Bulls n Bears Daily Market Commentary : 04 August 2021

Wed Aug 4 14:34:19 CAT 2021

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Bulls n Bears Daily Market Commentary : 04 August 2021

 <https://www.facebook.com/Hyundaizimbabwe/> 

ZSE commentary

The ZSE closed in the positive for the 11th consecutive session with a
positive market bias. Total turnover was bolstered by NMB to ZW$295.3
million from a trades of over 20.77 million shares. Activity levels were
lower at 459 trades. Medtech was the most active stock at 44 trades followed
by Delta and OK Zimbabwe at 34 and 33 respectively. Edgars was the most
liquid counter as it anchored volume aggregate trading 8 677 700 shares and
NMB anchored value aggregate with a value of ZW$72.7 million contributing
24.6% to total turnover.

At close, the benchmark All Share Index added a marginal 0.97% with 17
advancers and 14 losers while 8 counters remained unchanged. The Top 10
Index was up by 0.92%. The Top 15 Index added 0.78%. The Medium Cap Index
traded higher to 17 947.54 points appreciating by 1.15% whilst the Small Cap
Index shaded 0.85% to close at 231 622.41 points. Leading the risers pack of
the day was Mashonaland Holdings up by 16.34% followed by Seed Co and Get
Bucks which added 9.44% and 6.06% respectively. Delta was up 4.58%. Leading
in the shakers' pack were NMB and Zimpapers  which shaded 16.67% and 5.50%
respectively. Edgars Limited shaded 3.07%. The conglomerate Innscor and
Simbisa Brands pared 2.46% and 1.77% respectively. The Old Mutual Top Ten
ETF closed at 199.17c down by 0.41% after 27 400 units with a value of ZW$54
573 in 5 trades exchanged hands.WealthAccess

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

S.African rand firms on weaker dollar, shares down on China sell-off

(Reuters) - South Africa's rand strengthened further on Tuesday after a
strong opening in early trade, cruising to a three-week high as the dollar
weakened due to concerns around the coronavirus Delta variant and slowing
U.S. growth.

The rand ZAR= traded at 14.3150 against the dollar at 1535 GMT, 1.07% firmer
than its previous close.

The dollar was on the back foot against the safe-haven yen and Swiss franc
on Tuesday, dragged by soft U.S. manufacturing data and rising concerns
about the Delta variant. USD/

US non-farm payrolls is an important parameter to determine the Fed's future
policy stance.

The two major market indexes on the Johannesburg Stock Exchange (JSE)
slipped following a global sell-off in gaming companies led by China.

While shares in local banks and commodity companies showed resilience, the
overall impact was offset by index heavyweights Naspers NPNJn.Jand Prosus
PRX.ASwhich crashed as investors dumped Tencent 0700.HKstock.

The benchmark all-share index .JALSH closed 0.17% down to 68,706 points and
the blue-chip index of top 40 companies .JTOPI ended down 0.26% to 62,543
points.

Naspers and Prosus both fell by around 7%.

A state-owned media outlet in China on Tuesday branded online video games as
"spiritual opium", triggering fears that the Chinese regulators will train
their guns on gaming after a string of regulatory overhauls in past weeks
have battered Chinese tech companies.

Tencent is one of China's biggest video game companies and a little less
than a third of it is owned by Prosus, a subsidiary of Naspers.

In fixed income, the yield on the benchmark 2030 government bond ZAR2030=
was down two basis points to 8.815%.

Nigeria

Naira maintains gain at black market

The naira extended its gain against the U.S. dollar at the unofficial market
window on Tuesday by rising to 508 per $1.

According to abokiFX.com, the currency closed with a N4.00 or 0.80 per cent
appreciation from the N512.00 rate it exchanged hands on Monday.

Naira opened at N512.00 and saw an intraday low of N510.00 and a high of
N509.00 before settling at N508.00 at the close of business on Tuesday.

By implication, the domestic unit has gained 3.24 per cent at the unofficial
market segment after recording an all-time decline on July 28 when it closed
at N525.00 after the Central Bank of Nigeria (CBN) stopped forex sales to
Bureau De Change operators.

However, naira recorded no movement against the U.S. dollar at the official
Investors and Exporters (I&E) window on Tuesday.

Data published on the FMDQ Security Exchange where forex is officially
traded showed that the naira closed at N411.50 per $1, the same rate it
traded in the previous session on Monday.

The foreign exchange turnover remained unchanged at $143.20 million, the
same rate recorded in the previous session on Monday.

This leaves the spread between the official market and the unofficial market
rates at N96.50, leaving a margin of 19.00 per cent as of the close of
business Tuesday.

Zambia

Kwacha remains stable

THE Kwacha has continued on its stability path against the United States
dollar trading at the same level of K19.20 and K19.25 throughout the session
on Friday.

But Zanaco Plc head of economic research Patrick Chileshe expects rising
copper prices and the return of off-shore investors into the Zambian
financial markets to continue strengthening the Kwacha.

