Bulls n Bears Daily Market Commentary : 16 April 2021

Fri Apr 16 19:58:33 CAT 2021

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Bulls n Bears Daily Market Commentary : 16 April 2021

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

ZSE commentary

The ZSE closed this week with gains largely on heavyweight counters (CBZ,
Innscor, Delta and Cassava) gains although trading was mixed. Turnover
declined to ZW$123.8 million from a trade of 6.05 million shares which
exchanged hands in 318 trades. Delta was the most active stock at 38 trades
followed by Star Africa and OK Zimbabwe. The market breadth was positive
after 17 stock appreciated against 11 that depreciated in a total of 35
stocks which traded. Star Africa was the most liquid counter as it anchored
volume aggregate at 2 617 300 shares and Innscor anchored value aggregate at
ZW$42.58 million.

The benchmark All Share Index was up a marginal 0.87% and the Top 10 Index
was up by 1.79%. The Top 15 Index added 0.72% to 2 757.75. The Medium Cap
Index traded lower to 10 225.21 depreciating by 0.48%, whilst the Small Cap
Index also shaded a paltry 0.38% to close at 46 792.15. Leading the risers
pack of the day was First Capital Bank and CBZ with a 11.68% and 7.01% share
appreciation respectively. Ariston Holdings  added 6.12% to 160c. The
packaging manufacturer Nampak appreciated by 6.03%. ZB Holdings gained 6.06%
to close at 3500c. Leading in the shakers pack was Simbisa Brands which
pared 9.60% followed by the Medtech Holdings shading 7.15%. Bindura and
First Mutual Holdings pared 5.09% and 4.18% respectively. Please find a
summary of the market activity as shown below; The Old Mutual Top Ten ETF
closed at 169.84c down 0.30% after 195 200 units with a value of ZW$331
522.12 in 23 trades exchanged hands.-wealthaccess

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

Global Currencies & Equity Markets

South Africa

South Africa's rand set for weekly gains, stocks join global rally on strong
China, U.S. data

(Reuters) - South Africa's rand fell on Friday, but looked set for weekly
gains after a rally the day before that took it to its best level in 15
months as falling yields in the United States drove global demand for risk
assets.

At 1500 GMT, the rand ZAR=D3 was 1.06% weaker at 14.3225 against the U.S.
dollar. On Thursday, it broke through a number of technical levels on its
way to 14.1550, its strongest since January 2020.

The currency was up 1.6% since Monday.

The dollar has been on the back foot this month as Treasury yields stabilize
below one-year highs reached last month. Yields have fallen as the Fed
reiterates its commitment to holding interest rates near zero for years to
come, and on some concerns that a recent uptick in inflation will be
temporary.FRX/

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

In the equities market, stocks joined a global rally, as upbeat U.S. retail
sales and manufacturing data as well as record first-quarter economic growth
in China were offset by worries over rising coronavirus infections.

The Johannesburg All-Share index .JALSH closed 1.29% firmer at 68,699
points, its highest level since March 12, while the Top-40 blue chip index
.JTOPI climbed 1.32% to 62,898 points, also posting its highest level since
March 12.

Notable sector moves were mining stocks, with the index .JMINI up 3.25% as
gold hit a seven-week peak with retreating U.S. yields boosting appeal.
Palladium and platinum also rose. GOL/

Bonds firmed, with the yield on the benchmark 2030 government issue ZAR2030=
down 4.5 basis points to 9.060%.

Nigeria

Naira Stable At Official, Parallel Markets

Naira closed at N410.50 at the trading session of the NAFEX window.

Nigeria's naira remained stable against the U.S. dollar at the I&E window of
the foreign exchange market on Thursday, data posted on the  FMDQ Security
Exchange  where forex is officially traded showed.

Also, the currency rate remained unchanged on the black market.

This happened as foreign exchange supply plummeted significantly.

According to data posted on the FMDQ Security Exchange where forex is
officially traded, the naira closed at N410.50 at the trading session of the
NAFEX window.

Thursday's performance saw an intraday high of N392.00 and a low of N437.32
before closing at N410.50 again on Thursday.

This occurred as forex turnover skyrocketed by 429.93 per cent, with $116.16
million recorded as against the $21.92million posted in the previous session
on Wednesday.

In a similar manner, the local unit 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 again closed at N482.00 at the black
market, the same rate it traded since the beginning of the week.

Again, this leaves the spread between  the unofficial market and the I&E
window exchange rate at N71.50, which translates to a gap of 14.83 per
cent.-Premium Times.

 <mailto:info at bulls.co.zw> 

Global Markets

Canadian dollar heads for weekly gain as greenback slips

(Reuters) - The Canadian dollar strengthened against its U.S. counterpart on
Friday, turning higher for the week, as higher oil prices and a broader
decline for the greenback offset domestic data showing a
bigger-than-expected drop in wholesale trade.

The U.S. dollar was set to post a second week of losses amid an extended
retreat in Treasury yields, as investors increasingly bought into the
Federal Reserve's insistence it would keep an accommodative policy stance
for a while longer.

The price of oil, one of Canada's major exports, was on track for a weekly
gain as a stronger demand outlook and signs of economic recovery in China
and the United States offset rising COVID-19 infections in some other major
economies.

U.S. crude prices were up 0.1% at $63.5 a barrel, while the Canadian dollar
was trading 0.4% higher at 1.2497 to the greenback, or 80.02 U.S. cents. For
the week, the

loonie was up 0.2%.    

Canadian wholesale trade fell 0.7% in February from January, compared with
the 0.4% decline that analysts expected, on building materials and supplies,
as well as motor vehicles and parts, data from Statistics Canada showed.  

