Bulls n Bears Daily Market Commentary : 28 December 2021

Tue Dec 28 20:12:00 CAT 2021

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Bulls n Bears Daily Market Commentary : 28 December 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

ZSE registered solid performance post-Christmas holiday trading session as
the all-share index went up 2.30%. Activity levels marginally declined to
323 trades which was far below the December 2021 target of 1 000 trades.
Star Africa was the most active stock at 49 trades followed by OK Zimbabwe
and Econet at 25 and 18 trades respectively. Cassava anchored on volume
while Meikles led on value aggregate trading 475 300 shares with a value of
ZW$25 million contributing 27% to total turnover.

The All-Share Index added 2.30% to close at 10 123.44 points. The Top 10
Index gained 2.36%. The Top 15 Index also went up 2.71%. The Medium Cap
Index was up 2.38% to 19 795.87 points whilst the Small Cap Index marginally
added 0.55% to 382 710.02 points. Leading the risers pack of the day was OK
Zimbabwe adding 18.6%. Fidelity  was up 14.1%. Nampak added 10% and Econet
wireless gained 6.55% to 8418.70c. Star Africa limited was up by 5.66%.
Mitigating the gains were losses in Zimpapers and General Beltings Holdings
which shaded 3.02% and 2.37% to 290.93c and 195.19c respectively. Ariston
was down by 0.76% to 371.95c. Zimre Holdings and Zimplow added 0.44% and
0.1% respectively. The Old Mutual Top Ten ETF closed at 441.02c shading
11.41% after 85 766 units worth ZW$378 425 exchanged hands in 33 trades.
There was no activity registered on the V-FEX.wealthaccess

Global Currencies & Equity Markets

South Africa

South African stocks climb on strong commodity prices

(Reuters) - South Africa's stocks firmed on Tuesday, boosted by strong
commodity prices, with a year-end rally taking bullion to a more than
one-month high.

Spot gold was up 0.3% at $1,816.55 an ounce by 1256 GMT, its highest since
Nov. 22, while silver , platinum and palladium also gained. Oil prices
extended gains, with Brent crude trading near $80 a barrel.

A weaker U.S. dollar added to the appeal of gold and other
dollar-denominated commodities for holders of non-U.S. currencies.

Strong commodity prices pushed petrochemical producer Sasol (SOLJ.J), Gold
Fields (GFIJ.J), AngloGold Ashanti, Sibanye Stillwater and Northam Platinum
(NPHJ.J) up 5.23%, 3.03%, 2.69%, 1.81% and 1.73% respectively.

Retail group Steinhoff International Holdings (SNHJ.J) topped the
Johannesburg All-Share index, jumping 25.36% after saying the threshold
required to obtain the necessary financial creditor support for some lawsuit
settlements has been obtained.

Steinhoff is finalising its proposed lawsuit settlement offer to those who
lost money when it revealed holes in its accounts in December 2017.

Easing travel bans from developed countries such as the United States as
worries about the Omicron coronavirus variant waned, also lifted sentiment
in South African equity markets.

Overall the All-share index (.JALSH) closed 1.22% firmer, while the Top-40
index (.JTOPI) rose 1.29%.

In the currency market, the rand traded at 15.7925 against the dollar at
1535 GMT, 1.56% weaker.

Trading was characterised by holiday-thinned volumes in the last week of
2021 ahead of the New Year.

In fixed income, the yield on the benchmark 2030 government bond was up 11
basis points to 9.400%.

The Thomson Reuters Trust Principles.

Nigeria

Naira falls at official and P2P forex market despite boost in dollar
turnover

Naira fell against the US dollar on Christmas eve to close at N415.1/$1,
representing a 0.09% depreciation when compared to N414.73/$1 recorded in
the previous trading session. This is despite the 56.2% increase in the
volume of traded forex in the market on Friday.

Meanwhile, naira remained flat at the parallel market, after closing at
N572/$1 on Friday, same as recorded on Thursday, 23rd December 2021. This is
according to information obtained from BDC operators interviewed by
Nairametrics. On the other hand, exchange rate at the P2P market depreciated
from N567/$1 recorded yesterday to trade at N568 in the early hours of
Tuesday, 28th December 2021.

