Bulls n Bears Daily Market Commentary : 22 April 2021

Thu Apr 22 15:38:56 CAT 2021

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Bulls n Bears Daily Market Commentary : 22 April 2021

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

ZSE commentary

The ZSE closed today’s session with gains largely on heavyweight counters (BAT, Delta and Masimba). Turnover improved to ZW$207.48 million from a trade of over 41.1 million shares which exchanged hands in 420 trades. Bindura was the most active stock at 42 trades followed by FBC and Cassava. The market breadth was positive after 19 stocks appreciated against 15 that depreciated in a total of 36 stocks which traded. First Mutual Properties was the most liquid counter as it anchored volume aggregate after it traded 33.18 million shares which represents 2.68% of its issued shares with a value of ZW$158.2 million which was 76.26% of total turnover for the day at ZW$207.5 million.

The benchmark All Share Index was up 0.99% and the Top 10 Index was up by 1.26%. The Top 15 Index added 0.89% to 2 924.85. The Medium Cap Index traded higher to 10 749.18 appreciating by 0.73%, whilst the Small Cap Index shaded 3.37% to close at 42 666.73. Leading the risers pack of the day was Masimba Holdings and British American Tobacco with a 13.55% and 11.88% share appreciation respectively. Medtech Holdings added 9.92% to 12.52c. First Capital Bank  appreciated by 9.52%. ZBFH gained 8.57% to close at 3800c. Leading in the shakers pack was Unifreight (UNIF.zw) which pared 20.00% followed by the hospitality giant African Sun shading 9.86% after reporting a huge loss (ZW$1.5 billion) in its FY2020 results. First Mutual Holdings and RTG pared 6.67% and 4.76% respectively. Please find a summary of the market activity as shown below; The Old Mutual Top Ten ETF closed at 176.06c up 2.67% after 19 500 units with a value

of ZW$34 331 in 12 trades exchanged hands.-wealthaccess

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

Global Currencies & Equity Markets

South Africa

S.Africa's rand flat as markets wait for global cues

South Africa's rand was flat on Thursday, as investors waited for direction from global drivers including U.S. jobless numbers and the outcome of a European Central Bank meeting.

At 0548 GMT, the rand traded at 14.2600 versus the dollar, 0.07% weaker than its New York close on Wednesday, with analysts saying it was stuck in a narrow trading range for now.

She pointed to an upcoming interest rate decision from the European Central Bank and U.S. jobless claims as two factors that could drive markets later on Thursday.

The rand tends to be led mostly by global factors, with local events having a smaller impact. Analysts noted on Wednesday that even an uptick in local inflation had little effect on the currency. read more

Government bonds were also unchanged, with the yield on the instrument due in 2030 flat at 9.090%.-The Thomson Reuters Trust Principles.

Nigeria

Naira falls against US dollar as external reserves plunges

The naira depreciated against the US Dollar at the Investors and Exporters window on Tuesday to close at N410.67/$1.

Exchange rate depreciates at NAFEX window as forex liquidity drops further by 57%, Central Bank Continues intervention in Forex market to stabilize Naira, Naira to depreciate slightly over $1.52 billion maturing contracts expires, Naira hits N388.84 to $1 at the currency spot market, Investors and Exporters (I&E) window, Naira weakens against the dollar by 1.14% amidst uncertainty, Naira gains against the dollar at I&E window, forex liquidity up by 242%  

Tuesday, 20th April 2021: The exchange rate between the naira and the US dollar closed at N410.67/$1 at the investors and exporters window, where forex is traded officially.

Naira depreciated against the US dollar to close at N410.67 to a dollar on Tuesday, 20th April 2021. This represents a 0.08% decline when compared to N410.33/$1 recorded on Monday, 19th April 2021.

Naira also declined against the US dollar in the parallel market on Tuesday, as it closed at N486/$1, representing 0.83% depreciation compared to N482/$1 recorded on Monday, 19th April 2021.

Nigeria’s foreign reserve dipped for the first in about 19 days, as it declined by 0.1% to stand at $35.22 billion.

The naira depreciated against the US Dollar at the Investors and Exporters window on Tuesday to close at N410.67/$1. This represents a 34 kobo decline when compared to N410.33/$1 recorded on Monday, 19th April 2021.

Cryptocurrency watch

The world’s most sought-after digital asset, Bitcoin grew by 1.56% to trade at $56,562.53 on Tuesday, 20th April 2021.

Bitcoin increased by $867.98, while Ethereum also grew by 7.96% to trade at $2,336.1.

The cryptocurrency had fallen to $52,000 on Sunday, sharply off its record high last week of above $64,800 due to a large sell-off tied to rumours of a regulatory crackdown in the US.

It is worth noting that Bitcoin has risen by 680% in the past 12 months

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar edges down below ¥108 in Tokyo

The dollar inched down to levels below ¥108 in lackluster Tokyo trading Thursday.

