Bulls n Bears Daily Market Commentary : 13 August 2020

Thu Aug 13 17:17:29 CAT 2020

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 13 August 2020

 <mailto:info at bulls.co.zw> 

ZSE commentary

Market Turnover ZWL$39,191,731.50 with foreign buys at ZWL$3,180,000.00 and
foreign sales were ZWL $11,708,813.20 Total trades were 221.

The ZSE All Share Index continues its losing streak after dropping 56.08
points to close at 1.381.76 points. CBZ HOLDINGS LIMITED lost $2.8631 to
close at $19.7123, FBC HOLDINGS lost $1.3830 to $11.3500 and BINDURA  was
$0.7625 weaker at $3.0552. Other counters to lose ground were ZIMRE HOLDINGS
which dropped $0.4000 to close at $2.1000 and ECONET  which was down by
$0.3554 ending at $5.7704.

Trading in the positive was RIOZIM LIMITED  which added $1.1000 to end at
$7.5000, LARFARGE CEMENT traded $0.9800 higher at $5.8800 and ZIMPLOW gained
$0.4700 to end at $3.9000. FIDELITY   was $0.0385 firmer at $0.2330 whilist
NAMPAK LIMITED went up by $0.0100 to close at $1.5000.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South Africa's rand backtracks as relief rally pauses

(Reuters) - South Africa’s rand weakened slightly early on Thursday, pausing
an advance in the previous session that saw the currency trade at its
firmest in three days, with investors cautiously watching developments in
the global economy.

At 0600 GMT the rand was 0.07% weaker at 17.4800 per dollar, having rallied
to 17.3500 on Wednesday as souring diplomatic relations between the United
States and China felled the greenback.

Recent tensions between Washington and Beijing over U.S. allegations of
spying against the Asian superpower have overshadowed local issues, driving
demand into riskier assets as investors searched for short-term returns.

With lending rates still relatively high in South Africa, despite deep cuts
by the central bank, the rand and local bonds have seen inflows from
investors ditching safe-havens but analysts have said these may offer only
short-term relief.

State power firm Eskom said breakdowns of some its generating units had
forced it to resume countrywide blackouts, or loadshedding, with “stage 2”
seeing it slash up to 2,000MW from the national grid. 

Zambian, Kenyan currencies seen under pressure

(Reuters) - Zambian and Kenyan currencies are seen facing pressure next week
as those of Nigeria, Uganda and Tanzania hold steady.

ZAMBIA

The kwacha is expected to remain under pressure against the US dollar next
week due to declining supply of hard currency.

On Thursday, commercial banks quoted the currency in Zambia, Africa’s second
largest copper producer, at 18.3830 per dollar from a close of 18.2630 a
week ago.

KENYA

Kenya’s shilling is expected to trade weaker next week before tax
obligations to the central bank resume.

For the coming week analysts expect the shilling to trade at 108.00/109.00.

NIGERIA

Nigeria’s naira is seen flat in the week ahead in a market that is seeing
low activity owing to chronic dollar shortages that have slowed down
businesses and shifted forex demand to the black market, traders said.

The naira was quoted at a low of 475 per dollar on the unofficial market on
Thursday, a level it has been this week, while the currency was flat on the
over-the-counter spot market at 385.58 naira.

Volumes on the spot market, widely quoted by investors and importers, have
been declining daily, traders say, citing the absence of central bank’s
intervention or foreign inflows, despite rising oil prices.

Dollar shortages have plagued the country for months after sharp falls in
the price of oil, Nigeria’s main export.

UGANDA

The Uganda shilling is seen trading in a stable range as mid-month tax
payments by large firms curb appetite for hard currency.

At 0914GMT commercial banks quoted the shilling at 3,670/3,680, compared to
last Thursday’s close of 3,677/3,687.

He said the shilling will likely oscillate between 3,660-3,680.

TANZANIA

The Tanzanian Shilling is expected to hold steady next week as inflows from
agricultural exports and tourism are expected to reduce pressure to the
currency.

Commercial banks quoted the Shilling at 2,320/30, the same levels as last
week.

 <mailto:info at bulls.co.zw> 

EMERGING MARKETS

Currencies higher on dollar decline, U.S.-China meeting awaited

(Reuters) - Emerging market currencies firmed on Thursday, against a dollar
that lost ground as hopes of more stimulus in the United States waned, while
investors awaited a meeting between Washington and Beijing to discuss the
Phase 1 trade deal over the weekend.

Most major currencies in developing economies in Europe, Middle East and
Africa rose, with Asian currencies also in the black.

The U.S. dollar, which is already weighed down by a decline in Treasury
yields, fell further as investors remained unsure that there would be a
compromise between Republicans and Democrats over additional coronavirus
aid.

