Bulls n Bears Daily Market Commentary : 08 October 2020

Thu Oct 8 17:11:10 CAT 2020

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Bulls n Bears Daily Market Commentary : 08 October 2020

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

ZSE commentary

Losses persist on ZSE.

ZSE faltered for the fourth consecutive session weighed down by continued
waning demand in selected counters across the board. The All Share Index
shed 0.48% to 1,540.56pts while, the Industrials let go an almost similar
0.49% to close at 5,062.19pts. The blue-chip Index retreated 0.28% to
1,007.06pts while, the Mining Index went down 0.21% to 3,943.47pts, dragged
by Bindura. Headlining the fallers of the day was ART that succumbed 8.41%
to $2.0585, trailed by hotelier African Sun which dropped 8.27% to settle at
$1.5837. Fast foods group Simbisa trimmed 7.72% to $6.2142 while, wines and
spirits manufacturer Afdis plummeted 5.88% to end at $16.0000. SeedCo
Limited completed the losers' pack having lost 4.86% to $18.0585. Other
notable fallers were in OKZIM , Delta , FBC , Cassava and Innscor .

Mash led the gainers of the day on a 19.71% jump to $0.6675 reversing
previous session's losses. Crocodile skin producers Padenga rose 8.87% to
$16.0000 while, financial services group ZB put on 1.92% to close at
$14.4500. Brick manufacturers Willdale added 1.65% to $0.2339 while, banking
group First Capital grew 1.58% to $0.5093. Twenty-nine counters registered
price movements in the session distributed into eleven gainers and eighteen
fallers, to leave the market with a negative breadth of seven. Activity
aggregates were mixed in the session as reflected in volumes that ballooned
105.86% to 9.59m shares while, turnover slipped 23.38% to close at $24.28m.
Truworths and Star Africa claimed 52.12% and 13.34% of the volume aggregate,
respectively. Value drivers of the day were FBC and Delta that contributed a
combined 63.75% to the outturn.

Global Currencies & Equity Markets

Zambian currency to eke out gains, Tanzania's shilling seen softer

(Reuters) - Zambia's currency is next week expected to trade slightly firmer
against the U.S. dollar, while Tanzania's currency is seen softening while
those in Kenya and Uganda hold steady.

ZAMBIA

The kwacha will likely make small gains against the dollar next week,
supported by hard currency sales by companies preparing to settle tax
accounts.

On Thursday, commercial banks quoted the currency of Africa's second largest
copper producer at 20.1000 per dollar compared to a close of 19.9800 per
dollar a week ago.

TANZANIA

Tanzania's shilling is expected to face pressure next week from uncertainty
ahead of national elections on Oct. 28.

Commercial banks quoted the shilling at an average of 2,313/2,327 on
Thursday, around the same levels as last week.

KENYA

The Kenyan shilling is expected to trade in a narrow range next week, with
commercial banks watching to see if the central bank will sell dollars to
soak up demand pressure.

Commercial banks quoted the shilling at 108.50/70, compared to last
Thursday's close of 108.40/60.

UGANDA

The Ugandan shilling is seen trading flat, as some firms reserve local
currency holdings to meet mid-month tax payments.

At 0930 GMT commercial banks quoted the shilling at 3,700/3,710, compared to
last Thursday's close of 3,710/3,720.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar higher as markets wait on stimulus news

NEW YORK (Reuters) - The U.S. dollar edged higher against a basket of
currencies on Thursday, but held in its recent range as investors waited for
fresh news on whether new U.S. fiscal stimulus is likely in the near term.

The greenback has been whipsawed by swings in risk sentiment after U.S.
President Donald Trump on Tuesday halted negotiations with Democrats on a
new economic package but later pushed for the approval of more targeted
stimulus bills to offset economic damage from the coronavirus.

There was little new information on Thursday to move the dollar strongly in
either direction.

The dollar index gained 0.12% against a basket of major currencies to 93.73.
It has fallen from a two-month high of 94.75 on Sept. 25.

The greenback was little changed against the Japanese yen at 105.97 yen,
while the euro fell 0.17% to $1.1740.

The dollar index has also weakened in the past two weeks on bets that
Democrat presidential candidate Joe Biden is more likely to win the Nov. 3
U.S. election, and that Democrats could also win the Senate.

A Democratic sweep would make larger fiscal stimulus more likely, which
would weaken the U.S. currency.

The New Zealand dollar dropped as much as half a percent after central bank
officials again hinted that negative interest rates are possible. It was
last down 0.06% at $0.6575.

Sterling traded 0.10% lower at $1.2905 as uncertainty about Britain's exit
from the European Union weighed on the currency.

Prime Minister Boris Johnson is prepared to fully leave the EU without a
deal when the Brexit transition period ends, his spokesman said on Thursday,
but the British leader still believes there is a deal to be done.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold, silver see price gains amid rising equity markets

(Kitco News) - Gold and silver futures prices are higher in early U.S.
trading Thursday. Once again, the two metals are choosing to behave like a
commodity market and are following the overnight gains in global equities
markets, led by the U.S. It appears gold and silver traders reckon rallying
stock markets suggest better overall demand for commodities. December gold
futures were last up $13.40 at $1,904.10 and December Comex silver was last
up $0.384 at $24.27 an ounce.

Global stock markets were mixed but mostly firmer overnight. U.S. stock
indexes are set to open the New York day session higher, on follow-through
strength from Wednesday's solid gains.

Traders and investors are still monitoring U.S. congressional discussions on
a stimulus package for American citizens and businesses, although a
breakthrough deal does not appear to be close at hand. Still, the U.S. stock
indexes rallied Wednesday and overnight on notions that some kind of a deal
will be reached soon. Gold and silver bulls may also be thinking that more
U.S. stimulus money sent out by the government means higher odds for
problematic inflation down the road.

The weekly jobless claims report is the U.S. data point of the day Thursday,
with new claims seen at 825,000, down a bit from the 837,000 reported last
week.

The important outside markets early today see the U.S. dollar index near
steady. Nymex crude oil prices are higher and trading around $40.50 a
barrel. The 10-year U.S. Treasury note yield is presently trading around
0.77%.

U.S. economic data due for release Thursday includes the weekly jobless
claims report and the monthly chain store sales index. Several Federal
Reserve officials are also slated to give speeches today.

Technically, the December gold futures bulls have the overall near-term
technical advantage but prices are still trending down on the daily bar
chart. Trend-line resistance that I have shown you on the daily chart
recently held fast on Tuesday. Bulls' next upside price objective is to
produce a close in December futures above solid resistance at this week's
high of $1,927.00. Bears' next near-term downside price objective is pushing
futures prices below solid technical support at the September low of
$1,851.00. First resistance is seen at $1,910.00 and then at $1,927.00.
First support is seen at this week's low of $1,877.10 and then at $1,851.00.
Wyckoff's Market Rating: 6.0

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 $25.00 an ounce. The next downside price
objective for the bears is closing prices below solid support at the
September low of $21.81. First resistance is seen at this week's high of
$24.675 and then at $25.00. Next support is seen at the overnight low of
$23.815 and then at this week's low of $22.965. Wyckoff's Market Rating:
6.0.

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

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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