Bulls n Bears Daily Market Commentary : 27 August 2021

Fri Aug 27 15:21:58 CAT 2021

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Bulls n Bears Daily Market Commentary : 27 August 2021

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ZSE commentary

The ZSE closed the week in a sea of red in a dull session. The losses were
marginal across the board. Activity levels were lower at 352 trades. Star
Africa was the most active stock at 38 trades closely followed by Delta at
31 trades and Medtech at 25 trades. Truworths anchored volume aggregate
trading 1 009 900 shares and Innscor anchored value aggregate with a value
of ZW$16.3 million.

The benchmark All Share Index lost 0.57% to 6 735.80 with 17 losers and 12
advancers while 7 counters remained unchanged. Shares of 36 out of 49
companies were traded. The Top 10 Index was down 0.83%. The Top 15 Index
also shaded 0.69%. The Medium Cap Index traded lower to 17 195.93 points
depreciating by 0.20% whilst the Small Cap Index lost 0.29% to close at 226
803.15 points. Leading the risers pack of the day was Truworths which was up
by 6.34%. Seed Co added 3.27% and Wildale added 2.39%. Medtech Holdings was
up by 1.55% to 26.93c. Leading in the shakers' pack were NMB Holdings and
Econet which lost 14.06% and 4.02% respectively. Ariston Holdings  was down
3.40% to 300.73c. Zimplow Holdings and ZIMRE Holdings shaded 2.85% and 2.23%
respectively. The Old Mutual Top Ten ETF closed at 215.22c down by 4.65%
after 227 200 units with a value of ZW$488 984 in 13 trades exchanged hands.
On the VFEX, Seed Co International traded 2 681 shares worth US$683.66 to
close at 25.50c a share a 1.19% appreciation...-wealthaccess

Global Currencies & Equity Markets

South Africa

Rand trades stronger with all eyes on Fed's Powell

THE South African rand gained early on Friday, benefiting from a dip in the
dollar before a highly anticipated speech by US Federal Reserve chair Jerome
Powell later in the day.

At 6.22am GMT, the rand traded at 14.8800 against the dollar, roughly 0.4
percent firmer than its previous close.

The currency was on course for gains of more than 2 percent this week,
lifted by a rebasing of gross domestic product data that showed the domestic
economy was 11 percent bigger in 2020 than previously thought.

The dollar was down around 0.1 percent against a basket of peers, as global
investor attention was pinned on a Fed central banking symposium where
Powell is due to speak around 2pm GMT.

Many investors expect Powell to strike a more dovish tone than other Fed
officials who have recently downplayed the economic impact of the Delta
coronavirus variant or called for an early tapering of the bank's
pandemic-era stimulus measures.

If Powell does prove dovish, it is likely to support risk-sensitive
currencies like the rand, which have been boosted by the Fed's ultra-loose
policy.

South Africa's benchmark 2030 government bond was a touch weaker in early
deals, with the yield rising 1.5 basis points to 8.88 percent.

REUTERS

Kenyan shilling expected to weaken, Tanzania's seen stable

NAIROBI- Kenya's shilling is forecast to weaken against the dollar in the
next week to Thursday, while Tanzania's currency will be stable, according
to local currency traders.

KENYA

Kenya's shilling is expected to weaken due to increased importer demand for
dollars at the end of the month.

At 0913 GMT, commercial banks quoted the shilling at 109.65/85 to the
dollar, compared with last Thursday's close of 109.45/65.

TANZANIA

Tanzania's shilling is expected to hold steady, helped by dollar inflows
from companies paying taxes.

Commercial banks quoted the shilling at 2,314/2,324, the same levels as last
Thursday's close.

UGANDA

The Ugandan shilling is seen broadly stable in coming days given lacklustre
importer appetite for dollars.

At 1001 GMT commercial banks quoted the shilling at 3,530/3,540, compared
with last Thursday's close of 3,525/3,535.

He said the local currency will likely remain in the 3,520-3,550 range in
the days ahead.

ZAMBIA

The kwacha is expected to continue gaining against the dollar next week, due
to increasing dollar inflows on positive sentiment following the
inauguration of a new president.

On Thursday, commercial banks quoted the currency of Africa's second-largest
copper producer at 16.4000 per dollar, up from 17.5000 at the close of
business a week ago.

New President Hakainde Hichilema pledged on Tuesday to tackle Zambia's
"unsustainable" debt, lamenting that the national budget was overwhelmed by
the cost of servicing it.

Hichilema spoke during his swearing-in as the southern African country's
seventh president, after a landslide election victory earlier this month
over incumbent Edgar Lungu.

