Bulls n Bears Daily Market Commentary : 23 August 2021

Tue Aug 24 06:26:42 CAT 2021

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Bulls n Bears Daily Market Commentary : 23 August 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE made a rebound in today's session although the gains were marginal
to counter the losses sustained last week. Activity levels were lower than
last weeks' average at 344 trades. Medtech was the most active stock at 38
trades closely followed by Star Africa at 30 trades and Econet at 25 trades.
Cassava anchored both volume and value aggregate trading 1 274 900 shares
with a value of ZW$20.56 million contributing 29% of total turnover.

The benchmark All Share Index added 0.39% to 6 846.66 with 13 advancers and
17 losers while 7 counters remained unchanged. Shares of 37 out of 49
companies were traded. The Top 10 Index was up a marginal 0.29%. The Top 15
Index also added a paltry 0.14%. The Medium Cap Index traded higher to 17
903.82 points appreciating by 0.54% whilst the Small Cap Index lost 0.08% to
close at 230 659.09 points. Leading the risers pack of the day was Get Bucks
which was up by 16.96%. Dairibord and the telecoms giant added 14.37% and
1.64% respectively. OK Zimbabwe was up by 1.02% to 1666.17c. Leading in the
shakers' pack were Ariston Holdings and Star Africa  which lost 7.29% and
3.23% respectively. The brick maker Wildale was down 2.91% to 303.08c. The
clothing retail chain Truworths and First Capital Bank shaded 2.27% and
2.26% respectively. The Old Mutual Top Ten ETF closed at 228.05c up by 1.33%
after 12 300 units with a value of ZW$28 050 in 7 trades exchanged hands.
wealthaccess

Global Currencies & Equity Markets

South Africa

South Africa's rand, stocks firmer as global sentiment lifts

(Reuters) - South Africa's rand started the week on a firmer footing on
Monday, benefiting from improved risk appetite on global markets.

At 1527 GMT, the rand ZAR=D3 traded at 15.1725 against the dollar, 0.8%
stronger than its previous close.

Last week the rand had a torrid time, losing almost 4% against the dollar as
expectations that the U.S. Federal Reserve will start tapering its stimulus
this year boosted the U.S. currency at the expense of riskier assets.

But the market on Monday opened with a more generous mood towards riskier
assets on optimism over COVID-19 vaccines and easing lockdown restrictions.

But investors said the rand could still find itself on shaky ground in the
coming days.

This week, South Africa-focused investors will look to unemployment data
ZAUNR=ECI, the producer price index ZAPPIY=ECI and the central bank's
leading indicator ZALEAD=ECI for clues about the health of Africa's most
industrialised economy.

Investors on the Johannesburg Stock Exchange took the market to its first
positive close on the back of a global lift in shares after three
consecutive days of huge losses.

They have their eyes firmly set on Federal Reserve's meeting on Friday to
find clues on the roadmap for the tapering.

The top 40 companies index .JTOPI, which represents South African blue-chip
shares, closed on Monday up 1.27% to 60,562 points and the benchmark
all-share index .JALSH ended up 1.24% to 66,829 points.

The broad-based rally seen on Monday was primarily led by mining companies
and banks, with the two sectoral indexes .JRESI and .BANK both closing 2%
higher.

Government bonds were also a touch stronger early on Monday, as the yield on
the 2030 bond ZAR2030= dipped 7.5 basis points to 8.88%.

Nigeria

Naira weakens at official market

Naira fell marginally against the U.S. dollar at the official market on
Monday, as forex turnover doubled the amount recorded in the previous
session on Friday last week.

According to data posted on the FMDQ Security Exchange (Nafex window) where
forex is officially traded, the local unit closed at N411.83 per $1 at the
official market.

This implies a N0.16 or 0.04 per cent decrease from the N411.67 rate it
traded in the previous session on Friday last week.

The currency hit an intraday high of N400.00 and a low of N413.00 during the
trading session before settling at N411.83 at the close of business on
Monday.

Forex supply skyrocketed exponentially by 203.62 per cent with $173.64
million recorded as against the $57.19 million posted in the previous
session on Friday last week.

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

According to abokiFX.com, a website that collates parallel market rates in
Lagos showed the naira closed at N520.00 per $1 on Monday. The same rate it
has been trading at the black market window since August 19 last week.

The disparity between the official and black market rates is pegged at
N108.17 as of the close of business on Monday, leaving a margin of 20.80 per
cent.

.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar slips after last week's climb as data eases tapering fears

(Reuters) - The U.S. dollar slid on Monday, after posting its biggest weekly
rise in more than two months last week, as markets embraced a risk-on mood
with weak data suggesting the Federal Reserve is unlikely to quickly remove
its accommodative monetary stance.

U.S. business activity growth slowed for a third straight month in August as
capacity constraints, supply shortages and the rapidly spreading Delta
variant of the coronavirus weakened the economic rebound, data firm IHS
Markit said. read more

The dollar index hit a nine-month high last week, climbing nearly 5% from
May lows, as investors firmed up bets the Fed will start scaling back
stimulus policies spurred by the pandemic ahead of Europe and Japan.

