Bulls n Bears Daily Market Commentary : 20 April 2021

Wed Apr 21 06:21:10 CAT 2021

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Bulls n Bears Daily Market Commentary : 20 April 2021

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

ZSE commentary

The ZSE opened this holiday shortened week with gains largely on heavyweight
counters (CBZ, Innscor, Delta and Econet) gains. Turnover improved
significantly to ZW$394.5 million from a trade of over 15.8 million shares
which exchanged hands in 316 trades. OK Zimbabwe was the most active stock
at 29 trades followed by Star Africa and Econet. The market breadth was
positive after 20 stock appreciated against 16 that depreciated in a total
of 41 stocks which traded. First Mutual Holdings was the most liquid counter
as it anchored both volume and value aggregate at 10 259 700 shares and
ZW$215.7 million.

The benchmark All Share Index was up 3.89% and the Top 10 Index was up by
4.36%. The Top 15 Index added 3.92% to 2 845.40. The Medium Cap Index traded
higher to 10 649.12 appreciating by 3.65%, whilst the Small Cap Index also
shaded 4.60% to close at 44 809.97. Leading the risers pack of the day was
African Distillers  and Masimba Holdings with a 18.52% and 18.38% share
appreciation respectively. Nampak added 13.39% to 1200c. First Mutual
Holdings appreciated by 12.82%. Simbisa Brands gained 10.71% to close at
3000c. Leading in the shakers pack was General Beltings  which pared 13.04%
followed by the National Tyre Services shading 7.47%. Unifreight  and
Turnall pared 7.14% and 6.77% respectively. Please find a summary of the
market activity as shown below; The Old Mutual Top Ten ETF closed at 170.00c
up 0.09% after 35 400 units with a value of ZW$60 180 in 11 trades exchanged
hands.-wealthaccess

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

Global Currencies & Equity Markets

South Africa

South African rand slips as dollar steadies, JSE falls

South Africa's rand weakened on Tuesday as the dollar steadied and global
investors awaited further clues on the direction of global lending rates.

At 1515 GMT, the rand traded at 14.2750 versus the dollar, 0.35% below its
previous close, after giving up small overnight gains.

In recent weeks the rand has tended to take its cue from global drivers
including the dollar, which has been losing traction as retreating Treasury
yields dented its allure. read more

The dollar index rose around 0.2% on the day.

The demand for yield by investors facing low to zero rates in developed
markets has kept the rand strong, although volatility remains high as South
Africa's structural economic growth issues remain a concern.

Bonds were flat, with the benchmark 2030 government issue at 9.085%.

Shares on the Johannesburg Stock Exchange (JSE) extended losses on Tuesday
amid what analysts said the lack of no new triggers for a market already at
a high.

The benchmark FTSE/JSE all-share index (.JALSH) shed 1.85% to end the day at
66,836 points. The blue-chip FTSE/JSE index of top 40 companies (.JTOPI)
receded by 1.94% to 61,117 points.

Tuesday's fall in JSE was primarily led by the country's banks, mainly its
third-biggest Absa Group Ltd (ABGJ.J) which shed over 4% after its Chief
Executive Daniel Mminele stepped down following a rift with the bank's
board. read more

The bank index (.JBANK) lost 2.17%.-The Thomson Reuters Trust Principles.

Nigeria

Naira slips to three-week low at parallel market

Naira fell against the U.S. dollar at the unofficial market on Tuesday, data
posted on abokiFX.com, a website that collates parallel market rates in
Lagos showed.

The data posted showed that the naira closed at N486.00 at the black market,
which represents a N4.00 or 0.83 per cent devaluation from N482.00 the rate
it has been exchanging hands with the greenback since April 12.

The last time the local unit touched N486.00 was on March 31.

Slight depreciation at I&E too

In a similar pattern, the naira weakened slightly against the U.S. dollar at
the I&E window of the foreign exchange market on Tuesday, as foreign
exchange supply soar significantly.

Data posted on the FMDQ Security Exchange where forex is officially traded
showed that the domestic unit closed at N410.67 at the trading session of
the NAFEX window.

Tuesday's performance represents 0.08 per cent devaluation from N410.33 it
traded in the previous session on Monday.

ALSO READ: Naira gains at official market

The last time the currency hovered around N410.00 and above was on April 15.

It touched an intraday high of N381.00 and a low of N437.41 before closing
at N410.67 on Tuesday.

This occurred as forex turnover skyrocketed by 42.72per cent, with $99.49
million recorded as against the $69.71 million posted in the previous
session on Tuesday.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar steadies near seven-week lows as interest rates hold

NEW YORK (Reuters) - The dollar steadied on Tuesday amid a mix of gains and
losses against major currencies as interest rates in the United States moved
in a tight range and the outlook for vaccinations in Europe improved.

