Bulls n Bears Daily Market Commentary : 09 February 2021

Tue Feb 9 15:04:47 CAT 2021

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Bulls n Bears Daily Market Commentary : 09 February 2021

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

ZSE commentary

At close, the All-Share Index was 0.40% up to 4 155.80 in a mixed session
which yielded 18 risers and 18 fallers. Unifreight, led the risers gaining
20.00% to 154.5c making it the best performing stock with a year-to-date
gain of 730.65%. National Foods was 19.97% higher at 8650c taking its
year-to-date gain to 43.93%. Nampak in the wake of its recently published
financial year results was up 19.86% to 554c, Lafarge closed at 2255c after
gaining 19.95% in the session. Art Corporation was up 17.63% to 700c.

The gains were erased by losses in Dawn Properties which is set for
delisting, which lost 19.98% to 32c, ZIMRE Holdings was 18.81% lower at
203.47c. Mashonaland Holdings was down 18.53% to 94.52c and Rio Zimbabwe and
Simbisa shaded 10.55% and 7.36% respectively. The Medium Cap Index was up
0.51% to 8 975.29 as the gains left the best performing index this year with
year-to-date gains of 63.45%. The Small Cap Index added 3.34% to 15 958.90.

The heavyweight Index saw gains of 0.31% to 2 594.28. There were only four
gainers in the Top 10, with Delta gaining 0.09% to 4803.98c. Econet put on
1.32% to 2001.42c. Ok Zimbabwe recovered from last week's losses as it
gained 4.91% to 1950c. These gains were enough to outweigh losses in CBZ,
which was down 0.28% to 9000c. There were marginal losses in Cassava and
Innscor of 0.20% and 1.22% respectively. The Old Mutual Top Ten ETF added
9.42% to 197.49c after 802 484 units with a value of ZW$1 584 816.80 in 66
trades exchanged hands..-wealthaccess

Global Currencies & Equity Markets

South Africa

Rand edges higher on stimulus hopesIn early trade the rand was at R14.83 per
dollar.

The rand firmed early on Tuesday, recovering from a slip in the previous
session as optimism about the passing of a stimulus programme in the United
States boosted risk demand.

At 0645 GMT the rand was 0.34% firmer at R14.83 per dollar against an
overnight close of R14.88 in New York.

US President Joe Biden's administration is pushing hard to conclude a $1.9
trillion stimulus package.

Analysts see the massive fiscal spending, coupled with continued ultra-easy
Federal Reserve monetary policy, dragging down the dollar in the longer
term, feeding demand for risk assets.

"The rand was supported by US stimulus optimism while better-than-expected
fiscal revenue performance ahead of the February budget speech boosted
sentiment," said analysts at NKC African Economics in a note.

The rand has also been supported by better than expected revenue collection,
rising commodity prices and a trade surplus led by exports.

With no major data due on Tuesday trade is expected to be choppy, with
markets also eyeing the local rollout of Covid-19 vaccines.

Bonds edged firmer, with the yield on the benchmark 2030 issue down 2 basis
points to 8.49%.

Nigeria

Naira Falls Against Dollar On I&E Window Market

Naira weakened against the U.S. dollar on the Investors & Exporters (I&E)
window of the foreign exchange market on Monday, data posted on the FMDQ
Security Exchange market where currencies are officially traded showed.

The local unit closed at N398.5 at the Monday trading session, representing
N2.33 or 0.6 per cent devaluation from N396.17, the rate at which it closed
at the previous session last week Friday.

Naira depreciated against the greenback currency as turnover contracted by
40.32 per cent, with $57.78million recorded as against the $96.82 million
posted on Friday.

The domestic currency experienced an intraday high of N385.00 and a low of
N402.00 before closing at N398.5 on the spot market (I&E window).

On the parallel market, data posted on abokiFX.com, the unofficial market in
Lagos where naira is traded, showed the domestic currency (naira) still
closed at N480 to a dollar. The same rate it traded since last week.

This leaves a spread of N81.50 between the unofficial market and the I&E
window exchange rates, which translates to a gap of 20.45 per cent.

The Nigerian naira weakened on the spot market a few days after the CBN
ordered Nigerian banks to close all cryptocurrency-related accounts with
effect from Friday last week.

