Bulls n Bears Daily Market Commentary : 24 June 2020

Thu Jun 25 03:43:15 CAT 2020

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 24 June 2020

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Market Turnover ZWL$40,498,980.40 with foreign buys at ZWL$21,315.00 and
foreign sales were ZWL $904,039.75 Total trades were 262.

The All Share index was marginally up by 3.41 points to close at 1,794.25
points. ZB FINANCIALS recovered $1.7421 to $10.5000, SEEDCO  added $1.2864
to $20.0324 and NMB BANK  was $0.4666 higher at $3.4666. BINDURA  also
increased by $0.2984 to end at $3.2821 and ZIMRE HOLDINGS  went up by
$0.2215 to close at $2.4740.

Trading in the negative; CBZ eased $1.4840 to $30.52000, SEEDCO
INTERNATIONAL LIMITED lost $0.8765 to close at $26.0000 and DELTA  traded
$0.4229 weaker at $26.5067. PADENGA also decreased by $0.1896 to $14.0604
and PROPLASTICS  was $0.1000 lower at $7.1000.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South Africa's rand little moved by emergency budget, bonds rally

(Reuters) - South Africa’s rand briefly dipped after Finance Minister
Mboweni announced a wider budget deficit and soaring debt in an emergency
supplementary budget on Wednesday, but the currency recovered as investors
looked beyond local issues.

At 1445 GMT, the rand was 0.35% weaker at 17.3000 per dollar, compared with
its session low of 17.4100 shortly after the budget.

South Africa’s budget deficit is projected to widen and debt to balloon, the
Treasury said on Wednesday, as the COVID-19 pandemic stifles an economy that
was already in recession.

Several of the country’s Eurobonds sank to their lowest in a week, down as
much as 0.6 cents, Tradeweb data showed.

But local bonds rallied. The yield on the government’s 2030 issue fell 17
basis points to 9.165%.

The treasury projected the budget deficit would widen to 14.6% of gross
domestic product in the 2020/21 fiscal year, from a shortfall of 6.8% of GDP
seen in February.

It said gross debt would rise to 81.8% of GDP in the current fiscal year
from 63.5% in 2019, peaking at 87.4% under the treasury’s best case
scenario. The worst case sees debt breaching the 100% mark by 2023.

The economy is seen contracting 7.2% this year, prompting Mboweni to warn of
a “sovereign debt crisis” unless the government cuts spending drastically.

The treasury brought forward the budget in response to the coronavirus
outbreak and President Cyril Ramaphosa’s 500 billion rand ($29 billion)
stimulus package.

Since the first case in March, South Africa has had more than 100,000
infections and more than 2,000 deaths.

Stocks ended weaker. The benchmark FTSE/JSE all share index fell 1.96% to
54,389 points and the Top-40 index 2.05% to 50,142 points.

Kenya

Kenyan shilling firm amid end month demand

(Reuters) - The Kenyan shilling held firm on Wednesday due to inflows from
horticulture exports and diaspora remittances supplying end month dollar
demand from manufacturers and some multinational companies, traders said. 

At 0830 GMT, commercial banks quoted the shilling at 106.35/55 per dollar,
compared with 106.40/60 at Tuesday's close.

 <mailto:info at bulls.co.zw> 

GLOBAL MARKETS

Asia set to track Wall Street retreat as second wave derails recovery hopes

(Reuters) - Asian markets were set to follow a tumble in Wall Street stocks
and oil prices on Thursday after surging U.S. coronavirus cases and the
International Monetary Fund’s downgrade to global economic projections shook
confidence in a recovery.

Tao said spiking coronavirus cases and new restrictions aimed at tamping
down the spread of the pandemic were the straw that broke the camel’s back,
after markets gained earlier in the week.

Australian S&P/ASX 200 futures lost 1.55% in early trading. Japan’s Nikkei
225 futures fell 1.1%.

Markets in Hong Kong and mainland China are closed for public holidays on
Thursday.

On Wednesday, three U.S. states reported record increases in new cases —
Florida, Oklahoma and South Carolina — driving the negative sentiment. Seven
others had record highs earlier in the week.

The governors of New York, New Jersey and Connecticut, initially hard hit by
the pandemic, ordered travelers from nine other states to quarantine for 14
days on arrival as COVID-19 showed signs of rising in other areas.

The International Monetary Fund said it now expects a deeper recession, with
global output to shrink 4.9% this year, much sharper than the 3.0%
contraction predicted in April.

MSCI’s gauge of stocks across the globe shed 2.24%.

On Wall Street, the Dow Jones Industrial Average fell 2.72%, the S&P 500
lost 2.59% and the Nasdaq Composite dropped 2.19%.

Oil prices tumbled as much as 5%, or more than $2 a barrel on Wednesday, due
to the growing COVID-19 cases and rising oil inventories.

