Bulls n Bears Daily Market Commentary : 01 June 2020

Tue Jun 2 04:31:49 CAT 2020

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Bulls n Bears Daily Market Commentary : 01 June 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$70,861,663.50 with foreign buys at ZWL$784,765.00 and
foreign sales were ZWL $13,742,443.00 Total trades were 195.

The All Share index opened the new month in the green as it adds 89.28
points to close at 1,269.42 points. OLD MUTUAL LIMITED gained $5.0833 to
$90.0000, INNSCOR   rose by $3.7606 to settle at $25.0106 and DELTA  was
$3.0360 firmer at $18.3993. SEEDCO  also increased by $2.4353 to settle at
$14.7816 and CBZ  traded $2.1894 stronger at $13.2500.

Gains were offset by losses in HIPPO VALLEY ESTATES which dropped $2.0000 to
$10.1500, FIRST MUTUAL PROPERTIES lost $0.1501 to $1.8000 and TURNALL

  was $0.1000 lower at $0.7000. ECONET  also decreased by $0.0744 to
$7.51300 and MEIKLES  traded $0.0400 weaker at $11.9000.

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Global Currencies & Equity Markets

South Africa

South Africa's rand advances on easing coronavirus fears

(Reuters) - South Africa’s rand firmed more than one percent on Monday,
lifted by hopes of economic recoveries at home and abroad as more countries
eased coronavirus lockdowns.

Stocks rose as factories, restaurants, mines and shopping malls reopened and
millions returned to work.

At 1500 GMT, the rand was 1.03% firmer at 17.3500 per dollar, after closing
at 17.5300 on Friday in New York, adding to gains of more than 8% in May in
an advance spurred mainly by offshore factors and dampening COVID-19
worries.

Manufacturing PMI recovered slightly in May from April’s record low,
although factory activity still contracted heavily, while the world’s no.2
economy, China, also recorded improved factory activity.

Some relief also came from easing trade tensions between China and the
United States. On Monday, Washington stopped short of imposing new tariffs
or sanctions on Beijing and left the so-called Phase 1 trade deal intact.

Local economic data was mixed. Factory activity inched up in May but
remained in overall contraction. New car sales tumbled again, down 68%.

Africa’s most industrialised economy was already in recession when the
pandemic struck. The central bank expects the economy to shrink 7% this
year, but economists expect an even deeper recession as well as deep job
losses.

The benchmark FTSE/JSE all share index rose 0.88% to close at 50930 points
while the top 40 companies’ index closed up 0.87% to 46,950.

Bonds also firmed, with the yield on the 2030 bond down 13.5 basis points to
8.76%.

Uganda

Uganda shilling strengthens, helped by tea, gold dollar inflows

(Reuters) - The Ugandan shilling strengthened on Monday on the back of
weaker importer demand and dollar inflows from tea, coffee and gold exports,
traders said. 

At 0814 GMT, commercial banks quoted the shilling at 3,765/3,775, compared
to Friday's close of 3,780/3,790.

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EMERGING MARKETS

Stocks roar higher on relief over Trump's China response

(Reuters) - Emerging market stocks surged to 12-week highs and currencies
rallied against a dented dollar on Monday, as risk appetite got a boost
after Washington’s action against a new security law for Hong Kong was less
severe than feared.

U.S. President Donald Trump began the process of ending special U.S.
treatment for Hong Kong to punish China for the new law, but stopped short
of new sanctions or tariffs and left their Phase-1 trade deal untouched.

Hong Kong shares surged 3.4% as did those in India , while Chinese blue
chips posted their best session in three months, up 2.7%. The yuan firmed as
much as 0.4% before trading flat, while trade-sensitive South Korea’s won
gained 0.7%.

Optimism also stemmed from hopes of an economic recovery as more countries
eased the coronavirus pandemic-induced lockdowns. South Africa, Turkey and
India were some of the countries that took measures over the weekend to
further open up their economies.

South Africa’s rand rose 0.1%, while shares climbed 1.6%. Stocks in Turkey,
Russia, Poland and rose between 0.1% and 1%.

MSCI’s index of developing market shares jumped 2%, although some gains
could be retraced, with Wall Street stock futures pointing to a lower open
amid violent protests in the United States against police brutality.

