Bulls n Bears Daily Market Commentary : 08 December 2021

Thu Dec 9 05:55:21 CAT 2021

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Bulls n Bears Daily Market Commentary : 08 December 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE shares swung into the negative in today's mid-week session as
investors remained worried over Government stance of maintaining the
economic status quo both in terms of monetary and fiscal policies. Activity
levels were lower at 279 trades. Star Africa was the most active stock at 19
trades followed by Innscor and Delta at 18 and 16 trades respectively.
Investor sentiment was negative after the session yielded 14 fallers against
13 risers while two of the active stocks remained unchanged. FBC Holdings
anchored both volume and value aggregate trading 1 623 500 shares with a
value of ZW$50.73 million.

The All-Share Index shaded 0.68% to close at 10 887.61 points. The Top 10
Index pared 0.80%. The Top 15 Index also lost 0.89%. The Medium Cap Index
was down by 0.53% to 20 413.56 points whilst the Small Cap Index added 1.29%
to 382 002.39 points. Leading the risers pack of the day was General
Beltings  adding 17.28%. African Sun was up by 6.61%. Wildale added 5.56%
and Edgars added 3.99% to 520c. Zimpapers was up by 3.57%. Mitigating the
gains were losses in Nampak and CBZ Holdings which shaded 8.08% and 6.61% to
1100c and 8000c respectively. FBC Holdings was down by 6.02% to 3125c.
Ariston and Hippo  shaded 4.06% and 1.56% respectively. The Old Mutual Top
Ten ETF closed unchanged at 500c after 6 715 units worth ZW$33 575 exchanged
hands. On the VFEX, Caledonia traded 100 shares to close 2.85% higher at
1300c and Padenga closed 4.97% higher to 20.99c after 99 000 shares
exchanged hands.wealthaccess

Global Currencies & Equity Markets

South Africa

South African rand stronger on early Omicron signs, stocks slide

(Reuters) - The South African rand extended this week's gains on Wednesday,
as signs that the Omicron coronavirus variant identified locally and in Hong
Kong is causing mainly mild infections supported risk appetite.

At 1445 GMT, the rand traded at 15.7950 against the dollar, 0.35% stronger
than its previous close.

Financial markets have been highly sensitive to news about Omicron, which
South Africa alerted the world to last month, triggering global alarm and
the imposition of travel restrictions.

But anecdotal accounts from South African doctors and researchers suggest
that it may be causing less severe clinical symptoms than other coronavirus
variants, though they caution that more research is needed before definitive
conclusions can be drawn. read more

Markets also cheered news that BioNTech and Pfizer (PFE.N) said that a
three-shot course of their COVID-19 vaccine was shown to generate a
neutralising effect against the new Omicron variant in a laboratory test.
read more

Also supporting sentiment, a proposal to change the constitution to
explicitly allow expropriation of land with no compensation failed to win
sufficient votes in parliament on Tuesday. Opposition parties and some
investors have seen the proposal as threatening property rights. read more

Weighed down by local data, the main indexes on the Johannesburg Stock
Exchange moved away from record highs reached in the previous session, with
the benchmark all-share index (.JALSH) finishing 0.72% lower at 72,403
points, while the blue-chip index of top 40 companies (.JTOPI) ended 0.78%
lower at 65,992 points.

Retail sales were up 1.8% year on year in October, slightly lower than
September's 2.1% reading, Statistics South Africa said on Wednesday.

Weighing on stocks as well was data on South African business confidence,
which fell in November compared to the previous month as both exports and
imports dipped.

The retail sector has had a mixed year, as it was one of the major
casualties from July riots that contributed to an economic contraction in
the third quarter.

The Thomson Reuters Trust Principles.

Nigeria

Naira stable at official market

Naira recorded no movement against the U.S. dollar on Wednesday at the
official market after the local unit slipped on Monday and Tuesday.

This occurred as foreign exchange supply plummeted significantly.

The domestic currency which opened at N413.71 closed at N415.07 to a dollar
again at the close of business on Wednesday, data posted on the FMDQ
securities exchange windows where forex is officially traded showed.

The currency reached an intraday high of N404.00 and a low of N444.00 before
closing at N415.07 per $1 on Wednesday.

Foreign exchange supply rose by 51.70 per cent with $225.99 million recorded
as against the $149.01 million posted in the previous session on Tuesday.

At the parallel market in Uyo and Abuja, dealers said they exchanged the
naira at N567.00 and sold at N572.00 to a dollar on Wednesday.

This leaves the spread between the official and unofficial market at
N151.93, leaving a discrepancy of 27 per cent at the close of business
Wednesday.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar stays soft, with Omicron still top of mind

(Reuters) - The dollar failed to pick up ground on most major peers on
Thursday as markets saw optimism in early data hinting the Omicron variant
of the new coronavirus may not be as bad as feared, even as new COVID-19
restrictions in Britain hurt the sterling.

The euro was at $1.1338, after gaining 0.7% on Wednesday to a week high of
1.1354, and the Aussie dollar was at $0.7168 just off Wednesday's week high,
after a midweek rally in risk assets such as equities had helped the
currency.

MSCI's all-country world index (.MIWD00000PUS) is back in sight of all-time
highs, having had its best day in more than a year on Tuesday and rising
further on Wednesday.

Markets were roiled late last week by news of the new strain of COVID-19,
which drove investors to safe havens, but have since taken heart from signs
that the worst fears may not be realised.

