Bulls n Bears Daily Market Commentary : 08 June 2020

Tue Jun 9 04:50:58 CAT 2020

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Bulls n Bears Daily Market Commentary : 08 June 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$99,321,822.50 with foreign buys at ZWL$31,142,074.00 and foreign sales were ZWL $2,279,287.75 Total trades were 286.

The All Share index opened the new week in the green as it adds 16.03 points to close at 1,597.88 points. MEIKLES  gained $1.3898 to $14.9999, SEEDCO rose by $1.3152 to close at $22.3152 and ZB FINANCIAL HOLDINGS was $1.0600 firmer at $6.3600. DELTA also increased by $0.6550 to $29.7081 and FBC HOLDINGS  was $0.5500 higher at $3.3050.

Trading in the negative; OLD MUTUAL LIMITED  eased $1.7077 to end at $91.1874, CASSAVA SMARTECH  lost $0.4616 to $9.0384 and SEEDCO INTERNATIONAL

LIMITED  retreated by $0.2000 to settle at $24.5000. ECONET  also decreased by $0.0706 to $9.8925 and AFRICAN SUN  was $0.0694 weaker at $1.2198.

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Global Currencies & Equity Markets

Uganda

Uganda shilling inches up on emerging markets optimism

(Reuters) - The Uganda shilling edged up on Monday mainly due to positive sentiments following the recent, sustained gains by emerging assets.

At 1036 GMT, commercial banks quoted the shilling at 3,725/3,735, compared with Friday's close of 3,745/3,755.

South Africa

South Africa's rand creeps up as risk sentiment holds, stocks slip

(Reuters) - South Africa’s rand inched firmer on Monday as hopes of a rapid global economic recovery from the COVID-19 pandemic continued to feed risk appetite.

At 1550 GMT the rand was up 0.11% at 16.8000 per dollar, having earlier touched a session-best of 16.7100 in an advance across emerging markets stemming mainly from Friday’s better than expected jobs data from the United States.

Government bonds turned weaker following lat week’s rally, with the yield on the 10-year instrument up 7 basis points to 9.01%.

The Johannesburg stock market slipped as banks and industrial companies fell despite a rise in crude and gold prices.

The FTSE/JSE Top-40 index was down 0.16% to end the day at 50,118 points while the all share index fell 0.07% to close at 54,684 points.

Shares in South African petrochemicals giant Sasol increased by almost 15% as crude oil prices went up as the OPEC+ nations agreed output cuts through July.

However, crude dipped later on Monday as Saudi Arabia clarified that there will be no additional voluntary cuts by the Gulf nations in July.

The mining index was up 1.3% and the gold index index rose 3.2% on Monday. 

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GLOBAL MARKETS

Asia stocks set to gain after recovery hopes push Wall Street higher

(Reuters) - Asian stocks were set to climb on Tuesday as confidence in an economic recovery pushed the Nasdaq benchmark to a record high, although doubts about crude supply cuts were likely to keep oil prices under pressure.

Markets have been encouraged by a May U.S. jobs report last week that showed a surprise fall in the unemployment rate, bolstering views that the worst of the downturn is over and that the economy was moving towards a quick rebound.

Australian S&P/ASX 200 futures were up 0.67% and Hong Kong’s Hang Seng index futures rose 0.52%. However, Japan’s Nikkei 225 futures were down 0.04%.

The Nasdaq hit a record high close on Monday, becoming the first of Wall Street’s three main indexes to bounce back from the market crash caused by the pandemic.

Financial, automotive and retail-oriented and energy shares - the stocks most beaten-down since the pandemic slammed markets - have been leading equity indices higher recently.

U.S. stocks also added to gains late in the trading session after the Federal Reserve eased the terms of its “Main Street” lending program to encourage more businesses and banks to participate.

On Wall Street, the Dow Jones Industrial Average rose 1.7%, the S&P 500 gained 1.20% and the Nasdaq Composite added 1.13%.

Oil prices fell after Saudi energy minister Prince Abdulaziz bin Salman said on Monday that the kingdom and Gulf allies Kuwait and the United Arab Emirates would not cut an extra 1.18 million bpd in July as they are doing this month.

