Bulls n Bears Daily Market Commentary : 09 December 2021

Fri Dec 10 05:40:57 CAT 2021

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Bulls n Bears Daily Market Commentary : 09 December 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE shares firmed in the negative in today's session as government
pledged to deal decisively with the bottlenecks in the business environment.
Activity levels improved to 458 trades. Econet was the most active stock at
56 trades followed by Delta and Bindura at 29 and 26 trades respectively.
Investor sentiment was negative after the session yielded 19 fallers against
9 risers while four of the active stocks remained unchanged. Econet anchored
both volume and value aggregate trading 1 612 200 shares with a value of
ZW$133.09 million contributing 67% to total turnover.

The All-Share Index shaded 1.67% to close at 10 706.29 points. The Top 10
Index pared 1.80%. The Top 15 Index also lost 1.65%. The Medium Cap Index
was down by 1.44% to 20 118.98 points whilst the Small Cap Index added 1.13%
to 386 319.35 points. Leading the shakers pack of the day was Get Bucks
adding 20.00%. African Sun was down by 11.67%. Econet shaded 6.44% and
Bindura shaded 5.27% to 597.94c. Wildale was down by 4.94%. Mitigating the
losses were gains in Zimplow and TSL  which added 5.94% and 1.18% to 2430c
and 8600.47c respectively. Turnall Holdings was up by 0.92% to 550c. Innscor
and Star Africa added 0.58% and 0.47% respectively. The Old Mutual Top Ten
ETF closed at 486.99c down by 2.60% after 65 362 units worth ZW$318 307.60
exchanged hands. wealthaccess

Global Currencies & Equity Markets

Zambian, Ugandan currencies seen firming; Kenya, Nigeria's to soften

(Reuters) - Zambian and Ugandan currencies are likely to firm against the
U.S. dollar next week, as Kenya and Nigeria's are expected to soften.

ZAMBIA

The kwacha is expected to make further gains against the dollar next week
due to positive sentiment on news of preliminary understanding between the
IMF and Zambia for an aid programme.

On Thursday, the kwacha appreciated to 16.0000 per dollar from a close of
17.8078 a week ago. Zambia National Commercial Bank (ZANACO) said FX-holding
entities would start converting to the local unit to avoid further exchange
losses.

The IMF and Zambia on Friday reached a staff level agreement on a $1.4
billion, three-year extended credit facility, bringing the country one step
closer to a comprehensive debt overhaul.

UGANDA

The Ugandan shilling is seen strengthening in the coming days as demand from
importers slow as most of them have shipped in goods for holiday shoppers,
traders said.

At 0923 GMT, commercial banks quoted the shilling at 3,562/3,572, compared
to last Thursday's closing of 3,560/3,570.

KENYA

Kenya's shilling is expected to weaken due to increased importer dollar
demand across various sectors, traders said.

Commercial banks quoted the shilling at 112.85/113.05 per dollar, compared
with last Thursday's close of 112.50/70. The shilling is trading at a new
all-time low, according to Refinitiv data.

NIGERIA

The Nigerian naira is seen easing in the coming week on the black market
where it trades more freely, after a move to automate forex sales for
individuals with dollar expenses funnels demand to unofficial sources,
traders said.

The central bank has introduced an online system for dollar purchases to pay
for school fees offshore, medical bills and travels, in an attempt to
monitor and track forex demand, which is shifting demand to the black
market.

The currency traded at 573 naira per dollar on the parallel market on
Thursday, easing from the 568 naira it sold for last week. On the official
market , commercial banks quoted the currency in a range of 409-415 against
the dollar.

Our Standards: The Thomson Reuters Trust Principles.

South Africa

South African rand drops almost 2% as manufacturing slumps

(Reuters) - The South African rand dropped almost 2% on Thursday as
manufacturing output slumped far more sharply than expected in October.

At 1532 GMT, the rand traded at 16.0000 against the dollar, around 1.88%
weaker than its previous close.

Statistics South Africa data showed industrial production (ZAMAN=ECI) fell
8.9% year on year, versus economists' predictions for a 1.4% decline,
probably because of a strike in the steel and engineering sector.

In other data releases, the current account surplus (ZACAGP=ECI) narrowed in
the third quarter and mining output (ZAMNG=ECI) rose 2.1% in October.

South Africa's economic recovery from the COVID-19 pandemic this year has
been uneven across sectors, with riots in July contributing to an economic
contraction in the third quarter.

The rand had advanced for the first three days of this week, gaining more
than 2% against the dollar as fears about the Omicron coronavirus variant
eased because of early signs that it has mainly caused mild infections. read
more

But the global mood turned more cautious on Thursday, as focus shifted to
the release of U.S. inflation data on Friday and a Federal Reserve meeting
next week.

Stocks were also weighed down by weak manufacturing data, with the all-share
index (.JALSH) finishing 0.27% down at 72,207 points, while the blue-chip
index of top 40 companies (.JTOPI) ended 0.32% lower at 65,779 points.

