Bulls n Bears Daily Market Commentary : 12 February 2021

Fri Feb 12 16:38:28 CAT 2021

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Bulls n Bears Daily Market Commentary : 12 February 2021

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

ZSE commentary

On the wider market, gains were marginal with the All-Share Index closing
the week 0.50% higher to 4 198.26. The market breadth was negative after
recording 21 fallers against 19 risers. The stock market was near flat for
the third day running as trading remained mixed. Turnover was 3.44% lower to
ZW$78.3 million although activity levels were marginally higher at 340
trades. National Foods which recently said it required US$40 million to
import cereals till June, led the risers gaining 19.99% to 12995c followed
by this year's best performer Unifreight continuing on its upward trend
today gaining 19.91% to close at 266.5c. Star Africa was at 50c after
gaining 18.46%, Edgars and Wildale anchors the top 5 risers of the day after
gaining 16.68% and 16.15% respectively. The gains were reversed by losses in
Proplastics which shaded 15% to 1700c, Art Corporation followed the shakers
pack after losing 14.90%. General Beltings was down 14.47% to 20.53c and Ok
Zimbabwe and Padenga Holdings shaded 10.72% and 6.26% respectively.

Penny stocks continued to outperform the market today although without
significant contribution to turnover. The Small Cap Index was up 5.69% as it
shot past another psychological level to 18714.40 mainly on the back of
trades through the e-platforms. The Index is still however the least
performing index in the year to date at 57.08%. The Old Mutual Top Ten ETF
shaded 0.97% to 179.77c after 794 028 units with a value of ZW$1 427 438.15
in 59 trades exchanged hands closing with a market capitalization of
ZW$143.8 million.wealthaccess

Global Currencies & Equity Markets

South Africa

South Africa's rand weakens in early trade

South Africa's rand inched down early on Friday, following its near-2% gain
recently, while President Cyril Ramaphosa's state of the nation address
(SONA) last night failed to detail any new reforms.

(Reuters) - South Africa's rand inched down early on Friday, following its
near-2% gain recently, while President Cyril Ramaphosa's state of the nation
address (SONA) last night failed to detail any new reforms.

At 0630 GMT, the rand ZAR=D3 was 0.14% weaker at 14.6400 per dollar, little
moved from its overnight close of 14.6200.

The rand strengthened nearly 2% in the past four sessions and is set to post
a more than one month best of 14.6075, mostly taking its cues from offshore
events such as the dollar's recent slide.

There has been a divergence in views among traders this year over just how
U.S. President Joe Biden's planned $1.9 trillion fiscal stimulus package
will affect the dollar.

So far, expectations of continued monetary policy accommodation have left
the greenback reeling and risk currencies in favour.

In his address on Thursday evening President Ramaphosa said the country, hit
hard by a second wave of COVID-19, would undertake a massive vaccination
program.

Ramaphosa said South Africa had secured 9 million doses of the J&J vaccine,
while another 20 million doses of the vaccine from Pfizer and BioNTech were
also on their way.

Nigeria

Nigerian naira extends spot losses on dollar scarcity

The Nigerian currency has been weakening on the spot market, widely quoted
by foreign investors and exporters.

ABUJA: The Nigerian naira weakened by 0.57% to 403.29 per dollar on the
over-the-counter spot market on Thursday, extending losses against the US
currency as the local market struggled with a scarcity of foreign exchange.

The Nigerian currency has been weakening on the spot market, widely quoted
by foreign investors and exporters, since February because of dollar
shortages. The naira has also eased on the derivatives market.

 <mailto:info at bulls.co.zw> 

Global Markets

Bitcoin clings to Tesla gains, dollar set for weekly loss

In early European trade, the dollar index edged up 0.15% to 90.55 after
subdued volumes in Asia due to the Lunar New Year.

It was on track to fall 0.5% for the week.

Bitcoin hovered close to record highs on Friday, set for gains of over 20%
in a milestone week marked by the endorsement of major firms.

Bitcoin hovered close to record highs on Friday, set for gains of over 20%
in a milestone week marked by the endorsement of major firms, such as Elon
Musk's Tesla, while the weak U.S. jobs market continued to weigh on the
dollar.

The world's most popular cryptocurrency last traded 1.1% down at $47,451,
just south of a record high of $49,000 reached after U.S. banking group BNY
Mellon said it had formed a unit to help clients hold, transfer, and issue
digital assets.

Tesla revealed it had bought $1.5 billion worth of the cryptocurrency and
BlackRock, the world's largest asset manager, added bitcoin as an eligible
investment to two funds.

Credit card giant Mastercard's plans to offer support for some
cryptocurrencies also boosted bitcoin's ambitions towards mainstream
finance, but many banks are reluctant to engage with it.

Elsewhere the dollar headed for its first losing week in three as signs of
weakness in the U.S. jobs market dented investor expectations about the pace
of economic recovery from the pandemic.

In early European trade, the dollar index edged up 0.15% to 90.55 after
subdued volumes in Asia due to the Lunar New Year. It was on track to fall
0.5% for the week.

The dollar was slightly up against the yen at 104.940.

The weaker-than-expected weekly U.S. jobless claims data on Thursday added
to concerns the dollar's previous rally had priced in too fast a rebound for
the U.S. economy.

There has been a divergence in views among traders this year over how U.S.
President Joe Biden's planned $1.9 trillion fiscal stimulus package will
affect the dollar.

Some see it as bolstering the currency as it should speed a U.S. recovery
relative to other countries, while others reckoned it would feed a global
reflation narrative that should lift riskier assets at the dollar's expense.

The euro slipped 0.17% to $1.2115, consolidating for a third day near that
level as it headed for a 0.5% weekly advance.

The common currency was flat against the pound at 0.876 after official
figures showed Britain's coronavirus-ravaged economy slumped by 9.9% in
2020, the biggest annual crash in more than 300 years, but avoided heading
back towards recession at the end of last year.

Norway's crown strengthened slightly and pared some losses against the euro
after data showed the country's economy contracted by 2.5% last year, a
decline less severe than in most other European nations.

It traded last at 10.2940, down 0.1% against the euro.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold slips on dollar rebound; platinum rally pauses

Gold slipped on Friday as the dollar rebounded, while platinum took a
breather after expectations of a rebound in industrial demand drove a rally
to a more than six-year peak and put it on course for its best week in two
months.

Spot gold fell 0.6% to $1,815.30 per ounce by 1009 GMT. U.S. gold futures
slipped 0.5% to $1,816.90.

The dollar edged up 0.2%, reducing gold's appeal for other currency holders.

Strength in European shares, which are set for a second consecutive week of
gains, also weighed on safe-haven gold.

Still expectations for a stimulus package in the United States helped to put
gold prices on course for a 0.2% rise this week, which would be its first
weekly rise in three.

Investors often buy gold to hedge possible risks of inflation that could be
spurred by massive stimulus.

Spot platinum fell 1% to $1,222.47 an ounce after prices scaled a more than
six-year peak of $1,268.88 on Thursday.

The autocatalyst metal was set for an 8.9% weekly gain, which would be its
best since early December.

But expectations for a rebound in industrial production and the automotive
sector this year should lift the metal, he added.

Silver gained 0.2% to $26.99 an ounce and palladium rose 0.1% to $2,347.97.

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
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