The regulator prohibited all financial institutions from facilitating
cryptocurrency payments in the country.

The CBN's official rate on Monday at the I&E window was still N379 per
dollar.-Premium Times.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar retreats on U.S. recovery doubts; bitcoin tops $47,000 for first time

TOKYO (Reuters) - The dollar slumped to its lowest in a week on Tuesday as
investors began entertaining doubts about the scale of a recent rally driven
by expectations of a faster pandemic recovery in the United States than
elsewhere.

The spotlight remained on bitcoin as it reached a record above $47,000,
building on a nearly 20% surge overnight that was the biggest since 2017,
after Tesla Inc announced a $1.5 billion investment in the digital asset.

The dollar index weakened 0.2% to 90.75 in the Asian session, and dipped to
90.963 for the first time since Feb. 1.

The U.S. currency has been in retreat since Friday, when disappointing jobs
data knocked the wind out of a two-week run that had lifted it to a more
than two-month high of 91.6.

Investors had pushed up the greenback thanks to a faster U.S. vaccine
rollout relative to most other countries, and as Democrats moved to
fast-track President Joe Biden's $1.9 trillion COVID-19 relief package.

Many analysts, though, see that massive fiscal spending coupled with
continued ultra-easy Federal Reserve monetary policy dragging down the
dollar in the longer term.

Europe's "lagging" vaccination program will cap the euro near-term but the
continent should catch up by the summer, after which the single currency
could rally to $1.28 for the first time since 2014, he said.

The euro rose 0.2% to $1.20775 on Tuesday, up from the two-month low of
$1.9520 touched Friday.

The British pound renewed its highs since May 2018 by climbing to $1.3784 in
Asia. It last traded up 0.3% at $1.3774.

The dollar slipped 0.3% to 104.925 yen, after strengthening to 105.765 at
the end of last week for the first time since October.

Elsewhere, Tesla sent bitcoin surging by saying in its 2020 annual report on
Monday that it had bought $1.5 billion of the world's most popular
cryptocurrency as part of its broad investment policy, and that it expected
to begin accepting the digital asset as payment for its products "in the
near future."

Bitcoin traded at $46,400 after pushing to a new record at$47,565.86 on
Tuesday.

Rival virtual currency ethereum changed hands at $1,733.14 after reaching an
unprecedented $1,784.85 on Monday.

Riskier fiat currencies also received a boost as rising stock markets buoyed
sentiment.

The Australian dollar gained 0.3% to 77.252 U.S. cents, while its New
Zealand peer added 0.4% to 72.47 U.S. cents.

Westpac is targeting an advance to 75 U.S. cents for New Zealand's currency,
strategist Imre Speizer wrote in a client note published Tuesday.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold Gains for Third Day on Weaker Dollar With Stimulus in Focus

Gold climbed for a third day as the dollar and real Treasury yields
declined, with traders weighing prospects for a fast-tracked stimulus
package in the U.S.

The precious metal headed for the longest run of gains since Jan. 5 after
Democrats released the first draft of key legislation that will comprise
President Joe Biden's Covid-19 relief bill. Bets on a robust package of
support are helping to underpin market-derived inflation expectations, which
are at multiyear highs, and have fanned the so-called reflation trade.

Gold climbs a third day with stimulus, inflation in focus

Bullion is rebounding from the lowest level since the start of December. A
disappointing jobs report released Friday was taken as yet another sign
Biden will prevail in pushing through his stimulus package, boosting
inflation even as the economic recovery remains fragile. A report on
Wednesday is forecast to show U.S. consumer prices rising at a quickening
pace.

Spot gold advanced 0.7% to $1,842.83 an ounce by 12:44 p.m. in London.
Silver and platinum rose, while palladium fell. The Bloomberg Dollar Spot
Index dropped 0.3%.

Meanwhile, traders were also watching the surge in Bitcoin, which rallied on
Monday after Tesla Inc. bought $1.5 billion of the cryptocurrency, before
extending gains on Tuesday to notch a fresh record. The automaker said that
its revised policies also permit it to invest in gold.

Bitcoin's volatile ascent has spurred debate among banks whether the new
product will complement bullion, or challenge its status. In December,
Goldman Sachs Group Inc. said the pair will be able to coexist.

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
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opinions expressed and recommendations made are subject to change without
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