Bulls n Bears Daily Market Commentary : 21 June 2019

Mon Jun 24 04:00:22 CAT 2019

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Bulls n Bears Daily Market Commentary : 21 June 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 29,079,223.84 with foreign buys at RTGS$ 11,003,851.18
and foreign sales were RTGS$ 15,914,732.50 Total trades were 295.

The All Share index gained 1.03 points to close at 222.73 points.OLD MUTUAL
LIMITED traded $0.7115 higher at $17.1475. CBZ HODLINGS LIMITED added
$0.0500 ending at $0.5500 and FBC HOLDINGS LIMITED rose by $0.0275 to close
at $0.6300.  PRETORIA PORTLAND CEMENT LIMITED advanced by  $0.0231 settling
at $2.4305 and SIMBISA BRANDS LIMITED added $0.0225 to $1.3225.

Trading in the negative: FIRST CAPITAL BANK LIMITED lost $0.0160 to end at
$0.0800 and  PADENGA HOLDINGS LIMITED reduced by $0.0074 to end at $2.1511.

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  Global Currencies & Equity Markets

South Africa

S.African rand inches back up in wake of Ramaphosa speech, stocks slide

(Reuters) - South Africa’s rand firmed up slightly on Friday, clawing back
some of its losses following President Cyril Ramaphosa’s state of the nation
address, which some analysts said lacked detail on how he plans to fix the
flagging economy.

At 1600 GMT the rand was 0.07% firmer at 14.3450 per dollar compared to a
session-low of 14.4450.

On Thursday evening, in his first state of the nation address since leading
his party to victory in a May 8 election, Ramaphosa pledged to grow the
economy, create jobs and reaffirmed a commitment to land redistribution.

Ramaphosa also pledged to speed up 230 billion rand ($16 billion) of support
for struggling power utility Eskom.

Bonds weakened, with the yield on the benchmark government bond due in 2026
up 7 basis points to 8.12%.

On the bourse, stocks fell, dragged lower by the Ramaphosa disappointment
and after the U.S military threatened a strike against Iran, chilling
investors already worried by trade tensions between Washington and Beijing.

The Johannesburg Stock Exchange’s benchmark Top-40 Index slipped 0.11% to
52,902.88 while the broader All-Share Index closed 0.05% lower at 58,941.47.

Retailer Shoprite and pharmaceuticals specialist Clicks were the biggest
losers on the blue-chip index, with Shoprite down 6.36% to 164.74 rand while
Clicks fell 2.39% to 214.32 rand.

Embattled telecommunications company Vodacom Group fell 0.71% to 125.37 rand
after announcing that it had entered into agreements to sell some of its
Business Africa operations, which offer business-managed services to
enterprises.

Newly-listed pay-for-TV service Multichoice said on Friday it had notified
workers of plans to lay off 1,790 employees.

The company’s profit margins have nosedived in the face of competition from
digital services like Netflix looking to gain traction in the African
market. ($1 = 14.3332 rand)

Kenya

Kenyan shilling weakens, hurt by energy, manufacturing sector demand

(Reuters) - The Kenyan shilling weakened on Friday due to increased dollar
demand from the energy and manufacturing sectors, traders said.  

At 0858 GMT, commercial banks quoted the shilling at 101.85/102.05 per
dollar, compared with 101.75/95 at Thursday's close. 

       <mailto:info at bulls.co.zw> 

Trade war risks outweigh gains from stimulus for emerging markets: Fitch

(Reuters) - Looser monetary policy from major central banks will help
relieve some of the pressures felt by emerging markets but U.S.-China trade
tensions remain an urgent concern, a senior official at Fitch Ratings said.

Turkey, Russia and South Africa are among those to benefit from a stampede
to high-yielding assets in recent days as investors bet the United States
Federal Reserve will cut interest rates as early as next month and Mario
Draghi hinted of further monetary easing by the European Central Bank (ECB).

Among the big movers, the Russian rouble surged to its highest level since
August 2018 while South Africa’s 2044 dollar bond reached its highest point
since January 2018.