The Organization of Petroleum Exporting Countries and others had on Saturday agreed to sustain cuts equal to about 10% of global oil supply.

U.S. benchmark crude fell $1.36 a barrel to settle at $38.19 a barrel, while Brent settled down $1.50 at $40.80 a barrel.

In currency market, the dollar slid and commodity currencies gained as risk appetite ramped up. The New Zealand dollar rose to its highest in nearly four months after the government said it had stopped local transmission of the coronavirus.

The dollar index fell 0.053%, with the euro up 0.02% to $1.1294.

The Japanese yen weakened 0.01% versus the greenback at 108.44 per dollar, while sterling was last trading at $1.2733, up 0.09% on the day.

Yields on top-rated German government bonds dipped but remained near more than two-month highs hit last week on the back of improving sentiment in world markets.

U.S. Treasury yields also fell, with the 10-year note down 2.8 basis points at 0.8785%.

Gold rose after a steep decline, boosted by hopes of a dovish monetary policy outlook from the Federal Reserve after the U.S. central bank ends a two-day meeting on Wednesday.

Investors are now seeking clarity from Fed Chair Jerome Powell on monetary and fiscal policies.

U.S. gold futures settled up 1.3% at $1,705.1 an ounce.

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Commodities Markets

Green aluminium needs common standard, labelling plan -Carbon Trust

(Reuters) - Common standards and clear labelling should be agreed for so-called green aluminium so industrial users can identify low-carbon material amid competing claims by producers, consultancy the Carbon Trust said on Monday.

Purchasers of aluminium such as the auto and packaging industries are increasingly seeking to lower their own carbon footprints and buy material produced with low carbon dioxide emissions.

But they are faced with a range of “green” aluminium products from producers such as Rusal, Norsk Hydro and Rio Tinto .

Varying standards and lack of common measurements create difficulties, said Hugh Jones, managing director of UK-based non-profit Carbon Trust, which has proposed a new labelling system.

The Carbon Trust has proposed a set-up which labels aluminium as low-carbon if it is responsible for emitting 4 tonnes or less of CO2 per tonne of metal produced, he said.

Aluminium produced using hydro power typically produce around two tonnes of CO2 emissions while smelters dependent on coal-fired electricity can produce up to 18 tonnes.

The system would initially use methodology put together by the International Aluminium Institute (IAI), but could later be expanded, Jones added.

About 60% of aluminium - widely used in transport, packaging and construction - is produced used coal-fired power, the bulk of it in top producer China. Last year, 63.7 million tonnes of primary aluminium were produced, according to the IAI.

The London Metal Exchange said on Friday it was looking into providing a trading platform that consumers can use to source low-carbon aluminium.

Gold rises as investors bet on dovish signals from Fed

(Reuters) - Gold rose on Monday after the previous session’s steep fall, boosted by hopes of dovish monetary policy from the U.S. Federal Reserve.

Spot gold rose 0.5% to $1,692.86 per ounce by 12:23 p.m. ET (1623 GMT). U.S. gold futures rose 0.9% to $1,698.10.

Bullion fell as much as 2.4% to $1,670.14 on Friday, its lowest in over a month, after an unexpected rise in U.S. employment increased hopes for a swift recovery in the global economy and boosted investor appetite for riskier assets.

Gold’s uptick was also technical in nature, Saxo Bank analyst Ole Hansen said.

Market participants are now waiting for the U.S. central bank’s two-day policy meeting, which ends on Wednesday, but have stopped pricing in the possibility of negative interest rates after Friday’s jobs report.

Gold tends to gain when interest rates are low, which reduces the opportunity cost of holding non-yielding bullion. Gold is also seen as a hedge against inflation.

Holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, dipped 0.4% on Friday. Speculators also cut their bullish positions in COMEX gold in the week to June 2.

In other precious metals trading, spot silver advanced 1.0% to $17.54 an ounce, platinum fell 0.4% to $832.34 per ounce and palladium jumped 2.4% to $2,000.70. 

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 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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