Bulls n Bears Daily Market Commentary : 17 August 2021

Tue Aug 17 15:50:50 CAT 2021

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:bulls at bulls.co.zw> Views & Comments
<http://www.bullszimbabwe.com> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 17 August 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE slid into the negative for the second day amid heavyweight counters
weaknesses. Total turnover was down by 73% to ZW$176.5 million. Activity
levels were higher than yesterday at 434 trades. Delta was the most active
stock at 52 trades followed by Star Africa and Cassava at 39 and 34 trades
respectively. Cassava anchored volume aggregate trading 1 073 700 shares and
Delta anchored value aggregate trading a value of ZW$35.65 million.

At close, the benchmark All Share Index shaded 1.11% with 15 advancers and
20 losers while 1 counter remained unchanged. The Top 10 Index was down by
1.20% with major losses in Delta, CBZ and Masimba. The Top 15 Index pared
0.98%. The Medium Cap Index traded lower to 18 313.30 points depreciating by
0.99% whilst the Small Cap Index shaded 1.23% to close at 231 508.28 points.
Leading the shakers pack of the day was Star Africa down by 19.33% followed
by Zimplow and Delta which shaded 8.29% and 6.69% respectively. Art
Corporation was down 4.94% to 807.94c. Leading in the risers' pack were
Innscor and Zimpapers which added 7.04% and 6.90% respectively. Fidelity was
up 3.90% to 1142.86c. the financial stocks FBC Holdings and First Capital
Bank added 3.57% and 2.99% respectively. The Old Mutual Top Ten ETF closed
at 248.04c down by 0.29% after 15 700 units with a value of ZW$38 942 in 12
trades exchanged hands.wealthaccess

Global Currencies & Equity Markets

South Africa

Rand weakens as the dollar continues to strengthen

South African bank notes featuring an image of former South African
President Nelson Mandela are displayed at an office in Johannesburg. The
rand weakened by one percent on Tuesday morning compared with Monday's close
on the JSE and is approaching R15 to the dollar from R13.50 at the beginning
of June.

This, as the dollar continues to strengthen, which usually weakens the rand.

The dollar's strength can be attributed to disappointing Chinese factory
output and retail sales data, which is also contributing to a weaker rand.

China is one of South Africa's largest trading partners, and South African
assets are correlated to swings in sentiment on international markets.

To add to this, South Africa's government bonds are weakening, as is
reflected in a rise in yields, which points to an outflow of dollars,
further weakening the rand.

The rand is trading at R14.95 in early trade on the JSE.

Zambia

Kwacha stability run against US dollar continues

THE Kwacha has continued its stability run against the United State(US)
dollar despite pressure from growing demand from importers and the general
anxiety posed by the general elections held last Thursday. 

According to Absa Bank Zambia Plc daily treasury bulletin, commercial banks
in Lusaka opened the market last Wednesday at K19.30 and K19.35 on the bid
and offer, respectively, where it traded during the course of the day until
close. 

Since July 22 this year when it appreciated by 13 percent to trade below
K20.00 against the US dollar, the Kwacha has maintained a bullish run. 

Nigeria

Naira loses at official market

The Naira fell against the U.S. dollar at the official market on Monday,
data recorded on the FMDQ Security Exchange (Nafex) where forex is
officially traded showed.

The naira closed at N411.67 per $1 at the Nafex window on Monday, this
implies a N0.87 or 0.21 per cent devaluation from the N410.80 rate it traded
in the previous session on Friday last week.

It touched an intraday high of N400.00 and a low of N412.50 on Monday, the
same range it has oscillated within the past four consecutive sessions of
the market segment.

The market forex supply also remained unchanged at $109.03 million on
Monday, the same rate recorded in the previous session on Friday.

However, the local unit maintained stability in the black market segment.

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

This leaves the disparity between the official and black market rates at
N103.33, translating to a margin of 20.10 per cent as of the close of
business on Monday.

.

 <mailto:info at bulls.co.zw> 

Global Markets

U.S. dollar, yen rise after soft China data, amid Afghan unrest

(Reuters) - The dollar rose on Monday against commodity currencies such as
the Australian, New Zealand and Canadian dollars, while the safe-haven yen
gained as disappointing economic data from China, political tension in
Afghanistan, and the spreading Delta variant of the coronavirus weighed on
risk appetite.

