Bulls n Bears Daily Market Commentary : 30 December 2021

Thu Dec 30 17:32:42 CAT 2021

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Bulls n Bears Daily Market Commentary : 30 December 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

ZSE maintained its bullish streak during today's trading session where 23
winners were recorded against 12 shakers. Activity levels remained above the
400 mark at 446 marginally lower against 459 trades registered yesterday
which remains below SEC's daily target of 1 000 trades. Delta was the most
active stock at 53 trades followed by Star Africa and Econet at 47 and 32
trades respectively. Innscor led on both turnover and volume after 446 900
shares worth ZWL$72 million exchanged hands.

The All-Share Index added 2.48%, while Top 10 Index gained 2.84% and Top 15
Index was 2.81% firmer to close at 10867.57, 6834.7 and 7545.97 points
respectively. The Medium Cap and small cap index were up 1.83% to 20 573.28
points and 1.21% to 397 448.83 points respectively. Leading the risers pack
was General Beltings which gained 14.79% followed by Dairibord which added
12.40%. Seed-co was up 8.95% while Cassava gained 8.38% to 4293.56c. Masimba
was up by 7.84%. Mitigating gains were losses in Medtech Class A shares  and
Nampak which shaded 16.74% and 4.86% to 2997.44c and 1115.69c respectively.
Zimre was down 3.38% to 371.97c. Unifreight and Proplastics  added 3.33% and
2.53% respectively. The Old Mutual Top Ten ETF closed at c marginally up
0.02% after 3 347 156 units worth ZW$14 725 813 exchanged hands in 40
trades. There was no activity registered on the V-FEX.wealthaccess

Global Currencies & Equity Markets

South Africa

South Africa's rand slides against dollar in thin trade

(Reuters) - South Africa's rand slid against the dollar in early Thursday
trade, as the currency struggled to make gains in holiday-thinned trade in
the last week of 2021, despite increased appetite for riskier assets
globally.

By 0624 GMT, the rand traded at 15.9700 against the dollar, 0.16% weaker
than its previous close.

In fixed income, the yield on the benchmark 2030 government bond was up 1
basis point at 9.410%.

The Thomson Reuters Trust Principles.

Uganda

Ugandan shilling a notch weaker due to increased dollar demand

(Reuters) - The Ugandan shilling weakened slightly on Thursday, undercut by
a rebound in demand for dollars from commercial banks and some merchandise
importers, traders said.

At 0926 GMT, commercial banks quoted the shilling at 3,540/3,550, compared
to Wednesday's close of 3,530/3,540.

Our Standards: The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Global Markets

US Dollar slammed into London fix. What next for EUR/USD and GBP/USD?

The US Dollar Index (DXY) was hit heading into the London fix. Although many
large trading firms and hedge funds closed shop for the year, there are
still some left trading.  There are also pension funds that need to mark
their books for the end of the year.  With the lack of liquidity in the
markets, large funds can push price around!  The primary reason they are
selling today, two days prior to the end of month and year, is that many of
these funds mark their books to settlement date.  In this case, Wednesday,
December 29th is the last trading day as these trades to settle T+2, of
Friday, December 31st.  By selling US Dollars,  EUR/USD and GBP/USD both
went bid!  What's next for these pairs?

What is market liquidity?

EUR/USD had been moving lower from 1.2215 in an orderly channel since May,
however it halted near 1.1186 on November 24th as the pair posted a false
breakdown below the bottom trendline of the channel.  Since then, EUR/USD
has been oscillating around the 61.8% Fibonacci retracement level from the
lows of March 2020 to the highs of January 6th near 1.1292. 

On a 240-minute timeframe, after breaking out of a short-term consolidation
channel, the pair halted just below the 50 Day Moving Average near 1.1391
and pulled back. The next resistance above the 50 Day Moving Average (not
shown) is the downward sloping top trendline of the channel and horizontal
resistance near 1.1490.  EUR/USD is stalling near support at the top
trendline of the triangle near 1.1325.  If price breaks back below the
trendline, support is at the bottom trendline near 1.1240, then the previous
lows at 1.1182.

