Bulls n Bears Daily Market Commentary : 30 June 2020

Wed Jul 1 05:46:43 CAT 2020

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Bulls n Bears Daily Market Commentary : 30 June 2020

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Zimbabwe Stock Exchange Update

Following the statement issued by the Secretary for Information, Publicity
and Broadcasting Services on June 26 2020, the Zimbabwe Stock Exchange
Limited engaged both the Securities and Exchange Commission of Zimbabwe
(SECZ) and the Ministry of Finance and Economic Development. Whilst we await
the guidance from our regulators on the operational modalities going
forward, we notify our stakeholders that trading has been suspended until
further notice.-zse

NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the Annual General Meeting (“AGM”) of the
shareholders of Zimbabwe Stock Exchange Limited will be held on 21 July
2020. Shareholders are advised that that in light of the current regulations
which prohibit gatherings in excess of 50 people and promoting social
distance on account of the COVID-19 pandemic, the Company will endeavour to
facilitate a virtual meeting the details of which will be communicated to
shareholders in due course.-zse

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Global Currencies & Equity Markets

South Africa

South Africa rand dips after GDP data, stocks up

(Reuters) - South Africa’s rand fell against the U.S. dollar on Tuesday as
data showed the domestic recession deepened in the first quarter of this
year - before the coronavirus pandemic hit the country and put further
strain on the economy.

At 1500 GMT, the rand was 0.65% weaker at 17.3725 per dollar.

Statistics South Africa said that first-quarter gross domestic product
contracted 2% from the previous three months, led by declines in mining and
manufacturing.

The economic outlook remains gloomy after a strict coronavirus lockdown
imposed in late March piled more pressure on businesses and consumers.

Stocks this week continued to buck the global trend with the FTSE/JSE All
Share index going up 0.41% to close at 54,362 points on Tuesday. The top 40
companies index closed up 0.51% at 50,175 points.

Bonds weakened, with the yield on the benchmark government issue due in 2030
up 9.5 basis points to 9.265%. 

Egypt

Egypt's M2 money supply up 17.24% year-on-year in May- c.bank

(Reuters) - Egypt’s M2 money supply growth accelerated to 17.24%
year-on-year in May, according to central bank data published on Tuesday.

The money supply stood at 4.45 trillion Egyptian pounds ($276.6 billion).
Year-on-year money supply growth in April was 15.62%. ($1 = 16.0900 Egyptian
pounds) 

 <mailto:info at bulls.co.zw> 

GLOBAL MARKETS

Asian shares inch higher as data drives rebound hopes

(Reuters) - Asian stocks struggled for headway on Wednesday as the second
half of the year got underway, with improving economic data offset by
worries that surging coronavirus cases in the United States could derail the
world’s recovery before it properly begins.

Following firm U.S. housing data and signs of a rebound in Europe’s economy,
the latest boost to sentiment came from Chinese factory activity gathering
steam in June, with the Caixin/Markit manufacturing PMI rising to 51.2
compared with expectations for 50.5.

But virus cases surged, too, with the U.S. recording 47,000 infections on
Tuesday, its biggest single-day spike since the pandemic began.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4%, led by
gains in Korea and China.

Japan’s Nikkei slipped 0.2%, though, U.S. stock futures fell 0.3% and gold
sat close to an eight-year peak, pointing to elevated caution.

The moves follow a strong finish to the quarter on Wall Street and also a
loss of momentum in recent weeks as U.S. infection rates have surged, with
some states reimposing restrictions on business and personal activity.

The S&P 500 index rose 1.5% for an almost 20% gain over the past three
months, fuelled by unprecedented central bank stimulus and hopes for a swift
pandemic recovery, but it rose only 1.8% in June.

Coronavirus cases more than doubled in 14 U.S. states last month, a Reuters
analysis showed, and fears are growing that the caseload could prompt fresh
lockdowns.

The surge has prompted California, Texas and Florida to shut recently
re-opened bars in the last few days, while Australia has locked-down parts
of its second-biggest city, Melbourne, to try and stop a spike in cases
there.

The U.S. government bond market remains in a cautious mood. Yields on
benchmark 10-year government debt rose overnight to 0.6774%, but finished
the quarter steady.

UNWELCOME DEVELOPMENTS

On top of virus worries, China’s introduction of sweeping new laws to crack
down on dissent in Hong Kong also has investors eying geopolitical tensions
with trepidation.

The laws have already prompted Washington to begin dismantling Hong Kong’s
special status under U.S. law.

Currency markets were in a holding pattern ahead of the next slew of data
due to provide a snapshot of the U.S. recovery.

The dollar held gains against most majors and slipped on the safe-haven yen,
last buying 107.68 yen and trading at $0.6909 per Australian dollar.

U.S. manufacturing activity data due later in the day,is forecast to show a
recovery from a 11-year low in April while the non-farm payrolls report on
Thursday is expected to show the economy added 3 million jobs in June.

Elsewhere sterling rebounded from near a one-month low on Tuesday and hung
on to most of that ground at $1.2382.

Gold hovered near an 8-year high at $1780.64 an ounce. Brent crude rose 43
cents or 1% to $41.70 a barrel, while U.S. crude was up 1.3% at $39.76 a
barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper set for best quarter in a decade on China rebound

(Reuters) - Copper prices headed for their biggest quarterly rise in ten
years on Tuesday, as resurgent Chinese demand, supply disruption and global
stimulus fed a bounce from March’s four-year lows.

Benchmark copper on the London Metal Exchange (LME) was up 1% at $6,018.50 a
tonne at 1600 GMT, after hitting its highest level since Jan. 23.

The metal used in power and construction is up around 22% in the last three
months and is now just below its January high of $6,343, before the
coronavirus spread worldwide.

Behind the gains are “supply fears driven by coronavirus spreading in major
copper producing countries like Chile and Peru (and) the recovering economy,
above all in China,” said Commerzbank analyst Daniel Briesemann.

A close above $6,000 could fuel further buying, but supply and demand
fundamentals justify a level around $5,500 and prices will eventually fall,
he added.

CHINA: Factory activity in China quickened in June, beating expectations.
The total new orders index also brightened, but export orders continued to
contract and factories cut jobs.

STOCKS: On-warrant copper inventories in LME-registered warehouses fell by
1,200 tonnes to 111,650, the lowest since Jan 17. MCUSTX-TOTAL

Stocks in Shanghai Futures Exchange (ShFE) warehouses at 99,971 tonnes are
the lowest since January 2019. CU-STX-SGH

SUPPLY: Freeport Indonesia’s production of copper concentrate and copper ore
were both below its initial targets this year.

POSITIONING: Speculators are betting on higher copper prices, with a net
long on the LME equal to 3.6% of active contracts by Friday, the biggest
since January, brokers Marex Spectron said.

OTHER METALS: LME aluminium was up 0.5% at $1,617 a tonne, zinc fell 0.9% to
$2,044, nickel was flat at $12,810, lead slipped 1.4% to $1,777 and tin was
down 0.4% at $16,705.

All were up between 2% and 14% in the second quarter.

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
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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
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for guideline purposes only and sourced from third parties.

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