Bulls n Bears Daily Market Commentary : 07 July 2020

Tue Jul 7 18:57:42 CAT 2020

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Bulls n Bears Daily Market Commentary : 07 July 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

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South African rand slides as coronavirus infection rise dims outlook

(Reuters) - South Africa’s rand weakened on Tuesday as worries over surges
in coronavirus infections reactivated investor concerns about the economic
impact of the pandemic.

At 1505 GMT, the rand was 0.69% weaker at 17.1175 per dollar.

Deaths from the coronavirus pandemic in India surpassed 20,000 and case
numbers increased, with infections in the United States also jumping,
dampening global enthusiasm over the easing of lockdowns.

Locally, COVID-19 deaths passed the 3,000 mark, with infections at more than
200,000.

Stocks bucked a global trend of a fall in share prices, with the benchmark
FTSE/JSE All Share index up 0.77% to end the day at 55,267 points and the
FTSE/JSE Top 40 Companies’ Index closing up 0.9% to 50,958 points.

Bonds were weaker, with the yield on the benchmark 2030 government issue
rising 15 basis points to 9.665%. 

Uganda

Ugandan shilling little-changed as sluggish consumer spending cuts demand

(Reuters) - The Ugandan shilling was little-changed on Tuesday, with
depressed consumer spending keeping importer appetite for hard currency
subdued.

At 1020GMT commercial banks quoted the shilling at 3,713/3,723, compared to
Monday’s close of 3,715/3,725. 

 <mailto:info at bulls.co.zw> 

EMERGING MARKETS

Russian rouble, South African rand lead currency declines

(Reuters) - Emerging market currencies in Europe, the Middle East and Africa
were pressured by a rise in demand for the dollar on Tuesday, as investors
took a breather from stocks and other riskier investments after several days
of gains.

The South African rand and the Russian rouble were among the biggest
percentage losers against the dollar, with the latter sliding to a
seven-week low as another spike in global coronavirus cases spurred fresh
concerns about the pandemic’s economic fallout.

Russia’s finance ministry also said on Monday it would cut daily foreign
currency sales in July, a tool it has been using to prop up the rouble while
oil markets were weak.

Commerzbank analyst Tatha Ghose said oil revenues are likely to be much
closer to ministry forecasts this month after falling far short in June.

Chinese stocks bucked the trend, with blue-chip stocks ending at a more than
five-year peak, while the yuan held at a three and a half month high. Strong
economic data, and signs of a surge in borrowing of cheap funds by
investors, spurred a risk rally last week that extended into Monday.

While emerging markets have appreciated sharply over the past few months,
uncertainty over the coronavirus has lent a cautious tone to the rally, with
investors fearing a fresh sell-off on the heels of new lockdown measures.

The MSCI’s index of developing world stocks fell 0.6% from a more than
four-month high, while currencies retreated after three days of gains.

South Africa’s rand was set for its worst day in nearly two weeks, while
Johannesburg stocks also fell after a survey showed the country’s consumer
confidence plunging to a 35-year low in the second quarter.

The pandemic is set to extract a heavy toll from South Africa’s economy,
which was already in recession prior to the outbreak.

Central European stocks were weaker, while most currencies softened against
the euro. The euro zone economy will drop deeper into recession this year
and rebound less steeply in 2021 than previously thought, the European
Commission forecast on Tuesday.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Demand hopes, supply worries propel copper to 5-month peak

(Reuters) - Copper prices soared to their highest level in more than five
months on Tuesday due to strong demand prospects in top consumer China and
worries about supplies from Chile, the world’s largest producer of the red
metal.

Benchmark copper on the London Metal Exchange touched its highest since Jan.
21 at $6,195 a tonne. It was up 0.9% at $6,182 a tonne at 1600 GMT.

Prices of the metal used widely in the power and construction industries are
up more than 40% since hitting four-year lows in March.

ACTIVITY: China’s Caixin/Markit Manufacturing Purchasing Managers’ Index
(PMI) rose to 51.2 last month after the fastest pace of growth since
December and up from May’s 50.7.

A survey of purchasing managers in the U.S. manufacturing sector also showed
expansion, while in Europe the contraction eased.

SPREAD: Concern about nearby copper supplies on the LME market <0#LME-WHL>,
due to a large holding of warrants, pushed the premium for the cash over the
three-month contract MCU0-3 to $6.8 a tonne on Monday compared with a
discount for the last 14 months.

The premium returned to a discount of $3 a tonne on Tuesday, but worries
about tightness on the LME market remain due to cancelled copper warrants —
metal earmarked for delivery — at 47% of total stocks at 195,825 tonnes
MCUSTX-TOTAL.

OTHER METALS: Aluminium was little changed at $1,635, zinc rose 0.1% to
$2,065, lead added 1.4% to $1,823, tin slipped a touch to $17,000 and nickel
climbed 1% to $13,470 a tonne. 

Shanghai copper hits 2020 high on China revival hopes, supply fears

(Reuters) - Shanghai copper prices hit a 2020 high on Tuesday as hopes of an
economic recovery in China and supply fears underpinned sentiment, while the
metal also hit a five-month peak in London before shedding gains.

The most-traded August copper contract on the Shanghai Futures Exchange rose
as much as 1.5% to 49,620 yuan ($7,074.02) a tonne, its highest since Dec.
30, before closing up 1% on 49,360 yuan.

Three-month copper on the London Metal Exchange climbed as much as 0.7% to
$6,172.50 a tonne, its highest since Jan. 22, but was down 0.3% at $6,112 a
tonne by 0745 GMT.

FUNDAMENTALS

* SCRAP: China has approved imports of another 176,746 tonnes of high-grade
copper scrap and 209,660 tonnes of aluminium scrap in 2020.

* LME: LME copper inventories MCUSTX-TOTAL fell to their lowest since March
13 at 197,850 tonnes, and the premium of LME cash copper over the
three-month contract CMCU0-3 rose to $6.75 a tonne, indicating tight nearby
supplies.

* CHINA: The Yangshan copper premium SMM-CUYP-CN fell to its lowest since
June 17 at $92.5 a tonne.

* ALUMINIUM: The spread between cash ShFE and LME aluminium eased from the
highest since January 2014 hit on Monday.

* OTHER PRICES: LME aluminium fell 0.1% to $1,633 a tonne, while zinc eased
0.7% to $2,049.50 a tonne. ShFE nickel closed up 1.1% at 107,070 yuan a
tonne.

MARKETS

The Chinese share market extended its positive run, in line with the
mainland government’s push for a stronger market, while the rest of the
region turned cautious on equities.

$1 = 7.0144 yuan 

Russia's Jan-April gold output at 81.27 tonnes -finance ministry

(Reuters) - Russia produced 81.27 tonnes of gold in January through April,
up from 78.29 tonnes in the same period in 2019, the finance ministry said
on Tuesday.

The country produced 286.69 tonnes of silver during the same period, down
from 303.51 tonnes a year earlier. 

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
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
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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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