Bulls n Bears Daily Market Commentary : 18 August 2021

Wed Aug 18 16:01:44 CAT 2021

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Bulls n Bears Daily Market Commentary : 18 August 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE dipped further in the negative for the third day as investors
continue to lack impetus for a strong move. The movement on either side is
unimpressive and marginal. Total turnover was up by 73% to ZW$305 million.
Activity levels were lower than yesterday at 367 trades. Delta was the most
active stock at 66 trades followed by Star Africa and Econet at 54 and 31
trades respectively. Econet anchored both volume and value aggregate trading
4 720 800 shares with a value of ZW$186.9 million contributing 61% to total
turnover.

At close, the benchmark All Share Index shaded 0.95% with 14 advancers and
24 losers while 2 counters unchanged. The Top 10 Index was down by 0.83%.
The Top 15 Index pared 1.05%. The Medium Cap Index traded lower to 18 109.09
points depreciating by 1.12% whilst the Small Cap Index shaded 0.93% to
close at 229 365.65 points. Leading the shakers pack of the day was Fidelity
down by 12.50% reversing yesterday gains of 3.90%. It was closely followed
by ZB financial holdings and First Mutual Holdings which shaded 11.11% and
10.71% respectively. OK Zimbabwe was down 6.27% to 1654.48c. Leading in the
risers' pack were Dairibord and Wildale which added 7.48% and 7.33%
respectively. First Capital Bank was up 3.56% to 376.87c. Star Africa  and
Zimplow added 2.81% and 1.19% respectively. The Old Mutual Top Ten ETF
closed at 248c down by 1.23% after 2 200 units with a value of ZW$5 390 in 4
trades exchanged hands. wealthaccess

Global Currencies & Equity Markets

Nigeria

Naira gains at official market

The Naira gained marginally against the U.S dollar at the official market
(Nafex window) as forex turnover clinched a slight boost at the trading
segment on Tuesday.

According to data posted on the FMDQ Security Exchange where forex is
officially traded, the local unit closed at N411.50 per $1, this translates
to a N0.17 or 0.04 per cent appreciation from the N411.67 rate it traded in
the previous session on Monday.

It staged an intraday high of N400.00 and a low of N412.85 during the
trading session before settling at N411.50 at the close of business on
Tuesday.

This occurred as the market forex supply rose by 4.00 with $113.17 million
posted as against the $109.03 million recorded in the past two consecutive
sessions ( Friday and Monday).

The last time the naira closed at N411.50 on the dot was on August 9.

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

Data posted on abokiFX.com, a website that collates parallel market rates in
Lagos showed that the local currency again closed at N515.00 per $1, the
same rate it has been trading since August 11 last week.

This leaves the disparity between the official and black-market rates at
N103.50, translating to a margin of 20.10 per cent as of the close of
business on Tuesday.

South Africa

Rand loses traction as risk-off mood dominates

THE rand slipped as market activity on Tuesday was dominated by a strong
risk-off mood after traders took note of Afghanistan-centred geopolitical
risks, soft Chinese activity and tighter regulation set out in draft
documents in Beijing, according to NKC Research.

In turn, the euro skidded weaker as an array of risk factors spurred a
flight to safety, enabling the greenback to advance for a second session,
despite weaker-than-expected retail sales data.

At the close of local trade, the rand was 0.6 percent weaker at R14.97 to
the dollar, after trading in range of R14.79 to R14.99. The rand traded
firmer overnight. The expected range of the rand against the dollar today is
R14.70 to R15.

South African bourse

The FTSE/JSE All Share Index closed 0.2 percent higher yesterday. Momentum
Metropolitan (-1.6 percent) said that for the year to the end of June, the
company expect headline earnings to decline by between 50 and 70 percent
because of a surge in death claims. In the overall emerging-market sphere,
the MSCI Emerging Market Index traded -1.3 percent lower.

Demand for crude oil remains in a slump, and Opec reportedly confirmed that
it would not answer the US's call for more supply, because the market would
not need more oil than the planned production for the coming months. At the
close of local trade, benchmark Brent crude futures were 0.6 percent higher
at $69.80 per barrel. Crude prices traded sideways during Asian trade this
morning.

BUSINESS REPORT ONLINE

Zambia

Kwacha projected to appreciate further

THE Kwacha which gained K0.10 against the United State (US) dollar is
projected to appreciate further following the hosting of general elections
that saw business executive Hakainde Hichilema emerging victorious in the
presidential race.

According to Absa Bank Zambia Plc's daily treasury bulletin, the Kwacha
strengthened against the greenback on Monday supported by a small increase
in supply of US dollars from the corporate and retail sectors amid
restrained importer demand.

