Bulls n Bears Daily Market Commentary : 23 July 2020

Thu Jul 23 17:08:35 CAT 2020

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 23 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

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

Sudan

Sudan to begin currency adjustment in August

(Reuters) - Sudan will begin a currency adjustment program in August, aiming
to reach a full currency float in two years, a source told Reuters on
Wednesday.

The private sector will be allowed to import fuel using dollars at the free
market price in August as well, the source said. These reforms come as part
of the 2020 budget to be formally passed by Sudan’s cabinet and sovereign
council, acting in parliamentary capacity within days, the source said. 

South Africa

South Africa's rand up before central bank's rate decision

JOHANNESBURG (Reuters) - South Africa’s rand gained early on Thursday,
before a central bank decision on interest rates, as tensions between China
and the United States resurfaced and weakened the dollar.

At 0650 GMT the rand was 0.27% firmer at 16.4275 per dollar from an
overnight close of 16.4850.

The rand has strengthened most of the week, spurred by the rescue package
the European Union agreed and by investor hopes of a quick global economic
recovery.

The currency has managed to break through the 16.50 technical resistance
mark but has struggled to get beyond that, with a surge of COVID-19 cases
locally and abroad keeping bullish investors cautious.

The South African Reserve Bank concludes its three-day policy meeting on
Thursday, with most analysts expecting it to cut rates by 25 basis points
but some forecasting no change.

That uncertainty, combined with simmering tensions between Beijing and
Washington, has weighed on sentiment and kept big bets off the table.

The United States has given China until Friday to close its consulate in
Houston amid accusations of spying.

Bonds rose, with the yield on the benchmark 2030 issue down 3.5 basis points
at 9.20%.

 <mailto:info at bulls.co.zw> 

EMERGING MARKETS

Stocks, FX gain with wave of central bank meetings in focus

(Reuters) - Emerging market stocks eked out gains on Thursday as investors
remained hopeful of more stimulus to support economic recovery, with focus
shifting to central bank meetings in Turkey and South Africa.

The MSCI’s index for developing world stocks rose 0.2%, with the majority of
its gains capped by worries about deteriorating relations between the United
States and China.

Market participants were, however, hopeful of a possible coronavirus vaccine
and more stimulus to help pandemic-struck nations out of a downturn, with
the MSCI index rising nearly 44% from a trough in March.

South Africa’s rand firmed with money markets pricing in a 25 basis points
cut to repo rate by South Africa’s Reserve Bank for the fifth time this
year, to an all-time low of 3.5%.

In Turkey, its central bank is expected to keep its policy rate unchanged at
8.25%, after it halted a nearly year-long easing cycle last month citing a
rise in inflation. The Turkish lira remained flat against the dollar.

Data showed Turkey’s consumer confidence index fell to 60.9 points in July
from 62.6 the previous month, dropping deeper into pessimistic territory.

Ukraine’s central bank is likely to cut its key interest rate from 6% on
Thursday at the first monetary policy meeting since a new governor took
charge promising to make loans cheaper for businesses, a Reuters poll showed
on Wednesday.

Russia’s rouble firmed with higher oil prices, while central and eastern
European currencies including those of Hungary, Poland and Romania rising
slightly against the euro.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper rises as declining LME stockpiles tighten market

(Reuters) - Copper prices rose on Thursday as available stockpiles in London
Metal Exchange (LME) warehouses tumbled to a fifth of their level two months
ago and a spike in the cost of metal for immediate delivery pointed to a
tightening market.

Benchmark copper on the LME was up 0.4% at $6,510 a tonne in official
trading, pushing towards last week’s two-year high of $6,633.

Copper has rebounded from a low of $4,371 in March as the coronavirus
spread, and Chinese efforts to stimulate its economy by building
metals-intensive infrastructure will support prices, said Capital Economics
analyst Kieran Clancy.

STOCKS: On-warrant copper inventories in LME-registered warehouses fell to
55,950 tonnes after 10,225 tonnes of cancellations. About 250,000 tonnes
were on warrant in mid-May. MCUSTX-TOTAL

SPREAD: The premium for LME cash copper over three-month metal jumped to a
16-month high of $24.50 a tonne, signalling tighter nearby supply. Cash
copper was at a $30 discount to the three-month contract in May. MCU0-3

CHILE: Miner Antofagasta and workers at its Zaldivar mine decided to extend
government-mediated talks for a new union contract and avoid a strike.

COLUMN: A perfect storm in scrap is copper’s hidden bull driver, writes Andy
Home.

MARKETS: European and U.S. stock markets rose despite worries about rising
cases of COVID-19 and U.S.-China tensions.

TESLA/NICKEL: Elon Musk, boss of electric car maker Tesla, has urged miners
to produce more nickel for batteries.

ALUMINIUM: China’s June aluminium imports surged by more than 490% year on
year to an 11-year high of 288,783 tonnes as traders took advantage of lower
prices abroad.

Citi raised its aluminium price forecasts to $1,900 a tonne in 2021 and
$2,000 a tonne in 2022.

ECONOMY: Surveys showed growing consumer and business confidence in France
and Germany, but South Korea plunged into recession in the second quarter.

OTHER PRICES: LME aluminium was up 0.4% at $1,697.50 a tonne, zinc rose 0.1%
to $2,214, nickel gained 2.8% to $13,498, lead added 0.4% to $1,813 and tin
was up 0.7% at $17,703.

China's aluminium imports jump to 11-year high on lower overseas prices

(Reuters) - China’s June aluminium imports surged by more than 490% from a
year earlier, customs data showed on Thursday, to their highest in 11 years,
as traders snapped up lower-priced overseas metals.

Imports of unwrought aluminium and aluminium products into China, the
world’s top aluminium producer which rarely imports large amounts of the
metal, were 288,783 tonnes last month, the General Administration of Customs
said.

That was more than double May’s imports of 119,145 tonnes and a jump of
493.1% from June 2019, customs said, as buyers took advantage of the
differences between domestic and international prices. Imports were the
highest since June 2009.

China shipped out 354,038 tonnes of unwrought aluminium and aluminium
products last month, down 30% year-on-year, customs data showed.

Imports in January to June were 816,592 tonnes, up 219.2% year-on-year,
while exports were 2.37 million tonnes, down 20.6% from a year earlier,
leaving China a net exporter of 1.5 million tonnes in the first six months
of 2020.

Shanghai aluminium prices rose 23% in the second quarter as Chinese
consumption roared back from a coronavirus-driven collapse. However, London
prices only gained 6.1% in April to June amid sluggish demand outside of
China, and after a 15.7% dip in the first quarter.

The spread between Shanghai and London cash aluminium prices widened to
almost 1,800 yuan ($258.16) a tonne in late May, the most since January
2014, opening up a so-called arbitrage for primary metal to head to China
from overseas.

China’s imports of unwrought, alloyed aluminium - described by analysts as
secondary ingots - have also been rising in recent months to compensate for
curbs on inbound scrap metal shipments.

Customs is due to release a breakdown of imports by origin and type of
aluminium and other commodities on Saturday. ($1 = 6.9723 yuan) 

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
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.

(c) 2020 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

Invest Wisely!

Bulls n Bears 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200723/b2d4764a/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200723/b2d4764a/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 30155 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200723/b2d4764a/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 109949 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200723/b2d4764a/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 40892 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200723/b2d4764a/attachment-0011.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 30141 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200723/b2d4764a/attachment-0012.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200723/b2d4764a/attachment-0013.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image007.jpg
Type: image/jpeg
Size: 30131 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200723/b2d4764a/attachment-0014.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image008.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200723/b2d4764a/attachment-0015.jpg>