Bulls n Bears Daily Market Commentary : 19 February 2021

Fri Feb 19 16:04:56 CAT 2021

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Bulls n Bears Daily Market Commentary : 19 February 2021

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

ZSE commentary

The All-Share Index closed today 2.10% lower to 3 921.68 as the ZSE closed the week sliding into the negative territory. The loss was mainly on the back of Top 10 stocks loses. Heavyweight stocks lost 2.35% where CBZ, Econet and Cassava shaded 9.27%, 1,92% and 5.33% respectively. The Small Cap Index gained marginally by 0.56% as it eases on the massive gains which were recorded in the previous trading sessions. Unifreight led the top 5 risers after gaining 19.94% to 383.50c maintaining its lead this year in terms of year to date gains. National Tyre Services followed after gaining 19.82% to close at 68c as it continues with its upward trend this week.

General Beltings followed the risers gaining 17.87% to 24.75c followed by Hippo gaining 6.25% to close at 10 099.74c. NMB anchors the top 5 risers of the day after gaining 5.33%. The gains were reversed by losses in Mash which shaded 11.52% to 102.41c, Truworths followed the shakers pack after losing 11.28%. African Sun was down 10.73% to 154.56c and CBZ and TSL pared 9.27% and 6.56% respectively.

Daily turnover improved to ZW$149.6 million, as FML led with $52.4 million while Miekles at $19.9 million and TSL ZW$15 million were the other high turnover stocks in the session. The Old Mutual Top Ten ETF shaded 0.19% to 179.66c after 52 379 units with a value of ZW$94 105.70 closing with a market capitalization of ZW$143.7 million.- wealthaccess

Global Currencies & Equity Markets

South Africa

Rand trading at R14,56 to the dollar

The rand is trading at R14,56 to the dollar, R20,35 to the pound and R17,62 to the euro.

Markets in Asia are mainly weaker. Hong Kong’s Hang Seng has shed 0.3%, and markets in India are slightly down. Mainland China’s markets closed 1/2% firmer, while Japan’s Nikkei was 0.7% lower.

The JSE is mainly lower in early trade. The All Share index has shed 0.3% to 66 400, the Industrial 25 index is slightly down, the Top 10 Resources has declined by 0.7%, Financials are flat, the platinum mining index has weakened by 1/2% and the gold mining index is slightly up.

On the capital market, the yield on the R186 government bond is 6.98% and the yield on the R2030 is at 8.73%.

Markets in Europe look set to open flat, while gold is trading at $1772 and platinum at $1260 per ounce. The price of Brent crude oil is at $63, 37 a barrel.

Nigeria

Naira gains at parallel, I&E markets

The currency gained 0.54 per cent at the spot market.

Naira strengthened against the U.S. dollar at the Investors & Exporters (I&E) window of the foreign exchange market on Thursday, data from the FMDQ Security Exchange showed.

The currency also gained on the parallel market.

At the spot market, Naira closed at N407.80 at the Thursday trading session, representing N2.20 or a 0.54 per cent on N410.00, the rate at which it closed at the previous session on Wednesday.

The appreciation took place as turnover rose by 34.93 per cent, with $62.69 million recorded as against the $40.79 million posted on Wednesday.

The local unit experienced an intraday high of N390 and a low of N424.15 before closing at N407.80.

Also, naira gained at the parallel market, data posted on abokiFX.com, a website that collates parallel market rates in Lagos showed.

According to the data, naira exchanged hands with the greenback at N477 to a U.S dollar, representing a 0.21 per cent over N478 it closed at the previous session on Wednesday.

This leaves the spread between the unofficial market and the I&E window exchange rates to N69.2, which translates to a gap of 14.51 per cent.

The CBN’s official rate on Thursday was still N379 per dollar.

 <mailto:info at bulls.co.zw> 

Global Markets

Gold prices today down at 8-month lows after falling for 6th day in a row

Gold and silver prices in India continued their decline in Indian markets as global rates also softened amid rising US bond yields. On MCX, gold futures slipped 0.33% to ₹45.963 per 10 gram to near the lowest level in 8 months, while silver futures fell 0.1% to ₹68435. After a huge rally in 2020 which pushed rates to record highs of ₹56,200 in August, gold rates in India are down about 8% or 4,000 per 10 gram so far this year.

MCX gold holds major support at ₹46,000 levels which when breached with heavy volume may lead to heavy decline in the upcoming sessions, says Kshitij Purohit, Lead – International & Commodity, at CapitalVia Investment Advisor.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold edges up as dollar and Treasury yields ease

(Reuters) - Gold bounced off a 2-1/2-month low as the U.S. dollar and Treasury yields eased on Thursday, though analysts said optimism over economic recovery left bullion vulnerable to further corrections.

Spot gold rose 0.7% to $1,788.16 an ounce by 1308 GMT, having touched its lowest since Nov. 30 at $1,768.60 on Wednesday. U.S. gold futures advanced 0.6% to $1,783.20.

The dollar retreated, bolstering gold’s appeal to other currency holders.

Benchmark 10-year Treasury yields pulled back after hitting their highest since the end of February 2020 on Wednesday, reducing the opportunity cost of holding non-yielding bullion.

Also supporting gold, the U.S. Federal Reserve on Wednesday reiterated its pledge to keep interest rates near zero until inflation and employment pick up.

However, gold is having a tough time trying to win over investors as an inflation hedge, with other assets favoured instead, FXTM’s Tan said.

Optimism over an economic recovery was bolstered by strong U.S. retail sales data on Wednesday.

On the technical front, a dip in gold’s 50-day moving average below the 200-day moving average could lead to more selling, analysts said.

Autocatalyst metal platinum also advanced 1.5% to $1,271.94 an ounce.

Elsewhere, palladium rose 0.4% to $2,380.53 and silver lost 0.2% to $27.29.

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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