Bulls n Bears Daily Market Commentary : 25 June 2020

Fri Jun 26 05:13:16 CAT 2020

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Bulls n Bears Daily Market Commentary : 25 June 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$204,943,001.80 with foreign buys at ZWL$428,500.00 and
foreign sales were ZWL $4,948,145.00 Total trades were 323.

The All Share index retreated by 33.34 points to close at 1,760.91 points.
OLD MUTUAL LIMITED lost $2.8716 to end at $82.1284, DELTA  eased $2.4640 to
$24.0427 and FBC HOLDINGS  was $0.9571 weaker at $15.0556. OK ZIMBABWE also
decreased by $0.9183 to end at $5.5228 and CBZ HOLDINGS traded $0.5200 lower
at $30.0000.

Trading in the positive; CAFCA added $5.0000 to $60.0000, DAIRIBORD gained
$1.3897 to $8.3902 and ZB FINANCIALS  was $0.8586 stronger at $11.3586.
BINDURA  also increased by $0.5712 to $3.8533 and MASIMBA was $0.2715 firmer
at $1.6715.

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Global Currencies & Equity Markets

South Africa

South Africa's rand recovers after gloomy budget; stocks fall

(Reuters) - South Africa’s rand recovered in afternoon trade on Thursday
after sliding earlier following a budget speech that forecast ballooning
debt and a higher government deficit.

At 1520 GMT, the rand was 0.7% firmer at 17.2560 per dollar, after hitting a
session low of 17.5325 earlier.

Finance Minister Tito Mboweni said on Wednesday the main budget deficit
would widen to a record 14.6% of gross domestic product in 2020/21, while
public debt would top 80% as the country has borrowed more to plug revenue
holes caused by the COVID-19 pandemic.

The downbeat numbers were largely expected by markets, and in some aspects
were not as bad as others had forecast.

The Johannesburg Stock Exchange slipped following a fall in most emerging
market shares as a sharp rise in coronavirus infections took a toll on hopes
of a rebound in economies.

The benchmark JSE all-share index fell 0.98% to end the day at 53,914
points, and the top 40 companies index lost 0.92% to close at 49,732 points.

In fixed income, the yield on the 2030 government issue was down 3 basis
point to 9.17%. 

Zambia

Zambia sees 2020 expenditure up $1.1 bln as kwacha falls

(Reuters) - Zambia’s expenditure is expected to rise by approximately 20
billion kwacha ($1.11 billion) this year as the local currency weakens,
piling more pressure on a nation already struggling with huge debt,
President Edgar Lungu said on Thursday.

External debt service will rise by 8.7 billion kwacha because of a sharp
fall in the currency, Lungu said in a national address.

Zambia has $3 billion of Eurobonds outstanding and owes $2 billion to
commercial banks, $2 billion to the International Monetary Fund and World
Bank, and a further $3 billion to China.

The kwacha has weakened more than 28% against the U.S. dollar so far this
year, with the central bank in May attributing the depreciation to
macroeconomic challenges associated with debt service and debt levels.

Economic activity in Africa’s second-largest, copper-producing nation has
also been hurt by the coronavirus crisis.

Lungu announced the reopening of all international airports to revive
tourism after closures in March hit the sector.

Zambia has registered 1,497 coronavirus cases and 18 deaths, Lungu said.

Zambia is reviewing its 2020 budget after a reduction in revenue as a result
of the coronavirus pandemic and other factors, Secretary to the Treasury
Fredson Yamba said.

Zambia’s budgeted revenue is estimated to fall short of target by close to
20% as a result of economic adjustments due to COVID-19, the ministry of
finance said in April.

$1 = 18.0700 Zambian kwachas

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GLOBAL MARKETS

Asian stocks set for cautious gains after choppy Wall Street session

(Reuters) - Asian stocks were set to gain on Friday, as global sentiment
remained doggedly upbeat despite increased volatility and rising new
coronavirus infections, with Wall Street pushed higher by a loosening in
bank regulations.

Throwing some cold water on the rally, however, were the U.S. Federal
Reserve’s capital limits for banks after its stress tests on the sector
revealed key vulnerabilities.

The Fed on Thursday said it will cap big bank dividend payments and halt
share repurchases until at least the fourth quarter. It found lenders faced
significant capital losses when tested against an economic downturn caused
by the coronavirus pandemic.

Australian S&P/ASX 200 futures rose 1.21% in early trading. Japan’s Nikkei
225 futures added 0.13%.

Hong Kong’s Hang Seng index futures lost 0.93%. Hong Kong was closed for a
public holiday on Thursday and markets in mainland China continue their
break on Friday.

MSCI’s gauge of stocks across the globe gained 0.45%.

Coronavirus cases across the United States have soared in recent days, with
Texas pausing its re-opening as COVID-19 infections and hospitalizations
surged in the state.

On Wall Street, the Dow Jones Industrial Average rose 1.18%, the S&P 500
gained 1.10% and the Nasdaq Composite added 1.09%.

The gains were due in part to earlier announcements from U.S. regulators
loosening rules to allow banks to make larger investments in riskier
vehicles such as venture capital funds.

The U.S. dollar strengthened on Thursday due to fears of rising coronavirus
cases. The dollar index rose 0.123%.

Oil prices rose about 2% in a volatile session, boosted by signs of a small
rise in fuel demand but offset by rising coronavirus cases.

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Commodities Markets

Closing Prices for Crude Oil, Gold and Other Commodities

Benchmark U.S. crude oil for August delivery rose 71 cents to settle at
$38.72 a barrel Thursday. Brent crude oil for August delivery rose 74 cents
to $41.05 a barrel.

Wholesale gasoline for July delivery was little changed at $1.19 a gallon.
July heating oil was also little changed at $1.16 a gallon. July natural gas
fell 12 cents to $1.48 per 1,000 cubic feet.

Gold for August delivery fell $4.50 to $1,770.60 an ounce, silver for July
delivery rose 22 cents to $17.90 an ounce and July copper rose 1 cent to
$2.66 a pound.

The dollar rose to 107.22 Japanese yen from 106.94 yen. The euro fell to
$1.1216 from $1.1258.The Associated Press

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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