Nigeria's foreign reserve reduced by 0.03% on Thursday, 23rd December to
close at $40.59 billion compared to $40.6 billion recorded as of the
previous day. The continuous decline in the nation's external reserve is
attributed to the intervention by the apex bank in the official forex
market.

The exchange rate at the Investors and Exporters window closed at N415.1/$1
on Friday, which represents a 0.09% depreciation compared to N414.73/$1
recorded a day before.

The opening indicative rate closed at N413.54/$1 on Friday, which represents
a 23 kobo appreciation compared to N413.77/$1 recorded in the previous
trading session.

An exchange rate of N444/$1 was the highest rate recorded during intra-day
trading before it settled at N415.1/$1, while it sold for as low as N405/$1
during intra-day trading.

Forex turnover at the official window increased by 56.2% to $168.62 million
on Friday, 23rd December 2021.

According to data tracked by Nairametrics from FMDQ, forex turnover at the
I&E window increased from $107.92 million recorded on Thursday 23rd December
2021 to $168.62 million on Friday 24th December 2021.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar rises on Fed expectations, Omicron worries ease

The dollar rose on Tuesday on expectations the Federal Reserve could raise
interest rates as early as March to counter rising inflation, while a global
rally in stock markets knocked the safe-haven Japanese yen to a one-month
low.

The dollar index, which measures the currency against six major rivals, was
0.217% higher at 96.261.

The greenback had been trading lower in the overnight session as riskier
currencies rallied, but it strengthened after 9 a.m. Eastern time when data
showed U.S. home prices rose 1.1% in October from September and were up
17.4% year-over-year.

Fed funds futures are pricing better than 50% odds for a first quarter-point
rate hike by March, odds that were "unheard of just two weeks ago,"
Trevisani said.

The Fed said in a policy statement on Dec. 15 it would end its pandemic-era
bond purchases in March and pave the way for three quarter-percentage-point
interest rate hikes by the end of 2022 as the economy nears full employment
and inflation continues to surge. 

The safe-haven yen touched a nearly one-month low against the dollar during
the Asian session as global stock markets followed Wall Street higher.

The Japanese currency weakened as far as 114.935 yen per dollar, its weakest
since Nov. 26, before recovering to last trade around 114.795.

The S&P 500 opened on Tuesday at a new record high, helped by retail sales
data on Monday that eased worries that the highly infectious Omicron
coronavirus variant would scupper the economic recovery.

The fact that U.S. equities rallied despite expectations for faster Fed
tightening "implies that currently investor risk appetite must be very, very
strong," he said.

The Australian dollar, often considered a liquid proxy of risk appetite,
rose to $0.7263, its highest level since Nov. 22, before pulling back to
last trade at $0.7224.

Sterling, which often rises when risk sentiment improves, touched a
one-month high of $1.3461, and fell to $1.3420 against the strengthening
greenback.

The euro declined 0.3% to $1.1290.

In cryptocurrencies, bitcoin fell below $50,000 and was down 3.92%.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold hits more than one-month peak as dollar subsides

(Reuters) - Gold prices climbed on Tuesday as the U.S. dollar weakened and
concerns over the spread of the Omicron coronavirus variant led bullion's
year-end rally to a more than one-month high.

Spot gold was up 0.3% at $1,816.55 an ounce by 1256 GMT, its highest since
Nov. 22, while U.S. gold futures rose 0.5% to $1,818.40.

The U.S. dollar slipped and was near the bottom end of its recent trading
range against a basket of peers, supporting gold's appeal for holders of
non-U.S. currencies.

Limiting gains in safe-haven bullion, shares in Europe and Asia edged higher
on Tuesday, helped by another record-setting day on Wall Street.

In other metals, silver rose 0.6% to $23.18 an ounce while platinum gained
0.7% to $977.51.

Palladium rose 0.2% to $1,975.43, having touched a more than one-month peak
of $1,998.50 in the previous session.

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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