Bulls n Bears Daily Market Commentary : 13 August 2021

Sat Aug 14 08:44:53 CAT 2021

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Bulls n Bears Daily Market Commentary : 13 August 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE maintained gains although marginal pushed by activity in medium cap
stocks. Total turnover was up by 44% to ZW$199 million. Activity levels were
lower thanyesterday at 373 trades. OK Zimbabwe was the most active stock at
34 trades followed by Delta and Econet at 30 and 29 trades respectively. OK
Zimbabwe was the most liquid counter as it anchored volume aggregate trading
1 640 100 shares and Delta anchored value aggregate with a value of ZW$56.8
million contributing 28.5% to total turnover.

At close, the benchmark All Share Index added an unimpressive 0.19% with 14
advancers and 16 losers while 8 counters remained unchanged. The Top 10
Index was down by 0.45% with major losses in Delta and Innscor. The Top 15
Index added a paltry 0.17%. The Medium Cap Index traded higher to 18 379.92
points appreciating by 1.09% whilst the Small Cap Index also added 0.58% to
close at 236 071.81 points. Leading the risers pack of the day was First
Mutual Holdings up by 19.05% reversing yesterday's loss of 16.00% followed
by the telecoms giant Econet and African Distillers which added 7.02% and
6.67% respectively. ZIMRE Holdings was up 3.83% to 419c. Leading in the
shakers' pack were Get Bucks and FBC Holdings which shaded 4.72% and 3.57%
respectively. Medtech Holdings lost 3.05% to 27.96c. Innscor and Delta
pared 2.99% and 2.53% respectively. The Old Mutual Top Ten ETF closed at
250.08c up by 0.02% after 69 607 units with a value of ZW$174 074.50 in 27
trades exchanged hands.-wealthaccess

Global Currencies & Equity Markets

South Africa

Rand loses ground to stronger greenback

THE rand oscillated, coming off a strong previous session, as US PPI boosted
the greenback, according to NKC Research.

In contrast to the relatively tame CPI release for July yesterday, producer
prices posted another strong gain in July, beating expectations with a 1.0
percent increase at the headline level while core prices rose by the most
since January.

At the close of local trade, the rand depreciated by 1.0 percent, ending at
R14.78/$, after trading in range of R14.64/$ to R14.80/$. The rand traded
sideways overnight. The expected range of the rand against the dollar today
is R14.60/$ to R14.90/$.

South African bourse

The JSE All Share (-0.31 percent) ended lower yesterday, as Naspers remains
affected by Chinese regulators targeting new sectors in crackdowns.
Technology (-0.37 percent) and resources (-0.87 percent) were the biggest
losers yesterday. In the overall emerging market sphere, softer lending
figures and sliding stock prices due to concerns regarding regulatory
crackdowns in the online insurance sector resulted in the MSCI Emerging
Market Index (-0.5 percent) trading lower.

The price of Brent oil slid yesterday, as the International Energy Agency
warned that the spread of the Delta variant would hamstring the recovery in
global oil demand. At the close of local trade, benchmark Brent crude
futures quoted 0.3 percent softer, at $71.2pb. Crude prices traded on the
back foot during Asian trade this morning.

BUSINESS REPORT

Nigeria

Naira sees biggest gain in nearly a month

Naira gained significantly against the U.S. dollar at the official market
Friday as it touched 410 for the first time in almost a month.

Data posted on the FMDQ Security Exchange where forex is officially traded
showed the local unit closed at N410.80 per $1 on Friday.

This implies a N0.87 or 0.21 per cent appreciation from the N411.67 rate it
traded in the previous session on Thursday.

The currency experienced an intraday high of N400.00 and a low of N412.50 on
Friday, the same range it oscillated within the past three consecutive
sessions of the market segment.

The market forex turnover plunged by 28.00 per cent as $109.03 million was
recorded as against the $150.99 million recorded in the previous session on
Thursday.

The local currency has hovered around the N411.00 and above benchmark rates
in the past three weeks.

ALSO READ: Naira loses against dollar at official market

It last traded at around 410.00 and above on July 16 last month, when naira
exchanged hands with the greenback currency at N410.38 per $1 at the
Over-The-Counter (OTC) market segment.

READ ALSO:  Buhari must be president for life, APC Senate candidate vows

However, the currency remained stable at the black market window.

According to abokiFX.com, a website that collates parallel market rates in
Lagos the local currency closed at N515.00 per $1, the same rate it has been
trading since Wednesday.

This leaves the disparity between the Nafex and black market rates standing
at N104.20, translating to a margin of 20.23 per cent as of the close of
business on Friday.

