Bulls n Bears Daily Market Commentary : 16 June 2020

Wed Jun 17 04:53:56 CAT 2020

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Bulls n Bears Daily Market Commentary : 16 June 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$81,681,883.00 with foreign buys at ZWL$6,048,455.00 and
foreign sales were ZWL $4,127,589.00 Total trades were 362.

The All Share index gained 36.11 points to close at 1,591.81 points. CBZ
rose by $2.7168 to close at $24.7168, AFDIS added $2.1033 to close at
$12.9233 and MEIKLES  was $1.5546 firmer at $13.5546. ZB FINANCIAL  also
increased by $1.5200 to $9.1500 and FBC HOLDINGS  was $1.2075 stronger at
$7.2900.

Gains were offset by losses in DELTA which eased $0.40800 to $24.6468,
RIOZIM lost $0.3000 to $12.0000 and FIRST MUTUAL PROPERTIES retreated by
$0.2504 to $1.9271. SEEDCO INTERNATIONAL LIMITED   also decreased by $0.1714
to $21.007 and FIRST MUTUAL LIMITED traded $0.1000 weaker at $3.7000.

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Global Currencies & Equity Markets

Kenya

Kenyan shilling holds steady, remittances and horticulture exports help

The Kenyan shilling held steady on Monday as dollar demand from oil and
merchandise importers was matched by  remittances and horticulture export
proceeds, traders said. 

At 0840 GMT, commercial banks quoted the shilling at 106.45/65 per dollar,
the same as Friday's close. 

Lebanon

Hezbollah leader says dollar injections needed amid currency's slide

(Reuters) - Lebanon’s Hezbollah leader Sayyed Hassan Nasrallah said on
Tuesday that an injection of dollars must be made into the market to bolster
the country’s pound currency amid a recent collapse in value.

In a televised speech, Nasrallah said ongoing talks between crisis-hit
Lebanon and the International Monetary Fund for a reform programme could
take months and “there is talk of a year,” asking, “Can the country bear a
year?” 

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GLOBAL MARKETS

Asian stocks set to rise as drug trials, data push Wall Street higher

(Reuters) - Asian stocks were set to climb on Wednesday after another late
Wall Street surge in response to upbeat trial results for a COVID-19
treatment and data showing U.S. consumers spent big in May.

The prospects of fresh support from the Federal Reserve and Bank of Japan
also supported global equity markets.

The upbeat sentiment weighed of U.S. Treasuries and supported demand for
lower-rated southern European debt. Not everyone was in the mood for risk,
however, with safe-have gold pushed higher on news of a fresh coronavirus
outbreak in China.

At the beginning of his two-day testimony before Congress, Fed Chairman
Jerome Powell said a full recovery was unlikely until the public is
confident the disease had been contained.

In Asia, Australian S&P/ASX 200 futures were up 0.5%, while Japan’s Nikkei
225 futures were up 0.2% but down 0.6% from the underlying index’s Tuesday
close.

Hong Kong’s Hang Seng index futures were down 0.3%.

U.S. retail sales jumped a record 17.7% in May, blowing past the 8% increase
analysts expected and supporting views the U.S. recession might be drawing
to an end.

Also cheering investors were trial results showing dexamethasone, a cheap
and widely used steroid, reduced death rates by about one-third among the
most severely ill COVID-19 patients.

On Wall Street, the Dow Jones Industrial Average rose 2.0%, the S&P 500
gained 1.9% and the Nasdaq Composite added 1.8%. That followed a broad 3%
rally in major European bourses.

The MSCI’s gauge of stocks across the globe gained 2.2%.

News elsewhere contributed to the bullish sentiment.

Germany’s monthly ZEW investor sentiment survey showed investors are
confident that Europe’s largest economy will be over the worst of the
coronavirus impact by the end of the European summer.

The dollar was mostly stronger, with the euro down 0.55% to $1.126 and the
Japanese yen up 0.01% at 107.32.

The British pound rose on unemployment numbers that were not as bad as
feared and friendlier Brexit talks.

The BOJ increased its lending packages for cash-strapped firms to $1
trillion from about $700 billion, while keeping rates steady, sticking to
its view that the Japanese economy will gradually recover from the pandemic.

The yield on the benchmark U.S. 10-year Treasury notes rose 4.7 basis points
to 0.7495%.

German, French, Dutch and other core yields also rose. Riskier Italian
yields fell to their lowest level since the end of March, and the iTraxx
European crossover index, which reflects the cost of insuring against
junk-rated corporate bond defaults, fell to its lowest level in six days.

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Commodities Markets

Copper advances as latest Fed stimulus sparks buying spree

(Reuters) - Copper prices climbed on Tuesday as the Federal Reserve’s latest
move to provide further support for the U.S. economy helped to boost
sentiment, but gains were capped by worries about prospects for demand in
top consumer China.

Benchmark copper on the London Metal Exchange was up 0.3% at $5,722 a tonne
at 1604 GMT from an earlier high of $5,836 a tonne. Prices of the metal used
to make products widely used in the power and construction industries last
week rose to $5,928 a tonne, the highest since Jan. 24 and a 35% increase
since the middle of March.

SUPPORT: The Federal Reserve on Monday launched its Main Street Lending
Program, the most complex programme undertaken yet to help keep the backbone
of the economy from buckling under the strains of the coronavirus pandemic.

DOLLAR: Fed stimulus has weighed on the U.S. currency, which when it falls
makes dollar-denominated commodities cheaper for buyers in other currencies.
This relationship is used by funds to generate buy and signals from
numerical models.

GROWTH: China’s factories stepped up production for a second straight month
in May, although the weaker-than-expected gain suggested the recovery
remained fragile.

TECHNICALS: Major support for copper prices is at $5,660 where the 200-day
moving average currently sits.

TIN SPREADS: Historically low stocks of tin MSNSTX-TOTAL in LME registered
warehouses have fuelled worries about nearby supplies on the exchange.

That pushed the premium for the cash over the three-month tin contract to
$372.5 on Monday, the highest since August 2015. It was last at $215 a tonne
MSN0-3.

Three-month tin rose 0.2% to $16,875 a tonne.

OTHER METALS: Aluminium was up 1.2% at $1,596, zinc gained 0.8% to $1,999,
lead added 1.5% to $1,764 and nickel climbed 2.1% to $13,005 a tonne. 

Russia's Jan-Feb gold output at 39.71 tonnes -finance ministry

(Reuters) - Russia produced 39.71 tonnes of gold in January and February
this year, up from the 36.30 tonnes it produced in the same period in 2019,
the finance ministry said on Tuesday.

The country also produced 142.30 tonnes of silver during that same period,
higher than the 140.84 tonnes it had in January and February last year. 

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
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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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