Bulls n Bears Daily Market Commentary : 28 December 2020

Mon Dec 28 18:49:38 CAT 2020

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Bulls n Bears Daily Market Commentary : 28 December 2020

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

ZSE commentary

The market closed the day gaining 3.44% to close today at a total market
capitalization of ZW$277.1 billion. The main stream All Share Index added
4.99% to close the day at 2355.48, the Medium Cap Index was up 1.74% to
4653.4 while the Top 10 Index was up 6.89% to 1537.34. Headlining the
riser's pack was Rio Zimbabwe which went up 22.86%, followed by CBZ which
was up 19.99%, while Dairiboard added 18.28%, Axia was up 15.24% and Meikles
added 12.13% to close at 2000.78c. Significant losses were noted in Zimre
holdings which shaded 19.25%, First Capital Bank went down by 7.14%.
Elsewhere, losses for the day were also recorded in Bindura (0.72%), Edgars
(0.66%) and First Mutual Life (0.02%) to close at 799.87c.

Total turnover was at ZW$102,761,914.51 in 270 trades. RIO Zimbabwe led the
turnover contribution at ZW$41,793,100. Among the counters that participated
in trading, 5 counters declined against 23 that appreciated. Total trades
were 270 with 5 counters remaining unchanged and 18 with zero volume.-
wealthaccess

Global Currencies & Equity Markets

South Africa

S.Africa's rand inches lower as local virus cases cross 1-mln mark

JOHANNESBURG (Reuters) - South Africa's rand opened slightly weaker on
Monday, as concerns over domestic coronavirus cases crossing the one million
mark overshadowed optimism around the approval of a $2.3 trillion pandemic
aid and spending package in the U.S.

At 0636 GMT, the rand ZAR= was trading 0.55% weaker against the U.S. dollar
at 14.5800, but continued to flit between positions of strength and weakness
as investors tried to make sense of the prospects of the currency amid
rising infections in the second wave.

South Africa's total cumulative coronavirus cases crossed the one million
mark on Dec. 27 with 26,735 deaths, its health ministry said on Sunday.

In the last few weeks, the rand has shown resilience against a second wave
of coronavirus in the country, as hopes of a vaccine boosted riskier
currencies globally, and has been hovering around January levels before the
pandemic struck the country.

African currencies week ahead: Zambia, Kenya, Tanzania currencies seen
stable

LUSAKA: Zambia, Kenya and Tanzania's currencies are expected to remain
stable this week. ZAMBIA - The kwacha is...

LUSAKA: Zambia, Kenya and Tanzania's currencies are expected to remain
stable this week.

ZAMBIA - The kwacha is expected to remain range-bound in the coming week due
to limited market activity after companies closed for Christmas and New Year
holidays.

On Thursday, commercial banks quoted the currency of Africa's second largest
copper producer at 21.1050 per dollar from 21.0700 a week ago. 

KENYA - The Kenyan shilling is expected to remain stable in the week ahead,
as little activity is expected in the market due to end-of-year holidays.

The shilling is at 108.70/108.90 on Thursday, compared with 111.50/111.70 at
the end of trading last week.

TANZANIA - Tanzania's shilling is expected to hold steady next week as
inflows from companies meeting their end of the month obligations balances
the demand of the US dollar in the market which is always driven by energy
and manufacturing importers.

Local commercial banks quoted the shilling at 2,314/2,324 against the
greenback on Thursday, unchanged from the week earlier. .-Reuters

 <mailto:info at bulls.co.zw> 

Global Markets

Rupee settles 6 paise higher at 73.49 against US dollar

At the interbank forex market, the domestic unit opened at 73.52 against the
US dollar and witnessed an intra-day high of 73.47 and a low of 73.61. The
local unit finally settled at 73.49 against the American currency,
registering a rise of 6 paise over its previous close.

The rupee appreciated by 6 paise to close at 73.49 (provisional) against the
US dollar on Monday, tracking weakness in the American currency and positive
domestic equities.

The sustained foreign fund inflows also supported the rupee, traders said.

