Bulls n Bears Daily Market Commentary : 02 February 2021

Wed Feb 3 04:50:37 CAT 2021

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Bulls n Bears Daily Market Commentary : 02 February 2021

 <https://www.nedbank.co.zw/> 

ZSE commentary

The All Share Index marginally appreciated 0.11% to close at 3631.58 points.
The Top 10 Index and the Top 15 Index registered 0.49% and 0.20% marginal
gains respectively. The Medium Cap Index was subdued by 0.66% while the
Small Cap index went up by 0.75% by close of trading. The ZSE market
capitalization was at ZWL$435.04 billion. Gains for the day were registered
in the only listed microfinance bank Getbucks  and Unifreight  which
strengthened by 19.91% to close at 25.90c and 19.58% to close at 66.25c
respectively. Ariston  added 18.41% to close at 160.09c and CAFCA  settled
at 8000c after gaining by 15.27%. Gains were offset by losses recorded in
Proplastics  which closed the day at 1384.46c following a decrease of 19.74%
and First Mutual Property  which shaded 14.91% to 561.57c. Other losses were
also recorded in Seedco  which edged down by 14.33% to 2570c, while the
Turnall shaded 8.89% to 90.20c and First Mutual Holdings Life  was 7.74%
down to 1200c.

On the ETF market, the Old Mutual TOP 10 fund saw 13 trades valued at
ZWL$2,513,801.80 from 1 749 738 units traded. This led to a marginal gain of
2.62% to 143.67c.

Total turnover was at ZW$59,663,433.59 in 381 trades. First Capital Bank was
the most active with 23 trades. The market breath was positive after 23
stocks closed in the green while 13 traded lower. Total trades were 381 with
7 counters remaining unchanged and 8 with zero volume.-wealthaccess

Global Currencies & Equity Markets

South Africa

Rand edges up in early trade

Sentiment was boosted by arrival of South Africa's first batch of Covid-19
vaccines, one million doses of the AstraZeneca shot.

South Africa's rand edged up early on Tuesday, supported by talks on a new
US stimulus package and progress in local coronavirus vaccine purchases.

At 0700 GMT the rand was 0.25% firmer at R15.04 per dollar from an overnight
close of R15.08.

The local currency added to gains from the previous session, where it
briefly dipped below the R15.00 level seen as a target for rand bulls and
importers.

The rand's attractive yield, or carry, compared to other emerging market
currencies, continued to shield it from being negatively affected by signs
of a weak local economy.

Factory activity data on Monday showed demand remained tepid in the
continent's largest economy, while new car sales figures contracted again,
falling 13.9% in January.

Sentiment was boosted by arrival of South Africa's first batch of Covid-19
vaccines, one million doses of the AstraZeneca shot.

In a speech during which he lifted some coronavirus lockdown restrictions,
President Cyril Ramaphosa said the country had secured almost enough doses
to vaccinate its target of 40 million people, or two-thirds of the
population.

Nigeria

Naira Drops Even as Nigeria Swoops on Exporters for More Dollars

Nigeria's currency weakened even after authorities threatened to cut the
banking services of exporters who fail to repatriate their dollars.

The naira declined more against the dollar than any other African currency
on Tuesday in the wake of the central bank's Jan. 31 deadline for exporters
to bring home money made abroad. The move was aimed at alleviating a
scarcity of foreign-currency in Africa's biggest economy that's hindering
the operations of businesses and deterring investors.

Demand for foreign exchange is just too overwhelming for any additional
inflows from exporters to make a difference, said Michael Famoroti, the
chief economist for Stears Data in Lagos. "There is still underlining
pressure. That's what the reality is."

Lower oil prices and an economy reeling from the shock of the coronavirus is
causing foreign-currency inflows to dry up in Africa's largest producer of
the commodity. The central bank is seeking to avoid another devaluation of
the naira through a complicated multi-tiered foreign-exchange system, and
has also halted foreign-exchange supplies to food and fertilizer imports and
ordered lenders to terminate customers who fail to repatriate earnings.

The naira dropped as much as 3.4% to 394.08 per dollar before paring losses
to 386 by 5:38 p.m. in Lagos. It was changing hands at 480 on the parallel
market, compared with 470 on Jan. 4, according to abokifx.com, a website
that collates parallel market data.

Steers Data estimates the naira will depreciate to 430 per dollar on the
spot market this year, Famoroti said.

The difference between the unofficial market rate and the spot value
encourages companies to skirt official channels when converting currencies
so they get more naira to spend locally, said Ayodeji Ebo, an analyst at
Greenwich Merchant Bank.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar changes hands around 105.03 yen level in early deals in Tokyo

(Xinhua) -- The U.S. dollar changed hands around the 105.03 yen level in
early deals in Tokyo on Wednesday.

As markets opened here, the dollar was quoted at 105.03-04 yen compared with
104.94-105.04 yen in New York and 104.98-99 yen at 5 p.m. on Tuesday in
Tokyo.

The euro, meanwhile, fetched 1.2039-2039 dollars and 126.43-44 yen against
1.2039-2049 dollars and 126.40-50 yen in New York and 1.2068-2070 dollars
and 126.69-73 yen in late Tuesday afternoon trade in Tokyo. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold, silver coin demand surging, straining U.S. Mint's capacity

(Reuters) - The United States Mint said on Tuesday it was unable to meet
surging demand for its gold and silver bullion coins in 2020 and through
January, due partly to pandemic-driven demand and plant capacity issues.

Sales of U.S. gold bullion coins rose 258% in 2020 while silver coin demand
was up 28%, the U.S. Mint said Tuesday. Heavy buying has continued in 2021,
it said, squeezing supplies, which had already been tight as the coronavirus
affected production.

A social media-driven buying spree lifted silver futures to an eight-year
high on Monday, but dealers in the market for coins were already grappling
with a supply shortage and shipping delays before that rally.

The Mint, a division of the U.S. Treasury, had limited distribution of its
silver coins to suppliers as it is currently changing the designs for its
American Eagle Gold and Silver Bullion Coins.

In January, 220,500 American Eagle gold bullion coins were sold, up 290%
from 56,500 a year earlier, the Mint said.

For this year, the U.S. Mint has a limited window to produce its current
gold and silver coins, with redesigned coins expected to debut in the
summer. It is limiting distribution of its gold, silver and platinum coins
to specific dealers because of heavy demand, and a limited number of
suppliers of metals, it said in a statement.

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

Counters trading under cautionary

ART

Seed co Int.

Dairibord

Starafrica

Medtech

Turnall

Seed co

Invest Wisely!

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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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for guideline purposes only and sourced from third parties.

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