Bulls n Bears Daily Market Commentary : 19 May 2020

Wed May 20 03:02:26 CAT 2020

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Bulls n Bears Daily Market Commentary : 19 May 2020

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Zimbabwe Stock Exchange Update

Market Turnover ZWL$19,643,759.86 with foreign buys at ZWL$102,241.50 and
foreign sales were ZWL $104,124.00 Total trades were 276.

The All Share index’s bullish trend continues unabated after it gained 44.96
points  to close at 788.25 points. BAT added $9.3663 to $118.3333, CAFCA
rose by $4.0000 to $24.0000 and INNSCOR  was $1.6768 firmer at $10.1000.
MEIKLES also increased by $1.5500 to end at $9.3000 and RIOZIM traded
$1.5000 stronger at $10.5000 

No counter traded in the negative in today’s session

 <mailto:info at bulls.co.zw> 

  Global Currencies & Equity Markets

South Africa

South Africa's rand firms on COVID-19 vaccine hopes

(Reuters) - South Africa’s rand extended a rally from the previous session
on Tuesday, spurred by optimism about prospects for a COVID-19 vaccine and
the re-opening of economies around the world.

The country’s stock market was also buoyant on the back of expectations for
the vaccine which would ultimately enable economic activity to return to
normal.

At 1530 GMT the rand was 0.50% firmer at 18.2400 per dollar, holding at a
four-session high reached on Monday in a strong day for emerging currencies
after encouraging results from the trial of a vaccine for COVID-19.

U.S. biotech company Moderna Inc’s experimental COVID-19 vaccine, the first
to be tested in the United States, produced protective antibodies in a small
group of healthy volunteers, according to very early data.

Most emerging market and commodity-led currencies have been boosted by the
vaccine hopes and a revival of some economic activity, although South Africa
has been an underperformer among its peers.

The Johannesburg Stock Exchange shared the upbeat mood of the currency
markets and showed modest gains in an extension of Monday’s rally.

The benchmark FTSE/JSE all share index rose 1.11% to close at 51,950 points,
while the top 40 companies’ index climbed 1.02% to end the day at 48,161
points.

Bonds extended their rally, with the yield on the government issue due in
2030 down 38.5 basis points at 9.210% after falling 46.5 bps in the previous
session.

Uganda

Ugandan shilling flat as COVID-19 lockdown cuts importer demand

(Reuters) - The Ugandan shilling remained flat on Tuesday as lockdown
measures aimed at containing the spread of coroanvirus depressed importers
demand for hard currency.

At 1033 GMT commercial banks quoted the shilling at 3,785-3,795, same level
as Monday’s close.

 <mailto:info at bulls.co.zw> 

Global Markets

Currency market liquidity on the rebound, data providers say

(Reuters) - Investors are gradually returning to the currency markets
following a rout in March when the spread of the new coronavirus sent most
units tumbling against the dollar, a group of market data providers found.

Liquidity in the foreign exchange markets is coming back towards
pre-COVID-19 levels for some of the major currencies, with most recording on
average about 70% to 80% of their previous daily volumes, Mosaic Smart Data,
CLS and MUFG found in a collaborative project.

Trading volumes in emerging market currencies “are not faring as well”,
however, and remain at about 45% of pre-crisis levels, while outside of
market hours trading generally remains very thin, the group found.

Euro/dollar - the most traded currency pair in the $6.6 trillion a day
market - has seen market liquidity return to nearly 80% of its pre-crisis
level.

Liquidity in dollar/Japanese yen was largely shielded from disruption
throughout the crisis. Both units have remained appealing as safe-haven
currencies during the pandemic, with money managers shifting assets from
riskier markets to more stable ones.

Liquidity in euro/Swiss franc - another widely traded pair during market
stress - was at 85% of pre-crisis levels, making it the most used currency
pair among the G10 right now.

Within the sterling/dollar pair, analysts noticed “an immediate and sharp
spike” in liquidity after the London fixing hours, marking a change in
traders’ behaviour relative to pre-COVID-19 market conditions, they said.

The yen, Australian and Hong Kong dollars, Swiss franc and South African
rand have seen the biggest increases in liquidity. But traders are still
avoiding the euro, sterling, Canadian dollar, New Zealand dollar and Mexican
peso.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold gains as recession looms even as economies reopen

(Reuters) - Gold rose on Tuesday amid uncertainty over how economies would
emerge from a deep slowdown, although optimism about a potential vaccine for
the novel coronavirus capped bullion's advance.

Spot gold        rose 0.7% to $1,743.25 per ounce by 2:34 p.m. ET (1834
GMT). U.S. gold futures settled 0.6% higher at $1,745.60.

Massive global stimulus to limit the economic damage from the coronavirus
have supported gold, since it is widely viewed as a hedge against inflation
and currency

debasement.  

Driving demand for safe havens, meanwhile, were fears of a further
deterioration in China-U.S. relations, with Nasdaq Inc set to unveil
restrictions that will make it more difficult for some Chinese companies to
list there.  

Wall Street traded mixed, having rallied in the previous session after
drugmaker Moderna said its experimental COVID-19 vaccine showed promising
results in a preliminary trial.     

Monday's jump in equities and oil had caused gold to  retreat from a
multi-year peak.      

Elsewhere, palladium  was flat at $2,012.54 an ounce, having hit a near
one-month peak of $2,109.20.

Platinum jumped 2% to $834.65 and silver rose 1.4% to $17.41.

The global palladium market will see its smallest deficit since at least
2012 this year, while platinum remains significantly oversupplied, an
industry report said.

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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