CAT 2019

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Bulls n Bears Daily Market Commentary : 12 June 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 6,501,838.58 with foreign buys at RTGS$ 281,430.50 and
foreign sales were RTGS$ 2,445,336.91 Total trades were 152.

The All Share index gained 2.16 points and closed at 193.81 points. SIMBISA
BRANDS LIMITED gained $0.1197 to close at $1.22, PADENGA HOLDINGS LIMITED
added $0.0647 to close at $1.9600 and SEEDCO LIMITED  increased by $0.0400
closing at $1.75. Other counters to rise were CASSAVA SMARTECH ZIMBABWE
LIMITED which increased by $0.0373 to end at $1.7400 and ECONET WIRELESS
ZIMBABWE LIMITED which advanced by  $0.032 to $1.7448.

DELTA CORPORATION LIMITED was the only lame duck as it lost $0.0075 to end
at $3.6191.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Uganda

Ugandan shilling strengthens on mid-month tax payments

(Reuters) - The Ugandan shilling strengthened on Wednesday as some corporate
buyers stayed on the sidelines, reserving their local currency holdings for
mid-month taxes, traders said.

At 0957 GMT commercial banks quoted the shilling at 3,740/3,750, compared to
Tuesday’s close of 3,750/3,760.

South Africa

South Africa's rand edges weaker in subdued start to trade

(Reuters) - South Africa’s rand edged weaker on Wednesday in a slow start
that saw subdued flows as market makers looked for clear breaches either
side of key technical levels.

At 0650 GMT, the rand was 0.14% weaker at 14.6950 per dollar compared to a
close of 14.6750 overnight in New York.

In the previous session the rand rallied as much as one percent through the
14.80 technical support level, spurred by improving demand for emerging
currencies and a better-than-anticipated manufacturing production print.

But it flagged in the latter stages of offshore trade with investors eyeing
the commercial spat between Washington and Beijing and seeking clear
direction for the rand as political risk fears from the previous week
continued to dissipate.

Manufacturing output in April grew by a consensus-beating 4.6% year-on-year,
according to Statistics South Africa, as industries blighted by the
nationwide power outages of the first quarter bounced back sharply.

The statistics agency publishes April retail sales at 1100 GMT in the only
scheduled local data release for the session, while inflation numbers from
the United States will also be on investors’ radar.

Bonds opened firmer, with the yield on the benchmark paper due in 2026 down
2 basis points to 8.31%. 

       <mailto:info at bulls.co.zw> 

Asia

Asian stocks subdued, oil near 5-month low on U.S. inventory build

(Reuters) - Asian stocks stuttered on Thursday, dogged by the uncertainty
over an intractable U.S.-China trade dispute, while oil prices flirted with
five-month lows thanks to higher U.S. crude inventories and a bleaker demand
outlook.

MSCI’s broadest index of Asia-Pacific shares outside Japan ticked down 0.1%,
slipping from a one-month high touched earlier this week, while Japan’s
Nikkei lost 0.3%.

On Wall Street, the S&P 500 lost 0.20% on Wednesday.

A bigger mover overnight was oil, which tumbled 4% to their lowest
settlements in nearly five months, pressured by another unexpected rise in
U.S. crude stockpiles and by a dimming outlook for global oil demand.

Brent crude futures barely moved at $60.01 in early trade after a 3.7% slide
on Wednesday to $59.97 a barrel, the international benchmark’s lowest close
since Jan. 28.

U.S. West Texas Intermediate crude futures firmed slightly to $51.29 per
barrel, compared to the previous day’s close of 50.72 a barrel, its weakest
settlement since Jan. 14.

Government data showed on Wednesday U.S. consumer prices barely rose in May,
with the core annual inflation slowing to 2.0%, compared to a peak of 2.4%
last July, adding to the growing expectations of a Federal Reserve rate cut
in coming months.

Investors will be looking to what Fed policymakers will say after its next
policy meeting on June 18-19, with Fed Funds rate futures pricing in a
25-basis-point rate cut for the subsequent policy review on July 30-31.

The 10-year U.S. Treasuries yield dipped to 2.122 percent , a tad above
Friday’s 2.053 percent, its lowest level since September 2017 while the
two-year yield fell to 1.887 percent.

Bond yields have plunged worldwide in the past several weeks as investors
bet the Fed, and possibly other major central banks, will cut rates to
cushion the potential economic damage from the U.S.-China trade standoff.

Hopes that the leaders of the two countries will clinch a deal on the
sideline of Group of 20 summit meeting in Osaka on June 28-29 have been
fading as neither side has shown a willingness to compromise.

Major currencies saw limited moves, and trader say few were placing big bets
ahead of key events later this month including the Fed’s policy review and
the G20 meeting.

The euro slipped to $1.1293, stepping back from 2-1/2-month highs of $1.1348
touched on Friday. The dollar was little changed 108.47 yen.

The British pound is on the back foot after British lawmakers defeated an
attempt led by the opposition Labour Party to try to block a no-deal Brexit
by seizing control of the parliamentary agenda from the government.

Sterling fetched $1.2693, not far from this week’s low of $1.2653. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Oil tumbles on demand worries; stocks hit by trade, economic fears

(Reuters) - Oil prices slid 4% on Wednesday on higher U.S. crude inventories
and a bleaker demand outlook, while uncertainty over the U.S.-China trade
war and U.S. economic data weighed on stocks.

The dollar index rose as trade tensions and U.S. interest rate policy
remained in focus after President Donald Trump expressed optimism about the
prospects for a trade deal with China but continued to threaten tariff
increases in the absence of a deal.

