Bulls n Bears Daily Market Commentary : 21 September 2020

Mon Sep 21 16:27:18 CAT 2020

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Bulls n Bears Daily Market Commentary : 21 September 2020

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

ZSE commentary

Losses persist into new week.

The ZSE continued its southward trajectory in the week opening session as
four benchmark indices in our review closed in the red. The All Share and
the Industrial indices let go a similar 0.27% to 1,659.05pts and 5,438.60pts
respectively. The Top Ten Index declined 0.46% to 1,103.92pts while, the
Mining Index slipped 0.03% to 3,853.21pts. Leading the shakers of the day
was Mashonaland which succumbed 19.71% to $0.5125, trailed by Turnall with a
14.18% loss to end pegged at $0.8000. Dairibord was down 9.69% at $9.0000
while, conglomerate Innscor shed 6.80% to $17.0186. Completing the top five
losers' pack was banking group First Capital that trimmed 6.39% to settle at
$0.8608.

Losses of the day were offset by gains in banking group ZB that rose 6.67%
to close at $16.0000 while, fellow bankers FBC improved 5.83% to $16.0455.
Zimpapers advanced 4.08% to $0.7200 while, Ariston added 1.51% to $1.7967.
Beverages group Delta capped the top five risers of today's session on a
1.32% increase to $17.2166. Fallers outnumbered gainers by a count of one
leaving the market with a negative breadth. Activity aggregates faltered in
the new week as volumes dropped 12.65% to 2.98m shares while, turnover
dipped 32.65% to end at $20.48m. Top volume drivers of the day were NMB,
Innscor and Econet that claimed a combined 71.10% of the aggregate. Value
drivers of the day were Innscor (44.86%), NMB (17.02%) and Econet
(10.25%).-efesecurities

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

Global Currencies & Equity Markets

African currencies week ahead: Naira, kwacha seen under pressure

NAIROBI: The Nigerian naira is expected to weaken against the dollar in the
week ahead mainly due to shortages of hard currencies while the Zambian
kwacha will also be under pressure.

NIGERIA - Nigeria's naira could weaken on the black market next week as a
dearth of foreign exchange on the official market spills over into the
parallel market, traders said.

The naira eased 1.08% to 465 naira per dollar on the unofficial black market
on Thursday.

The central bank has resumed the sale of dollars to foreign investors stuck
in Nigeria following a coronavirus-induced oil price crash, which drove
volatility in the currency market.

The naira traded at 386.05 on the over-the-counter spot market, widely
quoted by investors and importers, on volumes in excess of $280 million on
Wednesday.

The naira was quoted at 381 per dollar on the official market, which is
supported by the central bank.

KENYA - The Kenyan shilling, is expected to remain under pressure against
the dollar next week.

The currency of East Africa's biggest economy was trading at 108.35/55 per
dollar on Thursday, compared with 108.40/60 a week earlier.

ZAMBIA - The kwacha is likely to remain under pressure next week due to a
drop in the supply of hard currency, amid growing demand for dollars.

On Thursday, commercial banks quoted the currency of Africa's second largest
copper producer at 19.8600 per dollar, down from a close of 19.7500 a week
ago.

Hard currency sales by mining companies has dropped and demand was rising to
pay for health, energy and agricultural sector imports, traders said.

UGANDA - The Ugandan shilling is expected to inch down as a planned
re-opening of the country's international borders, which were closed due to
the coronavirus crisis, boosts importer appetite for hard currency.

At 1034 GMT, commercial banks quoted the shilling at 3,687/3,697, compared
with last Thursday's close of 3,695/3,705.

International flights will resume on Oct. 1 for the first time since March.

TANZANIA - Tanzania's Shilling is expected to hold steady next week as the
demand for dollars by importers is evenly matched by the available supplies
of the hard currency.

Commercial banks quoted the Shilling at 2,315/2,325 per dollar, unchanged
from its closing level last Thursday.-brecorder

South Africa

South Africa's rand firms again after stalled rally

(Reuters) - South Africa's rand firmed slightly early on Monday, poised to
resume last week's stalled rally as demand for emerging market currencies
returned.

At 0645 GMT the rand was 0.14% firmer at 16.3125 per dollar compared to a
close of 16.3350 on Friday in New York.

The rand marched to a six-month best of 16.0950 following the local central
bank's decision on Thursday to keep lending rates unchanged, signalling the
conclusion of 2020's easing cycle that saw 300 basis points of cuts.

With the United Stated's central bank last week confirming rates there would
remain lower for longer, South Africa's rate decision is set to maintain the
lure of the rand's high yield, or carry.

With no major economic data releases due this week, the rand is set to
remain at the mercy of global sentiment, likely remaining in a narrow range
with the sub-16.00 level the next target for rand bulls, traders said. 

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

Global Markets

The US dollar eases in Asia

The Byte Dance decision and the follow-on performance by US stock index
futures this morning has lifted sentiment, leading to a slightly weaker US
dollar as the week starts. However, except for USD/JPY, the G-10 currency
grouping remains in range-trading no-man's land.

Asian currencies rise against US dollar

Currency trading volumes will be muted by the Japanese holiday today, but
USD/JPY has fallen 25 points to 104.35 this morning. Having broken
long-standing support around 105.00 last week after a lower for longer FOMC,
USD/JPY is now just above its 6-month low at 104.20 and could target 103.00
this week. EUR/JPY also broke support at 124.20 last week and has fallen to
123.75 this morning. That has activated a head and shoulders formation on
the EUR/JPY chart, which has a target around 122.00, also its 100-day moving
average (DMA). EUR/JPY's breakout should temper any exuberance on EUR/USD
amongst the pro-cyclicals. EUR/USD still has the potential for more downside
corrective price action despite the positive tone in currency markets this
morning.

