Bulls n Bears Daily Market Commentary : 30 April 2021

Fri Apr 30 14:21:19 CAT 2021

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Bulls n Bears Daily Market Commentary : 30 April 2021

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

ZSE commentary

The ZSE closed today’s session with marginal gains across the board except for small tier stocks which are continuing on their losing streak. Turnover improved to ZW$392.64 million from a trade of over 19.7 million shares which exchanged hands in 368 trades. First Capital Bank was the most active stock at 36 trades followed by Star Africa and Delta. The market breadth was negative after 17 stocks depreciated against 16 that appreciated in a total of 38 stocks which traded. First Mutual Holdings was the most liquid counter as it anchored both volume and value aggregates trading over 14 million shares with a value of ZW$318.03 million which represents 2.03% of total issued shares.

The benchmark All Share Index was up 0.19% and the Top 10 Index was up by a 0.23%. The Top 15 Index added 0.37%. The Medium Cap Index traded higher to 11 330.52 appreciating by 0.14% with a month to date gain of 5.36%, whilst the Small Cap Index shaded a marginal 0.25% to close at 43 054.55. Leading the risers pack of the day was African Sun which added 19.95%. Zimplow Holdings added 7.99% to 650c. Zimre Holdings was 7.90% up to 207.80c. Simbisa brands added 4.74% to 3142.42c. NMB appreciated by 3.67%. Leading in the shakers pack was Bindura which pared 11.40% followed by Medtech Holdings shading 7.31%. Nampak and Dairibord Holdings pared 4.06% and 2.79% respectively. Please find a summary of the market activity as shown below; The Old Mutual Top Ten ETF closed at 175.04c down 0.78% after 247 907 units with a value of ZW$433 944.77 in 15 trades exchanged hands.-wealthaccess

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Global Currencies & Equity Markets

South Africa

South African rand weakens as local, global economic woes weigh

South Africa's rand weakened on Friday as weaker-than-expected Chinese factory indicators and firmer economic growth in the United States put demand for riskier currencies under pressure.

At 0800 GMT, the rand was 0.47% weaker at 14.3750 per dollar, adding to the previous session's losses ahead of trade and monthly budget data later in the day.

This week has seen volatile trade, but in a narrow range, with the rand failing to hold below the 14.20 technical resistance mark despite bull-plays inspired by the high yield on offer in the face of loose Fed policy.

But the rand has lost momentum as investors were worried about local economic growth and the duration of expansionary fiscal and monetary policies in developed economies that have so far supported flows into the rand and a health trade surplus.

China's manufacturing purchasing managers' index (PMI) fell slightly in April as supply bottlenecks and rising costs weighed on production. read more

Strong U.S. economic growth in the first quarter, with gross domestic product increasing at a 6.4%, took some of the steam out of the rand's rally, with traders warning that South Africa's own economic struggles may weigh on rand strength.

Local trade and budget data are due at 1200 GMT.

Bonds were also weaker in early deals, with the yield on the benchmark 2030 government issue up 3 basis points to 9.295%.

Our Standards: The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar set for 4th weekly drop on dovish Fed; loonie at 3-year high

TOKYO (Reuters) – The U.S. dollar skidded toward a fourth straight weekly decline against a basket of major peers on Friday, as the Federal Reserve stuck to its message of ultra-low interest rates for longer.

The dollar index was on course to end the week 0.2% lower, bringing its losses for April to 2.8%. A four-week losing streak would be the longest since the six-week slide to the end of July, and the monthly loss would also be the biggest since July’s 4% slump.

The Canadian dollar climbed to a more-than-three-year high of C$1.2273 per greenback on Friday, on track for a 1.7% weekly gain that would be its biggest since the start of November.

At the conclusion of the Fed’s latest policy meeting on Wednesday, Chair Jerome Powell acknowledged the U.S. economy’s growth, but said there was not yet enough evidence of “substantial further progress” toward recovery to warrant a change to policy.

That growth accelerated in the first quarter, buoyed by government stimulus cheques, setting the course for what is expected to be the strongest performance this year in nearly four decades.

