Bulls n Bears Daily Market Commentary : 08 July 2020

Thu Jul 9 04:54:12 CAT 2020

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Bulls n Bears Daily Market Commentary : 08 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 Africa's rand firmer, mood cautious

(Reuters) - South Africa’s rand firmed on Wednesday as the dollar fell,
although a resurgence of new coronavirus cases globally and fresh evidence
of the weakness of the local economy kept sentiment cautious.

At 1500 GMT the rand was 0.97% firmer at 17.0125 per dollar.

With COVID-19 cases rising sharply in the United States, as well as in
developing economies, such as India, Brazil and South Africa, investors were
wary.

Domestically on Tuesday, a survey showed consumer confidence plunged to a
35-year low in the second quarter, while ratings firm Fitch warned about the
country’s ability to execute plans to slash spending, also hurting the rand.

However, local sentiment and higher gold prices have bolstered the
Johannesburg Stock Exchange (JSE). While the benchmark FTSE/JSE All share
index closed down 1.17% at 55,889 points, the FTSE/JSE Top 40 Companies’
Index rose 1.25% to 51,559 points on Wednesday.

The JSE’s gold index, representing top five gold miners, was up 3.49%,
strengthened by a robust gold market, which is seen by investors as a safe
haven store of value.

Banks also led gains, with the banking index up 4.21%.

In fixed income, the yield on the benchmark government issue due in 2030 was
down 0.5 basis point to 9.685%.

Nigeria

Nigeria naira resumes official market trading as FX rates unify

(Reuters) - Nigerian naira resumed trading on the official market at 381 to
the dollar after no quotes for two straight sessions, as the central bank
unified the country’s multiple exchange rates.

The central bank has been under pressure both from the World Bank and
International Monetary Fund for currency reforms, in order to qualify for
budget-support loans, and from the Nigerian government, to get more naira
for its crude oil receipts.

The World Bank is expected to approve a $3 billion budget- support loan for
Nigeria in the coming months.

Nigeria offered multiple foreign-exchange rates, which it imposed to manage
dollar demand after oil prices crashed. But dollar shortages have followed,
stifling growth.

No quotes were available on the naira on the official market since Monday
after the central bank last week weakened the currency at an auction. It
later lowered the official rate by 5.5% from 360 on Tuesday.

Traders said the central bank sold $100,000 at 380.50 naira on Wednesday on
the official market.

The naira traded lower on Wednesday at 387.32 on the over-the-counter spot
market, widely used by investors and importers. It weakened to 460 on the
black market.

 <mailto:info at bulls.co.zw> 

EMERGING MARKETS

EMEA currencies tick lower in risk-off trade; stocks edge up

(Reuters) - Most emerging market currencies moved lower on Wednesday as
safe-haven demand pushed up the dollar, while concerns over rising
coronavirus cases capped gains in equities.

Weak oil prices continued to pressure Russia’s rouble , while its peers in
Europe, Africa and the Middle East edged lower.

Central European currencies such as the Hungarian forint and the Czech crown
fell to the euro after disappointing industrial output data on Tuesday.

With COVID-19 cases rising exponentially in the United States, as well as in
developing economies such as India and Brazil, investors pivoted to the
dollar on the possibility of new lockdown measures against the pandemic.

The caution saw most emerging market stocks and currencies come off a nearly
week-long rally spurred by positive economic readings from the developed
world.

EMEA currencies have traded rangebound in recent weeks, with investors
seeking better returns in stocks due to lower borrowing costs and concerns
over economic strength in the region.

For instance, Turkey’s lira was muted for the day, having barely moved 0.1%
in either direction over the past two weeks. Concerns over spiking inflation
have clouded the lira’s outlook.

Turkish stocks edged up for the day. Still, broader EMEA equities were a
mixed bag, with Russian markets retreating, while central European stocks
moved in a flat-to-low range.

The MSCI’s index of developing world stocks rose about 0.8%, supported
largely by a continued bull run in Chinese stocks.

South Africa’s rand outperformed its EMEA peers, recovering from its worst
session in nearly three weeks. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper punches towards January peak, boosted by Chile fears

(Reuters) - Copper raced to its highest levels since January on Wednesday as
speculators piled into the market, betting on further disruptions in top
producer Chile and firm demand from the biggest consumer China.

Copper on the London Metal Exchange has surged more than 40% since touching
a 45-month low in March, driven recently by fears that the COVID-19 pandemic
will curb mine production in Chile.

Speculative money, especially from computer-driven funds, has recently been
tracking bullish technical signals in copper, traders and analysts said.

LME benchmark copper had gained 0.8% to $6,237 a tonne by 1600 GMT, the
highest since Jan. 21.

The 2020 high for copper was $6,343 on Jan. 16, which in turn was the
strongest since May last year.

Chile’s mining minister said his country was prioritising workers’ health.

* SHANGHAI PRICES: The most-traded August copper contract on the Shanghai
Futures Exchange hit its highest in more than 14 months, helped by a bull
run in equities in top metals consumer China.

* ZINC: Zinc prices jumped after Chinese output in June fell to the lowest
since February and Tech Resources reported shipment delays from its Red Dog
operation in Alaska, one of the world’s biggest zinc mines.

LME zinc surged 3% to $2,131.50 a tonne, the strongest since Feb. 20.

* PRICES: LME aluminium advanced 2.1% to $1,667.50 a tonne, the highest
since March 17, while lead slipped 0.7% to $1,815.50, retreating after
touching a four-month peak of $1,848.

Nickel edged up 0.2% to $13,495, the strongest since Jan. 23, and tin added
0.7% to $17,080.

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

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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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
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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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