Bulls n Bears Daily Market Commentary : 24 September 2021

Fri Sep 24 15:31:43 CAT 2021

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Bulls n Bears Daily Market Commentary : 24 September 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE gains momentum closing today's session with significant gains in all
indices in our review. Blue-chip stocks headlined the market rally taking
the market cap closer to ZW$1 trillion at ZW$936 billion. Activity levels
climbed to 527 trades and market bias firming in the positive as 32 stocks
rose while 2 lagged and 7 of the active stocks remained unchanged. Star
Africa was the most active stock at 56 trades followed by OK Zimbabwe and
Zimplow at 42 and 34 trades respectively. FBC Holdings anchored both volume
and value aggregate trading 22 686 000 shares with a value of ZW$680.6
million.

The benchmark All Share Index jumped by 6.68% to a fresh all time high of 7
866.84 points. The Top 10 Index added 8.55%. The Top 15 Index gained 7.37%.
The Medium Cap Index traded higher to 18 655.87 points appreciating by 3.93%
whilst the Small Cap Index also added 2.38% to close at 229 647.05 points.
Leading the risers pack of the day was Simbisa Brands after the release of
strong full year results for FY2021 adding 19.39% to a new record high of
5851.82c. Delta added 18.59% to 11245.35c. OK Zimbabwe added 18.29% and Axia
was up by 17.57%. NMB Holdings added 14.14%. Bears for the day were First
Mutual Properties and African Sun which shaded 3.45% and 1.74% to close at
1400c and 802.68c respectively. The Old Mutual Top Ten ETF closed at 272.67c
up by 9.08% after trading 11 800 units with a value of ZW$32 175 in 11
trades. Elsewhere on the VFEX, Seed Co International traded 403 956 shares
worth US$113 107.68 to close 16.67% higher at US 28 cents. wealthaccess

Global Currencies & Equity Markets

South Africa

South African rand gains as central bank holds rates

(Reuters) - South Africa's rand gained strongly on Thursday, as the dollar
fell on global markets and the central bank held its main interest rate at a
record low.

At 1510 GMT, the rand was trading at 14.6700 against the dollar, around 1.1%
firmer than its previous close.

Although the South African Reserve Bank's (SARB) decision to keep its repo
rate on hold at 3.5% (ZAREPO=ECI) was expected, some traders took the
implied rate path in the bank's Quarterly Projection Model as a sign that
the scales were tipping towards a future rate hike.

Carmen Nel, economist and macro strategist at Matrix Fund Managers, said in
a research note that the Monetary Policy Committee's (MPC) statement was
hawkish enough to keep the door open should the SARB need to act soon.

The safe-haven dollar (.DXY) was down 0.5% against a basket of peer
currencies, as risk sentiment improved globally.

Johannesburg-listed stocks rose, with the All-share index (.JALSH) ending up
1.1% at 64,049 points and the Top-40 index (.JTOPI) closing up 1.2% at
57,643 points.

The government's benchmark 2030 bond fell, with the yield rising 6 basis
points to 9.145%.

Nigeria

Naira loses at official market

Naira fell against the U.S. dollar at the official market on Thursday, after
it clinched a meagre gain in the last two trading sessions of the segment.

According to data posted on the FMDQ securities exchange where forex is
officially traded, naira closed at N413.68 per $1.

Thursday's performance implies a N0.50 or 0.12 per cent depreciation from
N413.18 it exchanged on Wednesday.

Foreign exchange supply fell 23.50 per cent with $175.86 million recorded
against the $229.72 million posted in the previous session on Wednesday.

The domestic currency experienced an intraday high of N404.00 and a low of
N415.00 before closing at N413.68 per $1 on Thursday.

At the black market, the exchange rate hovered around N565.00 and N575.00 a
dollar across major states in Nigeria on Thursday.

Forex dealers in Lagos, Abuja, Port Harcourt and Uyo said the rates kept
fluctuating based on the demand and supply.

According to dealers in Abuja and Port Harcourt, naira exchanged hands with
the greenback currency at a low of N570.00 per $1 in the morning before
oscillating to a high of N565.00 at the close of business on Thursday.

It sold for N575.00 per $1 in the morning in Uyo and N570.00 later in the
evening.

