Bulls n Bears Daily Market Commentary : 05 July 2021

Mon Jul 5 18:27:47 CAT 2021

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Bulls n Bears Daily Market Commentary : 05 July 2021

ZSE commentary

The ZSE opened the week near flat with mixed trading across all indices. The
small cap index snaped its winning streak as profit taking takes shape in
small cap counters. Activity levels were lower at 562 trades. Medtech was
the most active stock at 88 trades followed by OK Zimbabwe and Star Africa
at 42 and 59 trades each. The market bias was flat after 18 stocks
registered losses against 18 gainers while 3 of the active stocks remained
unchanged. Medtech was the most liquid counter as it anchored volume
aggregate trading over 1.32 million shares while Delta anchored value traded
with a value of ZW$15.3 million.

The benchmark All Share Index was down 0.57% and the Top 10 Index also down
by 0.10%. The Top 15 Index added a paltry 0.07%. The Medium Cap Index traded
lower to

16 862.90 points whilst the Small Cap Index was near flat to close at 211
796.55 points. Leading the shakers pack of the day were Star Africa and
Getbucks which shaded 10.82% and 10.77% respectively. General Beltings
closed at 250.17c down by 9.22%. The fast-food giant Simbisa lost 8.21% to
3525.72c. Seed Co also shaded 8.13%. Leading in the riser's pack was NMB
adding 8.53%. Medtech and Zimplow shares were up by 7.75% and 7.66% to
27.94c and 1058.55c respectively. Truworths and Turnall Holdings were up by
5.32% and 5.26% respectively. The Old Mutual Top Ten ETF closed at 180.53c
up by 0.96% from a trade of 38 961 units worth ZW$70 337 in 12
trades.-wealthaccess

Global Currencies & Equity Markets

South Africa

Rand consolidates its Friday gains in overnight trading

The rand swung according to the direction of global winds as markets delved
deeper into the US non-farm payroll report, according to NKC Research.

Once the payrolls report was out of the way though, activity showed signs of
quickly thinning as market participants headed for the exits before the
three-day Independence Day holiday weekend.

The strong labour market performance - despite persistent hiring strains -
is probably the start of stellar reports that will underpin the strongest US
economic performance since 1951 this year.

At the close of local trade, the rand quoted 1.09 percent stronger, at
R14.31/$, after trading in range of R14.27/$ to R14.51/$. The rand
consolidated its Friday gains in overnight trading. The expected range of
the rand against the dollar today is R14.10/$ to R14.50/$.

The JSE All Share (-0.35 percent) ended lower on Friday, while the Top 40
declined by 0.30 percent. All of the sub-indices saw declines, except
Telecommunication (+0.66 percent). In the overall emerging market sphere,
the MSCI Emerging Market Index (-0.94 percent) traded softer.

Brent crude oil

The Brent oil price traded softer on Friday as the delayed Opec+ meeting
kicked off. The negotiations reached a standoff as the UAE seemed reluctant
to increase output. At the close of local trade, benchmark Brent crude
futures quoted 0.22 percent lower, at $75.6pb. Crude prices traded higher
during Asian trade this morning.

Nigeria

Naira falls at official market despite a significant rise in dollar supply
by 128%

The exchange rate between the naira the US dollar closed at N411.25/$1 at
the Investors and Exporters window, where forex is traded officially.

Naira depreciated against the US dollar on Friday, having lost 55 kobo to
close at N411.25/$1 compared to N410.7/$1 recorded on Thursday, 1st July
2021.

The local currency fell at the official market despite the dollar supply
rising significantly by 128.2%.

Meanwhile, the naira was stable at the parallel market, as it closed at N503
to a dollar. This was the same that was recorded in the previous trading
session. Also, Nigeria's external reserve continues to plunge, as it heads
to its lowest position in four years and a year-to-date decline of over $2
billion.

Naira depreciated against the US dollar at the Investors and Exporters
window at Friday's trading session to close at N411.25/$1 as against the
N410.7/$1 recorded at the end of trade on Thursday, 1st July 2021. This
represents a 55 kobo drop.

 <https://www.facebook.com/Hyundaizimbabwe/> 

Global Markets

Dollar pauses as rate hike fears subside, Fed minutes awaited

(Reuters) - The dollar was stuck in neutral on Monday, after hitting a speed
bump when last week's mixed bag of U.S. labour data allayed investor fears
about a hastening end to monetary stimulus.

While the headline June job creation figure beat forecasts, unemployment
ticked higher and workforce participation didn't budge - suggesting positive
progress, but space for the Federal Reserve to wait before tapering asset
buying or hiking rates.

Bonds rallied, stocks rose and the dollar slipped in the wake of the data -
dropping most against the risk-sensitive Australian and New Zealand dollars
and the rates-sensitive yen.

It steadied with slight but broad gains in the Asia session, which carrying
over to trading in Europe. It gained about 0.2% against the kiwi , which sat
at $0.7022, traded flat at 111.05 yen and climbed by about 0.2% to $1.1859
per euro .

U.S. markets are closed on Monday for the Independence Day holiday.

