Bulls n Bears Daily Market Commentary : 13 July 2021

Wed Jul 14 06:12:10 CAT 2021

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Bulls n Bears Daily Market Commentary : 13 July 2021

ZSE commentary

The ZSE closed in the positive for the third day registering impressive
gains mainly in the top 10 counters and top 15 counters. Activity levels
improved to 580 trades

representing a total volume of 12 788 300 shares exchanging hands. Medtech
continued to be the most active stock at 49 trades followed by Delta and
Cassava with

46 and 41 trades each. The market bias was positive after 22 stocks
registered gains against 13 fallers while 5 of the active stocks remained
unchanged. Medtech was the most liquid counter as it anchored volume
aggregate trading over 5.5 million shares and Delta ancored value aggregate
with a value of ZW$128.9 million contributing 45% to total turnover.

The benchmark All Share Index was up by 3.15% and the Top 10 Index was up
4.73%. The Top 15 Index added 3.88%. The Medium Cap Index traded higher to
16 688.21

points whilst the Small Cap Index was down to 227 130.75 points a 1.10%
decrease. Leading the risers pack of the day were ZIMRE Holdings and Delta
Corporation which added 12.46% and 12.38% respectively. Seed Co Zimbabwe
closed at 5604.62c up by 9.10%. NMB gained 7.44%. the telecoms giant Econet
also added 7.12%. Leading in the shaker's pack was Turnall shading 10.64%.
The hotelier RTG and Ariston shares were down by 4.80% and 4.56%. First
Mutual Holdings was down 3.85% to 2500c. The Old Mutual Top Ten ETF closed
at 195.79c up by 8.13% from a trade of 1 577 934 units worth ZW$3 089 359.83
in 15 trades.-wealthaccess

Global Currencies & Equity Markets

South Africa

South African rand sinks to 3-month low, bonds drop on violent protests

(Reuters) - South Africa's rand dropped to a three-month low on Tuesday and
local and hard currency bonds suffered as violent protests over economic
hardship and inequality rippled across the country.

Crowds clashed with police and ransacked or set ablaze shopping malls, with
dozens of people reported killed as grievances unleashed by the jailing of
ex-president Jacob Zuma boiled over into the worst violence in years.

The protests rattled financial markets in the continent's most
industrialised economy, with the rand dropping as much as 1.8% to 14.67
against the dollar, its lowest level since mid-April. The currency has lost
nearly 3% since Friday close and wiped out almost all gains enjoyed since
the start of 2021, with currency's volatility gauges hitting multi-week
highs.

Yields on 10-year local government bonds broke above 9% for the first time
since late June. Longer-dated sovereign dollar-denominated bonds lost nearly
1 cent in the dollar while the cost of insuring exposure to the country's
debt climbed to near-two month highs.

Wall Street bank Citi said it had cut its exposure to both bonds and FX on
the back of the spreading violence.

Initially sparked by last week's arrest of Zuma, the protests have widened
into looting and an outpouring of general anger as the economy struggles to
emerge from the damage wrought by Africa's worst COVID-19 epidemic and as
unemployment rates have soared to a record high of 32.6%.

Equity markets also suffered with the all share index down 0.3%, sharply
underperforming the MSCI global emerging market index which jumped 1%.

Nervous investors dumped property and retail stocks directly damaged by the
looters, with the property index dropping 2.55% and Vukile Property Fund
tumbling more than 7%.

SA Corporate said on Tuesday four out of 11 retail shopping centres that had
been looted had suffered extensive damage.

Massmart, majority-owned by U.S. Walmart Inc , led the decliners, falling
7.53% as looters continued to ransack its Game and Makro stores, as well as
warehouses.

Nigeria

Naira Gains At Official Market

The currency was unchanged at the parallel market.

The naira gained slightly against the U.S. dollar at the official market on
Monday, data posted on the FMDQ Security Exchange where forex is officially
traded showed.

Data posted showed that the currency closed at N411.50 per $1 at the Nafex
window.

This represents a N0.25 or 0.06 per cent from N411.75 rate it exchanged
hands with the greenback currency in the previous session on Friday last
week.

It occurred as the local unit touched an intraday low of N412.29, then
oscillated to a high of N400.00 before closing at N411.50 on Monday.

The Over-the-Counter (OTC) forex turnover skyrocketed significantly by
138.10 per cent, with $176.13 million recorded at the end of the market
session as against the $73.99 million published in the previous session of
the market segment on Friday last week.

However, the naira maintained stability against the U.S dollar at the
parallel market on Monday after it fell slightly in the previous session on
Friday last week.

Data posted on <a target="_blank" href="http://abokiFX.com">abokiFX.com</a>,
a website that collates parallel market rates in Lagos showed that the naira
closed again at N505.00 per $1 at the black market window, the same rate it
traded last week Friday.

