Bulls n Bears Daily Market Commentary : 24 August 2021

Tue Aug 24 13:35:52 CAT 2021

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Bulls n Bears Daily Market Commentary : 24 August 2021

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ZSE commentary

The ZSE was near flat in today’s session although turnover improved as liquidity improved. Activity levels were slightly higher at 397 trades. Delta was the most active stock at 50 trades closely followed by Star Africa at 27 trades and Medtech and OK Zimbabwe at 26 trades each. Medtech anchored volume aggregate trading 1 143 100 shares and Delta anchored value aggregate with a value of ZW$27.9 million contributing 28% of total turnover. Market Cap closed at ZW$812 billion shading ZW$2 billion. The benchmark All Share Index pared 0.21% to 6 823.6 with 7 advancers and 22 losers while 6 counters remained unchanged. Shares of 35 out of 49 companies were traded. The Top 10 Index was up a marginal 0.21%. The Top 15 Index also added a paltry 0.12%. The Medium Cap Index traded lower to 17 703.13 points depreciating by 1.12% whilst the Small Cap Index also lost 0.12% to close at 230 382.50 points.

Leading the risers pack of the day was Edgars which was up by 11.32%. Cassava  and ZIMRE Holdings added 5.02% and 2.24% respectively. Econet  was up by 2.10% to 3911.87c. Leading in the shakers’ pack were Proplastics and Get Bucks  which lost 15.15% and 6.67% respectively. The brick maker Wildale was down 5.80% to 282.60c. Ariston Holdings and Innscor shaded 4.94% and 4.38% respectively. The Old Mutual Top Ten ETF closed at 239.47c up by 4.86% after 8 500 units with a value of ZW$20 355 in 12 trades exchanged hands. wealthaccess

Global Currencies & Equity Markets

South Africa

Rand slightly firmer ahead of jobs data

THE rand firmed slightly early on Tuesday, ahead of the release of the second-quarter unemployment data.

At 7.25am GMT, the rand traded at R15.12 to the dollar, about 0.1 percent stronger than its previous close and adding to the gains made on Monday.

Johannesburg-listed stocks opened higher, with the Top 40 Index up about 1.1 percent.

Statistics SA will release the jobs data for April to June at about 9.30am GMT. South Africa’s composite leading business cycle indicator fell by 2.3 percent in June, data from the SA Reserve Bank showed earlier.

Investors are watching both releases for clues on how quickly Africa’s most industrialised economy is recovering from the Covid-19 pandemic.

The rand was supported for a second day as gains in global stock markets lifted risk appetite more broadly, with the dollar bruised following its sharpest one-day fall since May.

Later in the week, investor attention will turn to the US Federal Reserve’s Jackson Hole symposium that could map out an end to US pandemic-era stimulus.

South African government bonds were a touch weaker early on Tuesday, with the yield on the 2030 instrument rising 0.5 basis point to 8.885 percent. - REUTERS

Nigeria

Naira Loses 16 kobo at I&E, Crypto Market Stays Strong

The Naira opened the week weaker against the US Dollar on Monday, losing 16 kobo or 0.04 per cent at the Investors and Exporters (I&E) segment of the foreign exchange (forex) market.

At the specialised window, the local currency closed at N411.83/$1 in contrast to N411.67/$1 it traded last Friday, according to data obtained by Business Post.

The decline in the value of the domestic currency followed the FX demand pressure mounted on the country’s legal tender at the market window yesterday.

According to data from the FMDQ Securities Exchange, the value of trades at the market segment increased by 203.6 per cent or $41.96 million to $116.45 million from the $57.19 million turnover recorded at the previous session.

However, at the black market, the Naira maintained stability against the US Dollar yesterday as its value remained unchanged at N515/$1.

In the same vein, the Nigerian currency traded flat against the Pound Sterling during the trading session, closing at N708/£1 but appreciated against the Euro by N2 to close at N604/€1 compared with N606/€1 of the preceding trading day.

At the interbank window, the local currency depreciated against the American currency on Monday by 3 kobo or 0.01 per cent to quote at N410.16/$1 versus N411.13/$1 of the previous session.

Meanwhile, the cryptocurrency market witnessed a surge yesterday as more people continue to embrace digital coins globally.

On Monday, PayPal announced that it will allow customers in the world’s fifth-largest economy, the United Kingdom, to make crypto transactions.

