Bulls n Bears Daily Market Commentary : 21 July 2021

Wed Jul 21 18:32:02 CAT 2021

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Bulls n Bears Daily Market Commentary : 21 July 2021

ZSE commentary

Trading was mixed in today's mid-week session as the ZSE struggles for
direction ahead of the release of the national budget in the coming weeks.
Total turnover was near flat at ZW$80 million (5% lower) from a trade of
over 7.59 million shares (27% lower). Activity level was at 477 trades.
Medtech was the most active stock at 88 trades followed by Star Africa and
Delta at 34 and 33 respectively. First Capital Bank was the most liquid
counter as it anchored volume traded at 2 157 300 shares and Dairibord
anchored value aggregate a value of ZW$21 million.

At close, the benchmark All Share Index added 0.64% to 6 529.36 points in a
session that yielded 19 decliners against 16 advancers in a total of 43
stocks which traded. The Top 10 Index was up by 0.21%. The Top 15 Index
added 0.28%. The Medium Cap Index traded higher to 17 441.95 points
appreciating by 1.30% whilst the Small Cap Index shaded 0.53% to close at
246 970.56 points. Leading the shakers pack of the day was Get Bucks
Microfinance bank down by 6.93% followed by Edgars  and Fidelity which both
shaded 4.17%. First Capital Bank lost 3.02% to 300.64c. Wildale was 2.84%
down to 333.03c. Leading in the risers' pack was Star Africa which added
17.69% followed by Axia Corporation adding 15.03%. ART Corporation and
Lafarge Cement Zimbabwe added 14.03% and 7.42% respectively. ZIMRE continued
on its upward trend closing at 426.10c up by 5.47%. The Old Mutual Top Ten
ETF closed at 196.90c down by 3.34% after 2 900 units with a value of ZW$5
710 in 5 trades exchanged hands.- .

Global Currencies & Equity Markets

South Africa

South Africa's rand braced for another fall

(Reuters) - South Africa's rand is under mounting pressure as the country's
growth outlook deteriorates and, with a major technical level looming large,
it may need to brace itself for another fall.

Domestic woes are currently underpinning a bout of ZAR weakness and, with a
broadly stronger U.S. dollar also in the mix, USD/ZAR is set to test a key
technical resistance level.

The 200-day moving average is currently at 14.7925 and has contained the
market since Jan. 10 2020. However, profit taking could save the ZAR if the
long-term average holds.

South Africa's Reserve Bank (SARB) meets on Thursday and is unlikely to
offer any support for the ZAR. Growth estimates for 2021 are likely to be
revised down following the higher incidence of COVID-19 infections and
recent civil unrest.

The central bank is expected to keep the repo rate at 3.5% amid the latest
concerns for growth.

As base effects from last year's inflation slump wear off, moderating price
pressures will allow the SARB to focus on stimulus and maintain its
accommodating stance.

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

Global Markets

U.S. dollar advances to three-month high in safety move

(Reuters) - The U.S. dollar climbed to a three-month peak on Tuesday in a
flight-to-safety bid, as investors remained anxious about a fast-spreading
coronavirus variant that could throttle global growth.

Commodity currencies tied to risk appetite such as the Australian and New
Zealand dollars struggled, with investors opting for safety or staying on
the sidelines amid renewed fears about the highly contagious Delta variant,
now the dominant coronavirus strain worldwide.

U.S. infectionshave surged, especially in areas where vaccinations have
lagged. read more

The dollar rose as yield differentials have moved against it. Benchmark
10-year U.S. Treasury yields dipped to a five-month low below 1.20% on
Monday on renewed skepticism about a strong economic rebound from the
pandemic.

In afternoon trading, the dollar index, a measure of its value against six
major currencies, rose 0.1% to 92.961, after hitting a three-month high of
93.161 earlier in the session.

Data showing U.S. housing starts rose 6.3% to a seasonally adjusted annual
rate of 1.643 million units last month had little reaction from the FX
market. read more

In other currencies, the euro weakened 0.2% to $1.1780, after dipping to
$1.1755, the lowest since early April ahead of a European Central Bank
policy decision on Thursday.

