Bulls n Bears Daily Market Commentary : 06 July 2021

Tue Jul 6 15:16:53 CAT 2021

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Bulls n Bears Daily Market Commentary : 06 July 2021

ZSE commentary

The ZSE closed today near flat as it struggles to take direction since the
beginning of the second half of the year. however, penny stocks outperformed
the market in today's session as they registered significant gains despite
contributing less to turnover. Activity levels were slightly higher at 571
trades. Medtech was the most active stock at 76 trades followed by Padenga
at 53 trades and Star Africa and Delta had 62 trades each. The market bias
was positive after 17 stocks registered gainers against 14 losers while 4 of
the active stocks remained unchanged. Padenga was the most liquid counter as
it anchored both volume and value aggregate trading over 3 million shares
with a value of ZW$95.09 million contributing 43% to total turnover.

The benchmark All Share Index was up by a marginal 0.08% and the Top 10
Index was down 0.12% mainly from losses in Innscor and OK Zimbabwe. The Top
15 Index added

a paltry 0.08%. The Medium Cap Index traded higher to 16 898.79 points
whilst the Small Cap Index rose to 217 332.07 points a 2.61% increase
spurred by gains in Turnall and Star Africa. Leading the raisers pack of the
day were Turnall and Edgars  which added 20.00% and 12.56% respectively.
Star Africa closed at 226.21c up by 11.36%. The nickel giant Bindura added
8.22%. Padenga also added 5.12%. Leading in the shaker's pack was African
Sun shading 14.33%. NMB and GBH shares were down by

7.48% and 4.08%. Art was down 2.85% to 777.22c. The Old Mutual Top Ten ETF
closed at 182.88c up by 1.30% from a trade of 4 000 units worth ZW$7 315 in
5 trades..-wealthaccess

Global Currencies & Equity Markets

Angola

Angola's Central Bank Addresses Runaway Inflation By Hiking Benchmark
Interest Rates

Angola's Central Bank recently increased its benchmark interest rate, to
help shore up the Angolan Kwanza and arrest inflation.

The interest rate was hiked from 15.5% to a record 20%, following inflation
that continued rising from March 2021 rate of 26%.

Runaway inflation is a key reason behind crypto adoption in Angola as people
seek to protect the value of their wealth.

According to Jose de Lima Massano, Head of the National Bank of Angola
(NBA):

With developed markets looking to tighten monetary policy, emerging markets,
including Russia and Brazil are also tightening to help prevent capital
flight in case high-yield assets emerge in the developed markets.

The recent boom in the value of cryptocurrencies coincided with a period
where the United States Federal Reserve had cut lending rates to 0%.
Analysts predict that rising interest rates will lead investors to move
their wealth to traditional assets.

Angola's resource-reliant economy probably means that cryptocurrencies will
remain an opportunity for regular Angolans looking to improve their
livelihoods and protect themselves from inflation.

South Africa

South Africa's rand rises as dollar slips

(Reuters) - South Africa's rand firmed in early trade on Tuesday, as the
dollar drifted lower on easing pressure for U.S. rate hikes in the wake of
mixed jobs data.

At 0615 GMT, the rand ZAR=D3 traded at 14.1750 against the dollar, 0.67%
stronger than its previous close.

The dollar .DXY fell, extending losses since U.S. labour market data last
week that was upbeat but not so strong as to risk bringing forward the day
when the Federal Reserve might start tapering its asset buying.

Focus this week is on minutes from the Fed's latest meeting due out on
Wednesday, after a hawkish tilt from the U.S. central bank last month in
which policymakers projected a start to rate hikes in 2023.

Riskier currencies, such as the rand, thrive on U.S. rates remaining low
because they benefit from the interest rate differential that increases
their appeal for carry trade.

In fixed income, the yield on the benchmark 2030 government bond ZAR2030=
was up 2 basis points to 8.92%.

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

Global Markets

Aussie, kiwi jump as investors wait for Fed clues; dollar struggles

Antipodean currencies rose on Tuesday, taking advantage of the greenback's
weakness as investors waited for clues about when the U.S. Federal Reserve
could start tapering stimulus after pressure for rate hikes eased due to
mixed labour market data.