BioNTech and Pfizer (PFE.N) said on Wednesday a three-shot course of their
COVID-19 vaccine neutralised the new Omicron variant in a laboratory test,
an early signal that booster shots could be key to protection against
infection from the newly identified variant.  

Illustrating this, the pound dropped to a year low on Wednesday after
British Prime Minister Boris Johnson imposed tougher COVID-19 restrictions
in England, ordering people to work from home, wear masks in public places
and use vaccine passes.  

The pound rebounded a little to last trade at $1.3202.

Also on traders' minds is the U.S. Federal Reserve's December meeting next
week, at which it could announce an acceleration of tapering of its
bond-buying programme.

Before the arrival of the Omicron variant, the different paces at which
global central banks would raise rates had been the major factor shaping
currency markets.

The Canadian dollar was largely unchanged after the Bank of Canada held its
key overnight interest rate at 0.25%, as expected, and maintained its
guidance that a first hike could come as soon as April 2022, having gained
to its highest in around three weeks ahead of the meeting along with higher
oil prices.

Bitcoin was about flat on Wednesday at $50,400, after top executives from
six major cryptocurrency companies including Coinbase and Circle urged
Congress to provide clearer rules for the booming $3 trillion industry.  

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper rises on China stimulus, easing Omicron fears

(Reuters) - Copper prices rose for a third day on Wednesday as China, the
biggest consumer, stimulated its economy and after Pfizer said a three-shot
course of its vaccine could neutralise the new Omicron coronavirus variant.

China's yuan shot to its strongest level against the U.S. dollar since 2018,
making dollar-priced metals cheaper for Chinese buyers, after a cut in bank
reserve requirements released 1.2 trillion yuan ($188 billion) in long-term
liquidity.  

However, U.S. and European markets and oil prices stalled after two days of
gains.

Benchmark copper on the London Metal Exchange (LME) was up 0.5% at $9,645 a
tonne at 1700 GMT.

The metal used in power and construction is up more than 20% this year, but
has traded between around $9,000 and $10,000 since reaching a record high of
$10,747.50 in May.

Omicron triggered a sharp reduction in speculative bets on higher prices,
and with the market lacking direction, investors are cautious, said Saxo
Bank strategist Ole Hansen.

But he said low stockpiles, strong Chinese imports and a positive demand
outlook meant the market was "skewed to the upside".

OMICRON: BioNTech and Pfizer (PFE.N) said three doses of their vaccine were
effective against Omicron and they could deliver an upgraded coraonvirus
vaccine in March 2022 if needed. read more

POSITIONING: Speculators slashed their net long position in copper on the
Comex exchange to the lowest in more than a year.

CHINA: China's copper imports in November rose 24.3% from the October to
their highest since March. 

COPPER STOCKS: Inventories in Shanghai Futures Exchange warehouses and
Chinese bonded warehouses have fallen rapidly since the summer, pointing to
a tight market. ,

However, copper stocks in LME-registered warehouses have risen from historic
lows and premiums for quickly deliverable metal have tumbled, suggesting
good availability. ,

SUPPLY: Peruvian government officials failed to broker a deal to unblock a
key distribution corridor used by MMG Ltd's (1208.HK) Las Bambas copper
mine. read more

PRICES: LME aluminium was unchanged at $2,628.50 a tonne, zinc was up 2.7%
at $3,315, nickel gained 0.3% to $20,250, lead rose 4.3% to $2,279.50 and
tin was up 1.2% at $39,400.

The Thomson Reuters Trust Principles.

Gold stalls as investors look for direction from Fed, inflation data

(Reuters) - Gold prices were little changed on Wednesday, with a subdued
dollar offsetting firmer U.S. Treasury yields, as investors squared
positions in the run-up to U.S. consumer prices data this week.

Spot gold was nearly flat at $1,784.01 per ounce by 01:48 p.m. ET (1848
GMT), retreating from the session's peak of$1,792.90.

U.S. gold futures settled mostly unchanged at $1,785.50.

Benchmark U.S. Treasury yields climbed, dimming gold's appeal. On the other
hand, the dollar index (.DXY) fell, making bullion cheaper for holders of
other currencies.

Gold was anchored at $1,780-$1,800 an ounce, awaiting cues from the U.S.
Federal Reserve and U.S. Consumer Price Index (CPI) data, Streible added.

The CPI report due on Friday could influence the timeline of the Fed
tapering its economic support before its next policy meeting on Dec. 14-15.

With the narrative shifting back to central banks' tightening policy, which
was likely to boost the U.S. dollar, any upside in gold is likely to be
limited, Ricardo Evangelista, senior analyst at ActivTrades, said.

Reduced stimulus and interest rate hikes tend to push government bond yields
higher, raising the opportunity cost of holding gold, which bears no
interest.

Spot silver shed 0.2% to $22.43 per ounce, platinum gained 0.8% to $958.83
per ounce and palladium dipped 0.1% to $1,855.31.

The Thomson Reuters Trust Principles.

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

National Unity Day

December 22

Christmas Day

December 25

Boxing Day

December 26

Public Holiday in lieu of Boxing Day falling on a Sunday

December 27

Counters trading under cautionary

ART

Seed co Int.

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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been compiled from sources believed to be reliable, but no representation or
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opinions expressed and recommendations made are subject to change without
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