Bulls n Bears Daily Market Commentary : 17 June 2019

Tue Jun 18 00:34:53 CAT 2019

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Bulls n Bears Daily Market Commentary : 17 June 2019

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 8,934,880.37 with foreign buys at RTGS$ 3,311,209.73
and foreign sales were RTGS$ 585,000.00 Total trades were 153.

The All Share index increased by 11.60 points to close at 218.39 points. OLD
MUTUAL LIMITED rose by $1.0727 to settle at $15.4896, INNSCOR AFRICA LIMITED
gained $0.3371 to close at $2.7002 and SEEDCO INTERNATIONAL LIMITED
improved by $0.2000 closing at $1.8500. Other counters to advance were
ECONET WIRELESS ZIMBABWE LIMITED  which added $0.1976 to end at $2.2404 and
DELTA CORPORATION LIMITED   which advanced by  $0.1823 to $3.8373.

FIRST CAPITAL BANK LIMITED   was the only counter trading in the negative as
it lost $0.0119 to close at $0.0801. <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Uganda

Ugandan shilling unchanged as appetite slows

(Reuters) - The Ugandan shilling        was stable on Friday amid low
appetite for dollars from commercial banks.  

At 1205 GMT, commercial banks quoted the shilling at 3,740/3,750 per dollar,
compared with 3,737/3,747 at Thursday's close. 

Kenya

Kenyan shilling weakens on excess money market liquidity

(Reuters) - The Kenyan shilling weakened against the dollar on Monday due to
excess liquidity in the money markets and dollar demand from oil and
merchandise importers, traders said. 

At 0841 GMT, commercial banks quoted the shilling at 101.95/102.15 per
dollar, compared with 101.80/102.00 at Friday's close. 

       <mailto:info at bulls.co.zw> 

America

Stocks, yields dip with Fed meeting on tap

(Reuters) - A gauge of global stock markets dipped slightly on Monday after
a mostly strong month and benchmark U.S. bond yields edged lower as
investors awaited developments this week from central banks in the United
States and elsewhere.

Oil prices slumped as more poor Chinese economic figures fanned fears of
lower worldwide oil demand.

MSCI’s gauge of stocks across the globe shed 0.06%, as modest increases for
Wall Street’s main indexes led by the tech-heavy Nasdaq were countered by
some weakness in Europe.

The U.S. Federal Reserve is set to give its policy statement on Wednesday,
with expectations running high the central bank is poised to cut interest
rates this year.

The European Central Bank is also holding a forum in Portugal this week,
with the Bank of Japan set to hold its policy meeting later in the week.

The Fed is expected to leave borrowing costs unchanged at its meeting but
possibly lay the groundwork for a rate cut later this year, with concerns
about the global economy fueled by a heightening U.S.-China trade war.

The New York Federal Reserve said its gauge of business growth in New York
state posted a record fall this month to its weakest level in more than
2-1/2 years, suggesting an abrupt contraction in regional activity.

“The Empire manufacturing numbers that came out were dreadful,” said Jack
Ablin, Chief Investment Officer at Cresset Wealth Advisors in Chicago.
“We’re back to that the idea that bad news is good news, with the Fed
meeting around the corner, and that the Fed will respond with lower rates.”

On Wall Street, the Dow Jones Industrial Average rose 22.92 points, or
0.09%, to 26,112.53, the S&P 500 gained 2.69 points, or 0.09%, to 2,889.67
and the Nasdaq Composite added 48.37 points, or 0.62%, to 7,845.02.

The pan-European STOXX 600 index lost 0.09%. Shares of Lufthansa plunged 12%
after the German airline lowered its profit outlook for the year, citing
intense competition from low-cost rivals.

U.S. Treasury yields slipped in choppy trading, weighed down by
softer-than-expected U.S. economic data and persistent pressure from the
trade conflict with China.

Benchmark 10-year notes last rose 3/32 in price to yield 2.0855%, from
2.094% late on Friday.

The dollar index fell 0.01%, with the euro up 0.06% to $1.1214.