According to the Absa Bank Zambia daily markets update, the Kwacha was
stable against the US dollar on Friday, trading at the same level as
Thursday's close due to US dollar inflows that were evenly matched with
lower demand from importers.

"At 08:30 hours, commercial banks quoted the Kwacha at K19.20 and K19.25 per
US dollar where it traded throughout the session to close the day firm on
the bid and offer, respectively.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar hovers near lows as kiwi climbs

(Reuters) - The dollar on Wednesday hovered around the levels it has held
for days as investors awaited U.S. jobs data for a guide on the outlook for
interest rates.

The greenback has lost ground against major rivals after the U.S. Federal
Reserve in a policy statement at the end of July said the job market had
"some ground to cover" before it eases stimulus. read more

But it is still up around 2% overall since a Fed meeting in June, when the
central bank flagged it was gearing up for sooner-than-expected rate hikes.
read more

On Wednesday the dollar index edged up 0.1%, last at 92.109.

Investors will get a clue on the jobs situation later on Wednesday with the
publication of the ADP employment survey, ahead of Friday's labor market
report.

The U.S. dollar was last broadly flat against the euro, after gains on data
showing euro zone business activity surged in July, expanding at its fastest
pace for 15 years. read more

The euro was last trading at $1.18560.

The New Zealand dollar made strong gains for the second consecutive day,
after a drop in unemployment in the country raised expectations rate hikes
could begin within weeks.

The kiwi was last up 0.9% against the U.S. dollar, at $0.70740.

The country's central bank had said on Tuesday it would soon begin
consulting on ways to tighten mortgage lending standards, as it tries to
control an inflated housing market.

Against the yen, the dollar traded near recent lows, last at 109.140.

Sterling edged up 0.1% ahead of a Thursday Bank of England meeting, at
$1.39250.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold edges up as dollar stays weak ahead of U.S. jobs data

(Reuters) - Gold edged higher on Wednesday, propped up by a subdued dollar,
although prices lingered in a narrow range as investors focused on U.S. jobs
data due later this week to gauge economic recovery.

Spot gold rose 0.2% to $1,813.78 per ounce by 0652 GMT, while U.S. gold
futures were up 0.1% at $1,816.50.

Gold appears to be in wait-and-see mode, said Jeffrey Halley, senior market
analyst for Asia Pacific at OANDA.

The National Employment Report by payroll processor ADP, due later in the
day, could set the stage for the much anticipated U.S. non-farm payroll
numbers on Friday.

The labour market would take time to heal from the effects of the pandemic,
and more is needed to be done for the economy to get fully back on track,
Federal Reserve officials said on Tuesday.

The dollar was pinned near recent lows against other currencies.

Dovish remarks last week by Fed Chair Jerome Powell on interest rate hikes
being "ways away" had sent gold rising more than 1%, while the dollar
slipped to a one-month low.

Lower interest rates reduce the opportunity cost of holding non-yielding
bullion.

Gold prices are holding well above medium-term technical support levels and
could find resistance intraday at $1,816 and then at $1,827, said Nicholas
Frappell, global general manager at ABC Bullion.

Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded
fund, fell 0.2% to 1,027.97 tonnes on Tuesday.

Silver gained 0.4% to $25.65 per ounce, platinum fell 0.1% to $1,048.03 and
palladium rose 0.2% to $2,653.81.

London copper rises as dollar remains weak

(Reuters) - Copper prices rose on Wednesday in London as the dollar was
pinned near recent lows, with traders focused on U.S. jobs data to offer
cues on the rates outlook.

Three-month copper on the London Metal Exchange CMCU3 rose 0.5% to $9,590 a
tonne by 0259 GMT, reversing losses from the previous session.

The dollar index has now slipped more than 1% from a 15-week peak it struck
a fortnight ago. USD/

A weak dollar makes greenback-priced metals cheaper to holders of other
currencies.

The most-traded September copper contract on the Shanghai Futures Exchange
SCFcv1 fell 1% to 70,220 yuan a tonne, tracking overnight losses in London.

FUNDAMENTALS

* LME aluminium CMAL3 rose 0.2% to $2,591 a tonne, nickel CMNI3 dropped 0.6%
to $19,280 a tonne, zinc CMZN3 advanced 0.3% to $2,977.50 a tonne, while
ShFE zinc SZNcv1 shed 1.1% to 22,085 yuan a tonne and ShFE tin SSNcv1 lost
1.2% to 229,300 yuan a tonne.

* Top copper miner Codelco's June output rose 14.9% year-on-year to 151,600
tonnes, while production at the world's biggest copper mine Escondida fell
21.6% in the same period.

* A union representing striking workers at Vale SA's VALE3.SA nickel mine in
Sudbury, Canada reached a tentative agreement to settle an ongoing labor
dispute that saw 2,500 workers walk off their job on June 1.

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

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
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