The New Zealand dollar jumped after a strikingly strong survey of business
conditions prompted investors to wager a rate hike could come as early as
November.

At 0756 GMT, the kiwi was up about 0.77% at $0.7080 after having reach its
firmest since mid-June.

The Aussie rose as much as 1.2% at one point to $0.7599, after the Reserve
Bank of Australia pared bond purchases and tweaked its rates outlook to open
the door just a sliver for the possibility of hikes before 2024.

That decision puts the RBA in a small but growing club of central banks
stepping back from massive pandemic-era stimulus.

The Australian currency, however, lost some pace and was up by about 0.7% in
morning trading in Europe.

The moves extended a dip in the dollar since mixed U.S. labour market data
last week took some pressure off the Federal Reserve to hike, as traders see
other central banks positioning themselves to make a hawkish turn.

The U.S. dollar and other majors were mostly steady as investors wait on the
minutes from the Federal Reserve's meeting in June when it surprised markets
with a hawkish shift. They are due to be published on Wednesday.

At 0809 GMT, the dollar index was down 0.05% at 92.08.

On the horizon later in the day - when U.S. markets return from a holiday -
is a U.S. services survey and a German sentiment survey.

The euro was flat at $1.1865 while the European Central Bank is still seen
far behind many of its peers in the tightening cycle.

ECB policymakers are in the middle of debating a new strategy, with many now
backing the notion of letting inflation surpass 2% for a while after it has
lagged below that level for most of the past decade.

ECB projections put annual price growth at 2.6% in the last quarter of this
year from 1.9% last month. It is then seen falling back to 1.5% in 2022 and
1.4% in 2023.

Sterling rose 0.3% to a one-week high of $1.3888 as markets looked forward
to England becoming the first major country to formally start living with
the coronavirus by dropping COVID-related curbs in a fortnight's time.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper hits 3-week high on fund buying, investors await Fed minutes

The copper volume being sold is equivalent to only 2.3% of China's refined
output in May.

Copper prices rose on Tuesday as a softer dollar prompted fund buying, while
a low auction amount in the first round of a rare stockpile release in top
metals consumer China also helped.

Three-month copper on the London Metal Exchange advanced 0.4% to $9,546.50 a
tonne by 0255 GMT, having risen as much as 0.6% earlier to $9,569, its
highest since June 16.

The most-traded August copper contract on the Shanghai Futures Exchange
increased 1.4% to 69,790 yuan ($10,801.90) a tonne. The contract hit its
highest since June 15 at 69,970 yuan earlier in the session.

China's state reserves administration is scheduled to auction 20,000 tonnes
of copper, 30,000 tonnes of zinc and 50,000 tonnes of aluminium on July 5-6.

The copper volume being sold is equivalent to only 2.3% of China's refined
output in May.

Meanwhile, an acceleration in U.S. hiring boosted hopes of stronger demand
for metals and a sustained recovery in the world's biggest economy.

Minutes from the U.S. Federal Reserve's latest policy meeting due out on
Wednesday might determine the near-term direction of the dollar as investors
look for insight into the thinking behind last month's hawkish shift in
which Fed members projected a start to rate hikes in 2023.

Gold Hits Two-Week High as Technicals Kick In Before Fed Minutes

Gold rose to the highest in more than two weeks, drawing support from
technical levels and short-covering, as investors awaited Federal Reserve
minutes for more clues on the monetary policy path.

The metal on Monday closed above its 100-day moving average and has climbed
back above $1,800 an ounce, which can be seen as a psychologically important
level. Prices have risen about 3% since hitting a two-month low in late
June, when the Fed's hawkish shift and a stronger dollar curbed bullion's
appeal.

Gold rises for a fifth straight day

Minutes due Wednesday from the latest Fed meeting may provide clues on when
the central bank will start tightening monetary policy, as investors mull an
economic picture clouded by inflationary pressures and threats from
coronavirus variants. Gold slid the most in four years last month as the Fed
signaled it may tighten policy sooner than expected.

Spot gold gained 0.8% to $1,806.64 an ounce by 10:18 a.m. in London, rising
for a fifth day. Silver, platinum and palladium all gained, while a gauge of
the dollar was little changed.

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
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