The dollar strengthened on the concerns of a slower economic recovery. The
dollar index rose 0.624%.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper choked by rising coronavirus cases

(Reuters) - Copper eased on Wednesday as new coronavirus cases raised fears
over a global economic recovery, offsetting upbeat data and potential supply
disruptions in Chile.

Three-month copper on the London Metal Exchange (LME) was down 0.5% at
$5,878 a tonne by 1620 GMT after briefly rising to its highest since Jan. 24
at $5,948.

A string of better than expected U.S. and European economic data was
overshadowed by a surge in coronavirus cases in the United States and South
America.

CHILE: Supply concerns were triggered by BHP announcing stricter health
protocols at the world’s largest copper mine, Escondida, while the Chilean
government imposed lockdowns for the mines-heavy Antofagasta region from
Tuesday.

IMF: The International Monetary Fund said the pandemic was causing wider and
deeper damage to economic activity than first thought, prompting it to cut
its 2020 global output forecasts further to 4.9% from 3%.

INVENTORIES: Falling copper stocks in warehouses tracked by the Shanghai
Futures Exchange (ShFE) indicated that strong demand from top consumer
China.

Stocks CU-STX-SGH fell by 9.1% to 99,971 tonnes, their lowest since Jan. 11
last year, exchange data showed.

ALUMINIUM IMPORTS: China’s May aluminium imports more than doubled year on
year but failed to hit an expected decade-high, official data showed.

PREMIUMS: The aluminium market is pricing in rising prospects of the United
States replacing Canada’s exemption from import tariffs with quotas.

SHFE: Volumes were low on ShFE because the exchange will be closed on
Thursday and Friday for the Dragon Boat Festival in China and will reopen on
June 29.

OTHER PRICES: LME aluminium fell 1.4% to $1,572 a tonne, zinc shed 0.4% to
$2,031, lead advanced 0.95% to $1,766, tin lost 1.6% to $16,620 and nickel
was down 1.7% at $12,510.

Equities sink, gold rises on fears of pandemic wave

(Reuters) - Rising concerns about a surge in coronavirus infections sent
global equities lower on Wednesday and pushed investors into perceived safe
havens such as gold, which hovered near its highest level in eight years.
Several U.S. states are posting record infections and the death toll in
Latin America exceeded 100,000, according to a Reuters tally.

The New York Times reported the European Union was prepared to bar U.S.
travelers because of the surge of cases, putting it in the same category as
Brazil and Russia.

Adding to the gloom, European Central Bank chief economist Philip Lane
warned that the euro zone economy would need a long time to recover from the
pandemic-induced crisis and a string of solid data in recent days was not
necessarily a good guide to recovery.

And the United States is considering tariffs on $3.1 billion of exports from
Britain, France, Spain and Germany, Bloomberg news reported, citing a notice
published by the office of the U.S. Trade Representative.

MSCI’s gauge of stocks across the globe shed 2.35% following broad declines
in Europe and Asia. The MSCI index has treaded water in recent weeks after
jumping more than 40% from March lows on hopes the worst of the pandemic was
over.

In midday trading on Wall Street, the Dow Jones Industrial Average fell
716.08 points, or 2.74%, to 25,440.02, the S&P 500 lost 83.48 points, or
2.67%, to 3,047.81 and the Nasdaq Composite dropped 247.51 points, or 2.44%,
to 9,883.86.

The International Monetary Fund said it now expects global output to shrink
4.9% this year, compared with a 3.0% contraction predicted in April. A
recovery in 2021 also will be weaker, with global growth forecast at 5.4%
compared to 5.8% in the April forecast.

The dollar index rose 0.333%, with the euro down 0.34% to $1.1268.

Spot gold dropped 0.2% to $1,762.81 after touching $1,773, its highest since
October 2012, in Asian trading. . U.S. gold futures gained 0.23% to
$1,776.10 an ounce.

U.S. government bonds were little changed. Benchmark 10-year notes last fell
3/32 in price to yield 0.7185%, from 0.709% late on Tuesday.

Oil prices were down as record high inventories and concerns about the
pandemic outweighed signs of rising demand.

U.S. crude recently fell 1.34% to $39.83 per barrel and Brent was at $42.22,
down 0.96% on the day.

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

 <mailto:info at bulls.co.zw> 

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.

(c) 2020 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

Invest Wisely!

Bulls n Bears 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200625/f2ecdcbf/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200625/f2ecdcbf/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 30155 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200625/f2ecdcbf/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 30141 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200625/f2ecdcbf/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 30141 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200625/f2ecdcbf/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200625/f2ecdcbf/attachment-0011.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 30150 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200625/f2ecdcbf/attachment-0012.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image007.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200625/f2ecdcbf/attachment-0013.jpg>