Bulls n Bears Daily Market Commentary : 09 April 2021

Fri Apr 9 17:09:46 CAT 2021

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Bulls n Bears Daily Market Commentary : 09 April 2021

 <https://www.cbz.co.zw/> 

ZSE commentary

The ZSE closed today’s session in negative territory with gains in heavyweight stocks narrowing the losses. Turnover declined by 75% to ZW$84.2 million from a trade of 5 010 900 shares which exchanged hands in 394 trades. Econet was the most active stock at 44 trades followed by Bindura and Star Africa. The market breadth was positive after 18 stock appreciated against 16 that depreciated in a total of 38 stocks which traded. Econet was the most liquid counter as it anchored both volume and value traded at 2 893 200 shares and ZW$57.4 million respectively contributing 68.16% of total turnover. The benchmark All Share Index was down by a marginal 0.25% and the Top 10 Index was up by a paltry 0.17%. The Top 15 Index shaded 0.47% to 2 790.88. The Medium Cap Index traded lower at 10 117.07 depreciating by 0.98%, whilst the Small Cap Index added 0.64% to close at 47 343.47.

Leading the risers pack of the day was the General Beltings and NMB with a 11.25% and 8.41% share appreciation respectively. CBZ added 6.59% to 7461.04c. The hotelier RTG appreciated by 5.06%. First Mutual Holdings gained 4.82% to close at 1610c. Leading in the shakers pack was Simbisa Brands which pared 15.27% followed by the Dairibord shading 6.05% after publishing a further cautionary statement. Truworths and Ariston Holdings pared 5.95% and 5.19% respectively. Please find a summary of the market activity as shown below; The Old Mutual Top Ten ETF closed at 178.29c down 0.72% after 3 778 units with a value of ZW$6 735.62 in 7 trades exchanged hands.-wealthaccess

 <https://www.firstmutual.co.zw/> 

Global Currencies & Equity Markets

South Africa

South Africa's rand retreats from six-week high

JOHANNESBURG (Reuters) - The South African rand retreated from its six-week peak early on Friday as the market took a breather after dovish signals from the U.S. Federal Reserve spurred a risk rally.

At 0615 GMT the rand traded at 14.5725 against the dollar, 0.31% weaker than its previous close. It rallied to 14.4475 on Thursday, its strongest since Feb. 24.

The rand was awaiting a new catalyst to provide direction following the recent risk rally, said Citadel Global executive director Bianca Botes.

Emerging market currencies rose this week on weakness in the dollar and U.S. treasury yields after the minutes from the Fed’s latest meeting showed that the bank was in no hurry to tighten monetary policy.

Lower U.S. interest rate expectations boost investor appetite for emerging markets assets, such as the rand, which offer higher returns but carry more risk.

Government bonds also weakened in early deals, with the yield on the benchmark instrument due in 2030 up 1.5 basis points at 9.235%.

Nigeria

Naira Bounces Back As Forex Supply Improves

The currency remained stable at the black market.

Naira strengthened significantly against the U.S. dollar at the I&E window of the foreign exchange market on Thursday, a day after posting its worst performance in nearly a month.

Naira closed at N409.65 at the trading session of the I&E window, 0.33 per cent appreciation from N411.00 the rate at which it closed at the previous day, data posted on the FMDQ Security Exchange where forex is officially traded showed.

The domestic currency experienced an intraday high of N394.00 and a low of N419.30, before closing at N409.65 on Thursday.

This occurred as forex turnover rose 690.63 per cent, with $93.69 million recorded as against the $11.85 million posted on Wednesday.

However, the naira remained unchanged against the U.S. dollar at the unofficial market on Thursday, data posted on abokiFX.com, a website that collates parallel market rates in Lagos showed.

The data posted showed that the naira closed at N485.00 at the black market on Thursday, the same rate it exchanged hands with the greenback since April 1.

