Bulls n Bears Daily Market Commentary : 03 February 2021

Wed Feb 3 15:28:33 CAT 2021

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Bulls n Bears Daily Market Commentary : 03 February 2021

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ZSE commentary

The All Share Index appreciated 3.41% to close at 3755.24 points. The Top 10 Index and the Top 15 Index registered 4.34% and 3.91% gains respectively. The Medium Cap Index was up by 1.54% while the Small Cap index went up by 1.61% by close of trading. The ZSE market capitalization was at ZWL$449.51 billion. Gains for the day were registered in Unifreight and RIO which strengthened by 20% to close at 79.50c and 20% to close at 1560c respectively. Proplastics added 19.90% to close at 1660c and Mashonaland holdings limited settled at 96c after gaining by 18.18%. Gains were offset by losses recorded in ART Corporation which closed the day at 421.87c following a decrease of 18.83% and Zimre holdings shaded 8.22% to 256.99c. Other losses were also recorded in RTG  which edged down by 8.22% to 168.46c, while the African Sun (ASUN.zw) shaded 6.41% to 135.35c and Dawn property was 3.69% down to 43.34c.

On the ETF market, th e Old Mutual TOP 10 fund saw 16 trades valued at ZWL$2,782,762.50 from 1 855 175 units traded. This led to a gain of 4.41% to 150c as the top 10 index gained 4.34%. Total turnover was at ZW$49,420,137.35 in 392 trades. First Capital Bank was the most active with 34 trades. The market breath was positive after 21 stocks closed in the green while 12 traded lower.wealthaccess

Global Currencies & Equity Markets

South Africa

Rand firms as investors chase high yields

In early trade the rand was at R14.93 per dollar from an overnight close at R14.96.

The rand strengthened early on Wednesday, clinging on to its previous gains, as global appetite for risk and high yields rose on optimism around vaccine rollouts.

By 0700 GMT, the rand firmed 0.2% to R14.93 per dollar from an overnight close at R14.96.

South Africa has seen slightly more inflows than other emerging markets back into local assets by foreign investors, largely a function of the high yield on offer with the central bank set to keep lending rates steady in 2021.

Offshore investors bought R2.68 billion of bonds last week, marking three straight weeks of inflows, data from the Johannesburg Stock Exchange showed on Tuesday.

Sentiment has also been aided by South Africa kicking off its vaccine Covid-19 rollout this week while easing lockdown restrictions.

Bonds also traded firmer in early deals, with the yield on the benchmark 2030 government issue down 1 basis point to 8.535%.

Nigeria

Naira weakens at NAFEX window, hits a record N416.95/$1 during trading

The exchange rate during intraday trading traded for as high as N416.95/$1, the highest intraday trading tracked by Nairametrics.

On February 2, 2021, the exchange rate between the naira and the dollar depreciated closing at N395/$1 at the NAFEX (I&E Window) where forex is traded officially.

However, during the intraday trading, the exchange rate traded for as high as N416.95/$1, the highest intraday trading tracked by Nairametrics.

This is as dollar supply rose significantly by 146.9% as demand puts pressure on the foreign exchange market.

Also, the exchange rate at the black market where forex is traded unofficially remained stable at N480/$1. The exchange rate at the parallel market closed at N480/$1 on the previous trading day of February 1, 2021.

 <mailto:info at bulls.co.zw> 

Global Markets

British Pound Remains Under Pressure Against U.S. Dollar

GBP/USD is currently trying to settle below the support at the 20 EMA at 1.3655 while the U.S. dollar is losing some ground against a broad basket of currencies.

Yesterday, the U.S. Dollar Index managed to get above the resistance at 91.10 and made an attempt to develop additional upside momentum but did not manage to get above 91.30 and pulled back. If the U.S. Dollar Index declines below the 91 level, it will head towards the support at the 50 EMA at 90.80 which will be bullish for GBP/USD.

Today, foreign exchange market traders will focus on Services PMI reports from UK and U.S. Analysts expect that UK Services PMI declined from 49.4 in December to 38.8 in January due to the blow dealt by the extension of virus-related measures. In the U.S., Services PMI is projected to grow from 54.8 to 57.5.

The relative strength of the U.S. economic recovery has provided support to the American currency in recent weeks. If the upcoming U.S. economic reports look strong enough, the U.S. dollar may get additional support.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices today rise slightly after big fall over last 2 days, silver gains

Silver, in the previous session, had slumped 8% or ₹6000 amid sharp volatility in global rates

The government has cut import duty on gold and silver

Gold prices edged higher in Indian markets today after a big fall over the previous two sessions. On MCX, gold futures rose 0.2% to ₹47,947 per 10 gram after slumping ₹1,800 in previous two sessions as the government cut import duty on the precious metal. Silver prices on MCX attempted to rebound, rising 1.5% or ₹1000 per kg to ₹68,577 per kg. In the previous session, silver had slumped 8% or ₹6000 amid sharp volatility in global rates.

In global markets, gold prices rose to $1,844.48 an ounce, up 0.4%, supported by a retreat in US dollar. Silver futures rose 3.2% today to $27.25 an ounce after 8% plunge in the previous session. Silver has been in the spotlight after posts on the WallStreetBets Reddit forum called for a “short squeeze", with prices pushing higher as retail investors piled in. Analysts say that the social media-driven rally that started last week appears to have cooled off.

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

Counters trading under cautionary

ART

Seed co Int.

Dairibord

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 other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and sourced from third parties.

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