Bulls n Bears Daily Market Commentary : 16 December 2020

Wed Dec 16 15:04:54 CAT 2020

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Bulls n Bears Daily Market Commentary : 16 December 2020

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

ZSE commentary

The market closed the day in the positive territory gaining 1.34% to close
today at a total market capitalization of ZW$247.5 billion. The main stream
All Share Index put on 1.25% to close the day at 2072.28, the Medium Cap
Index was 2.40% up to 4171.48 while the Top 10 Index was up 0.67% to
1336.18. Headlining the riser's pack was the sugar industry giant Hippo
Valley Estates which went up 18.58%, followed by Mash holdings which was up
14.79%, the dairy giant Dairiboard added 9.76%, Axia  up 8.78% and Delta
beverages  added 4.67% to close at 2407.33c. Significant losses were noted
in the agricultural firm Ariston holdings  which shaded 8.96% and Power
Speed went down by 7.22%.

Elsewhere, losses for the day were also recorded in Wildale (6.49%), Meikles
(6.33%) and Proplastics (4.79%). Total turnover was at ZW$251,322,316.50 in
278 trades. RIO Zimbabwe led the turnover contribution at ZW$109,892,250.
Among the counters that participated in trading, 15 counters declined
against 12 that appreciated. Total trades were 278 with 7 counters remaining
unchanged and 18 with zero volume.wealthaccess

Global Currencies & Equity Markets

South Africa

South African rand rally to accelerate to 14.67 - Unicredit

The USD/ZAR pair is firmly in the red ahead of the Federal Reserve interest
rate decision. It is trading at 14.8390, which is 23% below its year-to-date
high. And analysts at Unicredit believe that the South African rand could
rise to as high as 14.67.

What is happening? The Fed is the only game in town today in the foreign
exchange market. The bank will deliver its final interest rate decision of
the year later today. While the bank will likely not change its current
interest rate, it will provide hints about what it will do in the coming
year. 

A highly dovish Fed will possibly push the USD/ZAR further in the red. On
the other hand, if the bank turns hawkish, it could send the pair higher as
investors flock back to the dollar.

What next for the USD/ZAR: In a note earlier today, analysts at Unicredit
said that the pair could continue falling with the next target being at
14.73 followed by the next support at 14.67. They wrote; "we remain prudent
about a further ZAR rise towards the next key levels on charts between 14.73
and 14.67."

USD/ZAR technical outlook

On the daily chart, we see that the South African rand has been in a strong
rally. This decline is supported by the short and longer moving averages.
Similarly, the relative strength index has been in a downward trend.
Therefore, the USDZAR pair will continue to fall as bears aim for the
Unicredit's target of 14.67 and 14.50.

Zimbabwe

Zim dollar in 12c gain against the USD   

THE Zimbabwean dollar gained a marginal 12 cents against the greenback in
Tuesday's weekly trade to close at $81.74.

At last week's auction, the local currency traded at $81.86. largely
unchanged from the previous weeks.

The Reserve Bank allotted a total of US$31.95 million to 435 bidders this
week, with importers of raw materials, machinery and equipment getting the
bulk at both the main and small enterprises (SMEs) auctions with the main
auction taking US$29 468 843. Of these, US$2 477 873 was allotted to the
SMEs sector

The highest rate on offer was $86 while the lowest accepted rate was $80.

The official exchange rate, however, remains below the parallel market
exchange rate, which ranges between $100 and $110 to the greenback, but the
Government said recently that the differences were now within acceptable
global norms. - New Ziana

 <mailto:info at bulls.co.zw> 

Global Markets

Rupee surges 15 paise to 73.48 against the US dollar in early trade

The rupee appreciated 15 paise to 73.48 against the US dollar in opening
trade on Wednesday as sustained foreign fund inflows and hectic buying
domestic equities strengthened investor sentiment.

Traders said the weakness of the American currency in the overseas market
also supported the domestic unit.

At the interbank forex market, the domestic unit opened at 73.49 against the
greenback, then inched higher to touch 73.48, registering a rise of 15 paise
over its previous close.

On Tuesday, the Indian rupee depreciated by 8 paise to settle at 73.63
against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a
basket of six currencies, was trading 0.03 per cent lower at 90.44.

Traders said some depreciation can be expected during the day as market
participants await the conclusion of the US Fed meeting.

On the domestic equity market front, the 30-share BSE benchmark Sensex was
trading 274.76 points higher at 46,537.93, and the broader NSE Nifty
advanced 75 points to 13,642.85.

Foreign institutional investors were net buyers in the capital market as
they purchased shares worth Rs 2,484.09 crore on a net basis on Tuesday,
according to exchange data.

Brent crude futures, the global oil benchmark, fell 0.22 per cent to USD
50.65 per barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper rises as China data, vaccine roll-out boost sentiment

(Reuters) - Copper prices advanced on Wednesday as market sentiment was
boosted by solid manufacturing data from top consumer China and the roll-out
of COVID-19 vaccines in some major economies.

Three-month copper on the London Metal Exchange rose 0.4% to $7,810 a tonne
by 0713 GMT, while the most-traded January copper contract on the Shanghai
Futures Exchange climbed 0.5% to 57,850 yuan ($8,849.49) a tonne.

China's factory output grew at its fastest pace in 20 months in November on
rising demand for its manufactured goods.

Copper and most base metals are widely used in manufacturing.

Moderna Inc's COVID-19 vaccine appeared set for U.S. regulatory
authorisation this week, while Europeans could start getting vaccines before
the new year.

Meanwhile, top U.S. congressional leaders began a second meeting on Tuesday
to try to come up with a coronavirus aid package, fuelling hopes of further
stimulus.

Investors' sentiment towards copper is likely to remain strong in 2021 amid
weakness in the dollar and the roll-out of vaccines in developed markets,
Fitch said, lifting its 2021 average copper price forecast to $6,800 a tonne
from $6,300 a tonne.

FUNDAMENTALS

* LME aluminium rose 0.2% to $2,033.50 a tonne, zinc increased 1.1% to
$2,844 a tonne, while ShFE aluminium was up 0.6% at 16,370 yuan a tonne and
zinc advanced 1.1% to 21,645 yuan a tonne.

* ShFE nickel slipped from a 14-month high of 134,180 yuan a tonne hit
earlier in the session fuelled by supply worries in New Caledonia and
Indonesia, to fall 1.4% to 129,370 yuan a tonne at the close, a trader said.

* For the top stories in metals and other news, click or

$1 = 6.5371 yuan

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
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for guideline purposes only and sourced from third parties.

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