Bulls n Bears Daily Market Commentary : 26 July 2021

Mon Jul 26 16:46:31 CAT 2021

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Bulls n Bears Daily Market Commentary : 26 July 2021

ZSE commentary

The ZSE opened the week with marginal gains in all indices except for small
cap stocks which suffered a loss of 4.25%. Total turnover was lower at
ZW$101 million from a trade of over 7.8 million shares. Activity levels were
higher at 540 trades. Star Africa was the most active stock at 110 trades
followed by OK Zimbabwe and Medtech at 55 and 52 respectively. Medtech was
the most liquid counter as it anchored volume traded trading 4 416 300
shares and Innscor anchored value traded with a value of ZW$25.3 million
contributing 25% to total turnover. At close, the benchmark All Share Index
added a marginal 0.21% to 6 631.83 points with 19 advancers and 17 losers
while 1 counter remained unchanged. The Top 10 Index was up by 0.25%. The
Top 15 Index added 0.47%. The Medium Cap Index traded higher to 17 649.21
points appreciating by a paltry 0.38% whilst the Small Cap Index also pared
4.25% to close at 233 593.87 points. Leading the risers pack of the day was
BAT up by 20.00% followed by RTG and Masimba Holdings which added 11.46% and
6.10% respectively. The telecoms giant Econet was up 3.48% to 2959.72c.
Simbisa was 3.44% up to 4298.48c. Leading in the shakers' pack were Medtech
and Get Bucks which shaded 18.37 and 18.21% respectively. These were closely
followed by Zimplow shading 13.75%. First Mutual Holdings and Art
Corporation 13.04% and 7.49% respectively. The Old Mutual Top Ten ETF closed
at 200c up by 2.60% after 4 500 units with a value of ZW$9 000 in 5 trades
exchanged hands- WealthAccess

Global Currencies & Equity Markets

South Africa

Rand weakens against dollar

JOHANNESBURG - The rand enters the new week having lost significant ground
against the US dollar.

The local currency was trading at R13.75 at the beginning of June.

It's since weakened against a strengthening dollar, and was further
pressured by the recent riots and looting. 

Analysts say last week's flag by the South African Reserve Bank that
interest rates could stay low for longer, also added to the weakening.

A weaker currency stokes inflation as it increases the cost of imports.

The rand is now hovering around R14.80 to the dollar.-eNCA

Zambia

Chibamba explains kwacha gain, as PF claims credit

ECONOMIST Chibamba Kanyama says the Kwacha will continue to appreciate as
the country heads towards the 2021 general elections, resulting from several
effects. And Patriotic Front members have celebrated the achievement,
bragging that the kwacha gain was pushing the boat to sail further away. 

Zambia's Ambassador to Ethiopia Emmanuel Mwamba posted: K20.7 - $1: Factors
helping Kwacha appreciate, increased forex retention, increased export of
crops, energy crisis over, smooth handling of elections, peaceful campaigns
except isolated cases, credible Electoral process.Sansheniko naimwe!" 

Nigeria

Naira exchanges for 503/$ at parallel market

The naira exchanged to the dollar at 503 at the parallel market on Friday
according to the Bureau de Change operators.

Figures obtained from naijbdcs.com, the official website for the licensed
BDCs by the Central Bank of Nigeria showed that the naira was bought and
sold for 502 and 503.5.

The naira had earlier traded at 504/$ early in July.

At the Investors & Exporter forex window, the naira hit a high of 412.25 but
closed at 411.50.

On the CBN's website, the banking regulator maintained the official rate of
the naira to the dollar at 410.18/$.

The CBN had earlier said that it was increasing foreign exchange allocated
to banks to meet legitimate needs.

It assured that the BDCs would continue to have their weekly allocations.

The CBN in May adopted the NAFEX I &E forex window rate of as its official
exchange rate to the dollar.

The CBN had established the I&E forex window as part of efforts to deepen
the foreign exchange market and accommodate all forex obligations.

The purpose of the window was to boost liquidity in the forex market and
ensure timely execution and settlement for eligible transactions.-PUNCH.

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

Global Markets

Dollar eases as focus turns to Fed, cryptocurrencies jump

The dollar slipped against a basket of currencies on Monday as investors
turned their focus to this week's Federal Reserve meeting and
cryptocurrencies jumped to their highest levels in weeks.

The euro ticked 0.2% higher to $1.1795. German business morale fell
unexpectedly in July on continuing supply chain worries and rising
coronavirus infections, a survey showed on Monday.

The Ifo institute said its business climate index fell to 100.8 from a
revised 101.7 in June. A Reuters poll of analysts had pointed to a July
reading of 102.1.

