Bulls n Bears Daily Market Commentary : 14 December 2020

Tue Dec 15 09:26:38 CAT 2020

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Bulls n Bears Daily Market Commentary : 14 December 2020

 <http://www.zb.co.zw/> 

ZSE commentary

The market closed the day in the positive territory gaining 2.04% to close
today at a total market capitalization of ZW$240.8 billion. The main stream
All Share Index put on 0.31% to close the day at 2016.77, the Medium Cap
Index was 2.29% higher to 4075.46 while the Top 10 Index was down 0.83% to 1
298.09. Headlining the riser's pack was TSL  which was up 20.00%, Hippo up
19.91%, Wildale added 13.98%, BAT up 10.12% and Star Africa added 7.91% to
close at 27c. Significant losses were noted in the hotelier firm African Sun
which shaded 12.74% and Dairiboard  went down by 8.78%. Elsewhere, losses
for the day were also recorded in Meikles (7.99%), OK (6.63%) and first
Capital Bank (6.36%).

Total turnover was at ZW$34,087,865,11 million in 235 trades. Innscor led
the turnover contribution at ZW$7,389,850. Among the counters that
participated in trading, 18 counters declined against 13 that appreciated.
Total trades were 235 with 3 counters remaining unchanged and 18 with zero
volume. -wealthaccess

Global Currencies & Equity Markets

South Africa

South Africa's rand falls as virus surge weighs on risk appetite

JOHANNESBURG (Reuters) - South Africa's rand eased early on Tuesday as
concerns about rising COVID-19 cases and stricter lockdowns globally
outweighed optimism over the roll-out of coronavirus vaccinations.

At 0602 GMT, the rand ZAR=D3 traded at 15.0575 against the U.S. dollar,
0.22% weaker than its previous close.

The currency benefited from improved risk appetite on Monday following
progress on the roll-out of a COVID-19 vaccine.

However, concerns have deepened about the economic impact of new
restrictions at home and elsewhere, with South Africa's government saying on
Monday that beaches on the eastern coast would be closed down and public
gatherings would be limited ahead of the festive season.

The move was aimed at controlling a spike in the country's coronavirus
infections since the start of December, with reported cases hovering around
8,000 per day in the last few days, from around 3,000 in November.

Meanwhile, the number of U.S. COVID-19 deaths crossed 300,000 as the
hardest-hit nation started its first vaccine inoculations, while tighter
COVID-19 restrictions were imposed in London.

In fixed income, the yield on the 10-year government bond ZAR2030= was up
0.5 basis point to 8.795 % in early deals.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar heavy amid stimulus progress, pound buoyed by Brexit hopes

TOKYO (Reuters) - The dollar traded near 2 1/2-year lows against major peers
on Tuesday as demand for the safest assets flagged amid progress toward
agreeing U.S. fiscal stimulus and optimism for a Brexit deal.

The greenback was near its weakest since mid-2018 against the euro and UK
pound with U.S. lawmakers scurrying to ready $1.4 trillion in spending.

A $908 billion bipartisan COVID-19 relief plan will be split into two
packages, a person briefed on the matter said, raising hopes that at least a
large part of the plan that already has bipartisan support will be approved.

Cross the Atlantic, European Union Brexit negotiator Michel Barnier said
that sealing a trade pact with Britain was still possible, sowing hope that
a deal can be reached with just days to avert a turbulent exit for the UK
from the trade bloc at the end of the month.

The British pound rose 0.1% against the dollar to $1.3332, after jumping
0.8% on Monday. It reached a 2 1/2-year high of $1.3540 earlier this month.

The greenback slipped 0.1% to $1.2150 per euro, trading near a 2 1/2-year
low of $1.2177 touched again on Monday.

COVID-19 vaccine roll-outs in the United States and Britain also buoyed risk
sentiment, but optimism was tempered by spikes in infection and death rates.
London will go into a tighter lockdown amid the discovery of a new variant
of the virus.

The dollar index was little changed at 90.705 after Monday sinking as low as
90.419, a level unseen since April 2018.

The currency added 0.1% to 104.125 yen, another traditional safe-haven
asset.

An agreement on fiscal stimulus would also "undermine" the U.S. dollar, he
wrote.

The offshore Chinese yuan weakened 0.2% to 6.5444 per dollar. It reached
6.4975 earlier this month for the first time since June 2018.

The onshore yuan traded at 6.5549.

A Chinese official said Tuesday that the country could make targeted policy
adjustments as the economy improves.

The Aussie slipped 0.2% to 75.130 U.S. cents after touching the highest
since June 2018 at 75.780 on Monday.

The New Zealand dollar lost 0.1% to 70.72 U.S. cents after reaching 71.20
the previous session for the first time since April 2018.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold firms as US stimulus progress weighs on dollar

Gold prices inched higher on Tuesday as the dollar weakened, though the
start of COVID-19 vaccinations in the United States and Canada buoyed hopes
of a swifter global economic recovery and kept the metal's gains in check.

Spot gold rose 0.2% to $1,831.64 per ounce by 0322 GMT, while U.S. gold
futures gained 0.3% to $1,836.50.

The dollar hovered near a more than two-and-a-half-year low, hurt by
progress on a fiscal coronavirus relief bill as lawmakers appeared
optimistic over a deal split into two parts in an effort to win approval.
[USD/]

Capping bullion's gains, coronavirus vaccinations in the United States began
on Monday with a New York City intensive care unit nurse becoming the first
to receive the vaccine.

Meanwhile, COVID-19 infections continued to surge globally, prompting
tighter restrictions and lockdowns in the Netherlands, Germany and London,
while deaths crossed 300,000 in the United States.

Investors now await policy meetings of the Fed starting on Tuesday and the
Bank of England on Thursday.

With the roll-out of vaccines, central bankers may re-evaluate their
policies and enact stimulus programmes with a less sense of urgency going
forward, Avtar Sandu, a senior commodities manager at Phillip Futures, said
in a note.

But ultra-low yields and negative real interest rates are expected to remain
supportive of gold, he added.

Among other precious metals, silver rose 0.7% to $23.99 an ounce, platinum
added 0.1% to $1,008.76 and palladium gained 0.4% to $2,300.45.

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

Zimbabwe

National Unity Day

Zimbabwe

22/12/2020

Christmas Day

25/12/2020

Boxing Day

26/12/2020

New Year's Day

01/01/2021

Counters trading under cautionary

ART

Seed co Int.

Dairibord

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
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
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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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