 <mailto:info at bulls.co.zw> 

Global markets

Dollar dented as consumer sentiment dives

The U.S. dollar fell to a one-week low against a basket of currencies on
Friday, after a survey showed U.S. consumer sentiment dropped sharply in
early August to its lowest level in a decade.

The University of Michigan said its preliminary consumer sentiment index
fell to 70.2 in the first half of this month from a final reading of 81.2 in
July. That was the lowest level since 2011 and one of the six largest drops
in the past 50 years of the survey.

Investors this week have been treated to a mixed bag of data. While U.S.
producer prices data out Thursday showed surging prices, bolstering the case
for the Federal Reserve removing some of its stimulus, it followed U.S.
consumer price data on Wednesday, which indicated inflation may be peaking,
potentially giving the Fed room to remain accommodative for longer.

The dollar index, which measures the greenback against a basket of six
rivals, was 0.4% lower at 92.598, its lowest since Aug 6.

Traders continue to look toward the Fed's central banking conference in
Jackson Hole, Wyoming, later this month, for clues to the Fed's next move.

Sterling was 0.33% higher against the broadly weaker dollar, but remained on
pace for a second straight week of modest declines as investors look for
fresh catalysts for the British currency's next move after Britain's growth
figures for the second quarter came in as expected.

Elsewhere, bitcoin climbed 4.624% to $46,500, nearing Wednesday's
three-month peak of $46,787, while Ethereum rose 5.81% to $3,221.52.-cnbc

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper price rises as supply worries return

Copper prices advanced on Friday after workers at Codelco's Andina copper
mine in Chile went on strike, raising supply disruption risks.

Copper for delivery in September rose 1% from Thursday's settlement price,
touching $4.431 per pound ($9,748 per tonne) on the Comex market in New
York.

Copper prices have soared to record highs this year, handing unions in Chile
additional leverage, ratcheting up tensions in labor negotiations and
putting pressure on global supply of the red metal.

On Thursday, two unions at Andina walked off the job after rejecting the
latest contract offer, while workers at JX Nippon Copper's Caserones mine
also went on a strike after labor contract talks collapsed.

Andina produced 184,000 tonnes of copper in 2020, while Caserones delivered
126,972 tonnes of copper in 2020.

On Thursday, workers at Chile's Escondida mine, the world's biggest copper
deposit, approved a new contract, avoiding a labor strike.

Copper price trends; Chinese steel production; IPCC report

Here's a quick rundown of news and thoughts from particular commodity
markets, including China's relaxation of steel production curbs, movements
in the copper market and much more.

MetalMiner, a sister site of ours, scours the landscape for what matters.
This week:

Copper price movements

Earlier this week, MetalMiner's Maria Rosa Gobitz overviewed movements in
the copper market.

How do you find the right procurement technology and vendor for your
company? Spend Matters' new 5-step "Procurement Technology Buyer's Guide"
can help - with how-to documents, checklist templates and other tips.

Meanwhile, the copper market has awaited news from labor talks at BHP's
Escondida copper mine in Chile, the world's largest. The labor union
representing workers at the mine earlier this month voted to reject
management's latest contract offer. The move kicked off a 10-day period of
government-mediated talks, after which the workers would go on strike if an
agreement were not reached.

Earlier this week, however, Reuters reported the union and management had
reached a tentative agreement.

China emissions targets

Meanwhile, MetalMiner's Stuart Burns delved into China's relaxation of
emissions targets and its impact on steel prices.

As a result, rising Chinese steel prices cooled off.

This comes after global output declined in June compared with the previous
month, including a month-over-month drop in China's output.

Gold price recovers from recent selloff, supported by physical demand spike

Gold extended its recovery from the recent selloff on Friday as a retreat in
the US dollar enticed investors to snap up the safe haven metal.

Spot gold rose 1.3% to $1,776.83 per ounce by 12:10 p.m. EDT, its highest in
more than a week, representing a quick turnaround from the four-month lows
touched on Monday. US gold futures jumped 1.5% to $1,779.20 per ounce in New
York.

Meanwhile, the dollar index fell 0.4% and US benchmark 10-year treasury
yields also weakened, bolstering the appeal of gold, a non-yielding asset.

Providing further support to bullion was an increased physical demand,
particularly from top consumers India and China, where premiums rebounded to
multi-month highs.

Commenting on gold's recent movement, TD Securities commodity strategist
Daniel Ghali told Reuters that the pullback from Monday's lows was largely
driven by technicals, with increased central bank purchases providing
additional support.

The tapering bets received a major boost last week following a strong US
jobs report for the month of July, sending gold on a downward spiral for
three straight sessions.

While gold is seen as a hedge against inflation, higher interest rates dull
the bullion's appeal by raising its opportunity cost.

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
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
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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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