Bulls n Bears Daily Market Commentary : 07 July 2021

Wed Jul 7 15:13:41 CAT 2021

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Bulls n Bears Daily Market Commentary : 07 July 2021

ZSE commentary

The ZSE slid into the negative in today's mid-week session although the
losses were marginal across the board. Activity levels were near flat at 563
trades maintaining an average of over 500 trades in a session. Medtech
continued to be the most active stock at 71 trades followed by OK Zimbabwe
and Star Africa with 50 and 45 trades each. The market bias was negative
after 20 stocks registered losses against 14 gainers while 2 of the active
stocks remained unchanged. Medtech was the most liquid counter as it
anchored volume aggregate trading over 2.12 million shares with a value of
ZW$591 031.30 while Delta anchored value aggregate with a value of ZW$17.96
million contributing 26.3% to total turnover.

The benchmark All Share Index was down by a marginal 0.78% and the Top 10
Index was down 0.30% mainly from losses in Innscor and Delta. The Top 15
Index shaded a

paltry 0.24%. The Medium Cap Index traded lower to 16 659.57 points whilst
the Small Cap Index was down to 216 250.35 points a 0.50% decline mainly
from losses in GBZW, GBH, Star Africa and Wildale. Leading the shakers pack
of the day were Wildale and Get Bucks which shaded 12.51% and 9.17%
respectively. Bindura closed at 513.60c down by 8.58%. The financial holding
company ZB lost 7.79%. General Beltings also pared 6.29%. Leading in the
riser's pack was NMB adding 8.28%. Dairibord and Zimpapers shares were up by
5.10% and 4.29%. Masimba Holdings  was up 2.52% to 3998.85c. The Old Mutual
Top Ten ETF closed at 184.24c up by 0.74% from a trade of 4 178 units worth
ZW$7 697 in 5 trades.-wealthaccess

Global Currencies & Equity Markets

South Africa

Rand weakens on hawkish Fed minutes

THE rand eased as the US dollar firmed in anticipation of a hawkish Fed
minutes, which is due for release soon, according to NKC Research.

Promising to be the highlight of the day, all attention will be directed
towards the release of the minutes from the June FOMC meeting tomorrow,
which will hopefully provide clues on how hawkish the policy pivot is.

The hawkish shift in the Fed outlook should lift rates out through the
intermediate sector of the curve, which will lift the five-year yield toward
the early April high just below 1 percent.

At the close of local trade, the rand quoted 1.1 percent weaker, at
R14.35/$, after trading in range of R14.17/$ to R14.39/$. The rand ticked
higher overnight. The expected range of the rand against the dollar today is
R14.20/$ to R14.50/$.

The JSE All Share (-0.48 percent) ended lower yesterday, a closer look shows
that technology (+1.12 percent) ticked higher while resources (-1.56
percent) shares slipped. The MSCI Emerging Market Index (-0.07 percent)
traded lower.

Brent crude oil

The Brent oil price traded at multiyear highs on Tuesday as Opec+ producers
struggled to reach agreement, but lost momentum afterwards. At the close of
local trade, benchmark Brent crude futures quoted 2.88 percent lower, at
$75.1pb. Crude prices traded on the back foot during Asian trade this
morning.

BUSINESS REPORT ONLINE

Nigeria

Naira slides at official market

The naira fell against the U.S. dollar at the official market on Tuesday,
after it clinched a slight gain in the previous session on Monday.

However, the local unit maintained stability again in the parallel market
segment.

According to data posted on the Nafex window, the naira closed at N411.45
per $1 on Tuesday.

This implies a N0.32 or 0.10 per cent appreciation from the N411.13 rate it
traded in the previous session on Monday.

The currency experienced an intraday low of N420.86 and a high of N387.67
before closing at N411.45 as of the close of business on Tuesday.

The forex turnover plummeted by 54.70 per cent, with $110.67 million
recorded at the end of the market session as against the $71.55 million
posted in the previous session on Monday.

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

Global Markets

Euro near 3-month low after soft data, dollar looks to Fed's minutes

(Reuters) - The euro staggered near a three-month low against the dollar on
Wednesday after disappointing German data raised doubts about the strength
of the economic recovery, while the dollar awaited the Federal Reserve's
minutes from its last policy meeting.

The single currency changed hands at $1.1820 , having touched a three-month
low of $1.1806 on Tuesday. Against the yen, it fell to 130.81 yen , edging
near its two-month low of 130.05 set on June 21.

Investor sentiment in Germany, the euro zone's biggest economy, fell sharply
in July, though it remained at a very high level, the ZEW economic research
institute reported. read more

Even more worrying, separate data showed orders for German-made goods posted
their sharpest slump in May since the first lockdown in 2020, hurt by weaker
demand from countries outside the euro zone.

Other risk-sensitive currencies took a hit after oil prices abruptly plunged
as OPEC producers cancelled a meeting when major players were unable to come
to an agreement to increase supply.

