Bulls n Bears Daily Market Commentary : 27 April 2021

Tue Apr 27 15:09:20 CAT 2021

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Bulls n Bears Daily Market Commentary : 27 April 2021

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

ZSE commentary

The ZSE closed today's session in the positive although losses were
registered in small tier stocks headlined by Unifreight. Turnover improved
by 52.76% to ZW$183.5 million from a trade of over 8.7 million shares which
exchanged hands in 459 trades. Delta was the most active stock at 30 trades
followed by Cassava and Bindura. The market breadth was positive after 21
stocks appreciated against 15 that depreciated in a total of 44 stocks which
traded. Econet was the most liquid counter as it anchored both volume and
value aggregate after it traded 1.82 million shares with a value of ZW$34.53
million. The benchmark All Share Index was up 1.14% and the Top 10 Index was
up by a 1.89%. The Top 15 Index added 1.23% to 2 979.21. The Medium Cap
Index traded higher to 10 938.24 appreciating by 0.09% as it inches closer
to doubling its year to date gains, whilst the Small Cap Index shaded 1.48%
to close at 43 402.33.

Leading the risers pack of the day was Unifreight which added 20.00% and the
packaging manufacturer Nampak with a 12.85% share appreciation. Edgars
Limited added 10.80% to 301.34c. Star Africa appreciated by 7.68%. the
conglomerate Innscor Africa gained 6.61% to close at 6935.23c. Leading in
the shakers pack was African Sun which pared 15.54% followed National Tyre
Services shading 13.73%. First Mutual Holdings  and Mashonaland Holdings
pared 6.66% and 5.32% respectively. Please find a summary of the market
activity as shown below; The Old Mutual Top Ten ETF closed at 173c down
0.05% after 6 261 684 units with a value of ZW$10 645 042.80 in 17 trades
exchanged hands.-wealthaccess

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

Global Currencies & Equity Markets

South Africa

Rand Report: ZAR strength continues

The rand has made record gains in the month of April by climbing 4.2%
against the dollar and 3% against the pound. Thin liquidity is expected this
week resulting from Tuesday's public holiday. Traders are expected to sit
tight as there are very few news events expected in the coming week to rally
the currency in any direction.

The rand is currently trading at 14.271 against the USD, 19.835 against the
pound and 17.233 against the euro. 

Across the pond, the US also has a slow news week with only the Fed's
interest rate decision on Wednesday. Nothing is expected to change but the
tone of the press conference could move the markets.

The UK's global Anti-Corruption Regime, launched by UK foreign Secretary
Dominic Raab, has imposed sanctions against the Gupta brothers by banning
them from the UK.

Nigeria

Naira maintains stability across forex markets as Nigerians accumulate
dollars to protect wealth

The naira remained stable at the parallel market to close at N485/$1 on
Friday.

Dollar, Exchange rate, FOREX, NAFEX market turnover drop by 59%, Naira
crashes to N470/$1 as currency uncertainty worsens 

Friday, 23rd April 2021: The exchange rate between the naira and the US
dollar closed at N410/$1 in the Importers and Exporters window.

Naira maintained stability on Friday, at the Nigerian Autonomous Foreign
Exchange (NAFEX) window, as the rate closed at N410 to a dollar, the same
rate that was recorded on Thursday, 22nd April 2021.

Also, the naira remained stable at the parallel market to close at N485/$1
on Friday. This was the same rate that was recorded the previous day as
Nigerians shun the naira and are accumulating foreign currencies to protect
their wealth from naira volatility and inflation, according to a research
paper in a journal published by the CBN.

The price of the world's most popular digital instrument dropped on Friday,
23rd April 2021, while Nigeria's external reserve continues to record a
decline.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar near multi-week lows before Fed, bitcoin reclaims $54,000

TOKYO (Reuters) - The dollar hovered near multi-week lows versus major peers
on Tuesday, weighed by subdued Treasury yields, as investors consolidated
positions ahead of the Federal Reserve's policy decision this week.

The safe-haven greenback was also out of favour after world stocks started
the week hitting a record high, amid increasing investor confidence in a
rapid global recovery from the pandemic.

In cryptocurrencies, bitcoin traded around $54,000 following a 10% surge on
Monday, driven by reports that JPMorgan Chase is planning to offer a managed
bitcoin fund.

That snapped a five-day losing streak that took the digital token to the
cusp of $47,000, with losses accelerating amid worries about U.S. President
Joe Biden's plan to raise capital gains taxes.

The dollar index, which tracks the U.S. currency against six peers, was
little changed at 90.859 early in the Asian session, after dipping to the
lowest since March 3 overnight at 90.679.

No change to policy is expected when the Federal Open Market Committee ends
its two-day meeting on Wednesday, but the market will pay close attention to
comments from Chairman Jerome Powell, who is likely to face questions over
whether improving conditions warrant a withdrawal of monetary easing.

