Bulls n Bears Daily Market Commentary : 02 June 2020

Wed Jun 3 04:56:40 CAT 2020

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Bulls n Bears Daily Market Commentary : 02 June 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$55,390,397.70 with foreign buys at ZWL$21,139,380.20 and
foreign sales were ZWL $13,970,348.00 Total trades were 267.

The All Share index added another 111.14 points to close at 1,380.56 points.
DELTA gained $3.3102 to $21.7095, SEECO INTERNATIONAL LIMITED rose by
$2.8318 to

$17.2000 and OLD MUTUAL LIMITED went further up by $2.1721 to $92.1721.
HIPPO VALLEY ESTATES also increased by $2.0000 to $12.1500 and RIOZIM
(RIOZ.zw) traded

$1.5932 stronger at $9.6400.

Trading in negative; PPC lost $0.4915 to $5.0085, TSL  eased $0.3885 to
settle at $4.3615 and CBZ traded $0.0879 weaker at $13.1621. AFRICAN SUN
also decreased by $0.0564 to $0.9336 and STAR AFRICA CORPORATION  was
$0.0025 lower at $0.1875.

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Global Currencies & Equity Markets

South Africa

South African rand, stocks jump as lockdowns eased

(Reuters) - South Africa’s rand jumped more than 1% to a 2-1/2 month high on
Tuesday in an emerging market rally spurred by growing hopes for a global
economic recovery, prompting investors to ditch safe-havens for high
yielding assets.

At 1530 GMT, the rand was 1.34% firmer at 17.1340 per dollar, its best since
March 19 and close to technical resistance near 17.10 that could unlock
further gains.

The currency ended May on the front foot, buoyed by the South African
central bank’s support for the economy, including a fourth lending rate cut
in as many months and a bond-buying programme that has eased liquidity
strains.

The further easing of nationwide lockdown restrictions on Monday, allowing
firms and mines to operate at full capacity and more freedom of movement for
consumers, has also improved sentiment towards Africa’s most industrialised
economy.

That has coincided with growing appetite for high-yielding - albeit riskier
- emerging market assets, spurred by an easing of lockdowns around the world
as coronavirus infections stabilise and stimulus measures soothe investors’
growth worries.

Bonds also rallied, with the yield on the benchmark down 15.5 basis points
(bps) to 7.335% and that on the 2030 paper falling 2.5 bps to 8.735%.

Stocks enjoyed gains too, in line with global markets, which reached
three-month highs.

The Johannesburg Stock Exchange’s Top-40 index rose 2.91% to 48,318 points,
while the broader All-Share index strengthened just over 3% to 52,496
points.

Uganda

Ugandan shilling unchanged as some players pare positions

(Reuters) - The Ugandan shilling traded unchanged on Tuesday, as some
players in the interbank market pared their hard currency positions amid
flat appetite.

At 0921 GMT commercial banks quoted the shilling at 3,765/3,775, same level
as Monday’s close. 

 <mailto:info at bulls.co.zw> 

GLOBAL MARKETS

Asian stocks set to gain as stimulus hopes support risk appetite

(Reuters) - Asian stocks were poised to follow the global rally on Wednesday
as hopes of more government stimulus bolstered riskier assets and
overshadowed a host of other worries from the coronavirus to Hong Kong and
growing U.S. civil unrest.

E-mini futures for the S&P 500 were up 0.3% and Japan’s Nikkei 225 futures
were 1.6% higher in Asia on Wednesday morning, while Australian S&P/ASX 200
futures rose 0.58% in early trading.

That comes after stocks in the United States, Europe and emerging markets
hit their highest levels on Tuesday since early March and as bidding for
riskier currencies pushed the dollar toward three-month lows and oil neared
three-week highs.

>From its March 23 low, MSCI’s gauge of stocks across the globe was up 35%.
Despite lockdowns to control the COVID-19 pandemic, the global index is down
year-to-date only about 8%.

U.S. stocks indexes rose about 1% even as the worst civil unrest in decades
left dozens of cities under curfews following protests over the death of an
unarmed black man in police custody.

With its gains, the U.S. tech-heavy Nasdaq Composite is down less than 3%
from its pre-pandemic record highs.

The U.S. Treasury yield curve steepened, reflecting the sale of more
government debt to finance massive stimulus efforts. The gap between yields
on 5- and 30-year Treasuries reached 116 basis points on Tuesday, its
highest since early 2017.

Expectations for additional support from the European Central Bank and the
German government boosted European stocks and the euro on Tuesday.

Volkswagen, Daimler and BMW, for example, gained more than 5% on confidence
that Germany’s proposed 5 billion euro ($5.6 billion) stimulus package will
boost car sales.

The ECB is expected to ramp up stimulative bond purchases when it meets on
Thursday.

Oil prices climbed more than 3%, or $1 a barrel, on Tuesday on renewed U.S.
demand for gasoline and hopes that major crude producers will agree this
week to extend output cuts. U.S. West Texas Intermediate crude (WTI) settled
at $36.81 and Brent crude settled at $39.57 a barrel.

Gold retreated 1% on Tuesday amid the broader optimism. U.S. gold futures
settled down 0.9% at $1,734.

Gold is still up more than 18% from a low of $1,450.98 in March because of
the economic damage from the pandemic and the massive amounts of money
coming from central banks.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper and aluminium touch highest since March on China recovery

(Reuters) - Copper and aluminium prices climbed to their highest in more
than two months on Tuesday as more signs emerged that the Chinese economy is
extending its recovery from the coronavirus outbreak.

Tight scrap supplies and strong physical demand for copper in China, the
world’s biggest metals consumer, are encouraging bearish speculators to
close out positions and support its rebound in recent weeks, said Deutsche
Bank analyst Nicholas Snowdon.

Three-month copper on the London Metal Exchange (LME) was up 0.6% at $5,519
a tonne by 1600 GMT, its highest since March 13.

Copper, widely used in the construction, transport and power sectors, has
gained 26% on the LME since hitting a 45-month low of $4,371 on March 19.

LME aluminium climbed 1.1% to $1,554.50 a tonne, its strongest since March
25.

* CHINESE STOCKS: Bonded warehouse copper stocks in China SMM-CUR-BON rose
by 2,000 tonnes to 212,000 tonnes last week, according to Shanghai Metals
Market, representing the first rise in nine weeks.

More gains are expected as copper output resumes in Peru after
coronavirus-related closures, Commerzbank said in a note.

* PRICES: LME zinc slipped 0.2% to $2,019 a tonne and lead advanced 2.5% to
a seven-week peak of $1,722.

Nickel gained 1.7% to $12,840 while tin added 2% to $16,000, its highest
since March 13.

$1 = 7.1171 yuan 

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
contents or otherwise arising in connection therewith. Recipients of this
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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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