Bulls n Bears Daily Market Commentary : 29 June 2020

Tue Jun 30 06:56:59 CAT 2020

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Bulls n Bears Daily Market Commentary : 29 June 2020

 <mailto:info at bulls.co.zw> 

Zimbabwe Stock Exchange Update

Following the statement issued by the Secretary for Information, Publicity
and Broadcasting Services on June 26 2020, the Zimbabwe Stock Exchange
Limited engaged both the Securities and Exchange Commission of Zimbabwe
(SECZ) and the Ministry of Finance and Economic Development. Whilst we await
the guidance from our regulators on the operational modalities going
forward, we notify our stakeholders that trading has been suspended until
further notice.-zse

NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the Annual General Meeting (“AGM”) of the
shareholders of Zimbabwe Stock Exchange Limited will be held on 21 July
2020. Shareholders are advised that that in light of the current regulations
which prohibit gatherings in excess of 50 people and promoting social
distance on account of the COVID-19 pandemic, the Company will endeavour to
facilitate a virtual meeting the details of which will be communicated to
shareholders in due course.-zse

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South African rand steadies, coronavirus concerns remain

(Reuters) - The South African rand steadied against the U.S. dollar on
Monday as the spread of the coronavirus at home and around the world
dampened optimism over a swift economic recovery.

At 1630 GMT, the rand traded at 17.2675 per dollar, little changed from its
closing level on Friday.

The death toll from COVID-19 reached half a million on Sunday, according to
a Reuters tally, and several countries, including the United States,
grappled with a resurgence in cases after relaxing measures to curb the
pandemic.

South Africa reported 6,334 new cases on Sunday after 7,210 new cases the
day before, among the steepest daily rises to date.

The coronavirus crisis is expected to take a heavy toll on Africa’s most
industrialised economy, which is already in recession.

First-quarter gross domestic product data will be released on Tuesday.
Current account and monthly budget data are also due to be published later
in the week.

On the bourse, most tracked indices bucked a global trend of falling
equities to start the week on a stronger note.

The FTSE/JSE benchmark All Share index was up 0.91% to end at 54,137 points
while the top 40 companies index was up 0.92% at 49,935 points.

The yield on the 2030 government bond was flat at 9.185% 

Kenya

Kenyan shilling holds steady against the dollar

(Reuters) - The Kenyan shilling was stable on Monday supported by increased
diaspora remittances amid low demand for dollars from merchandise importers,
traders

said. 

At 0839 GMT, commercial banks quoted the shilling 106.45/65 per dollar, the
same as Friday's closing rate.  <mailto:info at bulls.co.zw> 

GLOBAL MARKETS

Wall Street leads stocks' rebound, sterling dips

(Reuters) - A gauge of stocks across the world rose on Monday, led by a
rebound on Wall Street, even as rising COVID-19 cases threaten to stall the
recovery of the world’s largest economy.

Contracts to buy U.S. previously owned homes rose by the highest percentage
on record in May. But they remained below their February level and were down
compared with May 2019, which also kept alive expectations for even more
economic stimulus.

Analysts at Morgan Stanley said a further injection of cash was critical to
the bank’s thesis for a V-shaped U.S. economic recovery.

Confirmed COVID-19 cases worldwide rose past 10 million and deaths surpassed
500,000 on Sunday. The relentless spread of the new coronavirus in the
United States, Latin America and elsewhere curbed optimism over the global
economy and raised worries that some reopening plans will be delayed.

Boeing shares shot up 14% after 737 MAX certification flights started Monday
and the rally gave life to the Dow industrials, while factory- and
materials-heavy sectors of the S&P 500 boosted the benchmark index. Indexes
closed the day at or near session highs.

The Dow Jones Industrial Average rose 580.25 points, or 2.32%, to 25,595.8,
the S&P 500 gained 44.19 points, or 1.47%, to 3,053.24 and the Nasdaq
Composite added 116.93 points, or 1.2%, to 9,874.15.

The pan-European STOXX 600 index rose 0.44% and MSCI’s gauge of stocks
across the globe gained 0.74%.

Emerging market stocks lost 0.48%. MSCI’s broadest index of Asia-Pacific
shares outside Japan closed 0.93% lower, while Japan’s Nikkei futures rose
0.29%.

It is an important week for U.S. data, with the ISM manufacturing index on
Wednesday and monthly payrolls on Thursday, moved up a day due to observance
of the Independence Day holiday on Friday. Fed Chair Jerome Powell is
testifying on Tuesday.

Bill Merz, head of fixed income research at U.S. Bank Wealth Management in
Minneapolis, said he expected small changes for long-term yields, noting
that Treasuries may be “one of the least-interesting markets for the rest of
the year” due to the Fed’s influence on the short end of the curve.

The yield on benchmark 10-year notes was barely changed from late Friday at
0.6381%. The long end of curve edged higher as investors hoped for a
stimulus-backed economic rebound. The 30-year bond last fell 12/32 in price
to yield 1.3877%, from 1.372%.

In currency markets, sterling fell against both the dollar and euro as
investors focused on how Britain’s government will pay for its planned
infrastructure push, while Brexit-related risks kept pressure on the pound.

Sterling was last trading at $1.2292, down 0.33% on the day after falling
nearly 0.7% earlier.

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The dollar index rose 0.011%, with the euro up 0.17% to $1.1236.

The Japanese yen weakened 0.35% versus the greenback at 107.55 per dollar.

U.S. crude recently rose 2.73% to $39.54 per barrel and Brent was at $41.55,
up 1.29% on the day.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold rises as virus concerns lift safe-haven bid

Gold prices traded higher in Monday’s morning trade as a sustained rise in
novel coronavirus cases around the world intensified fears about a delay in
global economic recovery and prompted investors to seek the safe-haven
metal. On the other hand, crude oil was down over 2 per cent in the
international market.

Here is how SMC Global expects commodities to fare today:

Gold and silver: Bullion counter may extend its gains. Gold may test Rs
48,380 and taking support near Rs 47,600 while silver may test Rs 49,000 and
may take support near Rs 47,780.

Base Metals: Base metals may trade with sideways to bullish bias. Copper can
move towards Rs 462 while taking support near Rs 453. Base metals traded
mixed on the morning of Monday in SHFE as the market returned from the
three-day Dragon Boat Festival holiday. Zinc may move towards Rs 168 and
taking support near Rs 162. Lead can move towards Rs 147 while taking
support near Rs 140.60.Nickel may trade with bullish bias where it may test
Rs 995 and taking support near Rs 958. Aluminum may move towards Rs 138
while taking support near Rs 134.80.

Energy: Crude oil may post correction where it may test Rs 2,810 and facing
resistance near Rs 3,060. Natural gas may bounce towards resistance and test
RS 123 and take support near Rs 115.

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.

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