The yen gained as much as 0.4% to 110.11 yen per dollar. . Sterling gained
against the dollar and the euro as coronavirus infections in Britain receded
for now.

The dollar index, which measures the currency against six major peers,
slipped 0.2% to 92.688 under pressure from the euro and yen, but was still
close to last week's 3-1/2-month high of 93.194.

It has gained nearly 4% from a low on May 25 as an improving U.S. economy
bolstered the outlook for the Fed to start paring asset purchases as early
as this year.

They added that there were risks for a slightly later announcement of a
taper decision from the Fed - for example, out to the fourth quarter - given
the uncertainty associated with the Delta variant of the coronavirus.

The Fed at its last meeting on June 16 dropped a reference to the
coronavirus as a drag on the economy.

The U.S. data calendar is light, with the focus on the Dallas Fed
Manufacturing Activity index, which is expected to have gained in July.

Cryptocurrency Bitcoin jumped by as much as 10% to a more than five-week
high of $39,850, while ether gained 7.35% to $2,353 after London's City A.M.
newspaper cited an un-named insider at the weekend as saying Amazon is
looking to accept bitcoin payments by year-end.

The report followed Twitter boss Jack Dorsey's comment on Friday that the
digital currency is a "big part" of the social-media company's future.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold gains on weaker dollar, stocks ahead of Fed meeting

Gold prices edged higher on Monday as a softer dollar and a pullback in
global equities lifted demand for the safe-haven metal, while investors
awaited the Federal Reserve meeting for policy cues.

Spot gold was up 0.4% at $1,805.44 per ounce by 1213 GMT, while US gold
futures rose 0.3% to $1,807.60 per ounce.

Gold is drawing support from the risk-off sentiment, as equity markets are
falling and the dollar is also slightly weaker, UBS analyst Giovanni
Staunovo said.

China's net gold imports via Hong Kong rebound in June

European stocks eased from all-time highs on Monday after regulatory
concerns knocked Asian markets lower.

The US dollar slipped 0.2% against a basket of currencies, while benchmark
10-year Treasury yields pulled back, reducing the opportunity cost of
holding non-interest bearing gold.

Coronavirus cases continued to rise over the weekend with some countries
posting record daily increases.

Investor focus now shifts to the US central bank's meeting on Tuesday and
Wednesday for more clarity on monetary policy.

Last week the European Central Bank pledged to keep interest rates at record
lows for some time and warned that the rapidly spreading Delta variant poses
a risk to the euro zone's recovery.

Gold falls in Europe

Meanwhile, China's net gold imports via Hong Kong jumped nearly 42% in June
after a slump in May, data showed.

In other metals, silver gained 0.5% to $25.29 per ounce, palladium rose 1.1%
to $2,701.06 and platinum gained 0.3% to $1,064.13.

Copper hits near 6-week peak on China floods, equities rout

(Reuters) - Copper hit its highest in nearly six weeks on Monday, as
investors sold equities for more attractive assets, with prices further
supported by supply worries and hopes of more metals' demand for rebuilding
infrastructure after floods in China.

Three-month copper on the London Metal Exchange CMCU3 increased 0.9% to
$9,600.50 a tonne by 0530 GMT, after rising as much as 1.6% to $9,665 a
tonne, its highest since June 16.

The most-traded September copper contract on the Shanghai Futures Exchange
SCFcv1 advanced 1.6% to 70,670 yuan ($10,899.47) a tonne, after hitting a
June 15 high of 71,150 yuan a tonne earlier in the session.

Chinese shares slumped as education and property sectors dropped on worries
over heavy-handed government regulations, making commodities like metals an
attractive alternative investment.

Floods in central China, especially in the industrial and transport hub city
of Zhengzhou in Henan province, have raised supply concerns and demand for
rebuilding damaged infrastructure, which will consume industrial metals.

FUNDAMENTALS

* ShFE nickel SNIcv1 hit a five-month high at 146,870 yuan a tonne, tin
SSNcv1 climbed 0.9% to 232,560 yuan a tonne and aluminium SAFcv1 reached its
highest since May 19 of 19,750 yuan a tonne.

* LME nickel CMNI3 touched its highest since Feb. 25 at $19,645 a tonne,
while tin CMSN3 fell 0.8% to $34,235 a tonne.

* ShFE copper inventories CU-STX-SGH fell to their lowest since Feb. 10 at
96,087 tonnes while the Yangshan copper premium SMM-CUYP-CN rose to a
11-week high of $43 a tonne, indicating improving demand for imported metal.

* For the top stories in metals and other news, click TOP/MTL or MET/L

($1 = 6.4838 yuan)

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
Faith Capital (Pvt) Ltd for general information purposes only and does not
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been compiled from sources believed to be reliable, but no representation or
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