Bulls n Bears Daily Market Commentary : 26 May 2020

Wed May 27 04:30:21 CAT 2020

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Bulls n Bears Daily Market Commentary : 26 May 2020

Zimbabwe Stock Exchange Update

Market Turnover ZWL$63,281,309.30 with foreign buys at ZWL$2,261,396.24and
foreign sales were ZWL $25,072,208.75 Total trades were 236.

The All Share index opened the new week on a positive note after gaining a
significant 80.74 points to close at 993.98 points. INNSCOR  added $2.5764
to $16.4225, DELTA rose by $2.3598 to end at $14.3706 and OLD MUTUAL LIMITED
was $1.5620 stronger at $76.2285. SEEDCO INTERNATIONAL LIMITED also
increased by $1.5300 to settle at $9.1900 and AFDIS traded $1.4400 higher at
$8.6400.

Trading in the negative; MEIKLES lost $0.2262 to $9.9571, AMALGAMATED
REGIONAL TRADING  eased $0.1492 to $1.3746 and MASIMBA  was $0.0477 weaker
at $0.7250. OK ZIMBABWE also decreased by $0.0299 to $4.0060 and DAWN
PROPERTIES was $0.0130 lower at $0.2370.

Global Currencies & Equity Markets

South Africa

South Africa's rand hits 8-week high vs dollar

(Reuters) - South Africa’s rand hit an eight week high against the dollar on
Tuesday, as optimism on the resumption of economic activity in a number of
countries boosted riskier assets, offsetting Sino-U.S. trade tensions as the
stock market also rose.

At 1520 GMT, the rand traded at 17.3400 per dollar, 1.65% firmer than its
previous close and at its strongest since March 27.

Major global currencies also strengthened against the dollar on rising hopes
of economic recovery.

Japan’s decision to end coronavirus-induced restrictions and a survey
showing German business morale rebounded in May, helped offset fallout from
a war of words between Beijing and Washington on trade, the coronavirus and
proposed stricter security laws in Hong Kong.

In South Africa, President Cyril Ramaphosa announced on Sunday a further
easing of the country’s lockdown from June 1, allowing the vast majority of
the economy to return to full capacity.

The Johannesburg Stock Exchange followed global peers, with the benchmark
FTSE/JSE all share index up 1.08%, closing at 50,617 points. JSE’s top 40
companies’ index closed up 0.99% at 46,809 points.

Government bonds were slightly firmer, with the yield on the 2030 bond down
3.5 basis points at 9.015%.

Uganda

Ugandan shilling little-changed, may firm on charity and coffee inflows

(Reuters) - The Ugandan shilling was little-changed on Tuesday but was
expected to strengthen, helped by some dollar inflows from charities and
coffee exporters.

At 0906 GMT, commercial banks quoted the shilling at 3,781/3,791, compared
with Monday’s close of 3,785/3,795.

 <mailto:info at bulls.co.zw> 

India

Weak rupee leads Indian trade body to lift cotton export estimate

(Reuters) - India’s cotton exports could rise to 4.7 million bales in
2019/20, up 12% from the previous estimate, as a fall in the value of the
rupee to a record low made shipments competitive, a trade body forecast.

Higher exports by the world’s biggest cotton producer could put pressure on
global prices, which are trading near their highest level in more than two
months.

Indian exports could also limit shipments from rivals such as the United
States, Brazil and Australia to key Asian buyers such as China, Bangladesh
and Vietnam.

The rupee’s fall has made Indian cotton the cheapest in the world and
attractive for Asian buyers, Atul Ganatra, president of the Cotton
Association of India (CAI) said.

Indian cotton was sold at around 62 cents per pound on a cost and freight
basis (C&F) to Asian buyers such as Bangladesh, while the supplies from the
United States were available at around 70 cents, Ganatra said on Monday.

The South Asian country exported 4.2 million bales in 2018/19, the lowest in
a decade.

India is expected to produce 33 million bales in the marketing year ending
Sept. 30, down 7% from the previous estimate, the CAI said.

Despite lower production and higher exports, India will have ample surplus
due to a steep fall in the consumption, which the CAI said could drop to 28
million bales in the current year, down 15% from the previous estimate. (1
Indian bale = 170 kg)

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Commodities Markets

Copper rises on COVID-19 vaccine hopes; U.S.-China rift looms

(Reuters) - Copper prices climbed on Wednesday as optimism about developing
coronavirus vaccines fuelled hopes of a quick rebound in the global economy,
though gains were capped amid simmering tensions between the United States
and top metals consumer China.

Three-month copper on the London Metal Exchange (LME) was up 0.1% at $5,366
a tonne, as of 0122 GMT, while the most-traded July copper contract on the
Shanghai Futures Exchange (ShFE) rose 0.2% to 43,880 yuan ($6,150.83) a
tonne.

Copper is often used as a gauge of global economic health.

U.S. biotech company Novavax Inc has targeted production of over a billion
doses of its vaccine candidate next year, while Merck & Co Inc said it would
work to develop two separate vaccines.

However, casting darker shadows over the U.S.-China ties were reports that
Washington was preparing to take action against Beijing this week over its
effort to impose national security laws on Hong Kong.

FUNDAMENTALS

* LME: The London Metal Exchange plans to consult members on whether its
rules need to be changed to guard against market abuse and insider trading.

* NICKEL: Australia’s New Century Resources Ltd said it was in talks with
Brazilian miner Vale SA to buy its nickel and cobalt operations in New
Caledonia.

Bosnia's Jan-April metals exports down 18.3%

(Reuters) - Bosnia’s metals sector, which accounts for around a third of its
exports, recorded a 18.3% fall in exports in the January-April period as
demand from the EU markets shrank due to the coronavirus pandemic, data
showed on Tuesday.

Metals exports fell by 276 million Bosnian marka ($154 million) and imports
were down 19% or 410 million marka, according to analysis by Bosnia’s
Foreign Trade Chamber (VTK).

Aluminium recorded the biggest export fall of 55.2%, but that reflected the
closure of the country’s sole smelter Aluminij Mostar over accumulated debt
last July, and not over the effects of the pandemic, VTK said.

Exports of steel and metal products were down by 67 million marka and
exports of car parts fell 19.4%.

The main steel producer in Bosnia, ArcelorMittal, said last week it had
halted output at its Zenica plant and at mines that supply it with iron ore
for 10 days.

Bosnia recorded its largest falls in metals exports to Italy, Croatia,
Serbia and Germany, according to the analysis.

(1$ = 1.793 Bosnian marka)

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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