Bulls n Bears Daily Market Commentary : 21 January 2021

Fri Jan 22 07:03:14 CAT 2021

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Bulls n Bears Daily Market Commentary : 21 January 2021

ZSE commentary

The All Share Index shaded 7.44% to close at 2975.24 points. The Top 10
Index and the Top 15 Index registered 7.60% and 7.85% gains respectively.
The Medium Cap Index

gained 7.30% while the Small Cap index marginally appreciated by 0.36% by
close of trading. The ZSE market capitalization was at ZWL$353.68 billion.
Gains for the day were registered in Proplastics and RIO Zimbabwe which
strengthened by 19.91% to close at 1325c and 19.87% to close at 1294.62c
respectively. TSL  added 19.79% to close at 2300c and Dawn settled at 56.33c
after gaining by 18.32%. Gains were offset by marginal losses recorded in
Art Corporation  which closed the day at 380.03c following a decrease of
4.81%, Star Africa edged down by 1.66%, while Ariston shaded 0.50% to
120.50c, Mash holdings was 0.35% down to 80.13c while the dairy giant
Dairiboard  settled at 1500c after loosing 0.004%.

Total turnover was at ZW$165,324,530.05 in 352 trades. Padenga was the most
active with 26 trades. The market breath was positive after 26 stocks closed
in the green while 5 traded lower. Total trades were 352 with 4 counters
remaining unchanged and 16 with zero volume. -wealthaccess

Global Currencies & Equity Markets

South Africa

SA rand firms as central bank holds rates; stocks edge up

JOHANNESBURG - South Africa's rand firmed yesterday, supported by the
central bank's decision to leave interest rates unchanged and expectations
that the new US administration will unveil a massive stimulus package.

At 1600 GMT, the rand traded at 14.8250 versus the dollar, 0.5 percent
stronger on the day.

The South African Reserve Bank kept the repo rate at 3,5 percent in a close
decision.

Three out of five members of the monetary policy committee wanted to hold
the rate while two preferred a rate cut that could have dented the appeal of
investing in rand assets.

Republicans in the US Congress have indicated they are willing to work with
President Joe Biden on one of his administration's priorities, a $1,9
trillion stimulus plan, boosting the market mood globally.

The Johannesburg Stock Exchange recorded small gains, with concerns over the
country's coronavirus vaccine rollout plans counteracting buoyant offshore
sentiment.

The All-share index gained 0,1 percent to end the day at 64,175 points,
while the Top-40 index closed up 0.19% at 58,969 points.

The gold mining index was up 1,92 percent and the platinum index up 2.75
percent at market close.

In fixed income, the yield on the 2030 government bond was up 0,5 basis
points at 8,725 percent.

Kenya shilling to gain, Nigeria's naira seen stable

Kenya's shilling is expected to gain against the dollar in the next week to
Thursday, while Tanzanian, Ugandan and Nigerian currencies are seen holding
steady, traders said.

(Reuters) - Kenya's shilling is expected to gain against the dollar in the
next week to Thursday, while Tanzanian, Ugandan and Nigerian currencies are
seen holding steady, traders said.

KENYA

The Kenyan shilling is expected to rally, buoyed by higher dollar inflows
from offshore investors into the local debt market and improved risk
sentiment for so-called frontier assets.

At 0700 GMT, commercial banks posted the shilling stronger at 109.75/95
versus 110/110.20 last Thursday. Traders said a Treasury bond auction had
been met by high demand from foreign investors.

The gains will, however, be capped by demand for dollars from importers and
any moves by the central bank to buy dollars from the bank to shore up its
reserves, the trader warned.

TANZANIA

Tanzania's shilling is expected to hold steady as dollar inflows from the
mining sector balance demand from the energy and manufacturing sectors.

Commercial banks quoted the shilling at 2,314/2,324 against the dollar, the
same as last Thursday's close.

UGANDA

The Ugandan shilling is seen trading in a stable range in the coming days as
easing political risks following last week's elections support positive
market sentiment.

Commercial banks quoted the shilling at 3,680/3,690, compared with last
Wednesday's close of 3,705/3,715.

Markets were closed on Thursday last week for a holiday in Uganda.

Incumbent President Yoweri Museveni was declared by the country's poll body
as winner of last Thursday's election with 59% of the vote against his rival
Bobi Wine, who got 35%.