NIGERIA

Nigeria's naira is seen easing on the black market next week, traders said,
as measures taken by the central bank to support the currency channel demand
away from the unofficial market.

The naira was quoted at 522 to the dollar on the black market on Thursday,
weaker than its previous close of 521 naira.

Banks have been quoting the dollar at 412 naira to individuals since this
month, around the official rate, which has been in a range of between 407
naira and 412 naira since June.

.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar holds firm ahead of Fed Chair Jerome Powell's speech

The dollar held firm on Friday after the U.S. Federal Reserve's hawkish wing
called for tapering bond purchases as investors looked to a
highly-anticipated speech by Fed Chair Jerome Powell later in the day.

The dollar index stood at 93.032, bouncing back from Thursday's low of
92.807 as the euro traded at $1.1755, having eased from the previous day's
high of $1.1779.

The common currency was not helped by a survey showing German consumer
sentiment darkened heading into September due to accelerating inflation and
rising Covid-19 cases.

Sterling also dropped to $1.3703. Against the yen, the dollar stood little
changed at 110.06 yen.

Dallas Federal Reserve President Robert Kaplan suggested he expects the Fed
to start raising interest rates next year, a comment that analyst took as
more hawkish than last week when he appeared nervous about the potential
impact of the delta variant.

Two other regional Fed chiefs - Kansas City Fed President Esther George and
St. Louis Federal Reserve President James Bullard - also downplayed the
impact of the delta variant in separate interviews, with Bullard repeating
his call for the Fed to start trimming its $120 billion in monthly bond
purchases soon.

Many investors, however, think Powell will strike a more dovish tone in his
speech at 1400 GMT in the Kansas City Fed's central banking conference.

The event, which normally takes place in Jackson Hole, Wyoming, but is being
held virtually for the second straight year due to the pandemic, has been
often used by Fed policymakers in the past to provide guidance on their
future policy.

Rough consensus in the market is that Powell will likely announce tapering
in the fourth quarter, giving a clear signal at one meeting before the
actual announcement.

Risk-sensitive currencies are likely to gain while the yen is likely to
weaken in that case, he added.

For now, the dollar was supported also by caution after a suicide bomb
attack in Kabul airport killed scores of civilians and 13 U.S. troops.
Islamic State claimed responsibility.

Elsewhere, the Australian dollar fetched $0.7243 ahead of the country's
retail sales data.

In cryptocurrencies, bitcoin slipped to $47,43 while ether also eased to
$3,142

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold pauses retreat as investors lock in on Fed's Jackson Hole event

(Reuters) - Gold prices stabilised after a sharp retreat on Thursday, taking
a firmer dollar in its stride as investors looked forward to the U.S.
Federal Reserve's stance on tapering economic support at its Jackson Hole
symposium.

Spot gold rose 0.1% to $1,792.01 per ounce by 1:38 p.m. EDT (1738 GMT). U.S.
gold futures settled up 0.2% at $1,795.20.

Bullion slipped as much as 1.2% and below the key $1,800 mark on Wednesday
as a stronger dollar dented its appeal.

Investors are keenly eying Fed Chair Jerome Powell's speech during Friday's
symposium, on the heels of suggestions from St. Louis Fed President James
Bullard that the U.S. central bank should end bond buying by early next
year.

A Fed interest rate hike would dull bullion's appeal compared with
interest-earning assets.

Christian partly attributed gold's gains to political tensions in
Afghanistan after the U.S. Pentagon Press Secretary said an explosion at the
Kabul airport was part of a complex attack resulting in casualties.

Gold's modest gains came despite Bullard's comments adding to the dollar's
strength and pushing benchmark Treasury yields up. Higher yields increase
the opportunity cost of bullion, which pays no interest.

Elsewhere, silver fell 1.4% to $23.52 an ounce, platinum slipped 1.7% to
$979.53, and palladium shed 1.3% to $2,397.67.

London copper edges up as dollar halts after gains

Copper prices in London edged up on Friday as the dollar paused after gains,
while investors awaited a highly-anticipated speech by U.S. Federal Reserve
Chair Jerome Powell later in the day.

The speech could unveil plans on when or how fast the world's biggest
economy would reduce stimulus, which would impact the dollar and
greenback-priced metals.

Three-month copper on the London Metal Exchange CMCU3 edged up 0.1% to
$9,308 a tonne by 0640 GMT, while the most-traded October copper contract on
the Shanghai Futures Exchange SCFcv1 fell 0.3% to 68,870 yuan a tonne.

The slowdown in global economic growth momentum, the continued spread of the
Delta coronavirus variant, higher supply and weakening Chinese demand will
prevent copper from rebounding to its record high hit in May, Fitch
Solutions said.

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
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