Bulls n Bears Daily Market Commentary : 06 January 2021

Wed Jan 6 17:06:42 CAT 2021

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Bulls n Bears Daily Market Commentary : 06 January 2021

 <http://www.zb.co.zw/> 

ZSE commentary

The All Share Index shaded 115.79 points to close at 2 467.24 points (4.48%). The Top 10 Index and the Top 15 Index registered 4.98% and 5.01% losses respectively. The

Medium Cap Index and the Small Cap index also declined 3.53% and 2.78% respectively by close of trading. The ZSE market capitalization was at ZWL$295.2 billion. Gains for the day were registered in Truworths and National Foods  which strengthened by 20.00% to close at 40.8c and 19.97% to close at 7210c respectively. Financial Holdings company ZB added 19.97% to close at 3455c and the cement manufacturer Lafarge settled at 1100c after gaining by a margin of 14.58%. Gains were offset by Dawn Properties  which closed the day at 43.25c following a decrease of 19.91%, the agro firm TSL  edged down by 19.81%, conglomerate Innscor shaded 17.60% to 2928.89c, Zimplow Holdings  was 16.20% down to 419.01c while FML settled at 900c after easing 14.29%.

Total turnover was at ZW$15 143 311.65 in 235 trades. FCA was the most active on 22 trades. The market breath was negative after 25 stocks closed in the red and 10 traded higher. Total trades were 235 with 4 counters remaining unchanged and 12 with zero volume.- wealthaccess

Global Currencies & Equity Markets

South Africa

Rand muted as investors eye Covid-19 council meeting

JOHANNESBURG - The rand weakened slightly in early Wednesday trade against the dollar, due to speculation about further lockdown restrictions that could see the domestic economy come under further strain as infections continue to mount.

The country's national coronavirus command council is due to meet at 0700 GMT amid rising Covid-19 cases, sparking the speculation. The meeting comes as deaths due to the coronavirus surpassed 30,000 on Monday.

At 0625 GMT, the rand edged down 0.07 percent to 15.0000 against the dollar from an overnight close of 14.9900.

The rand opened the session at 15.0025, after breaching the 15 rand mark on Tuesday, and quickly lost more ground, hitting a session weakness of 15.0800.

Bonds weakened, with the yield on the benchmark 2030 government issue up 1.5 basis points to 8.700 percent.

REUTERS

Nigeria

Naira gains at NAFEX window as CBN’s intervention in forex market continues

The Naira appreciated against the dollar at the Investors and Exporters (I&E) window on Tuesday, closing at N393.83/$1.

On January 5, 2020, the exchange rate between the naira and dollar closed at N393.83/$1, the second trading day of 2021 at the Investors and Exporters’ (NAFEX) window where forex is traded officially.

This is an appreciation from the N394.30 recorded on the previous trading day, January 4, 2021.

Nairametrics understands that intervention by the Central Bank of Nigeria has forced prices further down on Tuesday, sustaining the appreciation recorded on the last day of trading after the sharp depreciation recorded on the last trading day of 2020.

We also reported last week that the latest round of adjustment at the I&E window is temporary as the rates could fall back below N400/$1.

 <mailto:info at bulls.co.zw> 

Global Markets

Canadian dollar flirts with 79 cents US for 1st time since 2018

The value of Canada's dollar approached 79 cents US for the first time in almost three years on Tuesday, as higher oil prices helped the loonie soar.

The loonie was changing hands at 78.95 cents US early in the afternoon, its highest level since April 2018.

The biggest catalyst for the move was the higher price of a barrel of oil, as the Organization of Petroleum Exporting Countries (OPEC) agreed to not flood the market with cheap oil for a little while longer.

The price of barrel of the North American oil benchmark known as West Texas Intermediate gained almost five per cent to trade above $50 US a barrel after Saudi Arabia and Russia avoided a breakdown of their deal to limit supply, which they have begrudgingly been doing for about a year now.

Oil also got a boom from data out of the U.S. that showed manufacturing activity rose to its highest level since 2018. A healthy manufacturing sector suggests the economy is recovering, which should increase demand for oil.

As it often does, the loonie rode the wave of higher oil prices to new highs for itself.

After bottoming out in March below 69 cents US, the Canadian dollar has risen steadily ever since.

The start of the calendar year is often a strong time for the U.S. dollar, but that isn't happening this year, said Shaun Osborne, Scotiabank's chief foreign exchange strategist. After spending most of 2020 running for the safe haven of U.S. dollars, investors are starting to find their appetite for risk again, he said.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper hits near 8-year high on more U.S. stimulus hopes

(Reuters) - Copper prices climbed to their highest in nearly eight years on Wednesday amid hopes for more U.S. stimulus as Democrats edged closer to taking control of the Senate.

Democrats won one hotly contested U.S. Senate race in Georgia and pulled ahead in a second, potentially giving the power to advance Democratic President-elect Joe Biden’s policy goals.

Copper is often used as a gauge of global economic health.

Supply concerns at Las Bambas mine in Peru, run by Australia-based MMG Ltd, due to a three-week-long roadblock protest, also supported copper prices, despite the company saying there had been no impact on production so far.

Three-month copper on the London Metal Exchange rose as much as 1.3% to $8,103.50 a tonne, its highest since February 2013. The contract was up 1% at $8,080.50 by 0826 GMT.

The most-traded February copper contract on the Shanghai Futures Exchange closed up 1.6% at 59,030 yuan ($9,134.80) a tonne.

LME aluminium advanced 0.8% to $2,056.50 a tonne and zinc climbed 1.2% to $2,847.50 a tonne. ShFE aluminium ended down 0.4% at 15,400 yuan a tonne, while zinc increased 1.6% to 21,375 yuan a tonne.

Gold Rises to Eight-Week High as Dollar Falls; Platinum Surges

Gold rose to an eight-week high as the dollar weakened with traders awaiting results from key elections in Georgia and weighing surging coronavirus cases. Platinum and palladium surged.

A gauge of the greenback traded close to the lowest since February 2018 as crude oil paced a broad commodity rally. U.S. electoral races in Georgia will decide which political party controls the Senate. Germany extended its lockdown and tightened restrictions as pressure mounts on Chancellor Angela Merkel’s government to contain the coronavirus spread and speed up vaccinations.

Platinum, palladium jump on South African woes

Spot gold rose 0.5% to $1,951.83 an ounce at 3:08 p.m. in New York after reaching $1,953.09, the highest since Nov. 9. Futures for February delivery on the Comex rose 0.4% to settle at $1,954.40.

Spot platinum jumped as much as 4.1%, and palladium surged as much as 6% to 2,525.53 an ounce, the highest since March.

The somber Covid outlook appears to have revitalized demand for gold from investors seeking havens. On Monday, holdings in SPDR Gold Shares, the largest bullion-backed exchange-traded fund, posted the biggest daily inflow since September following withdrawals in the last three months of 2020.

The U.S. Senate contests will determine whether Democrats have control of Congress to push President-elect Joe Biden’s agenda. That would aid gold, according to Saxo Bank’s Hansen, as the new administration would be able to increase spending and boost stimulus.

.

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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