NIGERIA

The naira is seen flat in the coming week as traders watch for policy
details at the central bank's first rate-setting meeting of the year.

The naira opened at 394.16 on the over-the-counter spot market on Thursday,
compared with 475 naira on the black market.

The currency has been under pressure on the black market, where it trades
more freely, widening the gap with the official rate and prompting calls
from the World Bank for Nigeria to unify rates to attract inflow.

The central bank will hold its first interest rate meeting for 2021 on
Monday and Tuesday next week.

The naira is quoted at 381 to the dollar on the official market, a level set
in July and backed by the central bank. 

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar's bounce fades as risk appetite rises

SINGAPORE (Reuters) - The dollar was headed for its worst week of the year
on Friday, as investors cheered in the Joe Biden administration by buying
riskier currencies and refreshed bets that a pandemic recovery could push
the greenback lower still.

Against the euro, the dollar is down almost 0.8% this week and it touched a
week-low of $1.2173 per euro on Friday. The dollar index has fallen by the
same weekly margin, and was steady at 90.075 early in the Asia session.

The euro had found some support from the European Central Bank keeping
policy steady and accommodative.

Scandinavian currencies have led the charge higher, with the Norwegian crown
up 1.8% for the week, helped by Norges Bank's decision to hold its policy
rate steady, albeit at zero. The Swedish crown is up 1.4% for the week.

The risk-sensitive Antipodean currencies have also been gainers, with the
Australian dollar up 0.8% and the kiwi climbing more than 1% over the week
so far.

Sterling rose to a 2-1/2 year high of $1.3745 overnight on hopes Britain's
vaccine roll-out can usher in a rebound in growth. It held at that level on
Friday, up 1% for the week.

The sentiment-driven moves have eroded gains made by the U.S dollar since
the Democrats won control of the U.S. Congress earlier this month. The
dollar had risen along with U.S. Treasury yields on expectations of more
fiscal stimulus and government borrowing under a Biden administration.

The dollar was steady against the Japanese yen on Friday at 103.58, but has
lost 0.3% over the week.

A heavy sell-off in Bitcoin saw the cryptocurrency drop 5% in Asia trade on
Friday to hit an almost three-week low of $28,800.

Later on Friday, preliminary purchasing managers' index figures are due
across Europe and the United States, and weakness is expected as fresh waves
of coronavirus infection have driven new lockdowns and curtailed growth.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold and silver are flat heading into the EU open

(Kitco News) - Gold and silver trade flat heading into the EU open this
morning. It must be said this does come after a good performance yesterday
from the precious metals sector. In the Asia Pac region indices performed
well overnight with the Nikkei 225 (0.82%), ASX (0.79%) and Shanghai
Composite (1.07%) all rising. In the FX space, NZD/USD was the best
performing pair moving around 0.45% higher.

The main bit of news came from the US as Joe Biden was sworn in as the new
President of the United States. US bourses took the event in a positive
light and the general risk sentiment was firmly positive as the Nasdaq, Dow
and S&P 500 traded at all-time highs once again.

Joe Biden also signed a whole host of executive orders as expected. These
include revocation of Keystone XL oil pipeline permit and a document
rejoining Paris climate cord. Canada's Kenney said Biden's cancellation of
the Keystone XL is a gut punch to Canada.

Overnight the Bank of Japan had their latest rate decision and as expected
there was no change. The QQE and yield curve control also remained the same
and the JGB target remains the same at 0%. The BoJ did once again reiterate
they are willing to add use more tools if needed. They also noted it was too
early to consider an exit from powerful monetary stimulus.

There was also some data from Australia. Their latest employment change
figure for December came in line with expectations at 50.0K. The
unemployment rate in the nation improved slightly to 6.6% from 6.8% and it
also been the analyst consensus of 6.7%.

On the political front, China has sanctioned some of former President
Trump's team. This did include former Secretary of State Pompeo. There were
some comments from Joe Biden's National Security Council spokeswoman who
said the sanctions were unproductive and cynical. 

Looking ahead to the rest of the session highlights include the ECB rate
decision, Turkish rate decision, US building permits, US weekly initial
jobless claims, Philly Fed manufacturing index and NZ CPI. We will also hear
from ECB's Lagarde. 

.

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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