Bulls n Bears Daily Market Commentary : 23 November 2020

Mon Nov 23 18:16:20 CAT 2020

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:bulls at bulls.co.zw> Views & Comments
<http://www.bullszimbabwe.com> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 23 November 2020

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

ZSE commentary

Delta weighs down the market.

The ZSE weakened in Monday's session as losses in Delta weighed down the
market to see three of the benchmarks in our review close in the red. The
primary All Share Index let go 2.20% to 1,628.56pts while, the Industrials
slipped 2.26% to 5,387.36pts. The blue chips Index was down 3.47% at
1,067.97pts. Delta succumbed 12.67% to close at $20.0903, trailed by banking
group NMB which trimmed 7.49% to $2.4007. Apparel retailers Truworths went
down a further 6.68% to end at $0.1453 while, conglomerate Meikles shed
5.65% to $16.0000. Edgars capped the top five losers of the day on a 4.36%
retreat to $0.9529.

Headlining the risers' pack was Turnall which improved 13.14% to $0.6800,
reversing previous session's losses. Packaging group Nampak followed after
putting on 8.24% to settle at $0.9200 while, First Capital added 6.81% to
$0.5554. Dairibord firmed 6.37% to $8.5000 while, Ariston completed the top
five gainers of the day on a

3.85% lift to $1.3500. Gainers outnumbered fallers by a count of two leaving
the market with a positive breadth. Volume of shares traded declined 51.59%
to 4.47m while, turnover dropped 29.74% to $44.90m. Top volume drivers of
the day were Simbisa, OKZIM and SeedCo which contributed a combined 51.97%
of the aggregate. SeedCo, Innscor and Simbisa accounted for 30.55%, 19.51%
and 13.15% of the value outturn apiece. Foreign sales dipped 14.50% to
$10.30m while, purchases ballooned 495.30% to $5.80m to register a net funds
outflow position.efesecurities

Global Currencies & Equity Markets

South Africa

South African rand lifted by vaccine hopes; shrugs off downgrades

JOHANNESBURG,  (Reuters) - South Africa's rand gained on Monday, lifted by
global optimism over coronavirus vaccines and shrugging off ratings
downgrades that are likely to push up government borrowing costs.

At 1430 GMT, the rand ZAR=D3 traded at 15.3500 versus the U.S. dollar, up
0.52% from its previous close.

The upbeat global market mood comes after a top official of the U.S.
government's vaccine development effort said on Sunday that the first
vaccines could be given to U.S. healthcare workers and others recommended by
mid-December.

That outweighed the domestic impact of downgrades by Fitch and Moody's
deeper into junk territory on Friday that the finance minister called
painful.

S&P Global affirmed its rating on Friday.

South Africa's public finances were in bad shape before the COVID-19
pandemic and have deteriorated since. This year's budget deficit is expected
to reach more than 15% of gross domestic product.

Stocks rose, also spurred by vaccine hopes and a strong half-year
performance by index heavyweight Naspers Ltd NPNJn.J.

Nigeria

Naira in Mixed Fortunes As External Reserves Drop to 5 Months Low

Despite the renewed pressures on the external sector, Naira has appreciated
in the Investors & Exporters (I&E) window of the currency market.

But this came at the backdrop of a decline in external reserves just as the
exchange rate in the parallel market deteriorated.

Data obtained from the Central Bank of Nigeria, CBN, by Financial Vanguard
shows that Nigeria's external reserves dropped last week to $35.506 billion,
the lowest level in five months since May 18th 2020 when it stood at $35.473
billion.

According to the data the reserves declined to $35.506 billion on Thursday
November 19th from $35.613 billion recorded previous week.

This translated to week-on-week (w/w) decline of $107 million, the highest
in 15 weeks since August 6th 2020.

Consequently, the external reserves had fallen by $1.02 billion since May
29th, 2020, when it peaked at $36.594 billion on the backdrop of the inflow
of loans from the International Monetary Fund (IMF), the World Bank and the
African Development Bank.

The sharp decline in the external reserves last week followed increased
dollar injection by the CBN in its bid to address the sharp depreciation of
the naira in the parallel market which persisted last week.

While the naira appreciated by 38 kobo in the Investors and Exporters (I&E)
window last week, it suffered N12 naira depreciation in the parallel market,
the biggest in 12 weeks.

According to data from FMDQ, the I&E window exchange rate dropped to N385.83
per dollar last week from N386.21 per dollar the previous week. This
translated to 38 kobo appreciation for the naira.

However, data from naijabdcs.com, the live exchange rate platform of
Association of Bureaux De Change Operators of Nigeria (ABCON) showed that
the parallel market exchange rate rose to N482 per dollar last week, the
highest in 12 weeks, from N470 per dollar the previous week, translating to
N12 depreciation.