Asian currencies continue to outperform, boosted by a dovish FOMC, robust
China data, and now the Byte Dance decision. The CNY, THB, PHP and SGD, KRW
and TWD all between 0.20% and 0.30% higher versus the greenback this
morning. With a quiet data-week ahead, the sentiment is likely to continue
to favour the pro-cyclical Asian currencies over developed market
currencies.

The week ahead is a desolate one on the data front around the globe. China
had just released its one and five-year Loan Prime Rate decisions, with
rates remaining unchanged, as expected. That is entirely consistent with the
intention of Chinese policymakers to stimulate the economy as needed in a
much more targeted way and attempting to avoid another explosion in asset
prices such as we saw post the GFC. The calendar is uneventful until US
Durable Goods at the end of the week.-marketpulse

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold, silver see price pressure despite keener risk aversion

(Kitco News) - Gold and silver prices are solidly lower in the early U.S.
trading Monday. The safe-haven metals are so far not catching any bid amid a
global stock market sell off to start the trading week. October gold futures
were last down $23.60 at $1,929.60 and December Comex silver was last down
$0.694 at $26.435 an ounce.

Global stock markets were lower overnight, with U.S. stock indexes also set
to open the New York day session with solid losses. Risk aversion is back in
the marketplace to start the trading week, due to several matters. The death
of U.S. Supreme Court justice Ruth Bader Ginsburg has thrown the U.S.
Congress into turmoil regarding when a new justice will be voted upon. The
intense debate and focus regarding such has apparently pushed a new U.S.
economic stimulus package to the back burner. A significant rise in Covid-19
cases in Europe, and especially the U.K., has many thinking the Euro Zone
could see many businesses go on lockdown again amid a "second wave" of
infections. And, throw in rising U.S.-China trade and political tensions to
make traders and investors even more anxious. Remember that this is the time
of year when stock and financial markets can become more volatile. The U.S.
stock indexes are having their worst month since March.

The important outside markets today see the U.S. dollar index solidly
higher. Nymex crude oil prices are lower trading around $40.00. These two
key markets are in bearish daily postures for the metals markets. Meantime,
the yield on the U.S. Treasury 10-year note is trading around 0.67% today.

U.S. economic data due for release Monday is light and includes the Chicago
Fed national activity index.

Technically, the gold bulls have the firm overall near-term technical
advantage but trading remains sideways. Prices are still in an overall
near-term uptrend on the daily bar chart. Bulls' next upside price objective
is to produce a close in October futures above solid resistance at the
September high of $1,992.50. Bears' next near-term downside price objective
is pushing futures prices below solid technical support at $1,900.00. First
resistance is seen at the overnight high of $1,954.10 and then at $1,960.00.
First support is seen at the overnight low of $1,923.10 and then at the
September low of $1,904.60. Wyckoff's Market Rating: 7.0

December silver futures bulls have the firm overall near-term technical
advantage. Prices are still in an overall price uptrend on the daily bar
chart but trading has turned choppy and sideways. Silver bulls' next upside
price objective is closing prices above solid technical resistance at $28.00
an ounce. The next downside price objective for the bears is closing prices
below solid support at $25.00. First resistance is seen at $27.00 and then
at the overnight high of $27.13. Next support is seen at the September low
of $25.985 and then at $25.50. Wyckoff's Market Rating: 7.0.-kitco.com

Copper Hits Highest Price In Two Years

Iron ore steadied, gold rose slightly, silver was up, oil jumped and copper
ended up being the star commodity last week.

Copper futures quietly grabbed the limelight with Comex futures hitting
levels not seen since June 2018.

Comex's December rose 5 cents, or 1.5%, to settle at $US3.116 a pound, the
highest over two years.

Copper first jumped above $US3 a pound in mid-July, dipped back for a couple
of weeks, and then came again, hitting that 26 month high on Friday.

That saw copper rise 2.5% over the week as the metal was supported by the
weaker US dollar and stronger than expected Chinese industrial production.

Meanwhile, London Metal Exchange three-month copper price hit a new 2020
high on Friday.

All LME three-month base metals prices, with the exception of nickel, saw
gains on Friday, with copper reaching a new high of $US6,875 a tonne before
eventually closing at $6,861 a tonne.

Comex gold took the spotlight with a second (small) weekly gain in a row.

December gold rose $US12.20, or 0.6%, to settle at $US1,962.10 an ounce,
following a 1.1% slide on Thursday.

Comex December silver added 3 cents, or 0.1% to finish at $US27.129 an
ounce, following a 1.4% drop the day before.

For the week, gold was up 0.7%, following a similar climb the week before
while silver saw a 1% advance.

Iron ore prices rose on Friday after three days of falls and ended the week
down from the week before.

The price of 62%Fe fines delivered to northern China rose $US2.54 to
$US124.90 a tonne. The price had peaked at more than six-year highs on
Monday at $US130.17. The fall for the week was $US3.47 a tonne, or 2%. The
fall from Monday's peak by the close on Friday was 4%.

And prices for hard coking coal have wiped out the discount to 62% Fe iron
ore that had existed for August. Hard coking coal trades for more than
$US134 a tonne, around $US10 a tonne above than 62% Fe ore.-sharecafe

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

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
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
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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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