Bulls n Bears Daily Market Commentary : 03 September 2020

Thu Sep 3 16:37:06 CAT 2020

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 03 September 2020

 <mailto:info at bulls.co.zw> 

ZSE commentary

Market Turnover ZWL$78,338,926.75 with foreign buys at ZWL$1,870,326.02 and
foreign sales were ZWL $23,335,775.00 Total trades were 302.

The ZSE All Share Index closed at 1,447.17 points after adding 7.55 points
in session mostly dominated by heavyweight counters. MEIKLES LIMITED
advanced by $1.0075 to settle at $14.0075, DELTA CORPORATION LIMITED
increased by $0.3848 to close at $19.2311 and INNSCOR AFRICA advanced by
$0.2763 to end at $17.8211. SEED CO LIMITED 

added $0.2232 to end $17.0232 while FIRST CAPITAL BANK  was $0.1232 firmer
at $1.0200.

Gains were offset by BRITISH AMERICAN TOBACCO lost $1.0000 to end at
$199.0000. CBZ HOLDINGS dropped by $0.5079 to settle at $33.1519 while
BINDURA NICKEL CORPORATION was $0.2962 lower at $3.5038. POWERSPEED
ELECTRIAL  eased $0.1000 to close at $1.8000 while SIMBISA BRANDS lost
$0.0096 to settle at $5.3200

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Nigeria's naira seen stronger, Kenyan shilling to track possible c.bank move

LAGOS, Sept 3 (Reuters) - Nigeria’s naira is expected to strengthen while
the Kenyan shilling is seen treading water as foreign exchange traders eye
whether the central bank will intervene in the market again to lend support
to the local currency. 

NIGERIA

Nigeria’s naira is seen stronger on the black market, after it rallied this
week on the unofficial market as the central bank sold dollars to foreign
investors to clear backlog demand, traders said.

The naira was quoted at 435 per dollar on the unofficial market on Thursday,
after it gained almost 10% on Tuesday. It traded at 386.48 on the
over-the-counter spot market. The central bank has gradually restarted
dollar sales after it halted supplies following a coronavirus-induced
lockdown to slow the spread of the virus, which also reduced its activities.

The bank sold around $50 million to foreign investors on the spot and
forward markets this week in a test trade to gauge the level of demand and
said it will resume sales to retail currency operators next week. 

KENYA 

The Kenyan shilling is expected to be influenced by the central bank’s
decision on whether to intervene in the market or not, traders said.

The currency of East Africa’s biggest economy, which was trading at
108.20/40 per dollar on Thursday, dropped to its lowest level in July, hit
by demand for dollars and a reduction in supply caused by the
coronavirus-induced tourism slump. Through sales of dollars to the banks,
the central bank has managed to maintain it at around its recent levels but
traders said it could weaken if the regulator decides not to intervene
again. 

On Thursday commercial banks quoted the shilling at an average of
2,313/2,326, nearly the same level recorded last week of 2,315/2,325.

UGANDA 

The Uganda shilling is seen trading with a weakening tone in the coming days
ahead of the expected re-opening of the country’s borders, with resumption
of  nternational travel activity seen pushing up demand for hard currency.

At 1003GMT commercial banks quoted the shilling at 3,680/3,690, compared to
last

Thursday’s close of 3,675/3,685. Although no date has been given yet the
government of President Yoweri Museveni has said they are preparing to
re-open the country’s international borders.

ZAMBIA 

The kwacha is likely to continue trading on the back foot against the U.S.
dollar in the coming week due to increasing demand for hard currency. On
Thursday, commercial banks quoted the currency of Africa’s second largest
copper producer at 19.5610 per dollar from a close of 19.3360 a week ago. 

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar gains further on worries ECB grew uncomfortable with euro rise

LONDON (Reuters) - The dollar’s bounce extended on Thursday as investors
trimmed bets against the greenback and sold the euro on concerns that the
European Central Bank was worried about its rise.

The surge has lifted the greenback about 1.3% above the 28-month low it hit
against a basket of currencies on Tuesday.

