Bulls n Bears Daily Market Commentary : 19 November 2020

Fri Nov 20 05:48:15 CAT 2020

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Bulls n Bears Daily Market Commentary : 19 November 2020

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

ZSE commentary

Market extend gains as profit taking sets in.

The ZSE extended gains in Thursday's session with the mainstream All Share
Index adding 0.66% to close at 1,643.31prts while, the Industrials put on
0.68% to 5,437.53pts. The blue chips Index grew 1.10% to 1,083.20pts.
Turnall was the top performer of the day with a 13.33% surge to $0.6800,
followed by SeedCo which jumped 10.04% to $18.2679 closing with a spread of
$18.3000-$18.5000. Top capitalised stock Delta garnered 5.39% to close at
$23.9574, having traded an intraday high of $27.0000. Telecoms giant Econet
earned 5.01% to settle at $5.0538 while, MASH increased 4.35% to end pegged
at $0.6000.

Hotelier African Sun was the major casualty of the day after letting go a
further 18.42% to close at $1.5000. Apparel retailer Truworths trailed on a
12.95% fall to $0.1815 while, banking group CBZ succumbed 5.19% to $35.1500.
Ariston shed 0.74% to $1.3400 while, construction group Masimba completed
the top five fallers on a 0.47% loss to $2.8366. Gainers outnumbered fallers
by a count of two, leaving the market with a positive market. Activity
aggregates were mixed in the session as volumes declined 82.16% to 8.67m
shares while, value outturn rose 0.77% to $98.94m. Delta was the top traded
counter by volume and value claiming 21.98% of the former and 46.15% of the
latter. Econet, Cassava and Simbisa contributed a combined 46.28% of the
volume outturn. Innscor accounted for 14.15% of the value aggregate.
Foreigners were at a net selling position of $10.70m for the day as sales
amounted to $20.20m while, purchases stood at $9.51m..-efesecurities

Global Currencies & Equity Markets

South Africa

Rand on the back foot ahead of Sarb meeting

JOHANNESBURG - The South African currency traded on a weaker footing as
traders await the outcome of the Sarb's final repo rate decision of the year
according to NKC Research.

The local unit stumbled as global vaccine optimism ebbed, with the attention
turning to Thursday's announcement of the lending rates decision.

Expectations are for the Sarb to maintain interest rates at this week's MPC
meeting on Thursday, but signs of a gradual economic recovery and favourable
external conditions do suggest that there is room for a final policy rate
cut.

At the close of local trade, the rand quoted 0.38 percent weaker at
R15.44/$, after trading in range of R15.29/$ - R15.45/$. The rand traded
weaker overnight. Expected range today R15.25/$ - R15.75/$.

South African bourse

The JSE All Share (+0.47 percent) closed in the black yesterday, with modest
gains scattered across the board, except for large gold stocks (-3.02
percent). In the overall emerging market sphere, the MSCI Emerging Market
Index (-0.37 percent) traded lower.

Brent crude oil

The Brent oil price traded higher yesterday, bolstered by vaccine optimism
and hopes that Opec and its allies will postpone increasing oil output
during its upcoming meeting. At the close of local trade, benchmark Brent
crude futures quoted 2.94 percent higher at $44.49pb. Crude prices traded
flat during Asian trade this morning.

BUSINESS REPORT ONLINE

Zambia

Zambia: The < kwacha > sinks into depression following default

Considered now, as the first African country to be in default, Zambia
continues to see its local currency (kwacha) depreciated against the main
currencies, especially the dollar. 

Meeting Wednesday, November 18, the Monetary Policy Committee (MPC) of the
Central Bank of Zambia (BoZ,), was pessimistic about the fall of the Kwacha
against the US dollar. The kwacha, which depreciated Wednesday, November 18,
from 0.15% to 20.94%, could end the year close to 26 against the greenback.

According to statistics released by the MPC, the Zambian currency has
weakened 32% against the dollar this year, making it the worst performing of
all the currencies on the continent. As for inflation, it has exceeded the
central bank's target range of 6% to 8% for 18 consecutive months and
accelerated to 16% in October.

According to him, the economy is likely to contract by 4.2% this year. BoZ
Governor Christopher Mvunga said that "successfully navigating the debt
restructuring process to restore sustainability and implementing fiscal and
other structural reforms to regain good health is essential. budgetary >.

