Bulls n Bears Daily Market Commentary : 22 July 2020

Wed Jul 22 16:11:02 CAT 2020

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Bulls n Bears Daily Market Commentary : 22 July 2020

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<https://www.renaultzimbabwe.com/cars/kwid/index.html?utm_source=newsletter&
utm_medium=email&utm_term=&utm_content=pip&utm_campaign=newsletter-faithcapi
talcorp-jul20> ZSE commentary

Finance Minister has indicated that the ZSE will mostly likely open in by
the next few weeks. There is currently no clarity as to the reasons behind
delayed market opening.

Global Currencies & Equity Markets

South Africa

South Africa Currency Trader JP Markets to Oppose Liquidation Bid

South African currency-trading platform JP Markets (Pty) Ltd. plans to
oppose a court application by the nation’s financial-services regulator to
shut it down.

The Financial Sector Conduct Authority has said it wants the firm liquidated
for operating an unlicensed over-the-counter derivatives business and in
June provisionally suspended its financial-services provider’s license. Its
bank accounts were frozen earlier this month.

The company was working in “good faith” with the FSCA to correct the issue
when its license was pulled, Darren Hanekom, a lawyer for JP Markets, said
by email. It had made “full and frank disclosures” on its business model to
the FSCA as recently as September, he said.

While JP Markets paid an application fee for the derivatives license, it had
not made an application, the Pretoria-based regulator said by email. The
FSCA was not aware that JP Markets was issuing contracts for difference
until this was revealed by a witness during the regulator’s investigation,
which started after it received complaints about the company, it said.

JP Markets, founded in 2016 by 33-year-old University of Cape Town graduate
Justin Paulsen, has 320,000 clients, about 20,000 to 40,000 of which are
active, Hanekom said. It paid out over 1 billion rand ($61 million) in
customer withdrawals in the three months before its accounts were frozen,
and receives about 300 million rand in client deposits a month, he said.

The firm also faces an online petition signed by more than 3,200 people amid
allegations it refused to make refunds.

The petition was created under a pseudonym by someone who wasn’t a JP
Markets client and relate to technical breaks, Hanekom said. JP Markets has
taken steps to limit interruptions, he said.

The liquidation application will be heard on July 31.

 <mailto:info at bulls.co.zw> 

Australia

Australian Dollar Is A Buy Say Morgan Stanley Currency Analysts

The Australian dollar has continued to strengthen on Tuesday with AUD/USD
posting 15-month highs above 0.7100.

Global risk appetite has remained strong while the US dollar has remained on
the defensive. Despite domestic coronavirus reservations, AUD/USD has also
broken above stiff selling interest around the important 0.7000 level.

Morgan Stanley looks at recent trends in leveraged trading on the Australian
dollar.

According to Morgan Stanley, there was also notable covering of short
Australian dollar positions in the options market with strong buying
interest in call options.

best exchange rates today“This seems to be a delayed reaction to the sharp
rally in the Chinese equity markets in the prior weeks and could thus be a
reflection of short-term investors looking for laggards.”

We continue to be bullish on AUD.

In comments on Tuesday, Reserve Bank of Australia Governor Lowe stated that
there was no change in the bank’s view that negative interest rates in
Australia are extremely unlikely.

Monetary financing of fiscal policy is also not an option under
consideration.

These comments ruled out two potential negatives for the Australian dollar.

Lowe also commented on the exchange rate and stated that there was no need
to intervene as the currency is in line with fundamentals.

Speculation that the Reserve Bank would look to push the currency weaker has
been a key element discouraging Australian dollar buying and Lowe’s comments
eased these fears which also contributed to further buying interest.

Sterling/Australian dollar is trading just off 10-month lows below 1.79
posted earlier in the day.--exchangerates

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold hits highest since 2011 on stimulus bets, silver at near 7-year peak

(Reuters) - Gold surged to a nine-year peak on Wednesday on bets that
central banks would introduce more stimulus measures to ease the economic
impact of coronavirus, while silver scaled a near seven-year high on hopes
of a rebound in industrial activity.

Spot gold hit its highest since September 2011 in early trade at $1,865.35,
and by 1113 GMT was up 0.9% at $1,858.39 per ounce. U.S. gold futures were
0.9% higher at $1,859.60.

With equities struggling to push higher, gold is likely to test $1,900/oz
over the next few days and weeks, Hewson said, adding that only an
improvement in the pandemic situation and the economy could stop gold’s bull
run.

Adding to a slew of global measures, European Union leaders on Tuesday
sealed a 750 billion euro ($867.5 billion) recovery plan, while White House
officials and top congressional Democrats also discussed another round of
relief measures.

Non-yielding gold has surged nearly 22% this year, bolstered by low interest
rates and the wave of stimulus.

Coronavirus cases have crossed the 15-million threshold globally.

Meanwhile, U.S.-China friction intensified after Washington told the Chinese
consulate in Houston to shut down in three days, prompting Europe shares to
slip.

Restricting bullion’s ascent, the dollar rose 0.1% against rivals.

Elsewhere, silver climbed 4% to $22.18 per ounce, having earlier hit its
highest since October 2013 at $22.82.

The performance of silver, which also has industrial uses, relative to gold
this month reflected market optimism for a global industry revival, said
Cailin Birch, global economist at the EIU.

Palladium slipped 1.7% to $2,121.10 per ounce and platinum rose 0.8% to
$889.13. ($1 = 0.8645 euros)

Silver leads the precious metals sector higher — MKS

(Kitco News) Silver prices are leading the precious metals sector higher as
sentiment remains “buoyant,” says MKS Pamp Group. “Sentiment in the precious
complex remained buoyant as silver leads the sector higher. 

Silver was the standout 
 The gold/silver ratio broke to multi month lows
around the 92 level. The Philadelphia gold and silver index rose 2.98% to
144.34. Investors in Asia were happy to buy into the silver strength,” MKS
says. 

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

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
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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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