Sugar producer Tongaat Hulett Ltd (TONJ.J) was one of the main decliners,
slumping 8.62% after it swung to a first-half loss and held back a dividend
on Thursday, saying the civil unrest had had a 158 million rand ($10
million) impact on its profit.

Investors are now also worried about fresh steps in many countries to
contain the spread of the new variant, with cases in South Africa continuing
to climb.

Our Standards: The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar higher as virus restrictions knock risk sentiment

(Reuters) - The U.S. dollar rose against a basket of currencies on Thursday
as increased restrictions in parts of the world to contain the spread of
COVID-19, including the new Omicron variant, tempered investors' appetite
for riskier currencies.

The U.S. Dollar Currency Index was up 0.3% at 96.233.

British Prime Minister Boris Johnson on Wednesday imposed tougher COVID-19
restrictions in England, ordering people to work from home, wear masks in
public places and use vaccine passes to slow the spread of the new variant.

Johnson said Omicron was spreading rapidly and he had no choice but to move
to "Plan B" while a vaccine booster program is accelerated.

The dollar was 0.2% lower against the Japanese yen.

The greenback was supported by data that showed the number of Americans
filing new claims for unemployment benefits dropped to the lowest level in
more than 52 years last week as labor market conditions continued to tighten
amid an acute shortage of workers. read more

Investors were also awaiting U.S. inflation data on Friday that could set
the tone for the Federal Reserve's strategy on interest rate hikes.

With the U.S. Federal Reserve, European Central Bank and Bank of England
among those meeting to discuss monetary policy next week, investors will be
watching for forward guidance, especially from the Fed. Some analysts expect
a faster unwinding of pandemic-era stimulus plans.

On Thursday, China's yuan pulled back from a 3-1/2-year high and was set for
its biggest drop in more than four months after the central bank raised
foreign currency reserve requirements. read more

The pound held steady, just above a 2021 low hit on Wednesday when the "Plan
B" restrictions were announced. read more

Bitcoin lost 6.1% to $47,562.34, struggling to find a footing after
rebounding from a sharp weekend plunge.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold eases on strong U.S. jobs data, inflation data eyed

Gold slipped on Thursday as the dollar firmed and data showed a big drop in
U.S. jobless claims ahead of an inflation report that could influence the
Federal Reserve's monetary strategy.

Spot gold was down 0.3% at $1,776.56 per ounce, while U.S. gold futures
settled down 0.5% at $1,776.70.

The number of Americans filing new claims for unemployment benefits dropped
to the lowest in over 52 years.

The dollar strengthened, making gold less attractive for overseas buyers.

Friday's U.S. Consumer Price Index (CPI) report will be followed by the
Fed's policy meeting on Dec. 14-15.

Gold has traded in a relatively tight $1,760-$1,790 range since dropping
below the key $1,800 level in late November, as investors attempted to gauge
the Fed's possible pace of tapering stimulus and raising interest rates.

While gold is considered an inflation hedge, higher interest rates would
increase the opportunity cost of holding non-yielding bullion.

Apart from lingering uncertainties over the Omicron coronavirus variant,
focus was also on tensions over Russia and its stance on Ukraine, the
diplomatic boycott of the Beijing Olympics by some Western nations and U.S.
sanctions on Iran.

Spot silver fell 1.7% to $22.02 per ounce, platinum dropped 1.9% to $938.50
and palladium dipped 2% to $1,817.68.-cnbc

Copper slips as receding Omicron fears support dollar

LONDON - Copper snapped its three-day advance on Thursday, retreating as the
dollar firmed, Omicron fears subsided and attention turned to the unwinding
of US monetary stimulus.

The dollar index edged higher, making greenback-denominated commodities more
expensive for buyers with other currencies.

While prices for the metal used in power and construction were supported by
low inventories, there was pressure from cooling growth in top consumer
China and the tightening of US monetary policy, said Concord House analyst
Duncan Hobbs.

Benchmark copper on the London Metal Exchange (LME) lost 1.1% to $9 554/t by
12:40 GMT.

Prices are up 20% this year while a wider index of industrial metals is up
nearly 30%.

INVENTORIES: On-warrant LME-registered stocks rose to a one-month high of 76
250 t. However, that is down 69% from an August high of 238,725 tonnes and
down nearly a quarter this year.

The premium for LME cash copper over the three-month contract was at $14/t,
compared with a record $1 103.50 in October, pointing to easing tightness in
nearby supplies.

PROPERTY: Developers China Evergrande Group and Kaisa Group were downgraded
to "restricted default" by ratings agency Fitch because of non-payment of
offshore bond dues, while a source said that Kaisa had started work on
restructuring its $12-billion offshore debt.

The real estate sector accounts for a large share of copper consumption.

NICKEL: China's Tsingshan Holding Group started producing nickel matte - an
intermediate nickel product that can be processed into chemicals for
electric vehicle batteries - in Indonesia.

Nickel prices shed 1.7% to $19 895. 

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
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
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