At the interbank forex market, the domestic unit opened at 73.52 against the
US dollar and witnessed an intra-day high of 73.47 and a low of 73.61.

The local unit finally settled at 73.49 against the American currency,
registering a rise of 6 paise over its previous close.

On Thursday, the rupee had settled at 73.55 against the US dollar.

Forex and equity markets were closed on Friday for Christmas.

Meanwhile, the dollar index, which gauges the greenback's strength against a
basket of six currencies, slipped 0.25 per cent to 89.99.

On the domestic equity market front, BSE Sensex ended 380.21 points or 0.81
per cent higher at 47,353.75, while the broader NSE Nifty jumped 123.95
points or 0.9 per cent to 13,873.20.

However, the sharp gain was prevented amid worries over rising coronavirus
cases across the globe and emergence of a new strain of Covid-19 in the UK,
Mukadam added.

Traders fear that strict restrictions on social and business activity would
hamper global economic recovery.

Foreign institutional investors were net buyers in the capital market as
they purchased shares worth Rs 1,225.69 crore on a net basis on Thursday,
according to provisional exchange data.

Brent crude futures, the global oil benchmark, rose 1.31 per cent to USD
51.96 per barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Modest gold price gains amid weak U.S. dollar

(Kitco News) - Gold futures prices are modestly up in early U.S. trading
Monday, boosted a bit by a weaker U.S. dollar index that is hovering near a
2.5-year low. Gains in the yellow metal are being limited by higher U.S. and
global equity markets. Silver prices are posting solid gains to start the
trading week. February gold futures were last up $3.10 at $1,886.40 and
March Comex silver was last up $0.787 at $26.695 an ounce.

Global stock markets were mostly up overnight. U.S. stock indexes are
pointed toward higher openings and new record highs for the S&P 500 and
Nasdaq indexes when the New York day session begins. The marketplace has
been buoyed by President Trump in a surprise move over the weekend signing
the Covid-19 aid bill that the U.S. Congress agreed upon just before
Christmas. The bill provides direct payments to Americans and also loans to
U.S. businesses.

Traders and investors are also more upbeat as Covid vaccines continued to be
rolled out in the U.S. and Europe. Still the enthusiasm is tempered by the
pandemic that continues to be out of control in the U.S., Europe and other
parts of the world. Some health experts are saying January will be the worst
month yet, as far as the human toll. Restrictions on many businesses in many
locations remain in place and may get tighter in January.

The U.S. dollar index is slightly lower in early U.S. trading. The other
important outside market sees February Nymex crude oil futures prices firmer
and trading around $48.50 a barrel. The yield on the benchmark 10-year U.S.
Treasury note futures is currently around 0.956%.

U.S. economic data due for release Monday is light and includes the Texas
manufacturing outlook survey.

Technically, the February gold futures bulls have the overall near-term
technical advantage amid a price uptrend still in place on the daily bar
chart. However, bulls need to show fresh power soon to keep the uptrend
alive. Bulls' next upside price objective is to produce a close in February
futures above solid resistance at the November high of $1,973.30. Bears'
next near-term downside price objective is pushing futures prices below
solid technical support at $1,820.00. First resistance is seen at $1,900.00
and then at the December high of $1,912.00. First support is seen at the
overnight low of $1,873.00 and then at last week's low of 1,859.00.
Wyckoff's Market Rating: 6.0.

March silver futures bulls have the firm overall near-term technical
advantage amid a near-term price uptrend in place on the daily chart. Silver
bulls' next upside price objective is closing prices above solid technical
resistance at the December high of $27.635 an ounce. The next downside price
objective for the bears is closing prices below solid support at $25.00.
First resistance is seen at the overnight high of $26.98 and then at $27.50.
Next support is seen at $26.00 and then at $25.50. Wyckoff's Market Rating:
6.5.

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

New Year's Day

01/01/2021

Counters trading under cautionary

ART

Seed co Int.

Dairibord

Starafrica

Medtech

Turnall

Seed co

Invest Wisely!

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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
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opinions expressed and recommendations made are subject to change without
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