Bulls n Bears Daily Market Commentary : 23 June 2020

Wed Jun 24 03:47:59 CAT 2020

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Bulls n Bears Daily Market Commentary : 23 June 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$54,328,347.15 with foreign buys at ZWL$431,749.00 and
foreign sales were ZWL $7,082,290.00 Total trades were 310.

The All Share index added another 17.87 points to close at 1,790.84 points.
CAFCA gained $5.0000 to $55.0000, AFDIS rose by $3.1000 to $18.6000 and
DELTA was $1.4005 stronger at $26.9296. FBC HOLDINGS also increased by
$1.2013 to settle at $16.0013 and RIOZIM traded $0.7500 higher at $11.25000.

Gains were offset by losses in OLD MUTUAL LIMITED which retreated by $2.1170
to close at $84.9946, CBZ  eased $1.9960 to $32.0040 and SEEDCO
INTERNATIONAL LIMITED  was $1.6716 lower at $26.8765. FIRST MUTUAL LIMITED
also decreased by $0.7545 to $3.5880 and ZB FINANCIALS lost $0.3921 to end
at $8.7579.

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Global Currencies & Equity Markets

Nigeria

Nigeria's Buhari sees threat to West African currency plan

(Reuters) - Nigerian President Muhammadu Buhari said on Tuesday that West
Africa’s plan to adopt a common currency was being put at risk by some
countries’ attempts to progress more quickly than the agreed timetable.

Nations in the region are aiming to adopt a single currency to boost trade
and economic growth.

Nigeria, the largest economy in West Africa, currently operates a managed
float for its currency, while several other countries peg theirs to the
euro.

Buhari told the heads of state of the 15-member West African Community of
African States in a virtual meeting that he was concerned francophone
countries - such as Ivory Coast and Senegal - had decided to replace their
currencies with the new unified one, the Eco, ahead of others.

Buhari said Nigeria was committed to the single currency and urged leaders
to take a common position to safeguard the region.

He acknowledged the impact of the COVID-19 pandemic could make member states
cautious about complying with agreed standards as economies face recession.
Several West African countries rely on commodities, whose prices are
regulated on international markets. 

South Africa

South African rand firmer as market awaits budget

(Reuters) - South Africa’s rand edged up on Tuesday as risk appetite
improved after President Donald Trump offered reassurance that a U.S. trade
deal with China was on track, quelling market concerns that Washington may
be ditching the agreement.

At 1500 GMT, the rand was trading at 17.2200 per dollar, 0.72% firmer than
its previous close.

White House trade adviser Peter Navarro said his comments that the trade
deal with China was “over” were taken out of context. Trump chimed in,
saying the Phase 1 trade deal struck with China in January was fully intact.

Locally, on the radar is Finance Minister Tito Mboweni’s emergency budget in
response to the COVID-19 crisis due on Wednesday that is expected to show a
markedly wider budget deficit.

Trump’s assurances boosted markets globally, including the Johannesburg
Stock Exchange (JSE). The benchmark FTSE/JSE all share index closed up 2.48%
to 55,574 points and the top 40 companies index gained 2.84% to end the day
at 51,295 points. Gold continued to be a preferred safe haven investment due
to a fear of a rebound in coronavirus cases with the JSE’s gold index up
over 6%.

Bonds weakened, with the yield on the 2030 government issue up 6 basis
points to 9.340%.

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EMERGING MARKETS

Stocks, FX rise on reassurance over U.S.-China trade deal

(Reuters) - Stocks in the developing world ticked higher on Tuesday after
U.S. President Donald Trump offered reassurance that a trade deal with China
was on track, even as coronavirus cases spiked globally.

Equity markets in Asia were initially hit by comments from White House trade
adviser Peter Navarro about the deal with China being “over” but erased
losses after he backtracked on his statement.

The MSCI index of emerging market equities jumped 0.9% after a soft start to
the week on concerns about a second wave of novel coronavirus infections
globally.

Emerging market stocks have recovered some lost ground from a pandemic-led
meltdown in March after stimulus measures taken by central banks and
governments globally, but a potential second wave of infections poses a
serious threat to the rebound.

Currencies of developing countries were supported by a weaker dollar.

The Russian rouble touched a two-week high against the dollar ahead of
auctions of Russian treasury bonds popular with foreign investors.

Turkey’s lira weakened as investors remained anxious about data on Monday
which showed a 99.3% plunge in the number of foreign visitors arriving in
the country in May.

The South African rand also firmed, with the focus now on the release of
first-quarter unemployment figures later in the day. Also on the radar is an
emergency budget due on Wednesday that is expected to show a markedly wider
budget deficit.

Currencies in central and eastern European countries including Hungary,
Romania, Poland and the Czech Republic firmed against the euro.

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Commodities Markets

U.S. Chamber opposes U.S. plans to re-impose tariffs on aluminum from Canada

(Reuters) - The U.S. Chamber of Commerce on Tuesday said it firmly opposed
reported plans by the Trump administration to re-impose 10% tariffs on
aluminum imports from Canada, warning that Canada would likely retaliate
against U.S. exports.

The United States is planning to re-impose tariffs on aluminum imports from
Canada, Bloomberg reported late on Monday, citing people familiar with the
matter.

Neil Herrington, senior vice president for the Americas at the Chamber, said
re-imposing the tariffs would hurt U.S. manufacturers who use aluminum as an
input, and was the “wrong way” to mark the entry-into-force of the
U.S.-Mexico-Canada trade agreement on July 1. 

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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