Based on this, the spread between the unofficial market and the I&E window exchange rate is pegged at N75.35, which translates to a gap of 15.54 per cent.-Premium Times.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar nearly flat at around ¥109.50 in Tokyo

The dollar pared early losses to move around ¥109.50 in late Tokyo trading Friday, thanks to a rise in U.S. interest rates.

At 5 p.m., the dollar stood at ¥109.50, almost flat from ¥109.51 at the same time Thursday. The euro was at $1.1898, up from $1.1883, and at ¥130.29, up from ¥130.13.

The dollar eased into the ¥109.20 zone around midmorning after real demand-backed buying by Japanese importers and selling by exporters were over. The dollar-yen pair, then, lost momentum without fresh news.

In the late afternoon, the dollar climbed past ¥109.50 in response to a rise in U.S. long-term interest rates, traders said.

Despite its slide through ¥110, “the dollar remains firm,” a Japanese bank official said.

The dollar’s appreciation against the British pound amid growing concerns about the side effects of British pharmaceutical giant AstraZeneca PLC’s coronavirus vaccine also helped the U.S. currency consolidate vis-a-vis the yen, another source said.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices today fall after jumping over ₹1,000 in 2 days, silver drops

Gold and silver prices today edged lower in Indian markets after seeing a steep rise over the past few days. On MCX, gold futures were down 0.1% to ₹46,793 per 10 gram while silver prices dropped 0.4% to ₹67,240. Over the previous two sessions, gold had risen over ₹1,000 per 10 gram. On MCX, gold has support at ₹44,940 and resistance at ₹47,380, says domestic brokerage Geojit.

Gold rates in India have recovered in recent days, tracking firm global cues. Last week, the previous metal had dropped to one-year lows of ₹44,100.

In global markets, gold prices were steady near one-month highs amid a softer US dollar. Spot gold was steady at $1,755.91 per ounce. So far this week, gold is up 1.5%, also supported by a fall in US bond yields.

Spot gold was flat at $1,755.91 per ounce. US bond yields fell after US Fed chief Jerome Powell in a panel discussion noted that inflation pressures are likely to be temporary while reiterating that the US central bank intends to maintain its ultra-easy stance.

Among other precious metals, silver rates were flat at $25.45 while platinum fell 0.3% to $1,225.95.

The US dollar today was near two-week low against a basket of currencies after the number of Americans filing new unemployment claims increased for the second straight week, last week. On the other hand, US bond yields also weakened after Powell’s dovish comments. Powell said the central bank would react if inflation expectations started “moving persistently and materially" above tolerable levels.

Global crude oil prices rise as US dollar weakens

Global crude oil prices have edged up supported by a weakening of the US dollar even as rising output and weak demand outlook continue to concern investors.

Brent crude futures for June increased by $0.07, or 0.1%, to reach $63.27 a barrel while the US West Texas Intermediate (WTI) crude for May rose by $0.17, or 0.3%, to reach $59.77 a barrel, reported Reuters.

ANZ analysts was cited by the news agency as saying in a note: “A weaker USD and falling US bond yields helped support investors’ appetite in commodity markets.”

This week, the two contracts are expected to witness a drop by 2%-3% following the decision made earlier this month by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, a group known as OPEC+.

The OPEC+ agreed to gradually increase oil supplies by two million barrels per day between May and July this year.

Analysts expect that oil inventories would continue to dip across the world as demand for fuel will accelerate in the second half of 2021.

However, concerns are rising over oil demand outlook as more countries are imposing lockdowns to contain the surging infection.

Axi chief global markets strategist Stephen Innes was cited by the news agency as saying that prices of crude oil could trade in a range between $60 and $70 as investors consider these factors.

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

Independence Day

18/04/21

Public Holiday in lieu of Independence Day falling on a Sunday

19/04/21

Workers Day

01/05/21

FCB

AGM 

virtual

06/05/21 : 3pm

Africa Day

25/05/21

Counters trading under cautionary

ART

Seed co Int.

Dairibord

Starafrica

Medtech

Turnall

Seed co

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 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.

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