Bulls n Bears Daily Market Commentary : 16 July 2020

Thu Jul 16 15:48:04 CAT 2020

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Bulls n Bears Daily Market Commentary : 16 July 2020

 <mailto:info at bulls.co.zw> 

<https://www.renaultzimbabwe.com/cars/duster/overview.html?utm_source=newsle
tter&utm_medium=email&utm_term=&utm_content=pip&utm_campaign=newsletter-fait
hcapitalcorp-jul20> ZSE commentary

Zimbabwe Stock Exchange will resume trading next week after the government
shut down the platform for reasons best explained by the government,
Business Times reports.

A source that spoke to the publication about ZSE resuming trading said:

All is set for the resumption of trading. There are meetings underway to
work out modalities on how the fungible shares will be traded on a foreign
currency exchange.

Meanwhile, the ruling party is lobbying that one of ZSE’s biggest counters
Old Mutual be delisted because according to them it is fueling the black
market runaway exchange rate.- Business Times 

Global Currencies & Equity Markets

South Africa

South Africa's rand recovers but caution remains, stocks slip

JOHANNESBURG, (Reuters) - South Africa’s rand recovered in afternoon trade
on Friday, after sliding earlier due to concerns about rising COVID-19 cases
both at home and abroad.

At 1505 GMT the rand was 0.42% firmer at 16.7800 per dollar, bouncing back
from a session low of 16.9725 hit earlier.

The United States on Thursday reported the largest one-day increase in
coronavirus cases by any country since the start of the pandemic, while
cases have jumped in major cities such as Melbourne, Tokyo and Hong Kong.

Locally, confirmed COVID-19 cases are also on the rise.

The Johannesburg Stock Exchange (JSE) slipped as investor optimism about a
market recovery was overshadowed by continued worry over coronavirus.

The benchmark FTSE/JSE All Share Index dropped by 0.64% to close the week at
55,431 points while the FTSE/JSE Top 40 Companies’ Index closed down 0.74%
to 51,154 points.

The benchmark index rose 1.67% this week.

Bonds firmed, with the yield on the benchmark 2030 government issue dropping
15.5 basis points to 9.495%. 

Uganda

Ugandan shilling firms on low demand for dollars

KAMPALA, (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. 

 <mailto:info at bulls.co.zw> 

EMERGING MARKETS

Stocks slip on U.S.-China worries, firm dollar hits FX

(Reuters) - Emerging market stocks fell to a one-week low on Thursday as
tensions between the United States and China and rising coronavirus cases
around the world weighed on investor sentiment, while a stronger dollar hit
risky currencies.

A broad dispute between Washington and Beijing over the control of advanced
technologies and the protection of civil liberties in Hong Kong continued to
hit risk appetite.

It also took the shine off data which showed China’s economy rebounded more
than expected in the second quarter from a record contraction.

While emerging market equities have recovered sharply from a steep downturn
in March, surging COVID-19 cases in hotspots like Brazil, India and Russia
constantly serve as a reality check for investors hoping for a “V”-shaped
recovery.

The MSCI’s index for developing world stocks dropped 1.6%, after rising in
the previous session on signs of progress in the development of a
coronavirus vaccine. The index is now on track for its first weekly decline
in three weeks.

South African stocks slid 2%, with declines from global miner Anglo American
weighing.

Anglo American posted an 18% decline in overall second quarter output due to
coronavirus lockdowns and stuck to its full-year guidance for copper, other
metals and diamonds.

The rand slipped 0.5% against the U.S. dollar, which strengthened amid
growth concerns and weak Chinese consumption data.

Russia’s rouble weakened with a slide in oil prices, while the Turkish lira
traded within a tight range.

Turkish stocks rose 1.3%, among few advancers on the day as shares in
Turkish Airlines and budget carrier Pegasus Airlines rose more than 3% after
Turkey and Russia agreed to resume flights.

Currencies of countries in central and eastern Europe remained rangebound,
with Hungary, Poland and Romania trading flat against the euro.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper holds near 2-year high as Chinese data raises demand doubts

(Reuters) - Copper prices steadied just below two-year highs on Thursday,
even as mixed Chinese data and escalating U.S-China tensions triggered falls
in other industrial metals and broader markets.

China, the largest metals user, posted a forecast-beating 3.2% year-on-year
increase in GDP in the second quarter and a rise in industrial output, but
signs of weak demand at home and abroad pushed its stock markets down almost
5%.

Benchmark copper on the London Metal Exchange (LME) was down $2 at $6,384 a
tonne in official trading.

The metal used in power and construction reached $6,633 on Monday after a
spectacular rally from $4,371 in March, when the coronavirus spread
worldwide.

CONFRONTATION: The United States said it had not ruled out further sanctions
on top Chinese officials to punish China for its handling of Hong Kong and
that it was studying the national security risks of social media
applications including China’s TikTok and WeChat.

China said it would respond to what it described as “bullying” tactics from
Washington.

POLL: Analysts polled by Reuters expect LME cash copper to average $6,173 a
tonne in the fourth quarter.

ECONOMY: The head of the International Monetary Fund said the global economy
was “not out of the woods yet”.

ECB: The European Central Bank kept policy unchanged as expected on
Thursday.

CHINA OUTPUT: China’s primary aluminium production rose to 3.02 million
tonnes - its highest in six months - in June.

OTHER METALS: LME aluminium was down 1.4% at $1,660.50 a tonne, zinc lost
0.1% to $2,198, nickel fell 1.8% to $13,289, lead slipped 0.2% to $1,840.50
and tin was down 0.5% at $17,200. 

Barrick Gold expects 15% drop in Q2 gold output

(Reuters) - Barrick Gold Corp on Thursday estimated a 15% drop in
second-quarter gold production as operations at its Veladero mine in
Argentina were impacted by the COVID-19 pandemic.

The world’s second-largest gold miner said production was also hurt by a
planned shutdown at its Pueblo Viejo mine in the Dominican Republic and
lower output at the Porgera gold mine in Papua New Guinea.

Barrick had lowered its full-year attributable gold production forecast
earlier this year as the Porgera mine was placed on care and maintenance
after a government dispute in April.

Barrick and China’s Zijin Mining each own 47.5% of the Porgera mine and last
week they approached the World Bank’s International Centre to try to settle
the dispute.

The miner on Thursday said it anticipates gold production of 1.15 million
ounces for the second quarter compared with 1.35 million ounces a year
earlier.

Average market price for gold was $1,711 per ounce in the quarter ended June
30, the Canadian miner said in a statement.

Toronto-based Barrick is slated to announce its second-quarter results on
Aug. 10.

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

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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