Bulls n Bears Daily Market Commentary : 28 May 2019

Wed May 29 01:01:27 CAT 2019

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Bulls n Bears Daily Market Commentary : 28 May 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 10,967,090.96 with foreign buys at RTGS$ 5,453,800.04
and foreign sales were RTGS$ 7,796,022.10. Total trades were 158.

The All Share index gained a massive 11.45 points  to close at 176.81 points
in a session dominated by gains in heavyweight counters. BRITISH AMERICAN
TOBACCO  added $1.8000 to $32.1000, DELTA   rose by $0.2878 to $3.4771 and
ECONET  was $0.2103 higher at $1.6212. HIPPO VALLEY ESTATES also increased
by $0.1928 to close at $2.0428 and CASSAVA SMARTECH   was $0.1911 lower at
$1.7049.

Trading in the negative; PADENGA  lost $0.0173 to $1.4249, NMB   eased
$0.0148 to end at $0.2752 whilst ZIMPAPERS  was $0.0102 lower at $0.0800.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

S.Africa's rand slumps to two-month low as Mabuza sworn in to parliament

(Reuters) - South Africa’s rand tumbled to its weakest in three weeks on
Tuesday as deputy president David Mabuza was sworn in as a lawmaker after
being cleared by the ruling African National Congress of bringing the party
into disrepute.

At 1700 GMT the rand was 2.15% weaker at 14.7350 per dollar, its weakest
level since March 28, after opening at 14.4225, with news of Mabuza’s
swearing in adding to a risk-off tone globally after trade tensions
resurfaced.

The move clears the way for 58-year-old Mabuza, an important ally of
President Cyril Ramaphosa, to remain his deputy, but again throws a
spotlight on corruption allegations that have hit the party’s popularity.
Investors are keen to see proof of Ramaphosa’s clean governance pledge.

Mabuza denies any wrongdoing, and has said he wants all the allegations
levelled against him to be tested in a court of law.

The ANC easily won this month’s general election, but its vote dropped
sharply due to anger over corruption scandals.

Bonds also took a hit, with the yield on benchmark debt due in 2026 8.5
basis points to 8.445 percent.

On the bourse, stocks traded weaker with the broader All-Share index
shedding 0.1% to 54,432 points, while the Top-40 index declined 0.07% to
48,464 points.

Banking stocks fell 2.49% to 90.70 rand. Leading the downside, Old Mutual
continued to slip after parting ways with its CEO Peter Moyo on Friday. The
insurer declined 4.51% to 20.34 rand, while financial firm FirstRand fell
3.9% to 61.79 rand.

On the upside, Sibanye-Stillwater’s rose 10.29% to 12.43 rand and South
African-listed shares in Lonmin lifted 11.86% to 12.07 rand after
shareholders from both firms approved a takeover deal that would create deal
the world’s second-largest platinum producer. “It’s quite a big one, and it
was well received,” said Nick Kunze, a portfolio manager at Sanlam Private
Wealth. 

Kenya

Kenyan shilling forecast to weaken due to oil importer dollar demand

(Reuters) - The Kenyan shilling was forecast to weaken on Tuesday due to
increased  dollar demand from oil companies, traders said.  

At 0844 GMT, commercial banks quoted the shilling at 101.25/45 per dollar,
compared with 101.20/40 at Monday's close.

       <mailto:info at bulls.co.zw> 

Emerging stocks, FX dip on trade worries; rand at 2-mth low

(Reuters) - Emerging market currencies weakened on Tuesday against a
stronger dollar, and an index of developing market stocks also fell amid
signs that a U.S.-China trade deal may not be struck as soon as hoped.

U.S. President Donald Trump said on Monday that Washington was not ready to
make a deal with Beijing, signalling the long-drawn out trade dispute
between the world’s two largest economies may not get resolved soon.

MSCI’s index of emerging market currencies was down 0.3%, while its shares
index slipped 0.16% as gains in China and parts of emerging Europe were
outweighed by losses elsewhere.

Trump, however, said he expected a deal with China in the future. Trade
tensions between the two countries have pressured market for almost a year,
resulting in the indexes posting declines last year.

Further developments on the trade front will determine if they can sustain
the attempt at a rebound in 2019.

Currencies fell across the board as the dollar index measuring the greenback
against a basket of six peers rose 0.13%.

The South African rand slumped 1% to hit a two-month low.

South Africa’s deputy president, David Mabuza, is set to be sworn in as a
lawmaker on Tuesday, a week after he requested a postponement to address
accusations he had brought the ruling African National Congress (ANC) into
disrepute.

Turkey’s lira eked out gains and looked set to extend a rise after the
central bank raised the reserve requirement rates for foreign exchange
deposits at commercial banks on Monday.

Turkey’s struggling debts markets also had reason to cheer after the
country’s new retirement-fund guidelines could direct some 2.5 billion lira
($413 million) towards buying domestic government bonds.

LOWEST LEVEL

But data showing Turkey’s economic confidence index tumbled to its lowest
level since October capped gains as it shed light on the economy’s
deteriorating condition.

Elsewhere, Hungary’s forint slipped slightly against the euro ahead of a
central bank interest rate meeting later in the day when it is expected to
keep its rate on hold for the rest of 2019, preferring to tackle rising
inflation by letting interbank rates rise, a Reuters poll showed.

Among emerging stocks, a rise in mainland China, Hong Kong and Korean shares
did little to buoy the broader index as losses elsewhere in Asia as well as
in South Africa weighed, with U.S. stock futures pointing to a lower open.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices off one-week high as U.S.-China trade tensions lift dollar

(Reuters) - Gold on Tuesday slipped from the previous session’s one-week
peak, pulled down by a firm dollar as the currency was the preferred
safe-haven amid uncertainty over U.S.-China trade tensions.

Spot gold fell 0.5% to $1,278.12 per ounce by 2 p.m. ET (1800 GMT), having
touched its highest since May 17 at $1,287.32 in the previous session.

U.S. gold futures settled down 0.5% at 1,277.10 per ounce.

The dollar rose 0.3% against a basket of other leading currencies, supported
by trade and political worries and a strong rise in U.S. consumer
confidence.

U.S. President Donald Trump said on Monday at a news conference with
Japanese Prime Minister Shinzo Abe that he was “not ready to make a deal
with China,” denting hopes of a trade agreement between the world’s biggest
economies.

Further weighing on the bullion prices was a firm U.S. equities market
propped up by the technology sector.

Signals are mixed for spot gold as it failed twice to break resistance at
$1,286 per ounce, according to Reuters technical analyst Wang Tao.

Meanwhile, COMEX gold speculators cut net long position by 41,545 contracts
to 24,378 in week to May 21, the U.S. Commodity Futures Trading Commission
said on Friday.

The longs that were bought during the past couple of days are now being sold
back following the break below $1,292.6 and $1,286, said Saxo Bank commodity
strategist Ole Hansen.

Elsewhere, silver was down 2% at $14.30 per ounce, having hit a low since
Dec. 3 at $14.25 earlier in the session.

The gold-silver ratio, which measures the number of silver ounces needed to
buy an ounce of gold, climbed to its highest level since 1993 at around 89.

Speculators boosted their net short position in silver in week to May 21,
the CFTC data showed.

Palladium climbed 0.6% to $1,344.14 per ounce, after hitting its highest
since May 15 at $1,349. Platinum fell 1.2% to $796.03.

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

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opinions expressed and recommendations made are subject to change without
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for guideline purposes only and sourced from third parties.

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