Earlier in the day, May data showed moderate inflation as U.S. consumer
prices barely rose. That, with a slowing economy, could build a case for the
U.S. Federal Reserve to cut interest rates.

Weak economic data such as Wednesday’s has investors hoping the Fed would
give hints about a rate cut after its June 18-19 meeting.

Hopes for a rate cut were not enough to outweigh worries about the economic
impact of escalating trade tensions.

With under three weeks to go before proposed talks between Trump and Chinese
President Xi Jinping at the June 28-29 G20 summit in Osaka, Trump said on
Wednesday he had a “feeling” a U.S.-China trade deal could be reached. But
he again threatened to increase tariffs on Chinese goods if there is no
agreement.

The Dow Jones Industrial Average fell 43.68 points, or 0.17%, to 26,004.83,
the S&P 500 lost 5.88 points, or 0.20%, to 2,879.84 and the Nasdaq Composite
dropped 29.85 points, or 0.38%, to 7,792.72.

The pan-European STOXX 600 index lost 0.30% and MSCI’s gauge of stocks
across the globe shed 0.28%.

OIL FALLS, TREASURY YIELD CURVE STEEPENS The U.S. Treasury yield curve was
steeper after soft inflation data pulled short-dated yields lower.

Looking ahead, “focus will continue to turn to headlines surrounding trade.
Also in focus the remainder of the week will be the $16 billion 30-year
auction tomorrow (Thursday) and retail sales on Friday,” wrote Justin
Lederer, Treasury analyst and trader at Cantor Fitzgerald.

Benchmark 10-year notes last rose 6/32 in price to yield 2.1205%, from 2.14%
late on Tuesday.

In currency markets, the dollar index, tracking the currency against six
major peers, rose 0.33%, with the euro down 0.35% to $1.1289.

The euro dropped as Trump said he was considering sanctions over Russia’s
Nord Stream 2 natural gas pipeline project and warned Germany against being
dependent on Russia for energy.

Oil futures extended their losses as the day wore on and ended the session
with their lowest settlements in nearly five months, weakened by an
unexpected rise in U.S. crude inventories and a dimming outlook for global
oil demand.

U.S. crude settled down 4% or $2.13 to $51.14 per barrel while Brent crude
futures settled down 3.7% or $2.32 at $59.97.

Gold climbs on Fed rate cut speculation, growth concerns

(Reuters) - Gold prices gained momentum on Wednesday as the dollar dipped on
speculation about the U.S. central bank cutting interest rates this year
amid global economic growth concerns.

Spot gold was trading 0.5% higher at $1,332.77 per ounce as of 1:32 p.m. EDT
(1732 GMT), a rebound from the previous session when it fell to a 10-day low
of $1,319.35.

U.S. gold futures settled 0.4% higher at $1,336.80 per ounce.

Global equities snapped a seven-day winning streak after U.S. President
Donald Trump said he had no interest in moving ahead with a trade deal with
China unless Beijing agreed to four or five “major points.”

Adding to concerns, U.S. consumer prices barely rose in May, likely
increasing pressure on the Fed to cut interest rates this year.

Fed policymakers will meet on June 18-19. Markets have priced in at least
two U.S. rate cuts by the end of 2019. Futures imply around an 80% chance of
a rate cut as early as July.

Lower interest rates make safe-haven assets such as gold, which does not
yield interest, more attractive while weighing on the dollar. The U.S.
currency was trading largely unchanged against a basket of currencies on
Wednesday.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded
fund, fell marginally to 756.18 tonnes on Tuesday from 756.42 tonnes on
Monday.

The gold bulls have the overall near-term technical advantage and regained
momentum today,” Jim Wyckoff, senior analyst at Kitco, said in a note. He
added that the next upside price target would be a close in August futures
above June’s high of $1,352.70.

Among other metals, silver was up 0.6% to $14.78 per ounce, while platinum
dipped half a percent to $808.75 an ounce.

Palladium was trading more than 1% higher at $1,408.51, having hit a
six-week high of $1,414.40 earlier in the session. The autocatalyst metal
was trading higher for a fifth consecutive session. 

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

Zimplow

AGM

Head Office, 36 Birmingham Road, Southerton

13 June 2019, 10am

TSL

AGM

28 Simon Mazorodze Road, Southerton

19 June 2019, 12pm

Zimpapers

AGM

Boardroom, 6th Floor, Herald House

20 June 2019, 12pm

Masimba Holdings

AGM

Head Office, 44 Tilbury Road, Willowvale

21 June 2019, 12:30pm

RioZim

AGM

1 Kenilworth Road, Highlands

24 June 2019, 10:30am

Proplastics

AGM

Palm Court, Meikles

25 June  2019, 10am

Fidelity Life

AGM

Great Indaba Room, Crowne Plaza Monomotapa

26 June 2019, 10am

GB Holdings

AGM

Cernol Chemicals Boardroom,  111 Dagenham Road, Willowvale

26 June 2019, 11:30am

Dawn Properties

AGM

Ophir Room, Monomotapa Hotel

27 June 2019, 10am

Unifreight

AGM

Royal Harare Golf Club

27 June 2019, 10am

African Sun

AGM

Ophir Room, Monomotapa Hotel

27 June 2019, 12pm

FMP

AGM

Palm Court, Meikles

27 June 2019, 12pm

MedTech

AGM

Boardroom, Stand 619, corner Shumba/Hacha Roads, Ruwa

27 June 2019, 2pm

FML

AGM

Palm Court, Meikles)

27 June 2019, 2:30pm

FBC

AGM

Royal Harare Golf Club

27 June 2019, 3pm

ZHL

AGM

Aquarium Room, Crowne Plaza Monomotapa Hotel

30 June 2019, 10am

 <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
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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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