Separate data showed that foreign investors bought a net C$8.52 billion in
Canadian securities in February, led by a four-year high investment in
corporate shares.             

The Canadian economy is likely to grow at a slower pace this quarter and
next than previously expected, but tighter lockdown restrictions from
another wave of coronavirus cases were unlikely to derail the economic
recovery, a Reuters poll showed.

The Bank of Canada is due to update its economic forecasts next week.

Canadian government bond yields were higher across a steeper curve, tracking
U.S. Treasuries. The 10-year rose 2.6 basis points to 1.511%, after touching
on Thursday its lowest intraday level in five weeks at 1.434%. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper heads for biggest weekly gain since February

(Reuters) - Copper fell on Friday but was still on track for its biggest
weekly rise in two months after solid U.S. and Chinese economic data pushed
global stock markets to record highs and several investment banks predicted
higher prices for the metal.

However the numbers from China, the biggest consumer of metals, were a mixed
bag, with factory activity growing strongly but below forecasts and expected
to slow.

Benchmark copper on the London Metal Exchange (LME) was down 1% at $9,190.50
a tonne at 1712 GMT but still up around 3% this week and near February's
peak of $9,617, the highest since 2011.

Optimism on stock markets was a support for metals and strong demand during
the second quarter - China's traditional construction season - could lift
copper further in the short term, but prices would fall later in the year,
Briesemann said.

CHINA: The economy grew by a record 18.3% year-on-year in the first quarter,
but the expansion is expected to moderate later this year. Industrial output
slowed in March to 14.1%.

U.S: Stellar homebuilding numbers added to robust data on Thursday that
underscored brightening U.S. economic prospects.

OUTLOOK: Goldman Sachs this week raised its 12-month target for copper to
$11,000 a tonne, while Citi recommended clients take on bullish copper
exposure over the next few weeks.

MARKETS: European, U.S. and global equities reached record highs while oil
prices rose above $67 a barrel.

ALUMINIUM: LME aluminium was down 0.9% at $2,318.50 a tonne after data
showed China's March aluminium output rose to a monthly record.

Aluminium hit a three-year high of $2,359 on Thursday, in part due to
expectations that a Chinese anti-pollution drive would curtail aluminium
production capacity.

OTHER METALS: LME zinc was down 0.3% at $2,855.50 a tonne, nickel fell 0.1%
to $16,345, lead gained 0.9% to $2,035, and tin was 0.9% higher at $26,585.

Gold prices mark highest finish in 7 weeks

Gold futures on Thursday scored their biggest daily gain since March, with
prices settling at their highest in seven weeks, as benchmark U.S. bond
yields pulled back and rising U.S. tensions with China and Russia boosted
the metal's haven appeal.

Gold also moved up after a series of good reports on the health of the U.S.
economy, which provided some support for bullion given the threat of
inflation.

The climb in U.S. tensions with China, as well as Russia, "may be
encouraging some safe-haven buying" of the metal, said Michael Armbruster,
managing partner at Altavest.

Tensions between the U.S. and China over Taiwan have climbed, and the Biden
administration on Thursday expelled some Russian diplomats and announced
sanctions against dozens of people and companies, partly in retaliation to
Russia's interference in last year's presidential election.

June gold  GC00, 0.71% GCM21, 0.71% rose $30.50, or 1.8%, to settle at
$1,766.80 an ounce. That was the highest settlement for a most-active
contract since Feb. 25 and largest one-day dollar and percentage increase
March 9, FactSet data show.

A closely followed report on U.S. retail sales showed a 9.8% rise in March
thanks to $1,400 stimulus checks from the government to consumers,
reflecting accelerating economic growth in the aftermath of the COVID
pandemic.

The dollar was steady in Thursday dealings, at 91.69 after tapping a low at
91.49, as gauged by the ICE U.S. Dollar Index DXY, -0.16%, a measure of the
buck against a half-dozen currencies. A weaker dollar can make dollar-pegged
assets more appealing to overseas buyers.

Bond yields were pulling back, with the 10-year Treasury BX:TMUBMUSD10Y
trading at 1.54%. A fall in government debt yields can boost appetite for
precious metals.

Prices for gold had moved up overnight in the reaction to the Fed's Beige
Book release Wednesday afternoon. The report showed increased economic
activity and moderate wage and price increases in most Federal Reserve
districts, "potentially increasing inflation concerns and adding to price
pressures already seen in greater-than-expected increases" in the producer
and consumer price indexes, said Jeff Klearman, portfolio manager at
GraniteShares, which offers the GraniteShares Gold Trust BAR.

Gold prices, which have been range bound, "continue to be supported by the
Fed's historically unprecedented accommodative monetary policy, negative
real rates, a weaker U.S. dollar and growing inflation concerns," Klearman
told MarketWatch shortly after the Beige Book's release.

Meanwhile, among other metals traded on Comex Wednesday, May silver  SIK21,
0.50% SI00, 0.50% climbed 1.7% to trade $25.96 an ounce and May copper
HGK21, -1.27% added 2.2% to $4.22 a pound - the highest finish since March
2. Industrial metals got a lift from upbeat economic data.

July platinum PLN21, +0.67% climbed by 1.9% to $1,200.20 an ounce and June
palladium PAM21, +1.35% settled at $2,739.40 an ounce, up 2.2%.

In other economic data, U.S. industrial production rose 1.4% in March and
U.S. weekly jobless benefit claims fell by 193,000 to 576,000 in the week of
April 10, falling well below economists' expectations.

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

BAT

AGM

Cresta Lodge, Msasa

30/04/21 10am

Workers Day

01/05/21

FCB

AGM 

virtual

06/05/21 : 3pm

NMB

AGM

virtual

1205/21 :  3:30pm

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
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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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