Signs that a strengthening economy, particularly in the labour market, might force the Fed into an earlier tapering of its asset-purchase programmed had pushed the dollar index, or DXY, to a five-month high at the end of March.

The gauge is likely to drop below 90 in the near term, from 90.6 currently, but the “DXY’s depreciation trend is likely more of an ongoing grind than a wholesale sharp setback,” they said.

The Fed’s dovishness was in marked contrast to the Bank of Canada, which has already begun to taper its asset purchases. Canada’s commodity-linked loonie got additional support from a surge in oil prices to a six-week peak.

Higher commodity prices also supported the Australian dollar, which gained 0.2% to $0.77795, climbing back toward the six-week high of $0.78180 touched Thursday.

The euro has largely flat at $1.2122, near the two-month high of $1.2150 set the previous session. The shared currency is up 0.2% for the week and 3.3% for the month.

The yen saw opposite fortunes, hurt by a recovery in U.S. Treasury yields and a rally to record highs for global stocks that sapped demand for the safest assets.

Japan’s currency changed hands at 108.86 per dollar, near the two-week low of 109.22 from Thursday, setting it up for a loss of about 1% for the week.

In cryptocurrencies, ether hovered just below a record high of $2,800.89 set on Thursday, after being lifted this week on media reports about the European Investment Bank’s plans to launch a “digital bond” sale on the ethereum blockchain network.

Bigger rival bitcoin traded at $53,511.89, vacillating around that level this week after dipping as low as $47,004.20 on Sunday following a sharp retreat from the record high of $64,895.22 marked in the middle of the month.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices today fall for 7th day in a row, down ₹10,000 from record high

Gold prices today extended decline to the seventh straight day in Indian markets amid weak global cues. On MCX, gold futures were down 0.07% to ₹46,691 per 10 gram while silver rates fell 0.3% to ₹68439 per kg. In the previous session, gold and silver had declined 0.75% and 0.6% respectively. MCX gold faces resistance at ₹47780 and support at ₹45,760, according to domestic brokerage Geojit.

Gold has struggled this year after significant gains in 2020 as rising US bond yields have dampened the appeal of the precious metal. In August 2020, gold had hit a new high of ₹56,200 while silver had come closer to ₹80,000 per kg.

In international markets, gold rates were lower today as US 10-year Treasury yields rose to a more than two-week high on Thursday. Higher yields increase the opportunity cost of holding non-yielding bullion. Spot gold was down 0.2% at $1,767.12 per ounce.

Data released on Thursday showed US economic growth accelerated in the first quarter, setting the course for what is expected to be the strongest performance this year in nearly four decades. This week, US President Joe Biden proposed a sweeping new $1.8 trillion plan for families and education in a speech to a joint session of Congress.

Among other precious metals, silver fell 0.6% to $25.94 per ounce while platinum was up 0.5% at $1,203.59.

Gold consumption in India is likely to falter in the June quarter amid restrictions to arrest rising COVID-19 cases, the World Gold Council (WGC) said on Thursday. Gold demand had soared in India in the March quarter on pent-up demand after weddings were delayed in 2020 due to the COVID-19 pandemic.

Gold consumption typically jumps in the June quarter due to weddings and key festivals such as Akshaya Tritiya, when buying gold is considered auspicious.

Shanghai bonded copper, aluminium stocks rise in April; nickel inventories down 20%

Copper and aluminium stocks in the Shanghai bonded zone declined in April, while those of zinc and nickel fell, with the latter declining by 19.9% amid increased import activity due to a favorable arbitrage between London and Shanghai.

Copper stocks creep up amid lack of import interest

With no incentive to import copper from the Shanghai bonded zone into China during April, red metal stocks continued to grow, building on the 20-month high reached in March.

Fastmarkets’ assessment of Shanghai bonded copper stocks was 380,000-396,000 tonnes on April 19, up by 4,000-6,000 tonnes (1.3%) from 374,000-392,000 tonnes on March 22.

Yet the month-on-month increase in April was much smaller than the 11.3% gain in March.

Low premiums for copper cathode imported into China discouraged suppliers from shipping cargoes to China during the past month, market sources told Fastmarkets.

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.

(c) 2021 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:  <mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77 344 1674

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