Bulls n Bears Daily Market Commentary : 01 July 2020

Thu Jul 2 10:30:16 CAT 2020

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Bulls n Bears Daily Market Commentary : 01 July 2020

 <mailto:info at bulls.co.zw> 

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

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South African rand firms against dollar before current account data

(Reuters) - South Africa’s rand was firmer against the U.S. dollar on
Thursday as investors looked to current account data for clues about the
health of Africa’s most industrialised economy.

At 0704 GMT, the rand traded at 17.00 versus the dollar, around 0.3%
stronger than its previous close.

The dollar was about 0.2% weaker on global markets before non-farm payrolls
figures which are expected to show an increase in jobs but come as concerns
grow about whether the U.S. economy can sustain its recovery as coronavirus
infections surge.

South Africa’s first-quarter current account data , due around 0900 GMT,
will give more detail about how the economy was performing before the
coronavirus crisis really took hold.

The government imposed a strict lockdown at the end of March, shutting down
many businesses and confining most people to their homes, and has only
gradually eased restrictions since.

Data this week showed gross domestic product contracted 2% in the first
three months of the year, led by declines in mining and manufacturing.

The current account has long been a sore spot for South Africa, but the
deficit narrowed to its lowest in nearly a decade in the last quarter of
2019. 

Angola 

Argentina, Angola among best emerging market quarterly performers

(Reuters) - Debt-laden Argentina posted the best stocks returns of the
quarter while Angola’s bonds outperformed all others as 2020 continues to
defy expectations among emerging markets.

For the year, the COVID-19 pandemic and its related lockdowns continue to
cast a shadow on the second half that extends beyond emerging economies.

In terms of currencies, Taiwan and the Philippines have strengthened the
most against the dollar so far this year, but it was Indonesia that powered
on in the second quarter. Argentina’s capital controls are masking what
should be a deeper depreciation of its currency.

The estimated $l8 trillion deployed globally in fiscal and monetary stimulus
helped keep interest rates anchored near zero in the developed world,
forcing yield seekers far out into the EM universe. China has seen its bonds
perform the best throughout the year while Angola, which suffered a massive
selloff in the first quarter, gave risky investors the top return over the
past three months.

Argentina’s capital controls have kept the currency artificially strong, but
betting on its dollar-denominated stocks was a strong move as they returned
the most for any EM this quarter.

 <mailto:info at bulls.co.zw> 

GLOBAL MARKETS

Asian stocks rise on vaccine hopes, eyes on U.S. payrolls

(Reuters) - Asian stocks tracked Wall Street higher on Thursday although
sentiment was cautious ahead of U.S. employment data while copper prices
jumped to more than six-month highs on a better global outlook and supply
fears in top producer Chile.

MSCI’s broadest index of Asia Pacific shares outside of Japan rose 0.9% with
all major indexes trading higher on hopes of a vaccine for COVID-19, which
has killed more than half a million people globally and shut down the world
economy.

Japan’s Nikkei rose 0.4%, China’s blue-chip index added 0.6% while Hong
Kong’s Hang Seng index climbed 1.7%.

E-mini futures for the S&P 500 were flat.

U.S. employment figures due later in the day are expected to show if the
world’s largest economy can sustain its fragile recovery as new COVID-19
cases accelerate in several southern states.

Economists polled by Reuters expect private employers to show 2.9 new
million new jobs June, which would follow a surprise increase in May.
Casting some doubt over that projection, however, was a
smaller-than-expected increase in jobs seen in the ADP report on Wednesday.

Wall Street ended Wednesday higher after key economic indicators showed a
rebound in Chinese manufacturing activity as it recovers from the pandemic
while sharp declines in European factory activity eased.

Risk sentiment was whetted by a COVID-19 vaccine from Pfizer and Germany’s
BioNTech, which was found to be well tolerated in early-stage human trials.

Equity investors shrugged off concerns about Hong Kong where police arrested
more than 300 people protesting sweeping new laws introduced by China to
snuff out dissent.

Those developments have raised concerns about China’s already strained
relations with its major western trading partners, particularly the United
States.

The U.S. House of Representatives passed legislation on Wednesday that would
penalize banks doing business with Chinese officials who implement a
national security law.

In commodities, the most-traded August copper contract on the Shanghai
Futures Exchange touched 49,570 yuan ($7,016.28) a tonne, its highest since
Dec. 30, 2019.

Manufacturing activity rebounded in the United States in June, while the
factory sector in Germany, Europe’s largest economy, contracted at a slower
pace and top copper consumer China posted better-than-expected manufacturing
data.

Meanwhile in Chile, where the number of COVID-19 cases have been climbing,
miner BHP said it would begin to slow production at its small Cerro Colorado
copper mine in the country.

Elsewhere, oil prices eased and gold was a tad softer too while the dollar
was steady in a sign of investor caution despite encouraging macro data.

Brent crude slipped 6 cents to $41.97 a barrel. U.S. crude was off 12 cents
at $39.70 a barrel. U.S. gold futures was 0.12% lower, at $1,777.70.

The safehaven greenback was unchanged against the Japanese yen at 107.45.
The euro barely moved too and was last at $1.1254 while sterling was
treading water at $1.2477.

That left the dollar index at 97.139.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Shanghai copper scales 6-month high on Chile supply risk

(Reuters) - Shanghai copper prices touched a more than six-month peak on
Thursday, supported by mounting supply risks in top producer Chile and
upbeat manufacturing data in major economies.

The most-traded August copper contract on the Shanghai Futures Exchange
touched 49,570 yuan ($7,015.98) a tonne, its highest since Dec. 30, 2019,
before easing to close 0.6% higher at 49,410 yuan a tonne.

Three-month copper on the London Metal Exchange advanced 0.7% to $6,102 a
tonne, after climbing as much as 0.9% to $6,118 a tonne earlier in the
session, its highest since Jan. 22.

Manufacturing activity rebounded in the United States in June, while the
factory sector in Germany, Europe’s largest economy, contracted at a slower
pace and top copper consumer China posted better-than-expected manufacturing
data.

In Chile, which is battling a growing number of coronavirus infections,
miner BHP said it would begin to wind down activity at its small Cerro
Colorado copper mine.

FUNDAMENTALS

* OTHER PRICES: LME aluminium fell 0.3% to $1,616.50 a tonne, nickel
advanced 0.2% to $12,875 a tonne. In Shanghai, aluminium rose 0.2% to 13,965
yuan a tonne and nickel increased 0.8% to 103,190 yuan a tonne.

* HONG KONG: Hong Kong police arrested more than 300 people protesting
China’s security legislation on Wednesday, while the U.S. House of
Representatives moved to penalise banks doing business with Chinese
officials who implement the law.

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

Ariston

AGM

Boardroom, 306 Hillside Road, Msasa Woodlands

07 Jul 2020 : 1100

Dawn Properties

AGM

Ophir Room, Monomotapa Hotel, 54 Park Lane

09 Jul 2020 : 0900

Mash

AGM

Virtual, Boardroom, 19th Floor, ZB Life Towers, 77 Jason Moyo Avenue

09 Jul 2020 : 1200

 <mailto:info at bulls.co.zw> 

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
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
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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.

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