Bulls n Bears Daily Market Commentary : 08 July 2021

Fri Jul 9 05:29:45 CAT 2021

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Bulls n Bears Daily Market Commentary : 08 July 2021

ZSE commentary

The ZSE firmed in the negative territory for a second session with losses in
medium cap stocks pulling the bourse to the red. Activity levels at 505
trades maintaining an average of over 500 trades in a session. Medtech
continued to be the most active stock at 61 trades followed by Star Africa
and Masimba with 52 and 32 trades each. The market bias was negative after
25 stocks registered losses against 14 gainers while 2 of the active stocks
remained unchanged. Bindura was the most liquid counter as it anchored
volume aggregate trading over 1.7 million shares while Delta anchored value
aggregate with a value of ZW$18.9 million.

The benchmark All Share Index was down by a marginal 0.84% and the Top 10
Index was down 0.10%. The Top 15 Index shaded a paltry 0.40%. The Medium Cap
Index traded lower to 16 333.23 points whilst the Small Cap Index was up to
220 635.65 points a 2.03% increase. Leading the shakers pack of the day were
Wildale and General Beltings which shaded 16.36% and 11.01% respectively.
Proplastics closed at 2466.67c down by 10.14%. First Mutual Holdings lost
9.70%. Star Africa also pared 5.87%. Leading in the riser’s pack was
Fidelity adding 19.27%. Zimpapers and Masimba shares were up by 10.45% and
10.03%. OK Zimbabwe was up 3.34% to 1549.99c. The Old Mutual Top Ten ETF
closed at 186.22c up by 1.08% from a trade of 14 561 units worth ZW$27
115.90 in 5 trades.-wealthaccess

Global Currencies & Equity Markets

South Africa

South Africa's rand falls against stronger dollar

(Reuters) - South Africa's rand weakened early on Thursday, weighed down by
a stronger dollar after minutes from the U.S. Federal Reserve's latest
meeting confirmed the world's biggest central bank is moving toward tapering
its asset purchases as soon as this year.

At 0645 GMT, the rand ZAR=D3 traded at 14.4050 against the dollar, 0.58%
weaker than its previous close.

The dollar hovered near a three-month high versus major peers on Thursday.

Fed officials last month felt the U.S. economic recovery was taking hold but
was surrounded with risks. However, "various participants" felt they should
be prepared to start tapering as conditions for it would be "met somewhat
earlier than they had anticipated," minutes of the meeting showed.

Locally, focus was on political developments after South African former
President Jacob Zuma turned himself in to police overnight to begin 15
months in jail for contempt of court, the culmination of a long legal drama
seen as a test of the post-apartheid state's ability to enforce the rule of
law.

In fixed income, the yield on the benchmark instrument due in 2030 ZAR2030=
was up 1.5 basis points to 8.915% in early deals.

Nigeria

Naira stable at official, parallel markets

The naira maintained stability against the U.S dollar at both the official
and black markets segments on Wednesday, data gleaned from both markets
sessions’ showed.

According to data posted on the Nafex window, the naira closed at N411.45
per $1 on Wednesday, the same rate it exchanged hands with the hard currency
in the previous session on Tuesday.

The currency touched an intraday low of N420.86 and a high of N396.00 before
closing at N411.45 as of the close of business on Wednesday.

This happens as forex supply skyrocketed exponentially by 136.22 per cent,
with $110.67 million recorded at the end of the market session as against
the $110.67 million posted in the previous session on Tuesday.

Also, data posted on abokiFX.com, a website that collates parallel market
rates in Lagos showed that the naira closed again at N503.00 per $1 at the
black market window on Wednesday, the same rate it has been trading since
June 30, last month.

By implication, the disparity between the black market and the Nafex rates
remained unchanged at N91.55, and also represents a spread of 18.20 per cent
as of the close of business on Wednesday.

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

Global Markets

Dollar slips below ¥110 in Tokyo

The dollar slipped below ¥110 in Tokyo on Thursday for the first time since
June 21 partly because safe-haven buying of the yen ballooned amid growing
concerns over the novel coronavirus crisis.

At 5 p.m., the dollar stood at ¥109.78, down from ¥110.63 at the same time
Wednesday. The euro was at $1.1819, down from $1.1825, and at ¥129.76, down
from ¥130.83.

After trading above ¥110.60 in the early morning, the dollar fell close to
¥110.40 as the 225-issue Nikkei average’s drop induced risk-averse buying of
the yen.

The U.S. currency then showed resilience to move in a narrow range around
¥110.50.

But selling gathered steam in the afternoon to push the dollar below the
previous day’s lows of around ¥110.20. Stop-loss sales added to the downward
pressure on the dollar.

Stepped-up euro selling against the yen also accelerated the greenback’s
drop vis-a-vis the Japanese currency, according to market sources.

The yen rose at a time when many market players expect the European Central
Bank to show its intention to keep a dovish stance in its policy review, to
be announced later on Thursday, a currency broker said, adding that falling
crude oil prices also contributed to the stronger yen.

With investors seen buying the dip, however, “the dollar will unlikely fall
to around ¥109.50 any time soon,” the currently broker added.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Softer dollar, slump in yields extend gold's rally

(Reuters) - Gold gained on Thursday, building on a six-day winning streak as
the U.S. dollar eased and Treasury yields extended their slump to a more
than four month low.

Spot gold was up 0.6% to $1,814.00 per ounce at 1135 GMT. U.S. gold futures
were up 0.7% to $1,814.30.

The dollar index edged 0.1% lower, making gold cheaper for other currency
holders. Benchmark U.S. 10-year Treasury yields also slipped, lowering the
opportunity cost of holding non-yielding bullion.

He said there wasn’t any “new surprise” in the minutes from the U.S. Federal
Reserve’s latest monetary policy meeting, adding the drop in bond yields was
price-positive for gold.

The minutes from the Fed’s June 15-16 meeting said that “various
participants” felt conditions for reducing the central bank’s asset
purchases would be “met somewhat earlier than they had anticipated”.

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

Market participants also took stock of the European Central Bank setting a
new inflation target on Thursday after an 18-month strategy review.

Elsewhere, platinum dropped 1.2% to $2,817.66 and palladium fell 1.2%, to
$1,071.52.

BofA expects platinum demand to rise, citing increased substitution from
palladium and platinum’s role in the hydrogen economy.

Silver was little changed at $26.11 an ounce. 

Oil Climbs as U.S. Supplies Dwindle and Demand Jumps to Record

Oil rebounded after a U.S. government report showed rapidly declining
inventories and record-high fuel demand in the midst of the peak summer
driving season.

Futures edged higher after earlier falling as much as 2% in New York on
Thursday. Domestic crude and gasoline supplies tumbled last week and a gauge
of fuel demand jumped to 10 million barrels a day during the week leading up
to the July 4th holiday weekend, according to the Energy Information
Administration. The data highlights the strengthening demand recovery in the
world’s largest oil-consuming nation.

U.S. crude inventories drop for seventh straight week

Oil prices rose 11% last month before volatile trading this week in the wake
of the OPEC+ impasse. Global supplies have tightened amid strong recoveries
in economies such as the U.S. and China, leading to calls for the alliance
to increase supply in the coming months.

The EIA report showed U.S. crude supplies fell by nearly 7 million barrels
last week and gasoline inventories tumbled by the most since March.

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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