The dollar index was flat at 92.288, having dropped to that level on Friday.
But with a 2% rise in the three weeks since the Fed surprised investors with
projected hikes in 2023, analysts think the dollar has room to rise a bit
further.

Elsewhere, sterling was flat at $1.3835 and emerging market currencies in
Asia made small gains to catch up with the dollar's Friday drop.

MINUTES

Traders' focus this week is on minutes from the Fed's June meeting - due
Wednesday - and on a meeting of Australia's central bank, both having the
potential to rouse currencies from months of range trading amid uncertainty
around policy outlook.

Also on the horizon this week is a Reserve Bank of Australia (RBA) meeting
on Tuesday, which has markets on tenterhooks because the central bank has
flagged a decision on the fate of its bond purchase programme and yield
target.

Analysts said if that anything that looks like tapering comes from the
hitherto dovish RBA, the Australian dollar may rise - while the Aussie could
slip if the cautious tone stays.

No change to the cash rate is likely, but economists expect the three-year
yield target to stay on April 2024 bond - without being extended to the
November 2024 bond line, and for the RBA to adopt a flexible approach to
bond purchases.

Cryptocurrencies were offered on Monday, with bitcoin below its 20-day
moving average at $34,256 and ether down 3% at $2,280.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper prices climb as US job data boosts demand prospects

Three-month copper on the London Metal Exchange was up 0.5% at $9,427.50 a
tonne, as of 0528 GMT, and the most-traded August copper contract on the
Shanghai Futures Exchange advanced 0.8% to 68,880 yuan ($10,659.24) a tonne.

US companies in June hired the most workers in 10 months, raising wages and
offering incentives to entice millions of unemployed Americans sitting at
home, in a tentative sign that a labour shortage hanging over the economy
was starting to ease.

Prices of copper, often used as a gauge of global economic health, advanced
on Monday on hopes of stronger demand for metals and amid a sustained US
economic recovery after data showed an acceleration in hiring in the world's
biggest economy.

Three-month copper on the London Metal Exchange was up 0.5% at $9,427.50 a
tonne, as of 0528 GMT, and the most-traded August copper contract on the
Shanghai Futures Exchange advanced 0.8% to 68,880 yuan ($10,659.24) a tonne.

US companies in June hired the most workers in 10 months, raising wages and
offering incentives to entice millions of unemployed Americans sitting at
home, in a tentative sign that a labour shortage hanging over the economy
was starting to ease.

Global copper smelting activity slipped in June after a rebound a month
earlier as Chinese plants closed for maintenance while production of nickel
pig iron jumped, data from satellite surveillance of copper plants showed.

Chilean miner Antofagasta PLC signed contracts to supply Chinese copper
smelters with copper concentrate at treatment charges of around the mid-$50s
per tonne in deals covering at least half of next year, sources said.

ShFE aluminium rose 2.9% to 19,235 yuan a tonne, nickel advanced 1.9% to
137,270 yuan a tonne and tin increased 2.4% to 216,600 yuan a tonne.

ShFE aluminium inventories in ShFE warehouses fell to 278,383 tonnes, their
lowest since Feb. 10, while copper stocks declined to their lowest since
Feb. 19 at 142,520 tonnes.

Meanwhile, copper stocks in bonded warehouses in China rose to their highest
since July 2019 at 435,600 tonnes, SMM data showed.

Gold Regains Shine After Central Bank Buying Drops to Decade Low

Central banks may be regaining their appetite for buying gold after staying
on the sidelines for the past year.

Central banks from Serbia to Thailand have been adding to gold holdings and
Ghana recently announced plans for purchases, as the specter of accelerating
inflation looms and a recovery in global trade provides the firepower to
make purchases. A rebound in buying -- which had dropped to the lowest in a
decade -- would bolster the prospects for gold prices as some other sources
of demand falter.

Bullion has come under pressure this year as higher bond yields made the
non-interest bearing haven seem less attractive to investors. After
recovering in April and May, gold fell by the most in more than four years
last month as the Federal Reserve turned more hawkish and the dollar
strengthened.

The recovery in global trade is bolstering the current accounts of emerging
market nations, giving their central banks the option of buying more gold.
Higher crude prices are also boosting bullion purchases by oil exporters,
including Kazakhstan, according to James Steel, chief precious metals
analyst at HSBC Holdings Plc. That's likely to continue, he said.

The precious metal rose 0.2% to trade at $1,791.33 an ounce by 4:38 p.m.
London time. It's now trading near its 100-day moving average, a key
technical level.

In a bullish scenario, as the global economy rebounds, central bank buying
could reach about 1,000 tons, Aakash Doshi and other Citigroup Inc. analysts
wrote in a report. The bank's forecast is for purchases to climb to 500 tons
in 2021 and 540 tons next year. That's below the twin peaks above 600 tons
in 2018 and 2019, but a significant advance on the 326.3 tons purchased last
year, according to World Gold Council data.

About one in five central banks intend to increase their gold reserves over
the next year, according to a survey by the WGC published last month.

Central banks are one component of physical buying that's helping to counter
hefty investor outflows from exchange-traded funds, said Standard Chartered
Plc's precious metals analyst Suki Cooper.

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
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opinions expressed and recommendations made are subject to change without
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