Bulls n Bears Daily Market Commentary : 26 January 2021

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Bulls n Bears Daily Market Commentary : 26 January 2021

 

 


 

 

 




 

 


ZSE commentary

 

The All Share closed today’s session at 3 521.68 points  higher as it continued on its upward trend. The Top 10 Index and the Top 15 Index registered 5.56% and

5.44% gains respectively. The Medium Cap Index added 8.49% to close at 7911.80 points. The Small Cap Index also added 4.79% by close of trading. The ZSE market

capitalization was at ZWL$447.98 billion. Gains for the day were registered in Diribord  and TSL  which strengthened by 20.00% to close at 2160c and 19.96% to close at 3840c respectively.

 

Zimplow  added 19.91% to close at 590c and the brick manufacturer Wildale settled at 41c. Aris closed at 161.25c respectively after gaining by a margin of 19.87%. Gains were also offset by the crocodile skin giant Padenga  which closed the day at 2567.41c following a decrease of 13.20%, CAFCA edged down by 11.08%, Mash shaded 8.78% to 92.21c and Hippo was 2.83% down to 11660.81c. OMTT Top 10 ETF traded ZW$510 335.20 translating to 326 647 units closing with a market cap of ZW$124.98 million. Total turnover was at ZW$283 185 749 in 631 trades. The market breath was positive after 28 stocks closed higher and 9 traded in the negative. Total trades were 631 with 2 counters remaining unchanged and 12 with zero volume. wealthaccess

 

 

 

Global Currencies & Equity Markets

 

South Africa

 

South African rand climbs 1%, stocks retreat from record highs

(Reuters) - South Africa’s rand firmed by more than 1% on Tuesday in a return of risk appetite globally as investors continued to weigh the benefits of fiscal stimulus and coronavirus vaccine rollouts over concerns about second and third wave infections.

 

At 1500 GMT the rand was 1.15% firmer at 15.0450 per dollar, from an opening level of 15.2425.

 

The South African currency, along with fellow emerging market currencies, were boosted by a weaker dollar, which was down 0.2% in the session.

 

Optimism over a fiscal stimulus plan by the United States has spurred risk-taking in recent weeks, although that enthusiasm has been subdued in recent sessions by rising COVID-19 infections in major economies.

 

South Africa’s still high yield, after the central bank narrowly decided against lowering lending rates last week, has partly shielded the rand from the country’s slow progress in securing vaccines.

 

South Africa, which has recorded more than 1.4 million COVID-19 cases and 41,000 deaths, the continent’s most infections by far, has yet to receive its first coronavirus vaccine doses.

 

Bonds edged weaker, with the yield on the benchmark 2030 paper up 2 basis points to 8.780%.

 

In the equities market, however, stocks retreated from record highs as investors focused more on potential obstacles to U.S. President Joe Biden’s planned $1.9 trillion stimulus weighed on sentiment.

 

The Johannesburg All-Share index fell 0.99% to 63,923 points after hitting an all time high of 65,346 points in the previous session, while the Top-40 index declined 1.16% to 58,720 points from a record high of 60,264 points.

 

Among the decliners, market heavyweights media and internet company Naspers declined 4.96% while its international arm Prosus retreated from a record high, falling 5.21%. Prosus holds a third of Chinese tech giant Tencent , which fell 6.26%.

 

 

 

Nigeria

 

Naira falls at NAFEX window as dollar supply continues to decline

The exchange rate between the naira and the dollar depreciated closing at N394.50/$1 at the NAFEX Window.

 

Central Bank of Nigeria, Foreign exchange market, Naira vs dollas, IMF, Foreign Reserves, External reserves, CBN, Why do we all love the dollar? 

On January 25, 2021, the exchange rate between the naira and the dollar depreciated closing at N394.50/$1 at the NAFEX (I&E Window) where forex is traded officially.

 

Forex turnover, however, dropped further by about 10.2% as pressure on the foreign exchange market continues.