Russia’s rouble firmed 0.3%, while South Africa’s rand edged higher as
trading remained cautious ahead of a meeting between the United States and
China, with ties between the two nations worsening in the recent few weeks
after the Trump administration banned popular Chinese apps and slapped
sanctions on high ranking officials.

Even as the dollar weakened, the Turkish lira struggled to stay afloat amid
rising worries of a full-blown crisis, as markets look towards the central
bank for more decisive action to stabilise the currency. The lira is among
the worst performing emerging market units so far this month, with declines
of 5%.

Currencies in central and eastern Europe including Hungary , Poland, Romania
and the Czech Republic, were mostly flat against a firming euro.

Stocks in the developing world rose for the third straight day, with the
MSCI index for emerging market stocks rising 0.2%.

Johannesburg stocks opened 1% lower as shares in lender Absa fell over 5%, a
day after it warned its half-year profits could be almost wiped out as a
result of the coronavirus crisis.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper slips on weak Chinese demand, Chile turns on supply taps

(Reuters) - Copper prices eased on Thursday as concerns over supply from
South America receded and seasonally weak demand in top consumer China
resurfaced.

Three-month copper on the London Metal Exchange fell 1% to $6,373.50 a tonne
in official trading.

COVID-19 supply disruptions in top producer Chile and flooding in China
helped propel copper to a two-year high in July but miners in the South
American nation were ramping back up while neighbouring Peru was also
restarting production after lockdowns.

The copper market returned its focus to fundamental data, leading it to
trade in a narrow range of between $6,400-$6,500 for nearly six weeks,
Commerzbank analysts said.

COPPER DEMAND: The Yangshan copper premium SMM-CUYP-CN, an indicator of
Chinese demand, stood at around $78 a tonne, its lowest since April and down
from $99 a month ago.

INVENTORIES: Weaker Chinese demand can be seen through rising copper stocks
in ShFE warehouses CU-STX-SGH, while a decline in inventories in LME
warehouses MCUSTX-TOTAL lent prices some support.

The third quarter is seen as a traditionally seasonally weak period for
Chinese demand, analysts say.

U.S STIMULUS: The U.S. Republican White House and congressional Democrats
have been in a deadlock for days trying to come up with a U.S. coronavirus
bill.

Prices were also pressured by U.S.-China tensions ahead of a crucial weekend
meeting between trade officials from both countries.

CODELCO SUPPLY: Chile’s state-run miner Codelco, the world’s largest copper
producer, expects quick progress in ramping up processing capacity at its
Chuquicamata underground project.

PRICES: Aluminium edged down 0.7% to $1,774 a tonne, zinc shed 1% to
$2,382.50, lead fell 0.6% to $1,946, tin was steady at $17,588, while nickel
eased 0.5% to $14,186.

India's exports of gems, jewellery slump 38% in July - trade council

(Reuters) - India’s gems and jewellery exports fell 38% in July from a year
ago to $1.36 billion as shipments of cut and polished diamonds plunged
because of the novel coronavirus, a trade organisation said on Thursday.

The industry was hit twice because of the coronavirus, with export orders
evaporating and then a shortage of workers caused by a national lockdown to
stop the spread of the virus.

India’s cut and polished diamond exports in July fell 39% from a year ago to
$918.4 million, the Gems and Jewellery Export Promotion Council (GJEPC) said
in a statement.

In the April to July period, cut and polished diamond exports plunged 46.5%
from a year ago to $2.7 billion, it said.

Thousands of workers employed in polishing diamonds went back to their homes
after the government imposed a nationwide lockdown to curb the coronavirus
in late March and many of them had yet to return, said Colin Shah, chairman
of GJEPC.

Falling exports of cut and polished diamonds prompted polishing units to cut
imports of rough diamond, which during April to July fell 82% from a year
ago to $712.6 million, the trade body said.

Annual diamond shows used to help Indian exporters sell polished diamonds to
foreign buyers, but the pandemic forced the GJEPC to postpone main shows to
next year.

The GJEPC has now organised a virtual buyer and seller meet up on Aug.
27-28, with buyers from various countries expected to participate, it said.

Globally, demand for diamonds has plummeted during the pandemic, freezing
sales and squeezing prices. 

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

CBZ

AGM

Virtual

14  August 2020 | 6pm

 <mailto:info at bulls.co.zw> 

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.

(c) 2020 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

Invest Wisely!

Bulls n Bears 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200813/58ed671e/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200813/58ed671e/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 30155 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200813/58ed671e/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 30147 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200813/58ed671e/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 30152 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200813/58ed671e/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200813/58ed671e/attachment-0011.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 30150 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200813/58ed671e/attachment-0012.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image007.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200813/58ed671e/attachment-0013.jpg>