Bulls n Bears Daily Market Commentary : 15 February 2021

Mon Feb 15 18:03:03 CAT 2021

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Bulls n Bears Daily Market Commentary : 15 February 2021

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ZSE commentary

On the wider market, the All-Share Index closing the week 1.12% lower to 4 151.06. The market breadth was negative after recording 20 fallers against 15 risers. The stock market gained a marginal 0.48% as trading remained mixed. Turnover was 83% lower to ZW$13.3 million although activity levels were marginally lower at 310 trades. Turnall led the top 5 risers after gaining 19.88% to 113.25c. National Tyre Services followed after gaining 19.85% to close at 32.9c. National Foods which recently said it required US$40 million to import cereals till June, followed the risers gaining 18.51% to 15400c followed by Proplastics gaining 15.02% to close at 1955.31c. Art Corporation anchors the top 5 risers of the day after its quarterly trading update gaining 13.22%. The gains were reversed by losses in Rio Zimbabwe which shaded 11.36% to 1950c, African Sun followed the shakers pack after losing 9.47%. Simbisa was down 8.97% to 2101.89c and Dawn and Delta shaded 6.45% and 5.60% respectively.

Penny stocks continued to outperform the market today although without significant contribution to turnover. The Small Cap Index was up 5.93% as it shot past another psychological level to 19 824.19 mainly on the back of trades through the e-platforms. The Old Mutual Top Ten ETF shaded 0.12% to 179.55c after 74 445 units with a value of ZW$133 668 in 29 trades exchanged hands closing with a market capitalization of ZW$143.6 million.wealthaccess

Global Currencies & Equity Markets

South Africa

South Africa's rand firmer on improving economy, global yield hunt

JOHANNESBURG (Reuters) - South Africa’s rand firmed early on Monday, hurdling the key technical level of 14.50 on its way to a one-year best as signs of a local economic rebound and continued stimulus in the United States lifted demand for the currency.

At 0700 GMT, the rand was 0.5% firmer at 14.4775 per dollar, a touch off the session best of 14.4625 which is its strongest since January 2020.

Crucially, it was the first time since early January the unit broke below the 14.50 technical resistance mark seen as a buy-target by traders.

Last week, South Africa recorded a better-than-expected expansion in industrial production, up 1.8% in December, while mining output also inched up, suggesting faster economic momentum in 2021 following the coronavirus-induced contraction in 2020.

Finance Minister Tito Mboweni is set to deliver the 2021 budget on Feb. 24, showing better-than-forecast revenue collection.

South African assets often rally in the weeks ahead of the budget, falling thereafter, according to analysts. The rand is up around 1% year-to-date against the dollar.

Bonds were flat, with the yield on benchmark 10-year government issue steady at 8.520%

Nigeria

Nigeria naira quoted at record low in one-month forward market

ABUJA: The one-month forward contract on the Nigerian naira hit a record low against the US dollar on Monday after the spot market on Friday eased to a record low.

One-month naira non-deliverable forwards stood at 416 points, from Friday's close of 414, Refinitiv data showed. Spot market naira closed at a record low of 410.50 per dollar on the over-the-counter market on Friday.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar rises to around ¥105.20 in Tokyo

The dollar climbed to around ¥105.20 in Tokyo trading Monday, pulled up by a rise in Japan’s 225-issue Nikkei average.

At 5 p.m., the dollar stood at ¥105.17, up from ¥104.92 at the same time Friday. The euro was at $1.2131, up from $1.2115, and at ¥127.59, up from ¥127.12.

The dollar got a boost from the Nikkei’s rise above 30,000 for the first time in over 30 years and the strength of the euro and currencies of resource-rich nations.

Players were fewer than usual as markets in China and the United States are closed Monday for holidays.

An official at a Japanese bank said that players are “reacting to stock prices and interest rates at home and abroad, while looking for new trading incentives.”

There is an increasing risk-on mood thanks to higher stock and crude oil prices, making both the dollar and the yen susceptible to selling. But a currency broker said “the dollar is firmer against the yen due to higher U.S. long-term interest rates.”

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold declines marginally

Gold prices declined marginally by ₹19 to ₹46,826 per 10 gram in New Delhi on Feb. 15 in line with weak global cues and rupee appreciation, according to HDFC Securities.

In the previous trade, the precious metal had closed at ₹46,845 per 10 gram.

Silver, however, gained ₹646 to ₹69,072 per kg from ₹68,426 per kg in the previous trade.

The rupee strengthened by 14 paise to 72.61 against the U.S. dollar in opening trade on Monday.

In the international market, gold was trading lower at $1,819 per ounce and silver was flat at $27.48 per ounce.

Platinum Soars Past $1,300 an Ounce for First Time in Six Years

Platinum surged above $1,300 an ounce for the first time in more than six years on bets that a recovery in industrial demand and stricter emissions rules will tighten supply of the metal. Gold edged lower.

Tougher pollution regulations requiring vehicle makers to use more platinum in catalytic converters are supporting prices, said Margaret Yang, a strategist at DailyFX. Platinum has gained 21% this year, narrowing the steep discount with sister-metal palladium, which was the star performer over the two previous years.

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After years of surpluses, Covid-19 mine shutdowns in South Africa saw the platinum market deficit widen to 400,000 ounces in 2020, Johnson Matthey said in a report last week. While the market could return to a surplus this year, disruptions at a key refinery in the country improved the immediate outlook for the metal.

Platinum futures rose as much as 4.4% to $1,314.40 an ounce. Spot platinum rose as much as 4% to $1,306.22 an ounce, the highest level since September 2014, and traded at $1,294.60 as of 1:20 p.m. in London.

Platinum futures trade above $1,300 for the first time since 2014

The outlook for prices will partly depend on whether investment demand -- from those expecting a catch-up to gold and palladium -- remains supportive.

Gold slipped as investors weighed the slowing pace of coronavirus infections, as well as immunization programs globally, and the impact on growth. U.S. markets are shut for Presidents’ Day, while exchanges in China, Hong Kong and Taiwan also are closed Monday.

The precious metal has retreated about 4% this year amid higher Treasury yields, which diminish the appeal of bullion because it pays no interest. Still, the haven asset has gained support from bets that more stimulus will be inflationary and that a recovery from the pandemic will weigh on the dollar.

Spot gold fell 0.2% to $1,821.44 an ounce in London, after climbing 0.6% last week. Silver and palladium advanced. The Bloomberg Dollar Spot Index declined 0.1%.

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 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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