Analysts at United Capital Plc however projected that the naira will suffer
further depreciation in the parallel market in the coming weeks, stressing
that the factors driving the depreciation are not likely to abate soon.

They stated: "The recent pressure on foreign exchange (FX) rates is
attributable to a number of factors: First, legitimate FX demand by
manufacturers whose obligation to their foreign suppliers continues to
increase.- Vanguard.

 <mailto:info at bulls.co.zw> 

Global Markets

Rupee Opens On Flat Note Against US Dollar

At the interbank forex market, the domestic unit opened at 74.12 against the
US dollar. In early trade, the local unit also touched 74.17 against the
American currency.

The rupee opened on a flat note and was trading in a narrow range against
the US dollar in opening session on Monday as rising COVID-19 cases offset
positive sentiments surrounding the progress on the vaccine front.

At the interbank forex market, the domestic unit opened at 74.12 against the
US dollar. In early trade, the local unit also touched 74.17 against the
American currency.

On Friday, the local unit had settled at 74.16 against the greenback.

The dollar index, which gauges the greenback's strength against a basket of
six currencies, was down 0.13 per cent to 92.26.

On the domestic equity market front, the 30-share BSE benchmark Sensex was
trading 9.30 points higher at 43,891.55, and the broader NSE Nifty rose 8.60
points to 12,867.65.

Foreign institutional investors were net buyers in the capital market as
they purchased shares worth Rs 3,860.78 crore on a net basis on Friday,
according to exchange data.

Brent crude futures, the global oil benchmark, rose 0.47 per cent to USD
45.17 per barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Price weakness in gold, silver, as risk appetite up

(Kitco News) - Gold futures prices are moderately down in early U.S. trading
Monday. Both metals are seeing some pressure from better risk appetite in
the marketplace to start the trading week. A lower U.S. dollar index that
fell to a seven-week low overnight is limiting the downside for the metals.
December gold futures were last down $7.50 at $1,864.90 and December Comex
silver was last down $0.283 at $24.08 an ounce.

Global stock markets were mostly higher overnight. U.S. stock indexes are
pointed toward higher openings when the New York day session begins. Risk
sentiment is more upbeat to start the trading week, as another vaccine
trial, this time from the U.K.'s Oxford University and AstraZeneca, was
shown to be 90% effective. There is a general consensus in the marketplace
that by the second half of 2021 the pandemic will be tamped down and
economies will be well on the road to returning to normal. Still, there were
more than 142,000 new U.S. Covid-19 infections reported Sunday and record
hospitalizations for the 13th straight day, suggesting the pandemic is still
raging out of control. Europe is also reeling from the impact of the virus.

The Euro zone flash purchasing managers index (PMI) showed the region
heading toward a possible double-dip recession, with November's data the
first since severe lockdown measures were re-introduced in many areas. The
flash composite PMI fell to 45.1 in November vs 50.0 in October. The Euro
zone manufacturing PMI fell to 53.6 vs 54.8 last month and 53.1 expected.
The services PMI fell to 41.3 vs 46.9 in October and 42.5 expected.

The U.S. dollar index is lower early today and hit a seven-week low. The
other important outside market sees January Nymex crude oil futures prices
firmer and trading around $42.75 a barrel. The yield on the benchmark
10-year U.S. Treasury note futures is currently trading at 0.85%.

U.S. economic data due for release Monday includes the Chicago Fed national
activity index, the U.S. flash manufacturing PMI, and the flash services
PMI.

Technically, the December gold futures bulls still have the overall
near-term technical advantage but trading has been choppy. Bulls' next
upside price objective is to produce a close in December futures above solid
resistance at the November high of $1,966.10. Bears' next near-term downside
price objective is pushing futures prices below solid technical support at
the November low of $1,848.00. First resistance is seen at the overnight
high of $1,875.00 and then at $1,885.00. First support is seen at last
week's low of $1,850.00 and then at $1,848.00. Wyckoff's Market Rating: 6.5

December silver futures bulls have the overall near-term technical
advantage.

Silver bulls' next upside price objective is closing prices above solid
technical resistance at $27.00 an ounce. The next downside price objective
for the bears is closing prices below solid support at the October low of
$22.625. First resistance is seen at the overnight high of $24.455 and then
at $24.78. Next support is seen at the overnight low of $23.905 and then at
last week's low of $23.67. Wyckoff's Market Rating: 6.0.

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

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 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com  

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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
other member of Bulls 'n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

(c) 2020 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201123/1c16dce8/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201123/1c16dce8/attachment-0002.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 28737 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201123/1c16dce8/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.png
Type: image/png
Size: 643173 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201123/1c16dce8/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 41145 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201123/1c16dce8/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 21694 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201123/1c16dce8/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201123/1c16dce8/attachment-0007.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130913 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20201123/1c16dce8/attachment-0001.obj>