The developing world currency index touched its highest since mid-March.

Russia’s rouble jumped to a near three-month high. Data showed manufacturing
shrank at a slower rate than a month before in May.

Reuters reported that Russia will start administering its first approved
antiviral drug to treat coronavirus patients next week which it hopes will
speed up a return to normal economic life.

With 405,843 cases, Russia has the third highest number of infections in the
world after Brazil and the United States, although a much lower fatality
rate with 4,693 official deaths.

Hungary’s forint touched an 11-week high against a stronger euro, while the
Polish zloty firmed 0.6%.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper scales March highs on improving demand prospects

(Reuters) - Copper prices climbed to three-month highs on Monday as stronger
manufacturing data from top consumer China and the loosening of lockdowns
imposed to contain the coronavirus stoked expectations of healthier demand.

Benchmark copper on the London Metal Exchange (LME) was up 1.9% at $5,480 a
tonne at 1605 GMT.

Prices of the metal, used widely in power and construction, earlier touched
$5,488 a tonne, the highest since March 13.

“Barring the tail risks of a second wave (of the virus), we seem to be past
the trough, but it is a gradual grind upwards...and we expect metal prices
to end the year below where we started,” Capital Economics analyst Kieran
Clancy.

INDUSTRY: A private business survey showed China’s factory activity
unexpectedly returned to growth in May, while a similar survey for larger
Chinese companies showed rising activity in the services and construction
sectors.

However, both surveys showed export orders shrank.

TECHNICALS: Copper has breached the 100-day moving average at $5,442.
Traders say stronger momentum is needed for an attempt at the upside and
resistance at the $5,590 Fibonacci retracement level.

INVENTORIES: Copper stocks MCUSTX-TOTAL in LME-registered warehouses have
risen to 255,725 tonnes, double the level in the middle of January.

Sliding tin stocks MSNSTX-TOTAL in LME warehouses, at a one-year low of
2,455 tonnes, and large <0#LME-WHC> holdings of warrants and cash contracts
CMSN0-3 are behind the elevated premium for cash tin over the three-month
contract.

The premium touched a one-year high above $190 a tonne in May and was last
at $97.

Three-month tin was up 1.8% at $15,690.

OTHER METALS: Aluminium was down 0.6% at $1,538 a tonne, zinc rose 1.5% to
$2,019, lead gained 0.3% to $1,678 and nickel added 2.5% to $12,635.

Gold edges lower as economies open up

(Reuters) - Gold prices inched lower on Tuesday on signs of economic
recovery as more countries ease lockdown curbs, while protests in the United
States, Sino-U.S. tensions and a weaker dollar limited losses.

    FUNDAMENTALS

* Spot gold  was down 0.1% at $1,738.12 per ounce, as of 0110 GMT. U.S. gold
futures  rose 0.2% to $1,753.70.

* In a sign that the worst of the economic downturn from the coronavirus
pandemic might be over, U.S. manufacturing activity ticked up slightly from
a 11-year low.             

* China's factory activity unexpectedly returned to growth in May as
restrictions eased, but the improvement was marginal as export orders
continued to shrink, a survey showed.

* U.S. President Donald Trump vowed to end unrest in major cities across the
nation "now," and stated he would deploy the military if state governors
refused to call out the National Guard.             

* The protests started over the death of George Floyd, a 46-year-old African
American, who died in police custody; and the closely packed crowds have
sparked fears of a resurgence of COVID-19, which has killed more than
104,000 Americans.

* The U.S. is considering welcoming people from Hong Kong in response to
Beijing's push to impose a national security legislation in the city, U.S.
Secretary of State Mike Pompeo said.    

* The dollar hovered near an over two-month low reached on Friday. 

* Gilead's antiviral drug remdesivir provided a modest benefit in patients
with moderate COVID-19 given a five-day course of the treatment, while those
who received a

10-day course did not fare as well.    

* Reflecting investor sentiment, SPDR Gold Trust , the world's largest
gold-backed exchange-traded fund, said its holdings, rose 0.5% to 1,128.40
tonnes on Monday.             

* Palladium rose 0.2% to $1,964.87 per ounce, and platinum was up 0.3% to
$850.19, while silver fell 0.5% to $18.17.

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

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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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