Bulls n Bears Daily Market Commentary : 23 February 2021

Tue Feb 23 15:06:08 CAT 2021

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Bulls n Bears Daily Market Commentary : 23 February 2021

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

ZSE commentary

The All-Share Index closed today 1.61% higher to 3 984.96. The Small Cap
Index gained by 3.10% and the Top 10 Index, Top 15 Index and the Medium Cap
Indices all closed the day in the positive territory gaining 0.95%, 0.70%
and 2.77% respectively. The cement manufacturer Lafarge led the top 5 risers
after gaining 20.00% to 2760c, National Foods followed after gaining 19.99%
to close at 22175c as it continues with its upward trend. Padenga Holdings
followed the risers gaining 19.95% to 3390c followed by Unifreight  gaining
19.95% to close at 460c. Mashonaland Holdings  anchors the top 5 risers of
the day after gaining 16.89%. The gains were reversed by losses in Seed Co
which shaded 13.46% to 2160.89c, Turnall followed the shakers pack after
losing 13.03%. Zimre was down 11.79% to 202.77c and Truworths and CBZ pared
9.18% and 5.99% respectively.

Daily turnover declined to ZW$51.75 million, as FML led with $20.7 million
while Masimba at $7.5 million and Econet close by at ZW$7.3 million were the
other high turnover stocks in the session. The Old Mutual Top Ten ETF shaded
2.56% to 175.06c after 173 028 units with a value of ZW$302 895 closing with
a market capitalization of ZW$140 million..- wealthaccess

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

Global Currencies & Equity Markets

South Africa

South Africa's rand gains as dollar falters

(Reuters) - South Africa's rand firmed early on Tuesday after the dollar
weakened as investors awaited U.S. Federal Reserve Chairman Jerome Powell's
possible comments on inflation, while domestic focus remained on an upcoming
budget speech.

At 0635 GMT, the rand ZAR=D3 traded at 14.6500 against the greenback, 0.27%
firmer than its previous close.

The U.S. dollar nursed losses near a six-week low on Tuesday.

Traders expect Powell, who testifies before Congress at 1500 GMT, to provide
some reassurance that the Fed will tolerate higher inflation without rushing
to raise rates. That might calm bond markets and eventually weigh on the
dollar, they said.

Locally, investors await details of South Africa's fiscal consolidation path
in Finance Minister Tito Mboweni's budget speech on Wednesday.

A Reuters poll last week showed South Africa's consolidated fiscal deficit
is expected to narrow this year because of an economic rebound, but the
long-term trend of higher debt remains unchanged due to COVID-19 and
pre-existing spending.

Statistics South Africa will also publish unemployment numbers for the last
quarter of 2020 on Tuesday.

Government bonds firmed in early deals, and the yield on the benchmark
instrument due in 2030 ZAR2030= dipped 8 basis points to 8.945%.

Nigeria

Naira Loses Against Dollar At Parallel Market

The currency was stable on the investors and exporters window and at the
spot market.

Naira weakened against the U.S. dollar at the parallel market on Monday,
data from AbokiFX.com, a website that collates parallel market rates in
Lagos, showed.

However, the currency remained stable on the Investors and Exporters window.
At the spot market, NAFEX, naira closed at 408.25 to the dollar, recording
no change against Friday rate.

Naira closed at N480 at the Monday trading session of the black market,
representing N2.0 or 0.42 per cent devaluation from N478.00, the rate at
which it closed at the previous session on Friday last week.

Meanwhile, at the I&E window of the foreign exchange market, data from the
FMDQ Security Exchange where forex is officially traded showed naira
remained unchanged from the rate it traded in the previous session.

According to the FMDQ data posted, naira, again exchanged with the greenback
currency at N410.00 at the trading session on Monday, the same rate it
closed at the previous session on Friday.

The currency maintained similar spot as turnover plummeted by 20.89 per
cent, with $52.58 million recorded as against the $66.46 million posted on
Friday.

The CBN's official rate on Monday was still N379 per dollar.-Premium Times.

 <mailto:info at bulls.co.zw> 

Global markets

U.S. dollar closes lower on Taipei forex market

(CNA) The U.S. dollar fell against the Taiwan dollar Tuesday, shedding
NT$0.034 to close at NT$28.302.

Turnover totaled US$1.158 billion during the trading session.

The greenback opened at NT$28.140, and moved to a low of NT$27.884 before
rebounding to the close, the highest level for the day.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper prices surge to $9,000

COPPER prices yesterday extended gains to cross the US$9,000 threshold for
the first time since September, 2011 driven by a weaker United States
dollar.

The commodity is Zambia's major export earner, was also supported by hopes
that demand in top consumer China will pick up after the Lunar New Year
holiday break.

Reuters reports that three-month copper on the London Metal Exchange climbed
as much as 3.3 percent to US$9,199 a tonne, the highest since September
2011.

Gold and silver are mixed heading into the EU session

(Kitco News) - Gold and silver moved into the EU session mixed as the yellow
metal just holds its head above water to trade at $1809/oz. After a decent
session yesterday where silver pushed over 3% higher this morning the
precious metal has dropped just 0.28%.

After a mixed close on Wall Street, the Nikkei 225 (0.46%) and ASX (0.86%)
managed to push higher. No such joy for the Chinese bourses as the Shanghai
Composite fell 0.17%. 

In the FX markets, the dollar index trades flat but NZD and CAD
underperformed overnight. NZD/USD trades 0.17% lower while USD/CAD trades
the same amount in the opposite direction. 

Copper has once against pushed higher but this time it is only around 0.65%
and spot WTI has also moved 0.53% in the right direction.

In overnight news, it was reported that Swiss gold exports to India in
January climbed 12% m/m to 38.7t. It has been said that the current bounce
back in the precious metal is been due to physical demand.

In terms of data leading into the EU session, the UK January jobless claims
change came in at -20.0k vs 7.0k prior. China January new home prices jumped
+0.3% m/m (prior +0.1%) and +3.9% y/y (prior +3.8%). New Zealand Retail
sales excl. inflation for Q4 2020 fell -2.7% q/q vs the expected reading of
-0.5%.

As the trade issues mount with China, Australian exports of goods in January
2021 declined $3,047m (-9%) to $32,126m and importantly exports to China
declined $1,112m (-8%).

Sticking with Australia, PM Morrison confirms temporary coronavirus job
support programs will expire end-March. The government also announced an
extra $25/week in unemployment benefits.

As things normalise in China, the state media agency has said the recovery
in economic growth paves the way for monetary policy normalization.

Over in the US as we see yield's rise, the money markets are now predicting
a Fed rate hike by 2022 of 25bps. 

Looking ahead to the rest of the session highlights include EU CPI, US CB
consumer confidence, Case Shiller HPI, Comments from Fed Chair Powell and
BoC's Macklem

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
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
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for guideline purposes only and sourced from third parties.

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