This will be the first international expansion of PayPal’s crypto service beyond the US, and another hint at wider adoption of the industry.

This sent positive signals to the crypto market as Bitcoin (BTC) which crossed the $50,000 for the first time since May surged by 10.4 per cent to trade at N25,566,073.30.

The highest gain was recorded by Dash (DASH) which grew by 30.8 per cent to trade at N136,000, while Ripple (XRP) made a 10.2 per cent appreciation to trade at N634.02.

Tron (TRX) jumped by 8.9 per cent to sell for N46.07, Litecoin (LTC) appreciated by 7.7 per cent to trade at N96,898.97, while Ethereum (ETH) rose by 5.6 per cent to sell at N1,700,500.04.

However, the US Dollar Tether (USDT) did not join the happy party as it went down 0.8 per cent to sell for N520.86.

.

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Global Markets

Rupee edges 3 paise higher to close at 74.19 against US dollar

The rupee appreciated by 3 paise to close at 74.19 (provisional) against the US dollar on Tuesday, supported by a strong rally in the domestic equity market.

However, a strong dollar in the overseas markets and rising crude prices weighed on investor sentiment, forex traders said.

At the interbank forex market, the local unit opened strong at 74.12 against the greenback and moved in a range of 74.11 to 74.20 in day trade.

It finally ended at 74.19 against the American currency, registering a rise of 3 paise over its previous close of 74.22.

On the domestic equity market front, the BSE Sensex ended 403.19 points or 0.73 per cent higher at 55,958.98, while the broader NSE Nifty advanced 128.15 points or 0.78 per cent to 16,624.60.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.07 per cent to 93.04.

Brent crude futures, the global oil benchmark, increased 1.34 per cent to $69.67 per barrel.

Foreign institutional investors remained net sellers in the capital market on Monday as they offloaded shares worth Rs 1,363.36 crore, according to the exchange data.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Silver prices marginally up amid lackluster movement in gold, firm dollar; support at Rs 61,400

Silver prices were moderately higher on August 24 tracking subdued movement in gold and firm dollar. The precious metal had increased 2.4 percent yesterday on the COMEX.

The white metal pared losses and turned into the green after a gap-down start in the afternoon session, tracking the muted overseas cues.

The semi-precious metal has been trading lower than 20, 50, 100 and 200 days’ moving averages but higher than the 5-day moving average on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 38.43, suggesting a bearish movement in the price.

Silver fell sharply in the last few days and we are now seeing some relief rally however the general bias is still weak owing to persistent demand concerns, said Kotak Securities.

Sriram Iyer, senior Research Analyst at Reliance Securities said, “International silver prices have started marginally weaker on Tuesday morning and early afternoon in Asian trade. Technically, LBMA Silver above the $23.00 level could see $24.10-$25.22 levels. Support is at $23.40-$22.65 levels.”

On the domestic front, technically MCX Silver September above Rs 62500 level could see Rs 63,200-63,900 levels. Support is at Rs 62,000-61,400 levels”, Iyer added.

Investors are now focused on Fed Chair Jerome Powell's speech at the annual Jackson Hole, Wyoming, symposium awaiting guidance on the US central bank's taper plans.

Silver holdings in iShares ETF fell by 21.6 tonnes to 17,085.32 tonnes. The fund NAV is trading at a premium of 0.76 percent.

The US dollar index traded marginally higher at 93.07, up 0.12 percent against the major cross in the afternoon session.

The spot gold-silver ratio stands at 76.14 to 1, indicating that silver has outperformed gold.

MCX Bulldesk was slightly up 1 point, or 0.01 percent, to 14,248 at 3:13 pm. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

In the futures market, September silver delivery touched an intraday high of Rs 63,091 and a low of Rs 62,736 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 61,227 and a high of Rs 75,215.

Silver delivery for the September contract gained Rs 133, or 0.21 percent, to Rs 63,060 per kg at 3:20 pm with a business turnover of 7,987 lots. The same for December increased Rs 140, or 0.22 percent, to Rs 63,708 per kg with a turnover of 6,006 lots.

The value of September and December’s contracts traded, so far, is Rs 621.08 crore and Rs 157.89 crore, respectively.

Similarly, the Silver Mini contract for August mildly up Rs 46, or 0.07 percent to Rs 63,192 on a business turnover of 13,806 lots.

At 0956 (GMT), the precious metal was flat quoting at $23.65 an ounce in New York.

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 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.

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