Bulls n Bears Daily Market Commentary : 31 May 2019

Fri May 31 19:05:59 CAT 2019

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Bulls n Bears Daily Market Commentary : 31 May 2019

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Zimbabwe Stock Exchange Update

Market Turnover RTGS$ 6,328,163.95 with foreign buys at RTGS$ RTGS$
3,796,112.90 and foreign sales were RTGS$ 1,121,549.45. Total trades were
148.

The All Share index closed the week on a lower note shedding 3.05 points  to
settle at 188.06 points. Beverage giant DELTA lost $0.1507 to close at
$3.6107, PPC  eased $0.1012 to $1.8988 and CASSAVA SMARTECH closed at
$1.7547 following a loss of $0.0889. Other losses were seen in ECONET which
dropped by $0.0851 to end at $1.7519 whilst FIRST MUTUAL HOLDINGS eased
$0.0100 to trade at $0.1600.

Notable gains were seen in various counters including OLD MUTUAL LIMITED
which jumped up $0.9837 to close at $13.9926, FBC added $0.0505 to $0.5010
while MEIKLES  was $0.0427 stronger at $0.8427. INNSCOR came off $0.0418 to
trade at $2.1118 whereas AFDIS improved by $0.0400 to settle at $1.7600.

.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

Uganda

Uganda shilling steady, expected to weaken due to importer demand

(Reuters) - The Ugandan shilling        was little changed on Friday and was
expected to weaken on the back of a pick up in demand for dollars from
importers of fuel and other goods. 

At 1148 GMT commercial banks quoted the shilling at 3,760/3,770, compared to
Thursday's close of 3,755/3,765.

South Africa

South Africa's rand heads for monthly loss, stocks flat

(Reuters) - South Africa’s rand was set to end the month on a weaker footing
after domestic political concerns and the global trade conflict hurt
sentiment, while stocks traded flat.

At 1616 GMT the rand was 0.95% firmer at 14.6000 per dollar, thanks to a
weaker greenback on the day, but the currency was heading for a more than 2%
monthly loss.

The rand hit a 5-month low earlier this week as markets anxiously waited for
President Cyril Ramaphosa to select a new cabinet.

Ramaphosa announced his smaller cabinet late on Wednesday, which was well
received by markets, following on from a pre-election pledge to reform and
revive an ailing economy and attract foreign investors.

Investors are now looking ahead to first-quarter economic growth figures due
on Tuesday, with increasing chance growth contracted after slumps in mining
and manufacturing.

The central bank last week cut its 2019 economic growth forecast to 1.0%
from the 1.3%, and said a first quarter GDP contraction was likely.

In fixed income, the yield on the benchmark 10-year government bond traded
flat at 8.485%.

On the bourse, stocks closed weaker as geopolitics got in the way of local
markets, with the broader All-Share index down 0.09% to 55,650 points, while
the Top-40 index weakened 0.16% to 49,587 points.

The second-biggest decliner on the bourse was sugar producer Tongaat Hulett,
which fell 7.73% to 16.70 rand after the firm said its 2018 results could
face a hit of up to 4.5 billion rand ($308 million).

Also on the downside was petrochemicals company Sasol , which fell 3.02% to
366.59 rand after ratings agency Moody’s changed its outlook from stable to
negative.

Leading the Top-40 index was budget retailer Mr. Price , up 11% to 197.15
rand, after full-year earnings showed a 6.2% increase. ($1 = 14.6028 rand)

       <mailto:info at bulls.co.zw> 

Europe

Pound heads for biggest monthly loss vs euro in two years, beset by Brexit

(Reuters) - The euro rose against sterling for a second straight day on
Friday as the battle to succeed Prime Minister Theresa May sapped appetite
for the British pound, putting it on course for its worst monthly loss
against the single currency in two years.

Nearly a dozen candidates are vying for the prime minister’s job, but the
bookmakers’ favourite is Boris Johnson, who says Britain should leave the
European Union on Oct. 31, even without an agreement on the terms of its
departure.

The Conservatives lost badly in last week’s EU elections, and a recent
opinion poll showed the Conservative Party would suffer its worst general
election defeat ever if a vote were held now. Analysts say that prospect is
pushing candidates to take a harder line on Brexit, weakening the pound.

On Friday, the pound was trading less than 2% from that level at 88.40
pence. It was on track for a monthly drop of nearly 3% against the euro, its
biggest loss since May 2017.

Against the dollar, the pound was steady at $1.2611.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold scales 7-week peak as Trump's Mexico threat rattles markets

(Reuters) - Gold climbed to a seven-week high on Friday and was headed for
its first monthly gain in four months, as investors sought a safe haven
after U.S. President Donald Trump threatened tariffs on imports from Mexico,
which fed fears of a global downturn.

Spot gold jumped 1% to $1,301.81 an ounce by 12:08 p.m. ET (1608 GMT),
having hit its highest since April 11 at $1,304.24.

The bullion has risen by about 1.5% so far this month and is also on track
for a second consecutive weekly gain, advancing by about 1.4% for the week.

U.S. gold futures rose 1.1% to $1,301.50.

Trump on Thursday said Washington will impose a 5% tariff on all goods
coming from Mexico, starting on June 10, until the flow of illegal
immigrants into the United States ceases.

Meanwhile, Mexico’s President Andres Manuel Lopez Obrador said he would
respond with “great prudence” to the threats and called on Mexicans to unite
to deal with the challenge.

U.S. stocks opened sharply lower, hit by fears that Trump’s threat of
tariffs on Mexico could prove the trigger that pushes the world’s largest
economy into recession.

The dollar briefly trimmed its losses versus a basket of currencies on
Friday as stronger-than-forecast data on U.S. consumer spending and income
in April tempered some worries about a slowing U.S. economy.

Meanwhile, expectations of a cut in interest rates by the U.S. Federal
Reserve increased after recent weak economic readings from the United States
added to concerns raised by the prolonged U.S.-China trade dispute.

U.S. interest rate futures rose on Friday as traders increased their bets on
more than one rate cut from the Fed.

Lower interest rates would support gold because they reduce the opportunity
cost of holding non-yielding bullion.

Elsewhere, silver rose 0.4% higher to $14.58 an ounce but looked poised to
register for a fourth consecutive monthly loss.

Platinum was up 0.3% at $793.44, but was on track for its biggest monthly
loss since November 2015, down about 10%.

Palladium slipped 2.4% to $1,333.69 and was down about 3.9% for the month. 

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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been compiled from sources believed to be reliable, but no representation or
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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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