 

 

 

The Central Bank of Nigeria (CBN) has moved to create more liquidity in the foreign exchange market as they insisted that deposit money banks and International Money Transfer Operators (IMTOs) must pay diaspora remittances to beneficiaries in dollars as against the initial practice of paying in naira.

 

This will also help to create more stability and transparency in the forex market.

 

Also, the exchange rate at the black market where forex traded unofficially remained stable at N477/$1. The exchange rate at the parallel market closed at N477/$1 on the previous trading day of January 22, 2021.

 

Specta

The exchange rate disparity between the parallel market and the official market is about N82.50, representing a 20.9% devaluation differential.

 

The Naira depreciated against the dollar at the Investors and Exporters (I&E) window on Monday, closing at N394.50/$1. This represents a 33 kobo drop when compared to the N394.17/$1 that it closed on the previous trading day.

 

 

 

 <mailto:info at bulls.co.zw> 

 

 

 

 

Global Markets

 

Dollar firms to around ¥103.80 in Tokyo

The dollar strengthened modestly to around ¥103.80 after moving tightly in Tokyo trading Tuesday amid a wait-and-see mood ahead of key events in the United States.

 

At 5 p.m., the dollar stood at ¥103.80, up from ¥103.70 at the same time Monday. The euro was at $1.2112, down from $1.2178, and at ¥125.74, down from ¥126.28.

 

The dollar struggled for direction at around ¥103.70 for most of the Tokyo session, sandwiched between buying on demand for highly fluid assets amid growing concerns over the European economy and selling triggered by a drop in U.S. long-term interest rates.

 

Players refrained from tilting their positions either way before the start of the U.S. Federal Reserve’s two-day Federal Open Market Committee meeting through Wednesday and earnings announcements by Microsoft Corp. and other major U.S. companies, traders said.

 

Media reports saying China will conduct military drills in the South China Sea this week turned investors risk-averse. But the dollar-yen pair moved little as both currencies enjoyed safe-haven purchases, a Japanese bank official pointed out.

 

Dollar-buying slightly took the upper hand following the greenback’s appreciation against the euro and other European currencies in late afternoon trading, joined also by European players.

 

 <mailto:info at bulls.co.zw> 

 

 

 

 

Commodities Markets

 

 

 

Gold prices fall to near one-month low after dropping for 3 days in a row

Gold prices in futures market in India slipped on Monday, extending losses to the third day. After a 25% gain last year, gold has remained volatile and directionless trade since start of the year. On MCX, February gold futures fell 0.15% to near one-month low of ₹49,067 per 10 gram while silver edged 0.24% lower to ₹66,479 per kg. Indian markets are closed today for a public holiday. The markets will resume trading on Wednesday.

 

In global markets, gold rates slipped today, weighed down by concerns that the US stimulus package could be delayed. Spot gold was down 0.1% to $1,853.99 per ounce. Among other previous metals, silver was flat at $25.30 an ounce while platinum lost 0.6% to $1,091.40.

 

The US dollar was flat against an index of rivals. US President Joe Biden's $1.9 trillion pandemic relief proposal has been met with objections from Republicans, who have called the proposal too expensive and pushed for a smaller plan targeting vaccine distribution. Gold is typically considered a hedge against inflation and currency debasement, likely from widespread stimulus.

 

 

Meanwhile, the US Senate on Monday voted by a wide margin to confirm Janet Yellen as the first woman to lead the Treasury Department, giving her a key role in Congress negotiations over a huge Covid-19 economic relief package.

 

Asian stock markets were mostly lower today while US Treasury yields held on to overnight gains. With global stocks trading around record highs, analysts say, investors are looking for fresh catalysts to push them higher or at least justify current valuations.

 

Analysts say gold is likely to to remain supported at lower levels amid rising virus cases and growth concerns. Vaccine coverage won’t reach a point that would stop transmission of the virus in the foreseeable future, the World Health Organization said. United Nations Secretary-General Antonio Guterres said the world is risking more virus variations by not pushing for vaccines in developing nations. (With Agency Inputs)

 

 

 

 

 


 

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 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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