Bulls n Bears Daily Market Commentary : 15 July 2020

Thu Jul 16 04:43:33 CAT 2020

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Bulls n Bears Daily Market Commentary : 15 July 2020

 <mailto:info at bulls.co.zw> 

<https://www.renaultzimbabwe.com/cars/Koleos-HZG/koleos-hzg.html?utm_source=
newsletter&utm_medium=email&utm_term=&utm_content=pip&utm_campaign=newslette
r-faithcapitalcorp-jul20> ZSE commentary

The Zimbabwe Stock Exchange (ZSE) remains suspended from trading. The ZSE
and regulator, Securities and Exchange Commission are still engaging the
Ministry of Finance to bring to finality the investigations on any illicit
trading that might have taken place on the local bourse. An update on the
trading resumption is possible when the Minister of Finance & Economic
Development presents the Mid Term Economic Review in Parliament on Thursday.

Foreign currency auction rate eases to $68:1

The Zimbabwe dollar eased by a modest 4.6 percent to $68.88 from $65.80 in
the fourth foreign currency auction yesterday with the range between the top
bid and the lowest successful bid falling to $20 as bidders continue to make
ever more accurate calculations over pricing. This growing expertise in
price discovery saw the top bid falling to $85, from the $100 in the first
auction, $92 in the second and $90 last week. The lowest bid in yesterday’s
auction was $40, but the lowest allotted bid was $64.20, with all bidders
below that price missing out as higher bidders had exhausted the foreign
currency on offer.-Herald

Global Currencies & Equity Markets

Uganda

Ugandan shilling firms on low demand for dollars

(Reuters) - The Ugandan shilling strengthened on Friday as scarce appetite
for dollars from large importers like telecoms, energy, manufactures and
others lent support to the local currency.

At 0902GMT commercial banks quoted the shilling at 3,680/3,690, compared to
Thursday’s close of 3,710/3,720. 

South Africa

Stocks bounce back on vaccine optimism; S.African rand leads gains

(Reuters) - Emerging market stocks bounced back on Wednesday on hopes of a
coronavirus vaccine, while the high-yielding South African rand led gains
among developing world currencies.

The MSCI’s index of emerging markets stocks rose 0.6% after clocking its
worst day in nearly a month in the previous session.

Markets in Asia and Europe remained optimistic about Moderna Inc’s
experimental vaccine for COVID-19, with the drugmaker on Tuesday saying it
was safe and provoked immune responses in all 45 healthy volunteers in an
ongoing early-stage study.

However, gains were limited by simmering U.S.-China tensions after U.S.
President Donald Trump on Tuesday ordered an end to Hong Kong’s special
status under U.S. law to punish China for what he called “oppressive
actions” against the former British colony, prompting Beijing to warn of
retaliatory sanctions.

Among currencies, the South African rand rose to its highest in nearly a
month as investors continued to hunt for value in the high-yielding
currency.

Consumer inflation data for South Africa showed a core reading of 3.1%
year-on-year in May, compared with 3.2% in April.

The Hungarian forint gained the most among its central and eastern European
peers as the National Bank of Hungary said it would further ease the terms
of its 1.5 trillion forint ($4.82 billion) cheap loans scheme to help
businesses access cheap funding amid the coronavirus pandemic.

The Russian rouble firmed against the dollar ahead of bond auctions by the
finance ministry that can often buttress the currency.

Demand for these bonds has been strong among foreign investors in recent
months, which also serves as a gauge of global market sentiment towards
Russian assets and can support the currency.

Civil unrest hit the Belarusian capital city of Minsk as hundreds of people
took to the streets on Tuesday after the central election commission refused
to register the two main rivals of President Alexander Lukashenko as
candidates in the Aug. 9 presidential election.

 <mailto:info at bulls.co.zw> 

EMERGING MARKETS

Stocks falter on growth concerns as coronavirus cases rise

(Reuters) - Emerging markets stocks fell on Tuesday after COVID-19 cases
continued to rise globally and economic growth forecasts were cut further,
with currencies taking a hit from a firmer dollar as U.S.-China tensions
flared.

Global coronavirus cases topped 13 million on Monday, while a return to
curbs for the U.S. state of California revived worries over whether the
virus can cause more economic damage.

