Bulls n Bears Daily Market Commentary : 09 June 2020

Wed Jun 10 04:37:17 CAT 2020

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Bulls n Bears Daily Market Commentary : 09 June 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$51,079,635.95 with foreign buys at ZWL$5,315,480.00 and
foreign sales were ZWL $478,450.00 Total trades were 234.

The All Share index retreated by 51.80 points  to close at 1,546.08 points.
OLD MUTUAL LIMITED eased further by $6.1301 to $85.0573, DELTA  decreased by
$5.0607 to $24.6474 and SEEDCO INTERNATIONAL LIMITED was $3.5512 lower at
$20.9488. SEEDCO also went down by $2.6480 to $19.6672 and INNSCOR   traded
$1.4231 weaker at $24.8478.

Losses were offset by gains in CAFCA  which added $4.5000 to $39.0000, HIPPO
VALLEY ESTATES gained $2.7868 to $16.7868 and CBZ was $1.4956 higher at
$17.4918. PPC  also increased by $1.0900 to $7.2900 and LAFARGE traded
$0.8400 firmer at $5.0400.

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Global Currencies & Equity Markets

South Africa

South Africa's rand flat, stocks slip as risk bulls pause for Fed meeting

(Reuters) - South Africa’s rand ended the local session largely unchanged on
Tuesday, pausing its rally as traders took profits after a strong advance by
emerging currencies spurred by global economic recovery hopes.

At 1550 GMT the rand was 0.02% firmer at 16.6770, barely moved from its
overnight close having touched a fresh two-month best of 16.6250 before
pausing as traders waited for the United States Federal Reserve’s policy
meeting.

Investors are looking ahead to Wednesday’s Fed announcement following the
two-day meeting. Speculation is growing that the U.S. central bank might
adopt yield targets on bonds, or some other measures to anchor long-term
yields.

Bonds weakened, with the yield on the 10-year government bond up 10.5 basis
points to 9.115%.

Stocks fell again on Tuesday, tracking global equities as traders bullish on
risk ran out of steam after days of rallying, with investors opting to bank
profits or head for safe-haven assets on the day.

The benchmark FTSE/JSE all share index shed 0.37% to close at 54,483 points.
The Top-40 index slipped 0.4% to end the trading at 49,915 points.

The slide in the market came despite gold mining companies in the country
posting hefty gains on the back of a steep rise in spot bullion, up 1.3% to
$1,715 per ounce at 1600 GMT.

The Johannesburg Stock Exchange’s (JSE) gold index, representing five major
gold companies, was up 3.74%. 

Kenya

Kenyan shilling inches down against the dollar

(Reuters) - The Kenyan shilling edged down on Tuesday due to an uptick in
demand for dollars by some importers. 

At 0800 GMT, commercial banks quoted the shilling at 106.20/40 per dollar,
compared with 106.10/30 at Monday's close.

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GLOBAL MARKETS

Asian shares slip after mixed Wall Street session

(Reuters) - Asian equities slipped on Wednesday after most U.S. stocks pared
gains made during their recent rally, although the Nasdaq benchmark reached
its second straight day at a record high as oil prices rose.

Investors adopted a more cautious stance as attention turned to the U.S.
Federal Reserve, which wraps up its two-day meeting later on Wednesday.

Australian S&P/ASX 200 fell 0.4%, Japan’s Nikkei 225 index lost 0.8% and
South Korea’s KOSPI slipped 0.3%.

No major policy announcements are expected from the Fed, but the U.S.
central bank will issue its first economic projections since December.
Investors will be watching as the Fed attempts to gauge the economic cost of
widespread pandemic-related lockdowns, as well as any hints of future
stimulus.

The Nasdaq’s 0.3% gain came on the back of strong gains in tech-related
shares, a day after the index became the first major Wall Street index to
confirm a new bull market. Apple, up 3.2%, gave the Nasdaq its biggest boost
on Tuesday.

But the Dow and S&P 500 benchmarks both fell. Financial and industrial
shares, which have been among stocks that have surged in recent weeks on
hopes of an improved economic outlook, were the biggest drags on the S&P 500
on Tuesday.

The Dow Jones Industrial Average fell 1.09% and the S&P 500 declined 0.78%.

MSCI’s gauge of stocks across the globe fell 0.5%, about 6% below its
all-time peak in February.

Oil prices closed higher as concerns about a resurgence in coronavirus cases
were offset by recent commitments from the major oil producers to rein in
production.

Brent oil futures rose 38 cents to settle at $41.18 a barrel, while U.S.
crude settled up 75 cents at $38.94.

In currency markets, the safe-haven yen and Swiss franc both gained against
the dollar for a second straight day this week.

The yen rose to one-week highs against the greenback, while the Swiss franc
climbed to its highest in more than two months versus the greenback.

Latin American stocks and currencies were down Tuesday as investors cashed
in after a recent rally. Regional currencies weakened ahead of the Fed
meeting.

The declines weighed on the broader emerging markets shares benchmark, which
was up 0.2%. The broader Latin American shares benchmark was down 0.85%.

Gold jumped 1.2% on Tuesday as investors sought refuge in the safe-haven
asset as they await remarks from the Fed meeting. U.S. gold futures settled
up 1% to $1,721.90 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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