Bulls n Bears Daily Market Commentary : 31 August 2021

Tue Aug 31 18:14:16 CAT 2021

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Bulls n Bears Daily Market Commentary : 31 August 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE closed the month of August on a dull note with low activity and even poor market turnover as it closed an equally lacklustre August. At close, market bias-maintained negativity as 25 stocks registered losses against 7 advancers while 6 of the active stocks remained unchanged. Activity levels were higher at 407 trades. Innscor was the most active stock at 41 trades closely followed by OK Zimbabwe at 38 trades and Star at 34 trades. OK Zimbabwe anchored volume aggregate trading 686 900 shares and  Innscor anchored value aggregate with a value of ZW$24.7 million.

The benchmark All Share Index lost 0.98% to 6 652.31 points. Shares of 38 out of 49 companies were traded. The Top 10 Index was down 1.19%. The Top 15 Index shaded 1.20%. The Medium Cap Index traded lower to 17 031.57 points depreciating by 0.66% whilst the Small Cap Index lost 1.39% to close at 224 123.94 points. Leading the shakers pack of the day was Edgars which was down by 11.17%. Truworths shaded 8.31% and First Mutual Holdings lost 6.98%. FBC Holdings was down by 5.07% to 2800c. Leading in the risers’ pack were Medtech Holdings trading under cautionary and Seed Co which added 3.07% and 2.66% respectively. Innscor was up by 1.34% to 9156.96c. NMB Holdings and Bindura added 0.76% and 0.33% respectively.The Old Mutual Top Ten ETF closed at 250c up by 18.22% after 18 700 units with a value of ZW$46 750 in 17 trades exchanged hands..-wealthaccess

Global Currencies & Equity Markets

South Africa

South African rand firms as dollar hovers near two-week low

(Reuters) - South Africa's rand strengthened early on Tuesday, as the dollar hovered near a two-week low in the wake of U.S. Federal Reserve Chair Jerome Powell's dovish speech at last week's Jackson Hole symposium.

The greenback .DXY had one of its biggest daily percentage declines of the month on Friday after Powell said tapering could begin this year but that the central bank was in no hurry to raise interest rates.

That boosted market sentiment globally and the risk-sensitive rand has rallied since.

At 0630 GMT, the rand ZAR=D3 traded at 14.6100 against the dollar, 0.5% stronger than its previous close.

While global investor attention shifts to a U.S. jobs report at the end of the week, the domestic focus is on economic data releases like trade ZATBAL=ECI due around 1200 GMT on Tuesday, and a PMI survey ZAPMIM=ECI on Friday.

Central bank data on Tuesday showed private-sector credit returned to a year-on-year growth in July for the first time since February, but that did little to influence rand trading.

The benchmark 2030 government bond ZAR2030= firmed in early deals, with the yield falling 3 basis points to 8.735%.

Nigeria

Naira Depreciates Further to N527/$1 at Parallel Market

Pressure is beginning to mount on the Naira again at the parallel market and on Monday, it further depreciated by N3 against the US Dollar.

Business Post reports that the local currency was traded at the unregulated segment of the market yesterday at N527/$1 compared with N524/$1 it was sold last Friday.

Also, at the same segment, the domestic currency lost N2 against the Pound Sterling as it traded at the rate of N715/£1 in contrast to N713/£1 of the preceding session.

The Naira took a heavier beating at the black market on the first trading session of this week as it weakened by N8 against the Euro to quote at N616/€1 compared with N608/€1 of the previous session.

At the interbank market, the exchange rate of the Nigerian currency to its American counterpart was in favour of the latter. This was because the Naira lost 3 kobo to sell for N410.29/$1 as against N410.26/$1 of the earlier trading day.

However, respite came for the indigenous currency at the Investors and Exchange (I&E) window as it appreciated by 37 kobo or 0.09 per cent against the greenback to close at N411.63/$1 in contrast to the preceding session’s N412.00/$1.

The Naira gained strength yesterday at the investors’ window because it was not under FX demand pressure as traders were able to meet the requests of their customers.

Transactions worth $81.81 million were made on Monday, 62.2 per cent or $134.71 million lower than the $216.52 million achieved last Friday.

Ripple (XRP) lost 3.9 per cent to trade at N595.83, Dash (DASH) fell by 3.6 per cent to N118,070.00, Bitcoin (BTC) slipped by 1.9 per cent to close at N25,070,090.00, Tron (TRX) dropped 0.2 per cent to sell at N46.58, while the US Dollar Tether (USDT) went down by 0.1 per cent to N524.99.

