Bulls n Bears Daily Market Commentary : 15 July 2021

Thu Jul 15 15:09:07 CAT 2021

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Bulls n Bears Daily Market Commentary : 15 July 2021

ZSE commentary

The ZSE market rally continued in today's session with gains across all
indices. Medium cap counters dominated turnover. Total turnover was at
ZW$105.8 million (37.4% lower) from a trade of over 7.47 million shares.
Medtech was the most active stock at 67 trades followed by Delta and First
Capital Bank at 29 and 27 respectively. The market breadth was positive
after 25 stocks appreciated against 12 that depreciated in a total of 41
stocks which traded. Medtech was the most liquid counter as it anchored
volume traded at 4 378 100 shares and Delta anchored value aggregate a value
of ZW$38.86 million contributing 36.7% to total turnover.

At close, the benchmark All Share Index gained 1.10% and the Top 10 Index
was up by 0.21%. The Top 15 Index added 0.38%. The Medium Cap Index traded
higher to 17

141.93 points appreciating by 2.31% whilst the Small Cap Index also added
2.56% to close at 239 347 points. Leading the risers pack of the day was
Seed Co Zimbabwe  up by 19.73% followed by Zimplow which added 13.05%.
Dairibord which is trading under cautionary added 10.75% to 3672.73c.
Medtech was 10.22% up to 32.14c. The pipe manufacturer Proplastics added
7.31% to 2790c. Leading in the shakers pack was General Beltings which pared
5.20% followed by Wildale shading 3.91%. Ariston and Unifreight pared 3.89%
and 3.52% respectively. The Old Mutual Top Ten ETF closed at 196.03c up
2.58% after 447 324 units with a value of ZW$876 896.74 in 30 trades
exchanged hands. On the VFEX, Padenga traded 14 775 shares worth US$3 489 to
close 46.36% down from US$0.3600 to close at US$0.1931.

Global Currencies & Equity Markets

South Africa

South African rand, stocks recover even as unrest continued

South Africa's rand recovered on Wednesday from the three-month lows plumbed
in recent days, even as the army and police struggled to quell days of
looting and violence.

The continent's most industrialised economy has been gripped by some of the
worst violence in decades after grievances unleashed by the jailing of
former President Jacob Zuma spilled over.

President Cyril Ramaphosa said on Wednesday he might order more troops to
reinforce the army and the police already deployed.

At 1620 GMT, the rand ZAR= traded at 14.5400 against the dollar, 1.36%
stronger than Tuesday.

The rand's 200-day moving average of 14.8529 should provide some resistance,
Warwick Butler, trader at Standard Bank said in a note.

Wayne McCurrie, portfolio manager at FNB said the major reason for the
rand's fall in the last few days was because it was over-valued.

The local stock market also rebounded as investors followed cues from the
United States, where the S&P 500 touched a record high after Federal Reserve
Chair Jerome Powell indicated the central bank would stick to its
accommodative policy.

Stocks that are dependent on the local economy, such as banks and retail
companies, also recouped some of their losses seen in last few days.

The benchmark all-share index .JALSH closed up 1.21% at 67,898 points and
the blue-chip index of top 40 companies .JTOPI ended up 1.33% to 61,754
points.

Government bonds were slightly weaker, with the yield of the instrument due
in 2030 ZAR2030= rising 1.5 basis point to 9.005%. It breached the 9% mark
for the first time since late June on Tuesday.

KENYA

Kenyan shilling seen softening, other African currencies stable

The Kenyan shilling is expected to come under pressure in the coming week as
demand for dollars increases in the market.

Commercial banks quoted the shilling at 108.05/108.25, compared with last
Thursday's close 107.85/108.05.

NIGERIA

Nigeria's naira is seen unchanged on the official and parallel markets next
week due to a forthcoming bank holiday and thin liquidity, traders said.

The currency was quoted at 411 naira on the spot market on Thursday, to stay
within a range of between 407 naira and 412 naira it has traded at since
last month.

It remained unchanged on the black market at the more than 3-1/2-year low of
505 naira hit last week on the informal market.

TANZANIA

Tanzania's shilling is expected to hold steady as dollar inflows from daily
corporate operations and retail companies match demand.

Commercial banks quoted the shilling at 2,314/2,324 against the dollar,
unchanged from last Thursday's close.

