Bulls n Bears Daily Market Commentary : 16 February 2021

Tue Feb 16 16:17:34 CAT 2021

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Bulls n Bears Daily Market Commentary : 16 February 2021

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

ZSE commentary

The All-Share Index closed the day 2.07% lower to 4 065.25 as the market
continued on its losing streak. The market breadth was negative after
recording 21 fallers against 13 risers. Turnover improved in today's session
to ZW$99 999 703.73 and activity levels were marginally higher at 355
trades. National Foods led the top 5 risers after gaining 20.00% to 18 480c.
National Tyre Services followed after gaining 19.91% to close at 39.45c. the
clothing retailer Edgars followed the risers gaining 19.18% to 325.91c
followed by Turnall gaining 14.79% to close at 130c. Rio Zimbabwe anchors
the top 5 risers of the day after gaining 12.75%.

The gains were reversed by losses in First Mutual Holdings which shaded
16.48% to 1503.30c, Seed Co followed the shakers pack after losing 10.71%.
Delta was down 8.31% to 4240.71c and Masimba Holdings and OK Zimbabwe shaded
7.51% and 6.76% respectively. Penny stocks continued to outperform the
market today. The Small Cap Index was up 9.00% as it shot past another
psychological level to 21607.46 mainly on the back of trades through the
e-platforms. The Old Mutual Top Ten ETF added 0.06% to 179.66c after 64 686
units with a value of ZW$116 215.94 in 25 trades exchanged hands closing
with a market capitalization of ZW$143.7 million.- wealthaccess

Global Currencies & Equity Markets

South Africa

Rand stays on the front foot

JOHANNESBURG - The rand continued to strengthen on Monday, maintaining the
strong momentum observed last week according to NKC Research.

Traders highlighted that the local unit has now dropped below the 200-week
moving average, with February 2019 being the last time the rand dropped
below the long-term average, as investors continue to seek out
higher-yielding currencies.

This week's inflation figures are expected to hold little surprise with
price pressures remaining muted. Our analysis shows that most EM currencies
benefit from higher commodities insofar as they are a reflection of a strong
global industrial cycle - strong industrial growth typically means faster
non-US growth and consequently a weaker dollar.

Commodities are structurally cheap relative to equities, which mirrors the
structural cheapness of EM currencies relative to the greenback and
indicates scope for significantly greater recovery in some EM currencies.
That said, the biggest risk to EM lies in a sharp repricing higher in US
real yields.

At the close of local trade, the rand quoted 0.67 percent stronger at
R14.52$, after trading in range of R14.42/$ - R14.56/$. The rand extended
gains overnight. Expected range today R14.35/$ - R14.60/$.

South African bourse

The JSE All Share (+3.18 percent) was broadly higher yesterday, thanks to
gains in large technology (+4.00 percent) and resources (+4.23 percent)
stocks. In the overall emerging market sphere, the MSCI Emerging Market
Index traded flat at 1,439.2 pts.

Brent crude oil

The Brent oil price traded at levels last seen over a year ago due to fears
of heightened tensions in the Middle East. At the close of local trade,
benchmark Brent crude futures quoted 1.35 percent higher at $63.25pb. Crude
prices traded stronger during Asian trade this morning.

BUSINESS REPORT ONLINE

Nigeria

Again, Naira Falls Against Dollar On I&E Window

The currency remains stable on the parallel market.

Nigeria's naira weakened for the second day against the U.S. dollar at the
Investors & Exporters (I&E) window of the foreign exchange market on Monday,
according to data from the FMDQ Security Exchange market where currencies
are officially traded.

The domestic currency closed at N409.67 at the Monday trading session. This
signifies a N5 or 1.24 per cent devaluation from N404.67 it closed at the
previous session on Friday last week.

The currency depreciated against the greenback as turnover nosedived by
242.08 per cent, with $28.21 million recorded as against the $96.50 million
posted on Friday.

On the spot market (I&E), the naira saw an intraday high of N390.00 and
oscillated to a low of N422.99 before closing at N409.67.

However, naira remained stable on the parallel market, according to data
posted on abokifx.com, the unofficial market that collates data in Lagos,
where naira is traded.