On a 240-minute timeframe, GBP/USD had been moving lower in a descending
wedge formation from 1.3600 since November 9th (red line). The pair broke
out above the wedge a month later near 1.3225, moved higher into horizontal
resistance and pulled back to retest the upper trendline of the wedge.  From
there, GBP/USD began moving higher on December 20th and hasn't looked back.
The pair moved from 1.3183 up to current levels near 1.3499!  1.3500 is
obvious first level of resistance.  Earlier in the week, GBP/USD formed a
flag formation.  The target for the flag is near 1.3570.  Price must first
break though horizontal resistance at 1.3517 if it is to get there.  Above
the target, resistance is at early November highs and top of the wedge near
1.3603.  Support is back at Wednesday's lows near 1.3408, then horizontal
support near 1.3379.  Below there, support is at the top, downward sloping
trendline of the wedge near 1.3290.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold set for worst year in six, probes $1,800

(Reuters) - Gold was on course to record its worst performance in six years,
as prices dropped below a key support level in thin trade on Thursday,
pressured by a higher dollar and firm Treasury yields.

Spot gold fell 0.4% to $1,796.47 per ounce by 0745 GMT, dipping below
$1,800, a level it has closed above consistently for a week.

U.S. gold futures fell 0.5% to $1,797.10.

Gold prices hit a one-month high on Tuesday, but slipped to a one-week low
the very next session before closing unchanged, and were on track for their
biggest annual percentage decline since 2015.

Spivak said the first week of January will provide directional clues as gold
is caught between the magnitude of inflation and the U.S. Federal Reserve's
steps to contain it.

Benchmark 10-year U.S. Treasury yields steadied near a one-month peak,
raising the opportunity cost of holding non-interest paying gold.

The dollar index (.DXY) recovered from near a one-month low, weighing on
gold demand by making it less appealing for holders of other currencies.

Asian shares flatlined on a slow Thursday as the spread of Omicron clouded
what is the last trading day of the year for many exchanges.

U.S. weekly initial jobless claims data, a key metric of the country's
economic health, is due at 1330 GMT later in the day.

Spot silver dipped 0.8% to $22.62 an ounce, platinum eased 0.7% to $961.35,
and palladium fell 1.2% to $1,960.31, all set for their worst showing in
several years.

The Thomson Reuters Trust Principles.

Copper touches one-month high on year-end trading and arbitrage

(Reuters) - Copper prices climbed to their highest in a month on Wednesday,
boosted by year-end trading, friendly sentiment for risky assets and
arbitrage buying.

Three-month copper on the London Metal Exchange (LME), which was closed on
Monday and Tuesday for public holidays, gained 1.2% to $9,683 a tonne by
1710 GMT. It earlier hit $9,706, its highest since Nov. 26.

European stocks were close to five-week highs and oil prices also rose.

An arbitrage opportunity between COMEX and LME copper also supported the
metal, one Singapore-based trader said.

The most-traded February copper contract on the Shanghai Futures Exchange ,
however, ended daytime trading 0.2% lower at 70,200 yuan ($11,017.47) a
tonne after scaling a one-month high on Tuesday.

* Chilean miner Antofagasta (ANTO.L) has agreed to supply copper concentrate
to some Chinese smelters at treatment and refining charges of $65 a tonne
and 6.5 cents per lb next year, two sources with knowledge of the matter
said. read more

* China's top copper smelters kept floor treatment and refining charges for
copper concentrate in the first quarter of 2022 flat from the previous
quarter, two people with knowledge of the matter said on Wednesday. read
more

* China aims to lower carbon emissions in the aluminium sector by 5% by
2025, the country's industry ministry said on Wednesday.

* Metals traded on the Shanghai exchange are expected to decline from this
year's highs but still find demand support from top metals consumer China
and remain above pre-pandemic levels. read more

* LME aluminium dropped 0.8% to $2,814 a tonne, retreating from a two-month
high hit on Dec. 24, while zinc shed 0.4% to $3,504.

* Nickel advanced 2.1% to a one-month high of $20,460, lead rose 0.4% to
$2,287.50 and tin dipped 0.1% to $39,220.

($1 = 6.3717 yuan)

The Thomson Reuters Trust Principles.

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

Counters trading under cautionary

ART

Seed co Int.

Starafrica

Medtech

Turnall

Seed co

Invest Wisely!

Bulls n Bears 

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