After touching its lowest level in nearly seven weeks in Asia trading, the
dollar index steadied in Europe and was flat in the morning in New York at
91.0160, down 0.02%.

The euro rose 0.15% to $1.2053 and the British pound backed off 0.12% to
$1.397 after gaining 1% on Monday.

The dollar has fallen in April as U.S. bond yields retreated from the
14-month highs of 1.776% reached last month. The currency and yield declines
have come as evidence mounted that the Federal Reserve would be slower about
tightening monetary policy than it had appeared to the market, analysts
said.

The 10-year Treasury yield was trading in a narrow range around 1.60% on
Tuesday.

The currency and interest rate markets could be relatively calm for another
few weeks as the Fed and the European Central Bank each take their time
about adjusting their rate policies, said Mazen Issa, senior currency
strategist at TD Securities.

Some encouragement for euro came from the announcement that the European
Union has secured an additional 100 million doses of the COVID-19 vaccine
produced by BioNTech and Pfizer.

The vaccination news suggests that the pace of Europe's recovery from the
pandemic will begin to catch up with the United States and its story of
faster growth, Issa said.

Against the Japanese yen, the dollar bounced to 108.822 after having broken
below 108 for the first time since March 5.

The commodity-linked Norwegian crown hit its strongest since 2018 versus the
dollar, and also reached its strongest since January 2020 versus the euro.

Bitcoin was up less than 1% and trading around $56,138 on Tuesday morning.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Oil prices down as demand rises due to weaker US dollar

Crude oil prices rose on Tuesday supported by a weak US dollar to drive up
demand, although concerns still prevail in a pandemic-induced, sluggish
market to dampen prices.

International benchmark Brent crude was trading at $67.75 per barrel at 0707
GMT for a 1.04% increase after closing Monday at $67.05 a barrel.

American benchmark West Texas Intermediate (WTI) was at $64.09 per barrel at
the same time for a 1.04% rise after it ended the previous session at $63.43
a barrel.

The US dollar index, which measures the value of the American dollar against
a basket of currencies including the Japanese yen, British pound, Canadian
dollar, Swedish krona, and Swiss franc, fell 0.20% to 90.86 earlier Tuesday
-- its lowest level since March 4.

The decline in the value of the greenback is encouraging oil-importing
countries to purchase more crude oil at cheaper dollar prices, which in turn
is supporting higher crude prices.

However, due to the resurgence in Covid-19 cases in India, one of the
world's biggest importers, oil demand has been hit, which exerts downward
price pressure.

India's total number of cases has now reached over 15.3 million, according
to the latest data from Johns Hopkins University, while some countries,
including the UK and Pakistan, have begun to ban flights to India.

Amid concerns over a new coronavirus variant, the UK added India to its
travel "red list," and starting from 4.00 am on Friday, most people who have
been to India in the previous 10 days will be banned from entering the UK.

British or Irish passport holders, or people with UK residence rights, will
be allowed in but must quarantine in a government-approved hotel for 10
days.

A total of 182 cases of the variant have been found in the UK, including 162
in the last five weeks.

Investors are also waiting on the release of the US crude oil inventory
forecast from the American Petroleum Institute (API) later on Tuesday.

If the API forecasts a decrease in inventories, it is indicative of a
rebound in demand to positively support prices.

On the supply side, the fresh force majeure decision of Libya's National Oil
Corporation (NOC) on crude oil shipments through the port of Hariga may
hinder the country's output by 280,000 barrels per day (BPD).

The announcement came after a budget dispute between the NOC and the Libyan
Central Bank.

Gold gains as softer U.S. dollar, yields lift appeal

(Reuters) - Gold prices rose on Wednesday, hovering near a seven-week high
hit earlier this week, as a soggy dollar and a retreat in U.S. Treasury
yields lifted demand for the safe-haven metal.

Spot gold was up 0.2% at $1,779.85 per ounce by 0205 GMT, after hitting its
highest since Feb. 25 at $1,789.77 on Monday. 

U.S. gold futures edged 0.2% higher to $1,781.60 per ounce.

The dollar index fell 0.1% against its rivals after touching a near
seven-week low, while benchmark 10-year U.S.

Treasury yields dropped below 1.6%, reducing the opportunity cost of holding
non-yielding bullion.  

Market participants now await the European Central Bank meeting on Thursday
for further clarity about stimulus plans for the bloc. The U.S. Federal
Reserve policy meeting is due next week.

Gold is seen as a hedge against inflation that could follow stimulus
measures, but higher Treasury yields have dulled some of the appeal of the
non-yielding commodity this year.

Among other precious metals, silver eased 0.3% to $25.80 per ounce.
Palladium rose 0.6% to $2,777.62, while platinum fell 0.4% to $1,182.08.

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
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for guideline purposes only and sourced from third parties.

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