Few analysts expect it to hold for too long, but the dollar gained broadly
in Asia and, if sustained, this would be the first time it has climbed three
sessions in a row since May.

After the euro touched $1.20 earlier this week, worries brewed in the market
that the rise had come too fast and strong for the ECB’s liking. Fears have
intensified after a Financial Times report confirming those concerns.

ECB policymakers reportedly warned that if the euro keeps appreciating it
will weigh on exports, drag down prices and intensify pressure for more
monetary stimulus.

That followed remarks on Tuesday from ECB chief economist Philip Lane, who
said the exchange rate “does matter” for monetary policy.

A speech from ECB board member Isabel Schnabel at 1500 GMT will be closely
watched for any comments on the currency.

The euro was last down 0.4% at $1.1812 EUR=EBS, having slipped earlier in
the session to a one-week low of $1.1789.

The dollar was up 0.3% against a basket of currencies at 92.99 =USD.

For about a fortnight now the dollar has been fighting to hold the line
after dropping 10% from a March peak. As traders start to temper stretched
bets on the euro, it could post its best week on the common currency in four
months.

A stronger dollar helped push the British pound down 0.7% to $1.3263 GBP=D3,
a six-day low, and the Norwegian crown lower by 0.5% to 8.90 NOK=D3. The
Swedish crown followed suit.

Against the Japanese yen, the dollar also rose by 0.3% at 106.45, a six-day
high JPY=EBS. And the Australian dollar fell 0.6% at 0.7293 AUD=D3.

The euro’s slide was also justified by the euro zone’s rebound from its
deepest economic downturn on record faltering in August, with some countries
in the bloc suffering more than others from restrictions imposed to limit
the spread of the coronavirus.

Also, euro zone retail sales defied expectations of a rise in July and fell
against June despite the lifting of COVID-19-related restrictions on
economies, data showed on Thursday.

Traders will be watching for the initial jobless claims in the United States
at 1230 GMT, which economists polled by Reuters expect lower for the week
ending Aug. 29.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Oil prices at one-month low on demand worries

LONDON (Reuters) - Oil prices extended losses on Thursday, falling by more
than 2% to their lowest point since early August, as worries about weaker
U.S. gasoline demand and a sluggish economic recovery from the COVID-19
pandemic dented sentiment.

Brent crude LCOc1 fell $1, or 2.25%, to $43.43 a barrel by 1118 GMT. U.S.
West Texas Intermediate (WTI) crude CLc1 futures were down $1.02, or 2.5%,
at $40.49 a barrel.

Both benchmarks fell more than 2% on Wednesday.

U.S. gasoline demand last week fell to 8.78 million barrels per day (bpd)
from 9.16 million bpd a week earlier, Energy Information Administration
(EIA) data showed on Wednesday, with consumption of other oil products also
falling. [EIA/S]

Other data, such as U.S. private employers hiring fewer workers than
expected for a second straight month in August, also fed fears that economic
recovery was lagging.

Oil markets, however, drew some support from Iraq’s denial it was seeking
exemption from OPEC+ oil cuts during the first quarter of next year.

OPEC’s second largest producer also said it may seek to extend by two months
until the end of November the period for making additional compensation cuts
under the OPEC+ deal.

Analysts warn that the upcoming refinery maintenance and the end of the
summer driving season would also limit crude demand.

WTI crude has come under pressure “after U.S. refiners earmarked a long list
of maintenance closures over the coming months that will no doubt impact
demand for crude oil”, ANZ Research said in a note on Thursday.

Due to shutdowns ahead of Hurricane Laura, U.S. refinery utilization rates
fell by 5.3 percentage points to 76.7% of total capacity, the EIA said.

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

Invest Wisely!

Bulls n Bears 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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.

(c) 2020 Web: <http:// www.bulls.co.zw >  www.bulls.co.zw Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200903/c8611f8d/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 3653 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200903/c8611f8d/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 30195 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200903/c8611f8d/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 30165 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200903/c8611f8d/attachment-0008.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 30173 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200903/c8611f8d/attachment-0009.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200903/c8611f8d/attachment-0010.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20200903/c8611f8d/attachment-0011.jpg>