At Lagos, dealers said the currency exchanged with the dollar at N568.00 on
Thursday.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar wallows near one-week low as haven demand ebbs

(Reuters) - The dollar wallowed near its lowest level in a week versus major
peers on Friday, as improved risk sentiment wiped out recent gains amid
easing concerns about contagion from a potential China Evergrande Group
default.

Risk appetite returned, lifting oil and global equities, even as hawkish
comments from the Bank of England pushed up yields globally, with those on
10-year U.S. Treasury notes hitting the highest since July overnight at
1.437%.

That failed to help the greenback though, with the U.S. Dollar Index, which
measures the currency against a basket of six rivals, easing slightly to
93.068 from Thursday, when it slid 0.36% and touched the lowest since Sept.
17 at 92.977. That erased gains for the week, and set the index up for a
0.16% decline.

Beijing injected fresh cash into its financial system on Thursday, as
embattled property giant Evergrande announced it would make interest
payments on an onshore bond. There has been no word yet, however, on whether
it also made coupon payments on dollar bonds due that day, with more due
next week.

Even so, the mood improved, weighing on other safe havens like the yen and
lifting commodity-linked currencies like the Australian dollar.

The yen eased 0.05% to 110.385 per dollar after earlier hitting 110.435, its
weakest level since Sept. 8.

The euro added 0.05% to $1.1743, continuing to rebound from a more than
one-month low of $1.16835 reached Thursday.

The Aussie rose 0.21% to $0.73105, and earlier touched a one-week high of
$0.73165.

Meanwhile, sterling was 0.07% higher at $1.3734, approaching the previous
session's high of $1.3750, a first since Sept. 20.

The BOE said two of its policymakers had voted for an early end to
pandemic-era government bond buying and markets brought forward their
expectations for an interest rate rise to March.

Norway's crown was little changed at 8.5754 per dollar after jumping to a
1-1/2 month high of 8.5552 on Thursday, after the country's central bank
raised its benchmark interest rate and said more hikes will follow in the
coming months.

A day earlier, the Federal Reserve said it could begin reducing its monthly
bond purchases by as soon as November, and that interest rates could rise
quicker than expected by next year.

Several Fed officials are due to speak on Friday, including Chair Jerome
Powell, who gives opening remarks at a Fed Listens event.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold gains as Evergrande fears sour risk appetite, dollar slips

(Reuters) - Gold rebounded on Friday after a 1% drop in the last session,
supported by a softer dollar and as concerns over the fate of China's
Evergrande returned to the fore, burnishing bullion's safe-haven status.

Spot gold rose 0.5% to $1,750.90 per ounce by 1152 GMT, while U.S. gold
futures were 0.2% higher at $1,752.40.

Helping bullion by making it cheaper for those holding other currencies, the
dollar index lingered near a one-week low hit in the previous session.

This was in contrast to Thursday, when gold fell to a more than one-month
low as heightened Fed rate hike bets largely overshadowed a retreat in the
dollar -- an unusual occurrence.

Gold is taking support from a weaker dollar, with the warning from China to
local authorities over a possible collapse of Evergrande serving as "another
reminder that the risk still prevails," said Quantitative Commodity Research
Analyst Peter Fertig.

But prospects of rate hikes from several central banks are "a negative mix
for gold," Fertig added.

Higher interest rates increase the opportunity cost of holding bullion,
which pays no interest.

Gold also competes with the dollar as a safe store of value during financial
or political uncertainties.

But while the uncertainty may accelerate a flight to safety, investors may
rush towards the dollar at gold's expense, said FXTM analyst Lukman Otunuga
said.

Elsewhere, palladium rose 0.3% to $1,989.33, but was on track for a third
straight weekly decline.

Platinum slipped 1.1% to $978.00. The metal, however, was set to break
two-consecutive weeks of decline.

Silver climbed 0.3% to $22.54. (Reporting by Arundhati Sarkar in Bengaluru;
editing by Jason Neely, Kirsten Donovan)

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

National Unity Day

December 22

Christmas Day

December 25

Boxing Day

December 26

Public Holiday in lieu of Boxing Day falling on a Sunday

December 27

Counters trading under cautionary

ART

Seed co Int.

Starafrica

Medtech

Turnall

Seed co

Invest Wisely!

Bulls n Bears 

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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
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opinions expressed and recommendations made are subject to change without
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