But Robert Kaplan, president of the Dallas Fed, dented those expectations on
Friday when the well-known hawk said he might reconsider the need for an
early start to tapering if the virus harms the economy. read more

Markets have concluded there's not going to be a "taper tantrum" like in
2013, Moya said. Fears the Fed would tighten monetary policy caused interest
rates to spike at the time.

Riskier currencies, including the Norwegian crown and Aussie and Canadian
dollars were among the major beneficiaries of a weaker dollar. All three
currencies gained more than 1% against the U.S. currency.

The dollar index , which measures its performance against a basket of six
currencies, fell 0.57% to 92.95.

The euro was up 0.44% at $1.175, while the yen traded down 0.11% at
$109.680.

Some investors, such as Stephen Jen who runs hedge fund Eurizon SLJ Capital,
remain long-term dollar bulls.

Elsewhere, the euro popped to a three-day high after data showed euro zone
business grew strongly this month, though the pace of expansion slowed on
fears new coronavirus strains may bring renewed restrictions. read more

The Australian dollar was among the major gainers after Prime Minister Scott
Morrison said Australians must start to learn to live with COVID-19 when
higher vaccination targets are reached. read more

The New Zealand dollar edged 0.7% higher to $0.6874, still near Friday's 9
1/2-month low of $0.6807, with the nation under lockdown to contain a Delta
outbreak.

In cryptocurrencies, bitcoin topped $50,000 for the first time since
mid-May, and last traded 1.16% higher at $49,875.87.

Canada's commodities-heavy stock index inched toward record highs after oil
prices rebounded from a seven-day losing streak. Brent , the international
crude benchmark, jumped 5.5% to $68.76 a barrel in the biggest single-day
gain since late March.

The Canadian dollar likely will gravitate back to $1.25 to the U.S. dollar
and settle in that range, Moya said.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold, silver rally on bullish outside mkts, notions of still-easy Fed

(Kitco News) - Gold and silver prices are solidly higher in midday U.S.
trading Monday. The key outside markets are fully  favoring the precious
metals bulls to start the trading week-a weaker U.S. dollar index and
sharply higher crude oil prices. The precious metals are also getting a bid
early this week on growing ideas the Federal Reserve will not be able to
start tightening its monetary policy as soon as many had reckoned just a few
weeks ago. October gold futures were last up $23.00 at $1,804.80 and
September Comex silver was last up $0.553 at $23.665 an ounce.

The focus of the marketplace this week is on the annual Federal Reserve
symposium held in Jackson Hole, Wyoming. The confab has been pared back a
bit and parts of it will be virtual this year due to the spreading delta
variant of the coronavirus. Early this week, traders and investors are
reassessing recent notions the Federal Reserve will lean hawkish on U.S.
monetary policy at the Fed symposium. The rapidly spreading Covid variant
has many now thinking the Fed will have to wait longer to reel in its
easy-money policies. Dallas Fed President Rob Kaplan said Friday he is
rethinking his call for an early tapering process for the Fed's bond
purchases, due to the spreading virus and its potential impact on the U.S.
economy.

It appears there is less risk aversion in the global marketplace to start
the trading week. There is still a chaotic situation in
now-Taliban-controlled Afghanistan, with people, including Americans, still
try to get out of that country. However, it appears the markets are now
looking past the matter. Veteran market watchers are well aware of what can
be the historically turbulent months of September and October that lie just
ahead for the stock and financial markets.

The key outside markets today see the U.S. dollar index lower on a
corrective pullback after hitting a 10.5-month high last Friday. Nymex crude
oil futures prices are sharply higher and trading around $65.50 a barrel.
Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently
fetching 1.28%.

Technically, Gold bulls have the overall near-term technical advantage and
gained fresh power today by restarting a price uptrend on the daily bar
chart. Bulls' next upside price objective is to produce a close above solid
resistance at the August high of $1,833.40. Bears' next near-term downside
price objective is pushing futures prices below solid technical support at
$1,750.00. First resistance is seen at $1,815.00 and then at $1,825.00.
First support is seen at $1,790.00 and then at today's low of $1,775.90.
Wyckoff's Market Rating: 6.0

The silver bears still have the firm overall near-term technical advantage.
Prices are in a three-month-old downtrend on the daily bar chart. Silver
bulls' next upside price objective is closing prices above solid technical
resistance at $25.00 an ounce. The next downside price objective for the
bears is closing prices below solid support at the August low of $22.295.
First resistance is seen at last week's high of $23.955 and then at $24.00.
Next support is seen at $23.25 and then at $23.00. Wyckoff's Market Rating:
3.0. >

September N.Y. copper closed up 1,155 points at 425.20 cents today. Prices
closed near the session high today on short covering after hitting a
4.5-month low last week. The copper bears still have the overall near-term
technical advantage. Prices are in a four-week-old downtrend on the daily
bar chart. Copper bulls' next upside price objective is pushing and closing
prices above solid technical resistance at 443.10 cents. The next downside
price objective for the bears is closing prices below solid technical
support at the August low of 396.15 cents. First resistance is seen at
430.00 cents and then at 435.00 cents. First support is seen at 420.00 cents
and then at today's low of 412.90 cents. Wyckoff's Market Rating: 4.0.

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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