At 5 p.m., the dollar stood at ¥107.90, down from ¥108.22 at the same time Wednesday. The euro was at $1.2043, up from $1.2011, and at ¥129.95, down slightly from ¥129.99.

Following a moderate rise on the 225-issue Nikkei average’s sharp upturn, the dollar fell back past the ¥108 line in line with a drop in U.S. long-term interest rates.

The greenback regained ground it had lost due also to a crude oil price drop, thanks to the Nikkei’s further rise in the afternoon.

But the U.S. currency, again, sank into ¥107 terrain in late trading joined by European players.

The dollar is believed to have been affected by stepped-up position-squaring activities involving European currencies ahead of a European Central Bank policy meeting later the same day, traders said.

Some players said they will watch the ECB meeting as well as the U.S. Federal Reserve’s Federal Open Market Committee meeting next week, after the Bank of Canada announced Wednesday a decision to taper its government debt purchases.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices today fall, a day after hitting 2-month high, silver rates drop

Gold and silver prices edged lower today in Indian markets after the recent surge. On MCX, gold futures were down 0.07% to ₹48,195 per 10 gram while silver slipped 0.04% to ₹70,310. In the previous session, gold had risen 0.72% to two-month high of ₹48,200 while silver had surged 2.3% or ₹1615 per kg. On MCX, gold has support at ₹46,200 and resistance at ₹48,240, say analysts.

In Indian markets, gold rates have surged more than ₹4,000 this month amid a recovery in global rates. Earlier this month, gold had slumped to near ₹44,000 levels with rising US bond yields denting the appeal of the safe-haven asset. But easing of US bond yields along with weakness in US dollar has led to a rebound in gold prices in international markets.

In global markets, gold today edged closer to the key psychological level of $1,800, supported by weakness in US dollar and easing Treasury yields. Spot gold was steady at $1,793.32 per ounce, after hitting a two-month high of $1,797.67.

Gold has managed to hold its support of $1760 which may to price inching towards $1820 or more, Geojit said in a note. At the same time an unexpected drop below $1725 is a bearish signal, it added.

Benchmark US bond yields slipped below 1.6%, reducing the opportunity cost of holding non-yielding bullion. The dollar index edged 0.09% to multi-week lows of 91.043.

Gold traders will be awaiting the outcome of a European Central Bank meeting due later in the day. US Federal Reserve policy meeting is also due next week. US Federal Reserve chair Jerome Powell's press conference next week will give more indication of interest rate forecast, say analysts.

The US will release home sales data this Friday.

Among other precious metals, silver eased 0.5% to $26.45 per ounce and platinum slipped 0.2% to $1,211.32. A direct rise above $26.50 would extend the buying momentum in silver towards $28 or more, say Geojit. Else, there are chances of corrective selling, but major downside reversal point is placed at 23.80, the brokerage said.

Oil down as US crude stocks rise, COVID cases surge

Oil prices were down on Thursday over a surprise build in US crude oil inventories and the relentless surge in coronavirus cases, especially in India and Japan.

International benchmark Brent crude was trading at $65.18 per barrel at 0700 GMT for a 0.21% decrease after closing Wednesday at $65.32 a barrel.

American benchmark West Texas Intermediate (WTI) was at $61.12 per barrel at the same time for a 0.37% drop after it ended the previous session at $61.35 a barrel.

The increase in commercial crude oil stocks in the US, the world's largest oil consumer, signaled a fall in oil demand and exerted downward pressure on oil prices.

US commercial crude oil inventories increased by 0.1% for the week ending April 16, according to the latest data released by the Energy Information Administration (EIA).

Inventories increased by 600,000 barrels, more than the market expectation of a fall of 2.8 million barrels.

Concerns over the rise in new coronavirus variant cases in Japan, the world's third-largest oil importer, and India, the world's third-largest oil consumer, are negatively reflecting on a global economic recovery and oil demand, which are pushing oil prices down.

Daily COVID-19 cases continue breaking new records in India after the country registered a staggering 314,835 new infections in the past 24 hours - the highest figure since the start of the pandemic.

The hospitals across the country are struggling to maintain oxygen supplies and are suffering from a shortage of beds and treatment drugs, such as Remdesivir.

In Japan, Prime Minister Yoshihide Suga is expected to declare an emergency in the provinces of Tokyo, Osaka, and Hyogo due to a rise in infections, which have put pressure on the health care system.

This marks the third time that Japan has imposed a state of emergency since April last year.

Markets are now focused on the upcoming meeting in May of the Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+ when major oil producers will discuss their production quotas.

During the previous meeting on April 1, the group decided to increase their production by 2.1 million barrels per day (bpd) until the end of July, incrementally easing the current production cut of 7.9 million bpd.

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

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 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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