Bulls n Bears Daily Market Commentary : 16 July 2021

Sat Jul 17 07:42:55 CAT 2021

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Bulls n Bears Daily Market Commentary : 16 July 2021

ZSE commentary

The ZSE market rally ended in today’s session as the market registered mixed
trading across the board. Major losses from heavyweight countered pulled the
bourse to the

negative although the loss was marginal. Total turnover was at ZW$123
million (16% higher) from a trade of over 14.67 million shares. Medtech was
the most active stock at 86 trades followed by First Capital Bank and Star
Africa at 28 and 25 respectively. The market breadth was positive after 23
stocks appreciated against 17 that depreciated in a total of 43 stocks which
traded. First Capital Bank was the most liquid counter as it anchored volume
traded at 10 015 100 shares and Econet anchored value aggregate a value of
ZW$41.12 million.

At close, the benchmark All Share Index pared 0.23% and the Top 10 Index was
down by 0.77%. The Top 15 Index shaded 0.48%. The Medium Cap Index traded
higher to 17

177.53 points appreciating by 2.31% whilst the Small Cap Index also added
5.49% to close at 252 483.28 points. Leading the risers pack of the day was
Lafarge up by 20.00% followed by African Sun which added 19.53%. CAFCA added
19.09% to 3672.73c. Medtech was 19.04% up to 38.26c. Zimpapers added 14.81%
to 360c. Leading in the shakers pack was National Tyre Services which pared
19.65% followed by Seed Co shading 14.63%. BAT and African Distillers pared
11.01% and 4.41% respectively. The Old Mutual Top Ten ETF closed at 210c up
7.12% after 2 506 956 units with a value of ZW$5 264 228.16 in 11 trades
exchanged hands- .

Global Currencies & Equity Markets

South Africa

Rand rises, but set to lose more than 2% after civil unrest

The rand led gains across emerging market currencies on Friday, as it
trimmed steep weekly losses on fears of civil unrest, while Turkey's lira
was among the top performers this week as low volatility favoured
high-yielding currencies.

The rand rose 0.6%, but was set to lose more than 2% this week after a wave
of violence tore across major financial hubs in the country. The currency
was the worst performing emerging market (EM) unit this week.

MSCI's currency index was set to snap a two-week losing streak, taking
support from gains in the Chinese yuan. But a rise in Asian Covid-19 cases
sullied broader sentiment, while fears of slowing growth kept risk appetite
subdued.

Losses in Asian markets pushed MSCI's index of emerging market stocks 0.5%
lower. But the index was set to end the week about 1.8% higher, with a bulk
of gains coming on assurances from the U.S. Federal Reserve Chair, Jerome
Powell, that policy would stay accommodative.

Turkey's lira rose about 0.4% on Friday, and was set to outpace its peers in
Europe, the Middle East and Africa (EMEA) with a 1.3% gain.

The currency has been slowly rising since the central bank maintained
interest rates this week and vowed to keep them there till inflation comes
under control, although analysts argued more tightening was needed to rein
in inflation.

Still, with the bank expected to maintain the status quo, volatility
indicators on the lira hit a one-year low. And with benchmark rates at 19%,
the lira is among the highest yielding currencies in the world. 

But that yield comes with the risk of more government meddling in monetary
policy, which has seen the lira plummet to record lows.

In central Europe, the Polish zloty lagged its peers this week, as the
country's central bank held interest rates this week, in contrast to hikes
in Hungary and the Czech republic.

Nigeria

Naira Stable At Official, Black Markets

Forex supply slumped by 42.2 per cent.

The naira maintained stability against the U.S. dollar at both the official
and parallel market segments on Thursday.

Data posted on the FMDQ Security Exchange where forex is officially traded
showed that the local unit closed at N411.20 per $1 at the Nafex window, the
same rate it traded in the previous session on Wednesday.

This occurred as the domestic currency staged an intraday low of N412.50 and
a high of N400.00 before closing at N411.20 as of the close of business on
Thursday.

Forex supply slumped by 42.2 per cent, with $123.69 million recorded at the
end of the market session as against the $213.99million recorded in the
previous session on Wednesday.

Similarly, 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 at N505.00 per $1 at the
black market window on Thursday, the same rate it has been trading since
July 9.-Premium Times.

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

Global Markets

Dollar moves back above ¥110 in Tokyo

The dollar retook ¥110.00 in Tokyo on Friday, helped by a rebound in U.S.
interest rates.

At 5 p.m., the dollar stood at ¥110.16 up from ¥109.76 at the same time
Thursday. The euro was at $1.1801, down from $1.1835, and at ¥130.00, up
from ¥129.90.

The dollar gathered upward momentum after moving around ¥109.80 in the early
morning, thanks to buying by Japanese importers for settlement purposes and
a rise in U.S. long-term interest rates in off-hours trading. The greenback
hit levels around ¥110.00 toward midmorning.

The dollar remained static mostly in the afternoon, with players retreating
to the sidelines ahead of the weekend.

However, the U.S. currency climbed close to ¥110.20 after European investors
joined trading in late hours.

Pointing to dovish comments made by U.S. Federal Reserve Chairman Jerome
Powell at congressional hearings earlier this week, a currency broker said
the dollar failed to go up further amid growing expectations that the U.S.
interest rate rebound would be “short-lived.”

Some players refrained from active transactions to wait for U.S. retail
sales data for June to be released later in the day, traders said.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold retreats from one-month peak as dollar strengthens

(Reuters) - Gold slipped on Friday as a stronger dollar dulled its appeal
and pushed the metal further from one-month highs hit in the previous
session.

Spot gold dropped 0.8% to $1,814.11 per ounce by 1:43 pm EDT, though it was
up 0.3% so far this week. U.S. gold futures settled 0.8% lower at $1,815.

The dollar index was bound for a strong weekly gain, reducing gold’s appeal
to other currency holders.

TD Securities commodity strategist Daniel Ghali said gold’s inability to
benefit substantially from weaker U.S. real yields suggested it remained
vulnerable to a further pull-back.

Ghali, however, said that improving physical bullion demand, particularly
from top-consumer China, and central bank purchases could limit the precious
metal’s declines.

Earlier this week, Federal Reserve Chair Jerome Powell reiterated that the
U.S. central bank would remain accommodative, driving gold to a one-month
high on Thursday.

Uncertainty around a potential spike in coronavirus Delta variant cases in
the United States could force the Fed to remain accommodative for longer,
said Phillip Streible, chief market strategist at Blue Line Futures in
Chicago.

Elsewhere palladium slid 3.2% to $2,644.20 an ounce, en route to its first
weekly decline in four, while platinum lost 2.9% to $1,105.03.

A U.S. retail sales report for June showed motor vehicles sales declined
because of a lack of supply caused by a global semiconductor shortage.

The two metals are used by automakers to limit emissions in engine exhaust
systems.

Silver shed 2.3% to $25.71 an ounce.

Copper futures rise on spot demand

NEW DELHI: Copper prices on Friday traded up by 0.32 per cent to Rs 730.60
per kg in the futures market on the back of a pick-up in the spot demand.

On the Multi Commodity Exchange, copper contracts for delivery in July
traded higher by Rs 2.35, or 0.32 per cent, to Rs 730.60 per kg in a
business turnover of 3,766 lots.

Analysts attributed the rise in copper prices to raising of bets by
participants driven by a pick-up in the spot demand.

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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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
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been compiled from sources believed to be reliable, but no representation or
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