U.S. crude settled down 1.1% at $51.93 a barrel, while Brent settled at
$60.94, down 1.7%.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold slips as rate cut expectations ease ahead of Fed meet

(Reuters) - Gold prices slipped further on Monday after sliding from a
more-than-14-month high the previous session on upbeat U.S. economic data
that dampened expectations the Federal Reserve could ease interest rates.

Spot gold edged 0.2% lower to $1,338.90 per ounce at 1:34 p.m. EDT (1734
GMT). Prices had surged to $1,358.04 on Friday, the highest since April 11,
2018.

U.S. gold futures settled 0.1% lower at $1,342.90 per ounce.

Above-forecast U.S. industrial output data and upbeat retail sales and
consumer confidence readings on Friday pushed back futures markets
expectations of any quick rate cut by the U.S. Federal Reserve.

Expectations of a rate cut at the Fed’s June 18-19 meeting fell to 21.7%
from 28.3% on Thursday after the retail data, according to CME Group’s
FedWatch tool. But bets for monetary easing at the July meeting remained at
85%.

By Monday, expectations for easing had edged lower.

Investors also look towards a G20 summit later this month where U.S.
President Donald Trump will likely meet Chinese President Xi Jinping amid
their drawn-out trade spat that has ruffled markets since its conception
last year.

Concerns persist that the bitter trade war could drive world economies into
recession.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded
fund, rose 0.6% to 764.10 tonnes on Friday from 759.70 tonnes on Thursday.

Spot gold may retest a support at $1,337 per ounce, a break below which
could cause a loss to $1,324, according to Reuters technical analyst Wang
Tao.

Other precious metals traded lower as well, with spot silver falling 0.3% to
$14.82 per ounce, and palladium declining 0.4% to $1,459.01.

Platinum dipped to its lowest since May 31, down 0.8% at $793.75 per ounce. 

Copper recovers as China output falls, strike hits mine

(Reuters) - Copper prices recovered on Monday, boosted by a mine strike and
weak Chinese output, but other industrial metals were pressured by
nervousness about the damage to growth and demand from the U.S.-China trade
dispute.

Benchmark copper on the London Metal Exchange (LME) gained 0.5% to $5,848 a
tonne in closing open outcry trading after earlier sinking to an intraday
low of $5,776.

Prices of the metal used widely in power and construction hit a five-month
low of $5,740 a tonne earlier in June.

But LME three-month aluminium finished 0.3 percent weaker at $1,758.50 after
touching $1,745, the lowest since January 2017.

CHINA COPPER: Helping to buoy sentiment for copper was a decline in China’s
refined copper output in May by 5.2% year on year and 3.9% month on month to
711,000 tonnes.

CODELCO: A strike at Codelco’s Chuquicamata mine after labour negotiations
failed is also providing support for copper prices. Codelco is the world’s
top producer of the metal.

TIGHT MARKET: Analysts at Morgan Stanley say the copper concentrate market
is already tight but hits to supply are overshadowed by macroeconomic risk
and trade tensions, which are now visible in slowing copper demand.

“Year to date, not including any loss of supply from Chuquicamata, which
Codelco says can continue to operate at 50% capacity during the strike, we
estimate that supply losses are running at close to 3% – well ahead of our
5% annual allowance,” the analysts said.

TRADE: An influential Chinese Communist Party journal on Sunday ran a
commentary piece saying the United States has underestimated China’s will to
fight a trade war and Beijing is prepared for a long economic battle.

DEMAND: Recent data from top consumer China shows cooling industrial
activity, which is highly correlated with the country’s demand for
industrial metals.

China accounts for nearly half of global copper demand estimated at about 24
million tonnes this year.

DOLLAR: The U.S. dollar was modestly lower on Monday on weak economic data,
but remained near a two-week high set earlier in the session.

A weaker U.S. currency makes dollar-denominated metals less expensive for
importers, potentially supporting demand.

PRICES: Zinc closed 0.7% firmer at $2,470 a tonne, lead gained 1.1% to
$1,886, tin lost 1.3% to $18,950 and nickel, untraded in closing rings, was
down 0.8% at $11,775 in electronic trading.

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

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
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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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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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