The spread between the <a target="_blank"
href="https://www.premiumtimesng.com/business/business-news/472710-naira-los
es-further-at-black-market-2.html">black market</a> and the OTC rates is
pegged at N93.50, this translates to 18.52 per cent as of the close of
business on Monday.-Premium Times.

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

Global Markets

Dollar hits three-month high to euro on bets for faster Fed tightening; kiwi
soars

The U.S. dollar touched a three-month high versus the euro and a one-week
high versus the yen on Wednesday, after heated U.S. inflation spurred bets
of faster monetary policy tightening than Federal Reserve officials have so
far signalled.

TOKYO: The U.S. dollar touched a three-month high versus the euro and a
one-week high versus the yen on Wednesday, after heated U.S. inflation
spurred bets of faster monetary policy tightening than Federal Reserve
officials have so far signalled.

The New Zealand dollar jumped as much as 0.8per cent to 70.07 U.S. cents
after the Reserve Bank of New Zealand said Wednesday it would halt its
large-scale asset-purchase programme. On Tuesday, the kiwi had sunk as low
as 69.18 cents for the first time since November.

The greenback strengthened to US$1.17720 per euro, the highest since April
5, for a second day running, and was last little changed from Tuesday at
US$1.17780.

It rose to 110.70 yen for the first time since July 7, last trading largely
flat at 110.51.

The dollar index, which measures the U.S. currency against a basket of six
peers, was little changed at 92.748 after earlier rising as high as 92.832 -
just below the 92.844 level reached last week for the first time since April
5.

U.S. consumer prices rose by the most in 13 years in June amid supply
constraints and a continued rebound in the costs of travel-related services
from pandemic-depressed levels as the economic recovery gathered momentum.

Traders are now looking ahead to Fed Chair Jerome Powell testifying before
Congress on Wednesday and Thursday for any signals on the timing of a
tapering of stimulus and higher interest rates. Powell has repeatedly stated
that higher inflation will be transitory, noting that he expected supply
chains to normalise and adapt.

Elsewhere, the Canadian dollar held its biggest decline in a week to trade
largely unchanged at CUS$1.2500 per greenback, weakening toward a
2-1/2-month low of CUS$1.2590 reached last week.

The Canadian central bank is due to update its economic forecasts at a
policy announcement later on Wednesday, with further tapering of asset
purchases expected.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices finish higher with U.S. consumer prices up sharply in June

Gold futures finished higher Tuesday, with prices finding support following
data showing rising U.S. inflation and dovish comments from a key Federal
Reserve member, amid persistent concerns about the spread of the COVID-19
delta variant.

The U.S. cost of living in June saw the biggest climb since 2008, with the
consumer price index up 0.9%, exceeding the 0.5% advance forecast by
economists polled by The Wall Street Journal.

Gold markets fluctuated significantly after the data release, as investors
tried to digest the information, Jason Teed, co-portfolio manager of the
Gold Bullion Strategy Fund QGLDX, +0.09%, told MarketWatch. "Inflation was
largely contained to industries associated with reopening from COVID
lockdowns, which the [Federal Reserve] has taken the stance of calling
transitory."

August gold GCQ21, +0.21% GC00, +0.21% rose $4, or 0.2%, to settle at
$1,809.90 an ounce in Tuesday dealings, after declining 0.3% on Monday.

Still, high inflation is not necessarily a good thing for gold if it means
the Federal Reserve is going to tighten its belt, raising the federal funds
rate, he said in a market update.

Last week, "falling Treasury yields and concerns over rising COVID cases
offered support" to gold and continue to underpin the precious metal this
week, wrote Sophie Griffiths, market analyst at Oanda, in a Tuesday research
note.

On Monday, Federal Reserve Bank of New York President John Williams told
reporters that conditions for scaling back its $120 billion a month
bond-buying stimulus program have yet to be met.

However, the president of the St. Louis Fed James Bullard said Tuesday the
Federal Reserve should start reducing the stimulus it provides to the U.S.
economy, though he added the reduction didn't need to start immediately. "I
think with the economy growing at 7% and the pandemic coming under better
and better control, I think the time is right to pull back emergency
measures," he told the The Wall Street Journal in an interview published
Tuesday.

Also Tuesday, San Francisco Fed President Mary Daly said in an interview
with CNBC that the strong gain in the U.S. CPI is just a temporary "pop"
inflation that won't last, and the Fed should remain "steady in the boat"
with its easy monetary policy stance.

In other metals trading on Comex Tuesday, September delivery SU21, -0.20%
SI00, -0.02% edged down by a dime, or 0.4%, to $26.14 an ounce, following a
flat finish a session ago.

September copper HGU21, -0.53% declined by 0.2% to $4.31 an ounce. October
platinum PLV21, -0.27% lost nearly 1.1% to $1,111.20 an ounce and September
palladium PAU21, +0.23% settled at $2,832.50 an ounce, down 0.9%.

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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