Bulls n Bears Daily Market Commentary : 25 November 2020

Thu Nov 26 08:56:13 CAT 2020

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Bulls n Bears Daily Market Commentary : 25 November 2020

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

ZSE commentary

ZSE slips to another loss in midweek trades.

The market continued to weaken in mid-week trades as four benchmark indices
in our review closed pointing southwards. The mainstream All Share Index let
go 1.67% to 1,574.03pts while, the Industrial Index went down 1.41% to
5,221.14pts. The ZSE Top Ten Index shed 3.03% to 1,015.03pts while, the
Mining Index succumbed 10.47% to 2,975.58pts weighed down by Bindura that
dropped 12.79% to $3.0000. Mash trimmed 8.32% to $0.5501 while, top
capitalised stock Delta plunged 7.87% to settle at a vwap of $18.2389.
Property concern FMP shed 4.55% to $2.1000 while, SeedCo Limited retreated
4.48% to $17.9992 completing the top five fallers of the day.

Gainers of the day were headlined by construction group Masimba which
garnered 19.92% to $3.5946. Trailing was packaging group Nampak that jumped
14.14% to close at $1.0508 while, Star Africa followed on an 8.88% rise to
$0.2722. Powerspeed gained 8.83% to $2.0678 while, banking group First
Capital capped the top five winners of the day after adding 7.33% to end
pegged at $0.5903. The market closed with a negative breadth of six as
eighteen counters retreated against twelve that rose. Volume of shares
traded dipped 72.08% to 18.02m, yielding a turnover of $85.48m which was a
33.54% drop from prior session. Top volume drivers of the day were FMP
(23.75%), Econet (20.83%), Medtech (13.66%) and Mash (11.12%). Anchoring the
value aggregate were Innscor, Econet and FMP which claimed a combined 67.85%
of the outturn. -efesecurities

Global Currencies & Equity Markets

South Africa

Rand closes in on R15 against the dollar

JOHANNESBURG - The South African currency traded on the front foot, lifted
by an improved market mood as US President Trump accepted the commencement
of the transition towards a Biden administration according to NKC Research.

The green light for a transition was given despite Trump's plans to continue
with legal challenges. On local soil, government announced that it will pay
R500m ($33m) toward the Covid-19 vaccine distribution scheme co-led by the
WHO, having reportedly submitted a non-bonding confirmation of its intent to
participate.

At the close of local trade, the rand quoted 0.39 percent stronger at
R15.36/$, after trading in range of R15.31/$ - R15.45/$. The rand traded
flat overnight. Expected range today R15.00/$ - R15.40/$.

South African bourse

The JSE All Share (+1.08 percent) ended higher in risk-on trade yesterday,
with large financial stocks (+2.97 percent) leading the charge. In the
overall emerging market sphere, the MSCI Emerging Market Index (-0.35
percent) traded lower.

Brent crude oil

The Brent oil price hit its highest level since March yesterday, fuelled by
hopes that positive vaccine developments may lead to a quicker global
economic recovery. At the close of local trade, benchmark Brent crude
futures quoted 2.44 percent higher at $47.09pb. Crude prices extended gains
during Asian trade this morning.

BUSINESS REPORT ONLINE

Nigeria

Nigerian naira eases on black market

(Reuters) - Nigeria's naira currency eased on the black market on Wednesday,
traders said, after the central bank said the small size of the unofficial
market means it should not be used to determine the naira's value.

Central Bank Governor Godwin Emefiele on Tuesday responded to calls for
further depreciation of the naira, which has weakened by 28% this year, by
saying the black market rate should not be used to determine the naira's
value.

The naira has come under pressure because central bank policies restrict
access to the official window, thereby funneling demand to a black market
that holds less than 5% of trades and patronised mostly by those without
proper documentation.

The naira was around 485-487 against the dollar on the black market on
Wednesday after reaching 483 earlier in the day, traders said. It has been
stuck at 381 per dollar on the official market since July - at a 21%
discount to the black market rate.