.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar stands tall before Fed minutes; kiwi volatile

(Reuters) - The dollar held at a nine-month high versus the euro on
Wednesday as major currencies marked time before the release of the Fed's
July minutes, with the kiwi the big mover overnight after its central bank
kept interest rates unexpectedly on hold.

The Kiwi was up 0.17% at $0.6935 in early London trading having fallen about
1% to $0.6868 immediately after the Reserve Bank of New Zealand said it
would keep rates at 0.25%, after the country was put into a snap COVID-19
lockdown.

Analysts attributed the kiwi's bounce to the hawkish outlook from
policymakers. RBNZ projections showed policymakers still expected to raise
rates over coming months, with the cash rate seen at 0.50% by the end of the
year, 1.5% by mid next year and over 2% by end of 2023.

Sterling and the commodity-exposed Australian and Canadian dollars all
hovered near recent lows against the dollar as the market mood remained
cautious. The dollar index held steady around 93.01, just below the one-week
high it hit on Tuesday.

The dollar is being supported by the nervous risk environment," said Moh
Siong Sim, currency analyst at Bank of Singapore.

Elsewhere, the greenback failed to draw any sustained strength from Fed
Chair's Jerome Powell's comments and mixed U.S. data with focus shifting
towards the annual Jackson Hole symposium next week where some expect the
Fed to signal a change in direction with regards to its asset purchase
plans.

U.S. retail sales fell 1.1% in July, more than economists expected but
Industrial production numbers showed that output at U.S. factories surged in
July. and

Elsewhere, the commodity-exposed Canadian dollar recovered slightly from an
overnight one-month low.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold firms on virus anxiety, U.S. Fed minutes in focus

Spot gold was up 0.1% at $1,787.50 per ounce by 0958 GMT, after hitting its
highest since Aug. 6 at $1,795.25 in the previous session. U.S. gold futures
edged 0.1% higher to $1,790. An Argor-Heraeus SA branded two hundred and
fifty gram gold bar, center, sits in this arranged photograph at Solar
Capital Gold Zrt. in Budapest, Hungary.

Gold prices edged higher on Wednesday, as concerns over the spread of the
Delta variant of the coronavirus buoyed bullion's appeal and investors
awaited minutes from the Federal Reserve's latest policy meeting.

Fundamentals

Spot gold was up 0.1% at $1,787.50 per ounce by 0958 GMT, after hitting its
highest since Aug. 6 at $1,795.25 in the previous session.

U.S. gold futures edged 0.1% higher to $1,790.

Worries over the fast-spreading Delta COVID-19 variant and its impact on the
global economy dented investors' appetite for riskier assets.

Adding to slowdown worries, U.S. retail sales fell more than expected in
July.

Investors await the minutes of the U.S. central bank's July policy meeting,
due later in the day, for guidance on its tapering plans.

On Tuesday, Minneapolis Fed President Neel Kashkari said it could be
"reasonable" to start tapering later this year, but that would depend on the
progress in the labor market.

Elsewhere, silver rose 0.3% to $23.71 per ounce, while platinum gained 0.5%
to $1,002.06.

Palladium climbed 1% to $2,513.93, recovering from its lowest level in
nearly two months hit on Tuesday.

Copper hits lowest in almost two months as concerns linger

(Reuters) - Copper prices slumped to their lowest in nearly two months on
Wednesday after recent weak economic data reinforced demand fears while a
looming central bankers conference focuses attention on interest rates.

Three-month copper on the London Metal Exchange (LME) fell for a third day,
slipping by 0.9% to $9,168.50 a tonne in official trading and later
extending losses to $9,110, the lowest price since June 21.

LME copper broke below the uptrend line stretching from the low of March
2020 at $9,230, which could send prices down to the 200-day moving average
at $8,820, Hansen said.

The most-traded September copper contract on the Shanghai Futures Exchange
closed 1.5% down at 68,720 yuan ($10,602.97) a tonne.

* Copper had rebounded during Asian trading, gaining support from news that
residents near MMG's Las Bambas copper mine in the Peruvian Andes have
blocked a road used to transport the metal after a two-week truce.

* China's July aluminium imports were up 6.1% from the previous month, data
showed on Wednesday, hitting their highest since September 2020.

LME aluminium fell 1.1% to $2,571.50 a tonne.

* Yunnan Chihong Zinc & Germanium said late on Tuesday that one of its zinc
subsidiaries had suspended production after three workers were killed in a
gas leak.

* LME nickel fell 0.9% to $19,012 a tonne, zinc shed 0.7% to $2,994.50, lead
lost 0.7% to $2,308 and tin was down 1% at $35,455.($1 = 6.4812 yuan)

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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