Most analysts though expect him to say such talk is premature, which could
put downward pressure on Treasury yields and the dollar.

The dollar has fallen nearly 3% since late March as U.S. Treasury yields
traded in narrow ranges after retreating from a 14-month high of 1.7760%,
slashing the currency's yield appeal.

The benchmark 10-year Treasury yield was around 1.58% on Tuesday, tracking
sideways since sliding to a one-month low of 1.528% in the middle of this
month.

The euro slipped 0.1% to $1.2078, but remained close to the one-month high
of $1.2117 reached Monday.

The commodity-linked Australian dollar, a barometer of risk appetite, eased
0.1% to $0.7791, after a 0.7% rally overnight that took it just shy of a
five-week peak.

The offshore Chinese yuan retreated 0.1% after rising to a seven-week top of
6.4710 per dollar on Monday.

The dollar added 0.1% to 108.18 yen, another haven currency, continuing its
rise from the seven-week low of 107.48 reached Friday.

The Bank of Japan announces a policy decision Tuesday, with no change
expected.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold steady as market awaits Fed policy meeting

(Reuters) - Gold held steady on Tuesday as market awaits a U.S. Federal
Reserve meeting for cues on its monetary policy outlook, while a firmer
dollar weighed on the metal's appeal.

Spot gold was flat at $1,780.86 per ounce by 0724 GMT. U.S. gold futures
were little changed at $1,780.70 per ounce.

The dollar edged up, making gold less alluring for other currency holders,
while benchmark U.S. 10-year Treasury yield  held close to the 1.570% level.

While no major policy changes are expected from the Fed's two-day policy
meeting ending on Wednesday, investors will pay close attention to Chairman
Jerome Powell's outlook on the economy.   

The Fed slashed its benchmark overnight interest rate to near zero last
March after the pandemic hit the United States, and has promised to leave
borrowing costs unchanged until the economy reaches full employment and
inflation hits 2%.

The Bank of Japan maintained its massive stimulus on Tuesday and projected
inflation missing its 2% target for years to come, while new restrictions to
counter a surge in COVID-19 cases clouded prospects of a fragile economic
recovery.             

Palladium edged 0.1% lower to $2,924.67 per ounce, after scaling an all-time
high of $2,941 on Monday.

Silver fell 0.2% to $26.17 per ounce. Platinum was down 0.3% at $1,240.01.

Copper Surges Toward $10,000 as Bulls Bet on Global Rebound

Copper's stunning rally toward all-time highs above $10,000 is accelerating,
with bulls swarming in to profit as stimulus measures, vaccine rollouts and
climate pledges fuel a global recovery from the pandemic.

Copper on Tuesday extended gains to the highest in a decade as global growth
underpinned a rally in metals markets ranging from aluminum to iron ore.
Commodities are advancing toward the highs of the last supercycle, when
prices spiked in the early 2000s with a jump in Chinese orders.

With copper demand set to soar once more, there are mounting concerns that
producers will struggle to plug the gap as they battle a host of technical
and regulatory pressures. In top producer Chile, a group of port workers
this week began protests against the government's pandemic relief policies,
threatening near-term supplies. In the longer term, producers worry that
plans to boost mining royalties could stifle investment and make the country
less competitive.

Copper rallies towards all-time high

Metals led by copper, a barometer of the global economy, are benefiting as
the world's largest economies announce stimulus programs and climate pledges
as they rebuild from the coronavirus shock. Investor appetite is increasing,
with aggregate open interest in SHFE copper at the highest in more than a
year.

Copper rose as much as 2.2% to $9,965 a ton on London Metal Exchange, the
highest level since March 2011, before trading at $9,848 as of 1:35 p.m. in
London. Prices hit an all-time high of $10,190 in February 2011. Aluminum in
London declined after earlier touching a three-year high.

Fed Focus

Despite all the bullishness, near-term copper demand from China may weaken.
The top user may ship more of the metal overseas amid weaker-than-expected
domestic demand, with the so-called arbitrage window for exports opening up
for traders for the first time since September, according to Shanghai Metals
Market.

In other markets, gold was little changed ahead of a two-day Federal Reserve
policy meeting. The central bank has primed investors for no major changes
in the bank's language on inflation and rate expectations.

U.S. gross domestic product data released Thursday will show how the
economic recovery fared in the first quarter, potentially impacting investor
demand for havens. Economists surveyed by Bloomberg predict an annualized
6.8% expansion, after a moderate 4.3% rate in the first quarter.

Spot gold rose 0.1% to $1782.55 an ounce, after gaining 0.2% on Monday. It
advanced the two previous weeks. Silver and platinum were little changed.

Palladium Surge

Palladium declined after earlier climbing toward $3,000 an ounce amid bets
on surging demand from automakers and supply issues at top miner MMC Norilsk
Nickel PJSC. HSBC Holdings Plc said the metal could rise past $3,100 an
ounce due to a widening deficit, before dropping to $2,740 by the end of the
year.

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
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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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