Bulls n Bears Daily Market Commentary : 24 June 2019

Tue Jun 25 03:34:43 CAT 2019

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Bulls n Bears Daily Market Commentary : 24 June 2019

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 35,279,860.37 with foreign buys at RTGS$ 2,546,289.40
and foreign sales were RTGS$ 3,088,162.00 Total trades were 249.

The All Share index gained 9.01 points to close at 231.74 points.BRITISH
AMERICAN TOBACCO ZIMBABWE LIMITED  gained $0.5000 to close at $36.0000.
ECONET WIRELESS ZIMBABWE LIMITED traded $0.2480 higher at $2.4484 and
LAFARGE CEMENT ZIMBABWE LIMITED added $0.2075 to settle at $1.3800.
NATIONAL FOODS HOLDINGS LIMITED gained  $0.1800 closing at $7.2300 and
CASSAVA SMARTECH ZIMBABWE LIMITED  advanced by  $0.1615 to $2.3450.

Trading in the negative was OLD MUTUAL LIMITED which lost $0.0424 to end at
$17.1051.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South African rand slips after strong gains last week

(Reuters) - South Africa’s rand slipped slightly on Monday after strong
gains last week, as investors waited for direction from this week’s Group of
20 summit.

Local stocks and government bonds also weakened.

At 1820 GMT the rand was around 0.4% weaker than its previous close at
14.3725 per U.S. dollar after gaining more than 3% last week.

U.S.-China trade tensions have market participants eyeing the leaders of the
world’s two largest economies and their expected meeting at the upcoming G20
summit in Japan on Friday.

In the absence of market-moving data releases, the rand tends to take its
cue from global market developments.

China is South Africa’s largest trading partner, so any impact on its
economy from the trade tensions affects sentiment towards local assets.

The Johannesburg Stock Exchange’s benchmark Top-40 Index dipped 0.27% to
52,761 points, while the broader All-Share Index closed 0.31% lower at
58,756 points.

Among the biggest fallers on the blue-chip index, Sappi fell 4.55% to 55.56
rand and Aspen Pharmacare fell 3.32% to 101.00 rand.

Curbing further losses were bullion stocks, which gained on the back of a
higher spot gold price, with AngloGold Ashanti up 3.54% to 250.55 rand and
Gold Fields 2.30% higher at 78.86 rand.

The yield on the benchmark government bond due in 2026 rose 5 basis points
to 8.17%, reflecting weaker prices.

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> 

America

Dollar falls with yields as more Fed talk awaited

(Reuters) - Asian stocks were left adrift on Tuesday as expectations of more
dovish talk from the Federal Reserve pushed down Treasury yields and the
dollar, while lifting gold to six-year peaks.

Equity investors are waiting to see if anything will come of Sino-U.S. trade
talks later this week.

U.S. President Donald Trump is slated to meet one-on-one with at least eight
world leaders at the G20 summit in Osaka, including China’s President Xi
Jinping and Russian President Vladimir Putin.

Early trade was very light with MSCI’s broadest index of Asia-Pacific shares
outside Japan up a minor 0.09%. Japan’s Nikkei was all but flat, as was the
South Korean market

E-Mini futures for the S&P 500 edged up 0.08% after a lacklustre session on
Wall Street. The Dow ended Monday up 0.03%, while the S&P 500 lost 0.17% and
the Nasdaq 0.32%.

There are no less than five Fed policy makers speaking on Tuesday, including
Chair Jerome Powell, and markets assume they will stick with the recent
dovish message.

Markets are running well ahead of that. Futures are fully priced for a
quarter-point easing and imply a real chance of a half-point move.

A total 100 basis points of cuts are implied by mid-2020, a major reason
two-year yields are well under cash at 1.745%.

GOLD SOARS

Yields on 10-year Treasuries have dived 120 basis points since November and,
at 2.01%, are almost back to where they were before Trump was elected in
late 2016.

The speed and scale of the latest decline has seen the dollar fall for four
sessions on a row against a basket of other currencies to stand at a
three-month low of 95.980.

The euro has climbed to its highest in three months and was last holding
firm at $1.1403, within striking distance of the March top of $1.1448.

Against the safe-haven yen, the dollar has hit its lowest since the January
flash crash and was last at 107.33 yen.

The pullback in the dollar combined with lower yields globally has put a
fire under gold, which touched a six-year top overnight. The metal is up 12%
since early May at $1,1426.39 an ounce, with the next target the 2013 top of
$1,433.

Oil prices consolidated after rising sharply last week in reaction to
tensions between the United States and Iran.

Brent crude futures firmed 8 cents to $64.94, while U.S. crude was unchanged
at $57.90 a barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

U.S. waives tariffs on Japanese aluminum for Tesla battery cells

(Reuters) - The U.S. Commerce Department has agreed to Tesla Inc’s request
to waive 10 percent tariffs on imported aluminum from Japan used in the
manufacture of battery cells at Tesla’s Nevada Gigafactory, government
documents show.

The Palo Alto, California-based company made the request in April and said
the aluminum is produced by Nippon Light Metal Co Ltd and was seeking a
tariff exclusion for 10 million kilograms annually.

The Commerce Department said in a document dated June 5 and posted in recent
days that the aluminum “is not produced in the United States in a sufficient
and reasonably available amount or of a satisfactory quality.” The waiver is
good for one year. Tesla did not immediately comment. 

Gold climbs towards 6-yr peak on dovish central banks, Iran tensions

June 24 (Reuters) - Gold climbed on Monday towards the near six-year high
reached in the previous session, driven by dovish signals from global
central banks and increased tensions between the United States and Iran.

Spot gold was up 0.5% at $1,405 an ounce by 1240 GMT, heading for a fifth
straight session of gains. Gold prices hit $1,410.78 on Friday, their
highest since Sept. 4, 2013.

U.S. gold futures rose 0.7% to $1,410 an ounce.

Tensions between the United States and Iran also supported gold, he added.

Holdings of the world’s largest gold-backed ETF, SPDR Gold Trust, rose 4.6%
on Friday from a day earlier, its biggest one-day percentage gain since
September 2008.

The U.S. Federal Reserve and the European Central Bank last week hinted that
they were open to easing policy to counter a global economic slowdown,
exacerbated by global trade tensions.

Helping gold’s appeal, the dollar fell to a three-month low against a basket
of currencies on bets the U.S. central bank would start lowering interest
rates as early as next month.

Meanwhile, U.S. President Donald Trump said on Sunday he was not seeking war
with Tehran, but tensions remain high between the longtime foes, with
Washington due to announce “significant” sanctions on Iran on Monday.

Gold prices have risen nearly 8% so far this month, and more than $70 just
over the past week.

Hedge funds and money managers boosted their bullish stance in COMEX gold in
the week to June 18 and speculators switched to a net long in silver futures
and options, the U.S. Commodity Futures Trading Commission said on Friday.

Gold holding above the psychologically important $1,400 level is a positive
signal for consolidation after last week’s rally, said Carlo Alberto De
Casa, chief analyst at ActivTrades.

Silver edged 0.3% lower to $15.31 per ounce and platinum was up 0.5% at
$813.68.

Palladium rose 1.2% to $1,517.23 an ounce.

The market’s focus now shifts to whether Washington and Beijing can resolve
their trade dispute at a summit in Japan this week of leaders from the Group
of 20 leading world economies. 

INVESTORS DIARY 2019

Company

Event

Venue

Date & Time

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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opinions expressed and recommendations made are subject to change without
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companies typically involve a higher degree of risk and more volatility than
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for guideline purposes only and sourced from third parties.

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