MSCI’s index for emerging market equities fell 1.2%, with stocks in Asia
leading declines, while its currencies counterpart slipped 0.4% against the
U.S. dollar .

Demand for the dollar, widely viewed as a safe-haven currency, firmed on
heightened geopolitical tensions after the United States on Monday rejected
China’s disputed claims to offshore resources in most of the South China
Sea, a that move met with criticism from Beijing.

Developing world markets have risen sharply from a steep downturn in March
on the back of global stimulus, but moves in recent weeks have been subdued
as the focus turns towards earnings forecasts.

More negative forecasts poured in as ratings agency S&P Global cut its
emerging market growth expectations on Monday, predicting a 4.7% slump on
average this year, while warning that all countries would be left with
permanent scars.

S&P said that South Africa’s economy will contract by more than initially
projected, projecting a 6.9% decline in 2020, compared with a previous
forecast of a 4.5% contraction. The South African rand gained slightly in
early trading.

Poland’s central bank is expected to release its interest rate decision
later on Tuesday, It is also expected to release its current account balance
for May, which is estimated at 701 million euros ($794.4 million).

The Polish zloty was range-bound after the re-election of President Andrzej
Duda on Monday, sparking concern over the potential for renewed
confrontation with the European Union.

Russian stocks fell 1.8% as gas producer Gazprom declined after reporting a
first-quarter net loss of 116 billion roubles ($1.64 billion).

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold hits 1-week peak as U.S.-China row adds to safe-haven demand

(Reuters) - Gold rose to a one-week high on Wednesday, holding comfortably
above the key $1,800 level, on safe-haven demand fuelled by concerns over
brewing U.S.-China tensions and their impact on a global economy already
reeling from the COVID-19 pandemic.

Spot gold was up 0.1% to $1,809.61 per ounce at 0940 GMT, having hit its
highest since July 9 at $1,814.40. U.S. gold futures were steady at
$1,813.10.

However, gold could see a short-term correction on hopes for a possible
COVID-19 vaccine, Trivedi said.

U.S. President Donald Trump signed an executive order ending preferential
treatment for Hong Kong, to which China responded by saying it would impose
retaliatory sanctions on the United States.

Trump also shut the door on “Phase 2” trade negotiations with Beijing.

Adding to the heightened risks, Federal Reserve officials warned on Tuesday
the U.S. economy would recover more slowly than expected.

Injecting further fuel to gold’s rise, the dollar fell 0.3% versus a basket
of currencies.

Safe-haven buying helped gold maintain its positive trajectory despite gains
in stock markets driven by optimism surrounding an experimental vaccine for
COVID-19 produced by U.S. company Moderna.

Reflecting appeal for gold, holdings of the SPDR Gold Trust exchange-traded
fund were near their highest since April 2013.

Elsewhere, palladium rose 0.2% to $1,963.01 per ounce, platinum was 0.4%
higher at $828.99 and silver gained 0.7% to $19.21. 

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

GB Holdings

AGM

Cernol Chemicals Boardroom, Willowvale

15 July 2020 | 11:30am

TSL

AGM

virtual

15 July 2020 | 12pm

BAT

AGM

Cresta Lodge, Msasa

16 July 2020 | 10am

African Sun

AGM

Virtual

16 July 2020 | 12pm

Masimba

AGM

Virtual

21 July 2020 | 12pm

Proplastics

AGM

Virtual

23 July 2020 | 10am

NMB

AGM

Virtual

28 July 2020 | 10am

FMP

AGM

Ground Floor, First Mutual Park, 100 Borrowdale Road, Borrowdale

29 July 2020 | 9:30am

FML

AGM

Ground Floor, First Mutual Park, 100 Borrowdale Road, Borrowdale

29 July 2020 | 11:30am

ZBFH

AGM

Board Room, 21 Natal Road, Avondale

30 July 2020 | 10:30am

OK Zimbabwe

AGM

Virtual

30 July 2020 | 3pm

ZHL

AGM

virtual

31 July 2020 |

Delta

AGM

Virtual, Head Office, Northridge Close, Borrowdale

31 July 2020 | 12:30pm

Zimbabwe

National Heroes Day

Zimbabwe

10  August 2020

Zimbabwe

Defence Forces’ Day

Zimbabwe

11  August 2020

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.

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