It showed the currency closed at N473 in Lagos, the same rate it exchanged
with the dollar on Friday.

This leaves a spread of N63.33 between the unofficial market and the I&E
window exchange rates, which translates to a gap of 15.46 per cent.

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 stuck at 3-week lows as quick U.S. recovery bets fade

The U.S. dollar held at three-week lows on Tuesday as traders unwound some
of their bullish bets on the U.S. economy's outlook after weak surveys data
last week.

U.S. consumer sentiment unexpectedly fell in early February amid growing
pessimism about the economy among households with annual incomes below
$75,000, according to a University of Michigan survey. A separate Reuters
survey showed slower jobs growth in the coming months. and

As a result, a Citigroup economic surprise index for the United States fell
to its lowest level since early January and was just shy of a eight month
low, suggesting hopes for a quick U.S. economic recovery may be stretched.

Against a basket of its rivals, the greenback weakened 0.2% to 90.13, its
lowest level since Jan. 26. It has fallen 1.5% over the past eight trading
sessions.

The latest dollar weakness was more noticeable as it was against a broader
backdrop of rising U.S. Treasury yields, a factor that was previously
supportive of the greenback.

The dollar selling mood also dragged on the safe-haven Japanese yen, which
fell through its 200-day moving average against the dollar and struck
multi-year lows against the euro, Aussie and Swiss franc.

Sterling, extended gains to hit $1.3946, its highest level since April 2018
as Britain rolls out its vaccination programme to the next target groups.
The currency has gained almost 3% from early-February lows.

The euro rose 0.3% higher to $1.2166 to re-test recent resistance at that
level. Rising oil prices lifted the Canadian dollar and Norwegian crown to
multi-week highs.

The Chinese yuan slipped 0.1% to 6.4132 per dollar after the Financial Times
reported Beijing was exploring curbs on rare earth mineral exports in order
to hurt the U.S. firms that use them.

The dollar traded near milestone lows against other currencies. The
risk-sensitive Australian dollar hit a one-month high of $0.7802 and the
kiwi made a five-week peak of $0.7257.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold price today: Yellow metal trades higher, Rs 47000 crucial support

Experts are of the view that precious metals may remain choppy but the
general bias would be on the upside amid weak dollar.

India Gold MCX April Futures are trading in the green on February 16
following positive trend seen in the international spot prices. Silver March
Futures were trading higher by nearly 1 percent.

On the Multi-Commodity Exchange (MCX), April gold contracts were trading
higher by 0.37 percent at Rs 47,418 for 10 grams at 0920 hours. March silver
futures were trading 0.85 percent higher at Rs 70,728 a kilogram.

Experts are of the view that precious metals may remain choppy but the
general bias would be on the upside amid weak dollar. Crucial support for
the precious metal is placed at Rs 47000.

Gold and silver traded steady on Monday and settled on a slightly weaker
note in the international markets. Gold April futures contract settled at
$1823.20 per troy ounce and silver March futures contract settled at $27.33
per troy ounce.

Both precious metals settled on a mixed note in the domestic markets. Data
suggests that hedge funds are cooling on gold as they reduce their exposure
across the board, according to the latest data from the commodity futures
trading commission.

Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold dipped on Monday, however, silver surged higher on Monday
supported by industrial demand for the metal.

Domestic gold and silver prices ended mixed with gold ending in the red,
while silver, tracking overseas prices, surged on Monday.

Gold downside remained capped as the U.S. Dollar continued to remain on the
weaker side on Monday.

Domestic gold and silver could trade flat, tracking the overseas markets.

Technically, MCX Gold April ended below Rs 47500 and will continue its
Bearish momentum up to Rs 47100-46900 levels. Resistance is at Rs
47500-47650 levels.

MCX Silver March has bounced back from Rs 69000 levels which could take
prices up to Rs 70800-71880 levels. Support is at Rs 69700-68000 levels.

Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

COMEX gold trades little changed near $1825/oz as support from weaker US
dollar, mixed economic data from major economies, and hopes of additional US
stimulus is countered by higher bond yields, improvement in virus situation,
and continuing ETF outflows.

Gold may remain choppy unless there are fresh triggers, however, general
bias may be on the upside amid weakness in the US dollar.

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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