But Litecoin (LTC) improved its value by 1.2 per cent to N92,782.89, while Ethereum (ETH) gained 0.9 per cent to close at N1,685,280.00.

Zambia

‘Kwachamania’ continues

THE Kwacha has continued to record marginal gains on the back of improved month-end United States dollar inflows and the anticipated sentiment of a stronger local currency in the short term. The local unit is trading between K15.50 and K15.90 at selected bureaux and banks. 

At Unifinance, the Kwacha was at K15.65 and K15.90, while at Mill, it was at K15.60 and K15.91, with Bank of Zambia pegging the local currency at K15.87 and K15.92 for bid and offer, respectively. At Golden Coin, Dilt and C&A bureaux, it was trading between K15.60 and K15.90 for bid and offer, respectively. 

In Kitwe, at Dondou bureau de change, the local unit was fetching K15.30 and K15.60 for buying and selling, respectively. And Zanaco Plc says the Kwacha is expected to trade relatively stable in the interim, with a stronger bias as month-end inflows are yet to be fully priced in.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar at 3-week lows as traders await tapering clues

The dollar was trading near three-week lows against a basket of currencies on Tuesday, as investors looked to U.S. jobs figures later this week for clues on stimulus taper timing.

The greenback has been on the back foot since Federal Reserve Chair Jerome Powell’s comments at the Jackson Hole conference on Friday that the U.S. central bank could scale back its bond-buying program this year but did not give a firm timeline.

U.S. payrolls numbers due Friday this week will be closely watched, analysts said.

Trade on Tuesday will also likely be driven by month-end flows from businesses for their import and export transactions, traders said.

The dollar index slipped a quarter of a percent to 92.456, its lowest level since August 6.

The euro gained 0.3% against the broadly weaker dollar, hitting a three-week high of $1.18315.

Sterling strengthened to a two-week high of $1.38010, before slipping back below $1.38.

The yen was little changed at 109.85 yen to the dollar.

The New Zealand dollar strengthened 0.9% to $0.70560, a day after the country’s prime minister Jacinda Ardern partially eased lockdown restrictions outside of Auckland.

The offshore Chinese yuan slipped versus the dollar, but was largely steady after soft factory and service sector surveys.

In cryptocurrencies, bitcoin gained 1.6% to $47,752, regaining some of the previous day’s losses.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Indian spot gold rate and silver price on Tuesday

Gold Price in India ( ₹47490) has decreased since yesterday( ₹47500). Also, it was lower than the average gold price observed this week ( ₹47518.6) by 0.06%.

Although global Gold Price Today ($1816.7) experienced growth of 0.18%, the Gold Price remained low in the Indian market ( ₹47490).

Following yesterday's trend, the global Gold Price continued its growth today as well. It was clocked at $1816.7 per Troy ounce in the latest close which noted an increase of 0.18% over yesterday. This price level is 4.24% higher than average Gold Price observed in the past 30 days ($1739.7). Among the other precious metals, Silver Price Today saw a fall. The Silver Price plunged 0.06% to $25.2 per Troy ounce.

Further, platinum price has shown an uptick. The precious metal platinum rose 0.05% to $1078.0 per Troy ounce. Meanwhile in India, gold was priced at ₹47298 per 10 gram on MCX, with a change of ₹70.9. Also, the price of 24k gold in the Indian spot market was quoted at ₹47490 . 

On MCX, gold futures prices in India showed an upsurge of 0.15% to ₹47298 per 10 gram. In the previous session, gold was down 0.4% or about ₹70.9 per 10 gram.

On MCX, silver futures grew nearly 0.24% or ₹153.7 per kg to the price level of ₹64050 per kg.

The gold spot price today ( ₹47490) decreased by ₹70.9 from yesterday ( ₹47500), whereas global spot prices saw growth of $3.25 to $1816.7 value today. Following global price trend, MCX future price saw an increase of ₹70.9 and value of ₹47298 as of today.

The dollar to rupee conversion today improved to ₹73.2 as compared to previous close of ₹73.3. The fall of dollar against rupee might influence gold's rate today reflecting a lower gold price in the domestic markets.

Copper price regains to positivity –
Copper price jumped bullishly yesterday above 4.2300 level, to settle within the bullish channel again, noticing recording some positive targets by reaching 4.3975, while the moving average 55 consolidates near the bullish channel’s support line to confirm confining trades within the bullish track to increase the chances of recording new positive targets that might start at 4.5500 and 4.6400.

The expected trading range for today is between 4.2800 and 4.5500

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

Counters trading under cautionary

ART

Seed co Int.

Dairibord

Starafrica

Medtech

Turnall

Seed co

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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