The dollar's gains came after a slump in consumer sentiment on Friday
weakened the U.S. unit.

Against a basket of six major currencies , the dollar was up 0.1% at 92.620,
after falling to a one-week low of 92.468 on Friday. Its gains were most
pronounced against commodity currencies.

The Aussie dollar was down 0.6% against the U.S. dollar at US$0.7335 , while
the New Zealand dollar fell 0.4% to US$0.7016 ahead of a Reserve Bank of New
Zealand policy meeting on Wednesday, at which economists widely expect the
first hike in the benchmark interest rate since 2014. read more

The greenback, meanwhile, rose 0.4% against the Canadian dollar to C$1.2572
, amid Canadian Prime Minister Justin Trudeau's early election call for
Sept. 20, betting that high vaccination rates against the coronavirus and a
post-pandemic economic rebound will help him prolong and strengthen his grip
on power.

Thousands of civilians desperate to flee Afghanistan thronged Kabul airport
on Monday after the Taliban seized the capital over the weekend, prompting
the United States to suspend evacuations as it came under mounting criticism
at home over its pullout. read more

Currencies overall stuck to broad trading ranges as investors were wary of
taking large bets at the start of a busy week for central banks.

China's July retail sales, industrial production and fixed asset investment
were all weaker than expected as the latest COVID-19 outbreak weighed on the
world's second-biggest economy. read more

Long positions on the greenback swelled to their biggest levels since March
2020, suggesting the dollar's recent move lower was more a temporary setback
than the beginning of a structural downtrend.

The release of the Fed minutes this week will be key to the short-term
outlook for the greenback, especially if it confirms more policymakers are
leaning toward tapering its bond purchase plan by the end of the year.

Currency market volatility (.DBCVIX), even by its already low levels, is
nearing 2021 lows thanks to the summer lull.

Elsewhere, minutes from the Reserve Bank of Australia's latest meeting are
due on Tuesday.

In cryptocurrencies, bitcoin fell 1.2% to $46,479 after hitting a
three-month high of $48,190 over the weekend.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold hits more than one-week high on virus surge jitters

(Reuters) - Gold prices hit a more than one-week high on Tuesday as surging
coronavirus Delta variant cases raised concerns over its impact on the pace
of economic recovery, driving investors towards safe-haven assets.

Spot gold rose 0.2% to $1,791.55 per ounce by 0655 GMT, after hitting a peak
since Aug. 6 at $1,792.83.

U.S. gold futures were up 0.2% at $1,793.00.

Kunal Shah of commodities trader Nirmal Bang Commodities in Mumbai said that
rising cases of the coronavirus in the United States and China, and
prospects of a slowdown is global growth in the second half of the year,
would support gold prices.

Recent data showing a sharp drop in U.S. consumer confidence and a bigger
than expected drop in the New York Federal Reserve's Empire State
manufacturing business index have allayed some concerns of an early policy
tightening by the central bank.

Data on Monday showed China's factory output and retail sales growth slowed
sharply in July amid new COVID-19 outbreaks, adding to signs its economic
recovery is losing momentum.

Focus is now on U.S. retail sales data due later in the day as well as the
minutes of Fed's July meeting on Wednesday for cues on the central bank's
stimulus tapering.

Meanwhile, the U.S. dollar, often seen as the ultimate safe-haven currency,
was up 0.1%.

Asian shares declined on growing anxiety over the spike in the Delta variant
infections and concerns over China's regulations for its internet sector.

Markets were also tracking escalating tensions over Afghanistan.

Elsewhere, silver rose 0.2% to $23.86 per ounce, having hit a high since
Aug. 9 at $23.95.

Platinum fell 0.6% to $1,016.13, while palladium was down 0.9% at $2,582.96.

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 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com  

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210817/c76e115c/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210817/c76e115c/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 22328 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210817/c76e115c/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 107064 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210817/c76e115c/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210817/c76e115c/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130913 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210817/c76e115c/attachment-0001.obj>