Meanwhile, the committee kept its key interest rate at 8%, a record high to
allow the impact of previous cuts to filter through the economy. As a
reminder, Zambia has not honored the repayment deadlines for its three
coatings. The first is estimated at $ 750 million and expires in 2022. The
second and third, respectively amounting to $ 1 billion with a maturity in
2024 and $ 1.25 billion by 2027.

According to some economists, Zambia could be among the "over-indebted
countries" as it has just missed its repayment deadlines.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar Loses to Euro as Payment Currency for First Time in Years

The euro was the most used currency for global payments last month, the
first time it has outpaced the dollar since February 2013.

Data from the Society for Worldwide Interbank Financial Telecommunications,
which handles cross-border payment messages for more than 11,000 financial
institutions in 200 countries, showed the European Union's single currency
and the greenback were followed by the British pound and the Japanese yen.
The Canadian dollar overtook China's yuan for the fifth spot, Swift said.

Note: Based on customer initiated and institutional payments values messages
exchanged on SWIFT.

Trade upheaval, a pandemic-induced recession and political disharmony
renewed pressure to reduce the share of international payments in dollars.
The U.S. currency has weakened more than 11% from its March peak, based on a
Bloomberg index that measures it against a basket of major peers, and many
observers are predicting its valuation to drop further.

The dollar remains the top funding currency, with about half of all
cross-border loans and international debt securities denominated in the
greenback, the Bank of International Settlements said in a July report.
About 85% of all foreign-exchange transactions occur against the dollar and
it accounts for 61% of official foreign-exchange reserves, the BIS said,
adding that about half of international trade is invoiced in the U.S.
currency.

Swift releases the data in its monthly RMB Tracker on the renminbi's
progress toward becoming an international currency.

About 37.82% of the Swift cash transfers were handled in euros last month,
the largest portion since February 2013. This was an increase of more than 6
percentage points from the end of last year.

The U.S. dollar's usage fell about 4.6 percentage points from December to
37.64% of transactions last month. The dollar peaked at 45.3% in April 2015.
The British, Japanese and Canadian currencies together held 12.25% of
transactions in October.

The yuan's share fell to 1.66% of transactions, in its worse showing since
April. The Chinese currency was ranked 35th in October 2010, when Swift
started tracking currencies in this way. It progressed to the top six in
2014, where is has general averaged slightly less than a 2% share globally
since.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold and silver struggle ahead of the EU session

(Kitco News) -Gold is starting the EU session on a soft note as the price
has moved 0.41% lower during the Asian session. Silver is slightly worse off
falling 0.91% as the dollar index trades 0.14% higher overnight. 

There are a few key stories to be made aware of before the EU session. First
up, the Australian jobs numbers beat expectations to print at +178.8K vs.
expected -27.5K for employment change and the unemployment rate improved
marginally to hit 7.0% vs. expected 7.1%. AUD/USD pushed up at the time but
has subsequently dipped below flat again. Elsewhere in the UK, there have
been some reports that the EU has put together a proposal for a no-deal
Brexit. The report in UK press is suggesting that the EU is preparing for a
no-deal because the talks are dragging on with businesses not knowing what
they need to do if talks fail. Coronavirus rates are on the rise in the US
and the NY mayor has closed schools as the death rate broke the 250,000
number. 

After the negative handover from the US, Asian bourses were once again
mixed. The Nikkei 225 fell 0.36% but the Shanghai Composite (0.47%) and ASX
(0.25%) both traded well. In the FX space GBP and NZD were the worst
performers as the greenback pushed higher overnight, GBP/USD (-0.27%) and
NZD/USD (-0.29%). 

In the metals complex platinum (-1.26%) has followed gold and silver lower.
Tin (-0.58%), aluminium (-0.19%), nickel (-0.10%) and copper (-0.07%) are
all struggling as base metals decline. Lead is the only one treading above
water 0.06% in the black. 

Looking ahead to today's session the highlights include the Turkish bank
rate decision, US initial jobless claims, Philly Fed data and US existing
home sales. In terms of speakers we hear from ECB's Lagarde, Fed's Mester,
German Buba members Mauderer and Wuermeling.

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

Simbisa Brands

AGM

SAZ, Northend Close, Borrowdale, Harare as well as virtually on:
https:/escrowagm.com/eagmZim/Login.aspx

20/11/2020 | 8:15am

Axia Corporation

AGM

virtual https://escrowagm.com/eagmZim/login.aspx

24/11/2020 | 8:14am

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

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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for guideline purposes only and sourced from third parties.

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