The Australian dollar traded at $0.7490 , giving up gains made on Tuesday
after the Reserve Bank of Australia took its first step towards tapering its
stimulus.

The RBA announced a third round of its quantitative easing programme albeit
at a size smaller size than the previous two rounds, while retaining the
April 2024 bond for its three-year yield target of 0.1%. read more

Cautious risk sentiment underpinned the yen, which strengthened to 110.645
yen per dollar , extending its rebound from its 15-month low of 111.64
touched last week.

The yen's gains came as U.S. bond yields fell to their lowest levels since
February after data signalled the service sector expanded at a slower pace.
read more

Yields have fallen in recent weeks also as many speculators who had bet that
rising inflation could prompt the Federal Reserve to tighten its policy soon
have been forced to bail out of their positions.

Minutes from the Fed's June policy meeting due later on Wednesday, however,
could offer fresh hints on its policy outlook.

Elsewhere, cryptocurrencies were in a holding pattern, with bitcoin little
changed at $34,066 and ether at $2,308 .

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

China to sell more copper, aluminium, zinc reserves to further 'stabilize
markets'

The Chinese government will sell more reserves of copper, zinc and aluminium
soon to further "stabilize the markets," it said on Wednesday July 7.

Copper rises as dollar rally halts ahead of Fed minutes

(Reuters) - Copper prices rose on Wednesday as the U.S. dollar steadied and
investors waited for the release of minutes from the latest Federal Reserve
meeting.

The minutes will likely show how serious the Fed is about tapering its asset
buying and how soon it could begin to hike rates, with a hawkish turn
potentially knocking riskier assets.

Benchmark copper CMCU3 on the London Metal Exchange (LME) was up 1.9% at
$9,487.50 a tonne at 1120 GMT, recouping losses from the previous session.

Copper fell 2.1% on Tuesday as oil prices, stock markets and U.S. bond
yields fell and the dollar rallied, making metals costlier for buyers
outside the United States.

The dollar and U.S. yields steadied on Wednesday while oil and European and
Chinese equities rose. MKTS/GLOBO/RFRX/US/

Copper hit a record high of $10,747.50 a tonne in May and increasing demand
for the metal for electrification and infrastructure should keep prices
supported, said WisdomTree analyst Nitesh Shah.

FACTORIES: German industrial output fell 0.3% month on month in May, below
analysts' expectations.

TECHNICALS: Copper hovered around its 100-day moving average at $9,426 and
50-day moving average at $9,497. Moves below these levels would worsen its
technical outlook.

CHINA SALES: China said it would continue to release stocks of metal in the
near future after auctioning 100,000 tonnes of copper, aluminium and zinc on
July 5. The sales are designed to cool prices.

CHINA RECYCLING: China aims to churn out 20 million tonnes of recycled
non-ferrous metals, including copper, aluminium and lead, the state planner
said.

PERU: Peru's socialist president-in-waiting expects mining firms enjoying
high metals prices to be won over to "prudent" plans to hike taxes on
mineral resources.

LEAD: A jump in demand for traditional lead-acid car batteries and lingering
freight problems have created shortages and driven up lead prices.

PRICES: Benchmark aluminium CMAL3 was 0.4% lower at $2,519 a tonne, zinc
CMZN3 rose 1% to $2,963.50, nickel CMNI3 was 1.6% higher at $18,290, lead
CMPB3 was up 0.7% at $2,309.50 and tin CMSN3 gained 0.1% to $31,700.

Gold prices gain on weaker bond yields, Fed minutes loom

(Reuters) - Gold prices rose on Wednesday towards a three-week high scaled
in the previous session, helped by a fall in U.S. Treasury yields, while
investors awaited minutes from the Federal Reserve's June meeting for more
clues on the policy outlook.

Spot gold was up 0.4% at $1,803.06 per ounce, as of 0654 GMT, after hitting
its highest since June 17 at $1,814.78 on Tuesday.

U.S. gold futures rose 0.5% to $1,803.80 per ounce.

Benchmark 10-year Treasury yields were pinned near their lowest in more than
four months. Lower bond yields reduce the opportunity cost of holding
non-interest bearing gold.

The dollar index was slightly lower at 92.508 following a 0.4% gain in the
previous session.

Market participants are now awaiting minutes from the Fed's latest meeting,
due at 1800 GMT, which could shed more light on the interest rate trajectory
after a hawkish tilt by the U.S. central bank last month.

Gold is highly sensitive to rising U.S. interest rates, which increase the
opportunity cost of holding non-yielding bullion.

Asian share markets stumbled as a bout of risk aversion boosted safe-haven
assets.

Elsewhere, silver rose 0.9% at $26.38 per ounce, palladium gained 0.2% to
$2,799.67, and platinum was steady at $1,091.67. 

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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