Bulls n Bears Daily Market Commentary : 13 May 2020

Thu May 14 07:12:55 CAT 2020

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Bulls n Bears Daily Market Commentary : 13 May 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$25,898,666.62 with foreign buys at ZWL$128,861.75 and
foreign sales were ZWL $8,057,899.25 Total trades were 190.

The All Share index ended the day on a higher note, after adding 31.17
points to close at 581.28. BAT LIMITED further advanced by $10.0000 to close
at $105.0000, AFDIS LIMITED  was $1.2000 firmer at $7.2000 and RIOZIM
LIMITED rose by $1.1167 to $6.7100. Two more counters to advance were OLD
MUTUAL LIMITED  which traded $0.9870 higher at  $46.9996 and CASSAVA
SMARTECH  which gained $0.7093 ending at $4.2732.

Gains were offset by losses in DELTA CORPORATION LIMITED which lost $0.6603
to end at $6.8887, HIPPO VALLEY  dropped $0.5856 to close at $5.7050 and
SEEDCO LIMITED   traded $0.4975 lower at $3.6500. Two more counters to lose
ground were ZIMBABWE NEWSPAPERS  which was $0.0165 lower at $0.3035 and
MASHONALAND HOLDINGS  eased $0.0098 to close at $0.5027.

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

S. Africa's rand inches firmer in cautious trade, stock market down

(Reuters) - South Africa’s rand inched firmer on Wednesday as investors
stayed optimistic about the chances for easing lockdown restrictions in some
countries despite increases in new coronavirus cases.

The Johannesburg Stock Exchange (JSE) fell following global market trends
which were weighed down on coronavirus resurgence fears and the announcement
of a prolonged recession in the United States by Federal Reserve Chairman
Jerome Powell.

Some of those early gains however were dampened by a speech by Powell
pouring cold water on a quick recovery in the United States, cooling demand
for emerging markets currencies as investors were given more reason to stay
on the fence.

Investor concerns about new virus infections in China, Germany and South
Korea have dimmed some of the hopes for a quick rebound in the global
economy as countries look to restart activity and avoid prolonged recession.

At 1500 GMT the rand was 0.1% firmer at 18.4350 per dollar, having touched a
session best 18.2600 just before the Fed speech before pulling back in low
volume trade that has marked most of the week.

The dearth of economic data locally has capped expected gains by the rand,
with the oversold levels and profit-taking on greenback not enough to push
the unit past any meaningful resistance levels below the 18.00 mark.

The FTSE/JSE all share index went down 0.33% to close at 50,152 while the
top 40 companies’ index closed down 0.22% to 46,416 points.

The market slide was led by JSE’s banking index which fell 2.81% at close of
trading on Wednesday.

Bonds were weaker, reflecting the sour risk mood, with the yield on the
benchmark 2030 government issue up 10 basis points to 9.42% 

Uganda

Ugandan shilling holds steady against the dollar

(Reuters) - The Ugandan shilling was stable on Wednesday on the back of
lower demand for dollars by importers including those from the energy
sector. 

At 0918 GMT, commercial banks quoted the shilling at 3,787/3,797 per dollar,
compared with Tuesday's close of 3,790/3,800.

 <mailto:info at bulls.co.zw> 

Asia

Asian stocks drop as virus recovery begins to look distant

(Reuters) - Asia’s stock markets fell and gold hit a one-week high on
Thursday as worries about a second wave of coronavirus infections and a dour
assessment of the way back from the head of the U.S. Federal Reserve dashed
hopes for a quick recovery.

Fed Chair Jerome Powell warned of an “extended period” of weak economic
growth, while vowing to use the U.S. central bank’s power as needed and
calling for additional fiscal spending to stem the fallout from the
pandemic.

“The path ahead is both highly uncertain and subject to significant downside
risks,” Powell said in a webcast speech.

Adding to investors’ angst, a top World Health Organization official said
the virus may never go away.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1%, while
Japan’s Nikkei fell about 0.7%.