But Fitch managing director Tony Stringer said any positive lift could be
short-lived.

Further policy easing from the Fed was not guaranteed to reignite capital
flows to emerging markets, he added, pointing to the fall in capital flows
to emerging markets in April and May, even after the Fed adopted a more
dovish stance.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold hits 5-year high after Fed signals rate cut

(Reuters) - Gold prices surged to a more than five-year peak on Thursday
after the U.S. central bank signalled it was ready to cut interest rates as
early as next month to boost growth, triggering a sharp fall in the dollar.

Spot gold was 1.7% higher at $1,383.04 per ounce as of 10:46 a.m. EDT (1446
GMT) after touching $1,386.42, its highest since March, 2014.

U.S. gold futures rose nearly 3% to $1,386.90 per ounce.

Lower interest rates decrease the opportunity cost of holding non-yielding
bullion and weigh on the dollar, making gold cheaper for investors holding
other currencies.

The U.S. Federal Reserve on Wednesday signalled interest rate cuts beginning
as early as July, saying it is ready to battle growing global and domestic
economic risks as it took stock of rising trade tensions and growing
concerns about weak inflation.

Top Chinese and U.S. officials will resume trade talks in accordance with
the wishes of their leaders, after negotiations to reach a broad trade deal
broke down last month.

The dollar fell 0.5% against a basket of its rivals to 96.64, putting it on
course for its biggest two-day drop since February 2018.

Gold in Australian dollars was at an all-time high.

Silver was up 1.4% at $15.36 per ounce, its highest in 12 weeks. Platinum
was little changed at $810.51 and palladium dipped 1% to $1,485.66 per
ounce. 

Nickel hits 3-week high on Fed rate cut signal, China growth hopes

(Reuters) - Nickel and other base metals marched higher on Thursday after
the U.S. central bank signalled rate cuts and investors hoped that the
economy of top metals consumer China would recover.

Both nickel and copper touched the highest levels in more than three weeks,
partly fuelled by speculators buying back bearish positions, traders said.

Metals got impetus after the U.S. Federal Reserve on Wednesday said the case
for lower rates was building, pointing to an easing of monetary policy as
early as next month.

Industrial metals were showing signs that they might extend the gains, but
needed more good news, said Gianclaudio Torlizzi, a partner at consultancy
T-Commodity in Milan.

Nickel was the only metal on the London Metal Exchange that had breached
that level, regarded as key by investors who use chart signals to guide
their positions, he said.

Three-month nickel, the top gainer on the LME, climbed 1.7% to $12,300 a
tonne in closing open outcry trading, the highest since May 28.

* NICKEL BALANCE: In the first four months of the year, the global nickel
deficit narrowed to 27,200 tonnes from a deficit of 59,400 tonnes in the
same period of 2018, data showed.

* COPPER STRIKE: LME copper gained 0.9% to end at $5,973 a tonne, having
touched $6,027, the strongest since May 21, after unions at Chile’s
Chuquicamata mine called on members to reject a sweetened contract offer
from Codelco, the world’s largest copper producer.

* ALUMINIUM OUTPUT: Global primary aluminium output rose to 5.438 million
tonnes in May from a revised 5.222 million tonnes in April, data showed.

* DOLLAR: Metals got a boost after the dollar index sank and was on track
for its biggest two-day drop this year following the Fed announcement,
making dollar-denominated metals cheaper for holders of other currencies.

* TIN STOCKS/SPREADS: Tin spreads have eased after a big build-up in LME
inventories MSNSTX-TOTAL, which have soared sevenfold over the past six
weeks.

The premium of cash tin over the three-month contract has slid to $55 a
tonne, the lowest since April and down from a peak of $320 on May 23.

* PRICES: LME aluminium finished down 0.1% at $1,781 a tonne after touching
$1,807.50, the strongest since May 31, zinc shed 0.4% to $2,468, lead added
0.5% to $1,903 and tin, untraded in closing rings, was bid up rose 1.3% to
$19,150.

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

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

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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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