The British pound was also among the biggest losers, with the currency
declining 0.4% to $1.3607, as Boris Johnson's "freedom day" - ending more
than a year of COVID-19 lockdown restrictions in England - was marred by
surging infections. read more

The Australian dollar dropped to its lowest since late November and was last
down 0.2% at US$0.7331.

The Aussie's losses were broad-based as minutes of the Reserve Bank of
Australia's policy meeting this month were seen by some economists as a sign
that the central bank may reverse a decision to taper stimulus. read more

In cryptocurrencies, bitcoin sank as low as $29,296.39, a level not seen
since June 22. It was last down 3.4% at $29,779. Rival ether fell 1.5% to
$1,789.32.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold price today at Rs 47,300 per 10 gm, silver trending at Rs 67,500 a kg

The price of 10 gm of 22-carat gold on Wednesday rose to Rs 47,300 from Rs
47,040 and silver declined to Rs 67,500 per kg, according to the Good
Returns website.

Gold jewellery price varies across India, the second-largest consumer of the
metal, due to excise duty, state taxes, and making changes.

In New Delhi, the price of 22-carat gold is up to Rs 47,400 per 10 gm. In
Chennai, it is hiked to Rs 45,660. The rate in Mumbai is Rs 47,300,
according to the website.

Prices for 24-carat gold witnessed an increase of Rs 260 per 10 gram to Rs
48,300 on Wednesday from Rs 48,040 in the previous trading session.

Silver fell by Rs 300 per kilogram to Rs 67,500 per kilogram from Rs 67,800
in the previous trade.

Indian rupee ended near the day's high at 74.61 per dollar, amid selling was
seen in the domestic equity market.

In the global market, gold was subdued in volatile trade on Tuesday as the
dollar strengthened, curbing inflows into the safe-haven metal despite some
concerns over a surge in Covid-19 cases.

Spot gold was little changed at $1,811.51 per ounce by 1733 GMT, while US
gold futures settled up 0.1% to $1,811.40.

The US dollar scaled a 3-1/2-month high, denting gold's allure.

A surge in coronavirus cases in the United States and other countries
however spurred some safe-haven buying of bullion in recent sessions, with
gold rebounding as much as 1.7% from Monday's one-week trough.

Oil climbs 4% despite rise in U.S. inventories

(Reuters) - Oil prices rose about 4% Wednesday, extending gains from the
previous session as improved risk appetite provided support despite data
showing an unexpected rise in U.S. oil inventories.

Brent crude futures gained $2.53, or 3.7%, to $71.88 a barrel by 10:48 a.m.
EDT (1448 GMT). U.S. West Texas Intermediate (WTI) crude futures rose $2.69,
or 4%, to $69.89 a barrel.

Futures are rebounding after dropping around 7% on Monday, following a deal
by the Organization of the Petroleum Exporting Countries and allies,
together known as OPEC+, to boost supply by 400,000 barrels per day from
August through December. The sell-off was exacerbated by fears that a rise
in cases of the Delta variant of the coronavirus in major markets like the
United States, Britain and Japan will affect demand.

The price gains on Wednesday also come despite a rise in U.S. crude
stockpiles for the first time since May. Crude inventories (USOILC=ECI) rose
unexpectedly by 2.1 million barrels last week to 439.7 million barrels, U.S.
Energy Information Administration data showed. Analysts had expected a 4.5
million-barrel drop.

Still, gasoline (USOILG=ECI) and distillate (USOILD=ECI) inventories posted
draws of 121,000 barrels and 1.3 million barrels, respectively.

JPMorgan analysts said global demand is expected to average 99.6 million
barrels per day in August, up by 5.4 mbd from April. But they also said: "We
only see 4Q21 demand recovering another incremental 330,000 vs a normalised
2019 baseline as colder weather sets in for the northern hemisphere and peak
travel season is behind us."

Additional reporting by Ahmad Ghaddar in London, Sonali Paul in Melbourne
and Roslan Khasawneh in Singapore; editing by Kirsten Donovan and Lisa
Shumaker

Our Standards: The Thomson Reuters Trust Principles.

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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DISCLAIMER: This report has been prepared by Bulls 'n Bears, a division of
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