Bulls n Bears Daily Market Commentary : 27 May 2020

Thu May 28 04:29:35 CAT 2020

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Bulls n Bears Daily Market Commentary : 27 May 2020

Zimbabwe Stock Exchange Update

ZSE surge continues

The market surge persisted into the mid-week session with the All Share
Index improving 4.74% to 1041.13pts as it brisked past the 1000pts mark. The
Industrial Index rose 4.70% to close at 3454.59pts. The ZSE Top Ten index
added 5.15% to end at 845.95pts while, the Mining index put on 6.78% to land
at 1480.16pts, spurred by Bindura that gained 12.16% to $1.0992. SeedCo
Limited came first in the top five gainers of the day after ticking 20% to
end pegged at $9.2400. CBZ trailed as it jumped 19.92% to settle at $9.5100
while, SeedCo International extended 19.91% to close at$11.0200. ZPI
experienced a positive movement of 19.89% that took it to $0.4695. Edgars
capped the winners set after climbing 19.74% to $0.9100.

Willdale led the losers of the day on a 19.74% decline to $0.1216, followed
by Mash that had a downfall of 18.02% to close at a vwap of $0.8014.
Dairibord was part of the shakers list on a 15.09% loss to $2.5000, followed
by Amalgamated Regional Trading which slipped 9.06% to end at $1.2500.
Property concern FMP completed the top five shakers of the day after
shedding 2.50% t0 $1.9501. Gainers outstripped fallers by a count of
twenty-one to see the market close with a positive breadth.

The number of trades improved by 11.44% to 236. Turnover succumbed 61.26% to
$24.53m while, volume of shares traded surged 118.92% to 24.54m. Volume
outturn was anchored by Willdale that claimed a massive 82.89%, leaving the
rest of the counters scrambling for a paltry 17.11%. Top value drivers of
the day were Old mutual, Econet and Willdale that accounted for a combined
46.47% of the outturn.-EFE Securities

Global Currencies & Equity Markets

South Africa

South Africa's rand falls as Sino-U.S. friction dents risk appetite

(Reuters) - South Africa’s rand fell on Wednesday following global weakness
in emerging market currencies due to increasing Sino-U.S. friction over
China’s proposed security law for Hong Kong, retreating the two-month high
seen a day before.

At 1520 GMT, the rand traded at 17.4400 per U.S. dollar, 0.16% weaker than
its previous close.

U.S. President Donald Trump on Tuesday said his administration was working
on a strong response to China’s planned national security law for Hong Kong,
which he said would be announced before the end of the week.

Shares on the Johannesburg Stock Exchange (JSE) on Wednesday mirrored the
indecision of investors from other emerging markets over whether Sino-U.S.
tensions will hurt or a quicker economic recovery from the new coronavirus
will help returns in future.

After rising on Tuesday, the benchmark FTSE/JSE all share index fell 0.21%
to end the day at 50,496 points while the top 40 companies’ index slipped
0.42% to close at 46,601.

In fixed income, the yield on South Africa’s 10-year government bond was
down 6 basis point to 8.985%.

Kenya

Kenya central bank holds benchmark lending rate at 7.0%

(Reuters) - Kenya’s central bank kept its benchmark lending rate at 7.0% on
Wednesday, judging that its current accommodative stance remained
appropriate, the Monetary Policy Committee said in a statement. 

 <mailto:info at bulls.co.zw> 

EMERGING MARKETS

Shares, currencies slip on fears of rising U.S.-China tensions

(Reuters) - Emerging market shares and currencies dipped on Wednesday with
investors weighing rising social unrest in Hong Kong and fears of an
escalation in U.S.-China tensions against hopes of a post-pandemic economic
recovery.

Hundreds took to the streets in Hong Kong to oppose a national security law
proposed by China that has sparked global fears that the freedoms helping
the city prosper as an interface between China and the West could be eroded.

Chinese blue chips fell 0.7% and Hong Kong’s main index 5% as investors also
feared escalating Sino-U.S. friction, with U.S. President Donald Trump
saying he was working on a strong response against China’s move.

The yuan slumped to its lowest since September, last trading at 7.152
against a dollar propped up by its safe-haven appeal. The Hong Kong dollar
was flat.

The Turkish lira slid 0.5% as traders returned from a four-day weekend,
while South Africa’s rand was knocked off a two-month high. Declining oil
prices saw Russia’s rouble come off its highest in 11 weeks.

Still, most other Asian shares as well as bourses in emerging central and
eastern European economies extended gains on hopes that a pickup in economic
activity would help the global economy emerge from a pandemic-driven
recession.

Shares in Turkey, India , Poland and Hungary rose between 0.8% and 2%,
capping losses in MSCI’s index of emerging market shares to 0.07%.

Japan, Spain, Italy, India and South Africa are among countries to gradually
restart businesses after sweeping lockdowns were imposed to curb the spread
of the novel coronavirus, but analysts have warned of another selloff in
equities if the reopenings spark a second wave of infections.

 <mailto:info at bulls.co.zw> 

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
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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
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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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