UGANDA

The Ugandan shilling is expected to be stable, with inflows from exporters
of commodities like coffee helping absorb appetite from merchandise
importers.

Commercial banks quoted the shilling at 3,545/3,555, compared with last
Thursday's close of 3,550/3,560.

ZAMBIA

The kwacha is likely to hold steady against the dollar next week as the
market continues to see some moderate hard currency supply and matching
demand.

On Thursday, commercial banks quoted the currency of Africa's second largest
copper producer at 22.6350 per dollar from 22.6200 at the close of business
a week ago.

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

Global Markets

Virus jitters keep dollar aloft

(Reuters) - Spiking coronavirus cases kept the dollar supported in Asia on
Thursday and it clawed back a little of a drop which had followed insistence
from Federal

Reserve chair Jerome Powell that he isn't in a hurry to withdraw policy
support.

The dollar was up about half a percent on the New Zealand dollar by midday
in Tokyo, up about 0.3% on the Australian dollar and British pound and up
roughly 0.1% against the euro.

Cities from Seoul to Sydney are under lockdown as the infectious Delta
variant sweeps the globe. Infection rates are rising in the United States,
Singapore reported its sharpest jump in cases in 10 months on Thursday and
Indonesia is living its government's worst-case COVID scenario.

Mixed economic data in China - showing a largely expected growth slowdown,
but signs of more resilient domestic demand - also did little to improve the
mood.

The safe-haven yen rose broadly, and was last up 0.1% at 109.86 per dollar
and close to testing multi-month peaks at 129.91 per euro. The Aussie fell
to $0.7453

while the kiwi dipped below 70 cents to $0.6998.

That could lead to a softer dollar as economies from Japan to Europe catch
up with the robust rebound in the U.S., he said.

England plans to lift almost all COVID-related restrictions on Monday, even
as cases climb. Sterling reflected some nerves about the prospect of
failure, and fell below its 20-day moving average to $1.3829. 

    POWELL PUSH 

Powell returns to Capitol Hill later on Thursday for further testimony
before Congress, following remarks that toppled the dollar from a
three-month high on the euro on Wednesday.

He had soothed rate hike fears by saying high inflation seemed linked to the
U.S. economy's reopening, that it would be a mistake to act prematurely and
that economic conditions for tapering bond buying was "still a ways off".

The subsequent support for the dollar, which still sits above its 20- and
200-day moving averages against a basket of six major currencies suggests
investors were not entirely convinced. The dollar index was last steady at
92.434.

Indeed the even sharp contrast in tone between Powell and other central
banks that are charting far faster courses away from super-easy policy
hasn't broken recent currency ranges.

In New Zealand, for example, the central bank said on Wednesday it would end
its bond purchase programme next week, but the resultant jump in the kiwi
only took it to a one-week high.

The Aussie dollar likewise shrugged off figures showing unemployment dropped
to levels last seen in the midst of a mining boom a decade ago - with
traders nervous after reports Melbourne is to join Sydney under lockdown.

The Canadian dollar also weakened on Thursday - with help from softening oil
prices - even though the Bank of Canada further tapered its policy support
on Wednesday.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold hits 1-month peak after Fed's Powell calms taper fears

(Reuters) - Gold prices rose their highest level in a month on Thursday
after U.S. Federal Reserve Chair Jerome Powell played down fears of the
early easing of monetary support, sending the dollar and U.S. Treasury
yields lower.

Spot gold was steady at $1,825.27 per ounce, as of 1053 GMT, after hitting
its highest since June 16. U.S. gold futures rose 0.1% to $1,827.10.

In a testimony to the U.S. Congress, Powell said the U.S. job market "is
still a ways off" from the progress that the central bank wants to see
before reducing its support for the economy, and current high inflation will
ease soon.

Key U.S. indicators of inflation this week showed producer prices surged in
June to the largest annual gain in more than 10-1/2 years, while consumer
prices rose by the most in 13 years.

Non-yielding gold tends to gain in a low interest-rate environment, while
some investors also view gold as a hedge against higher inflation that could
follow stimulus measures.

The dollar index backed off from recent highs, while 10-year U.S. Treasury
yields slipped.

Elsewhere, silver was flat at $26.23 per ounce, while platinum climbed 0.8%
to $1,141.23, after hitting its highest level in a month.

Palladium fell 0.9% to $2,801.63 per ounce.

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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