Nigeria has been hard hit by the impact of coronavirus pandemic, which has
led to a collapse in the price of oil, its main export. That has hammered
government revenue, weakened the naira and created dollar shortages in the
country.

The central bank has been selling dollars to foreign investors seeking to
repatriate funds and to clear a backlog, but demand is swelling as importers
seek dollars to buy goods ahead of Christmas sales, traders say.

The naira traded at 387.67 on the over-the-counter official spot market
NAFEX=FMDQ, quoted by investors and importers, on thin volumes.

 <mailto:info at bulls.co.zw> 

India

Rupee rises 10 paise to 73.91 against US dollar

Rising for the fourth straight session, the rupee appreciated by ten paise
to close at nearly a month high of 73.91 against the US dollar on Wednesday
as a positive development on the coronavirus vaccine front enthused investor
sentiment.

At the interbank forex market, the domestic unit opened at 73.98 against the
greenback and witnessed an intra-day high of 73.88 and a low of 74.02.

The local unit finally closed at 73.91 against the American currency,
registering a rise of 10 paise over its previous close.

On Tuesday, the rupee had climbed ten paise to close at 74.01 against the US
dollar.

The domestic unit had closed at 73.87 against the greenback on October 28.

Traders said risk appetite increased on news that US President-elect Joe
Biden plans to nominate former Federal Reserve chairwoman Janet Yellen as
treasury secretary.

Moreover, a weak American currency in the overseas market also supported the
rupee.

The rupee appreciated for the fourth consecutive session against the US
dollar this Wednesday, tracking gains in most regional currencies led by a
broad dollar decline.

The dollar index, which gauges the greenback's strength against a basket of
six currencies, was down 0.10 per cent to 92.13.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices try to rebound after lowest settlement since mid July

Gold futures on Wednesday were headed modestly higher, as the precious metal
attempted to recover from a series of sharp declines that were prompted
partly by progress on vaccines and treatments for the economy-disrupting
coronavirus.

Goldman Sachs commodity analyst, including Mikhail Sprogis and Jeffrey
Currie, said that a rotation into cyclical, underloved stocks and a lack of
substantial moves in inflation have been behind much of the drop for the
yellow metal.

On Wednesday, December gold GCZ20, +0.03% GOLD, +0.50% rose $6.50, or 0.4%,
to trade at $1,810.70 an ounce, after tumbling 1.8% on Tuesday to mark its
lowest settlement since mid July, according to Dow Jones Market Data.

Silver for December delivery SIZ20, +0.23% SI00, +0.23%  picked up 9 cents,
or 0.4%, to trade at $23.40 an ounce, following a 1.4% drop in the previous
session.

So far this week, gold has declined 3.3%, while silver is down 4%, FactSet
data show.

On Monday, gold and silver prices took a fresh hit from reports from
drugmaker AstraZeneca, who said a late-stage study found that the vaccine it
is developing with the University of Oxford had an up to 90% efficacy rate.
That news followed similarly upbeat vaccine news from Pfizer and its partner
BioNTech, as well as from drugmaker Moderna earlier this month.

Marios Hadjikyriacos, senior analyst at XM, said that gold's decline came
during a period of weakness in the dollar and tepid moves in government
bonds which might not bode well for the near-term trajectory for bullion.

The dollar was off 0.1% at 92.18 on Wednesday and is on track for a 0.2%
slide on the week, as gauged by the ICE U.S. Dollar Index DXY, -0.26%. A
weaker dollar usually encourages buying of bullion by investors because it
becomes comparatively cheaper to those using other currencies.

Meanwhile, the 10-year Treasury note TMUBMUSD10Y, 0.878% rate has held
fairly steady this week, most recently, yielding 0.88%. Rising rates also
can detract from gold demand because precious metals don't offer a coupon.

For much of the past several months, gold has benefited from a flight to
safe-haven assets, amid worries about the pandemic. However, progress on
remedies has momentarily overshadowed a renewed surge in coronavirus cases. 

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

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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