U.S. stock futures fell 0.2%, after the S&P 500 index’s worst two-day drop
in nearly a month.

Benchmark indexes in Australia, Hong Kong, Korea and China all fell about
1%.

South Korea is dealing with a fresh outbreak in Seoul, while China has
re-imposed movement restrictions near its borders with North Korea and
Russia after a new outbreak was detected there.

Overnight, Wall Street’s three major indexes closed lower for a second day
in a row.

Bonds and the dollar rallied after Powell talked down the prospect of
negative interest rates in the United States, and extended gains on
Thursday. Yields on benchmark U.S. 10-year Treasuries fell slightly to
0.6412%.

Oil prices slipped in spite of a surprise drawdown of U.S. inventories and
gold was firmly above the $1,700 mark, touching a week-high $1,719.11 per
ounce.

Markets are looking ahead to the release of the European Central Bank’s
latest economic bulletin at 0800 GMT and the latest U.S. jobless claims data
at 1230 GMT.

SLOW GOING

Equity markets have wavered since April’s rally as investors and authorities
try to weigh the risks of re-starting economies quickly against the
financial ruin that lockdowns have wrought, while worrying about a flare-up
infections.

The country’s top infectious disease expert, Anthony Fauci, has warned that
a premature lifting of lockdowns could lead to additional outbreaks.

Caution is also prevailing in Europe and the Antipodes, where restrictions
are beginning to relax.

Elsewhere the Australian dollar slipped to a one-week low of $0.6420 after
the country posted its biggest plunge in employment on record.

A rising greenback also held the kiwi under 60 cents at $0.5974 and had the
euro and pound under pressure.

Brent crude slipped slightly to $29.06 per barrel and U.S. crude was steady
at $25.36 per barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold inches higher on U.S. stimulus talks; jobs data awaited

(Reuters) - Gold rose slightly on Thursday as U.S. stimulus talks and
Federal Reserve Chair Jerome Powell's downbeat economic assessments
supported the safe-haven metal, while investors awaited U.S. initial jobless
claims data due later in the day.

FUNDAMENTALS

* Spot gold        climbed 0.1% to $1,716.66 per ounce by 0037 GMT. U.S.
gold futures        rose 0.6% to $1,726.20.

* Asian equities were set to slump after Powell warned of a "significantly
worse" U.S. recession than any downturn since World War Two because of
coronavirus pandemic fallout.

* Powell signalled bets that the U.S. central bank will pursue a negative
interest-rate policy are off-base, but vowed to use its power as needed and
called for additional fiscal spending to prop up the virus-hit economy.

* Governors from both major political parties urged lawmakers in Washington,
D.C., to cast aside partisanship and deliver relief to U.S. cities and
states facing economic ruin as they fight what they called a "red, white and
blue pandemic."

* Gold tends to benefit from widespread stimulus measures as it is often
seen as a hedge against inflation and currency debasement. 

* Underscoring the economic impact of the epidemic, U.S. producer prices
fell by the most since 2009 in April, leading to the largest annual decline
in nearly 4-1/2 years.           

* British house prices are likely to fall as the market slowly begins to
reopen, after a collapse in activity due to COVID-19 restrictions last
month, a survey showed.             

* The virus that causes COVID-19 could become endemic like HIV, the World
Health Organization said, warning against any attempt to predict how long it
would keep circulating and calling for a "massive effort" to counter it.

* Highlighting investor appetite for bullion, SPDR Gold Trust holdings, the
world's largest gold-backed exchange-traded fund, rose 0.78% to 1,092.14
tonnes on

Wednesday.    

* HSBC Holdings Plc suffered mark-to-market losses of about $200 million in
a single day in March after gold prices in London and New York diverged
dramatically, the bank said.

* Palladium rose 0.8% to $1,832.72 an ounce and platinum gained 0.2% to
$758.35, while silver fell 0.6% to $15.55. 

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
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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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