Bulls n Bears Daily Market Commentary : 27 July 2021

Tue Jul 27 14:46:13 CAT 2021

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Bulls n Bears Daily Market Commentary : 27 July 2021

ZSE commentary

The ZSE cling on to gains seen in the previous trading session ahead of the
July month end. The blue chips dominated turnover with total turnover
slightly higher at ZW$107 million from a trade of over 6.77 million shares.
Activity levels were higher at 651 trades. Star Africa was the most active
stock at 92 trades followed by Medtech and OK Zimbabwe at 91 and 48
respectively. Medtech was the most liquid counter as it anchored volume
traded trading 3 116 600 shares and CBZ anchored value traded with a value
of ZW$33.4 million contributing 31% to total turnover. At close, the
benchmark All Share Index added 1.12% to 6 705.90 points with 19 advancers
and 18 losers while 5 counters remained unchanged. The Top 10 Index was up
by 2.29%. The Top 15 Index added 1.77%. The Medium Cap Index traded lower to
17 592.89 points depreciating by a paltry 0.32% whilst the Small Cap Index
also pared 2.04% to close at 228 820.45 points. Leading the risers pack of
the day was Hippo up by 14.92% followed by Art Corporation and Cassava which
added 8.21% and 6.23% respectively. Simbisa Brands was up 4.69% to 4500c.
Zimpapers was 2.38% up to 350c. Leading in the shakers' pack were Fidelity
and Star Africa which shaded 20.00% and 4.15% respectively. These were
closely followed by Unifreight shading 3.57%. African Sun and TSL pared
2.83% and 2.27% respectively. The Old Mutual Top Ten ETF closed at 190c down
by 5.00% after 6 400 units with a value of ZW$12 160 in 6 trades exchanged
hands.- WealthAccess

Global Currencies & Equity Markets

South Africa

S.Africa's rand partially recovers, but risks remain

(Reuters) - South Africa's rand recovered from early losses on Monday, with
concerns over rising COVID-19 infections setting a cautious tone in global
markets ahead of the U.S. Federal Reserve's meeting this week.

At 1540 GMT, the rand traded at 14.8000 against the dollar, up 0.35% from
its previous close.

The currency fell last week after the South African Reserve Bank suggested
on Thursday that interest rates would stay relatively low.

The dollar has in recent sessions benefited from safe-haven buying on fears
a surge in infections of the fast-spreading Delta variant could derail the
global recovery, pressuring riskier assets, such as the rand.

The dollar has also been supported by inflationary concerns and prospects of
an earlier than expected U.S. rate hike.

Market participants are now waiting for the U.S. central bank's meeting on
Tuesday and Wednesday. While no policy change is expected, investors will
look for clues on when the Fed might start reining in its easy monetary
policies.

Shares on the Johannesburg Stock Exchange were largely unchanged from
Friday's close.

The benchmark all-share index closed down 0.02% at 68,051 points, while the
blue-chip index of top 40 companies closed up 0.02% to 61,946 points.

Shares in Anglo American Platinum and Impala Platinum jumped by more than 5%
as Impala Platinum posted a four-fold jump in half year profits.

The resources index was up 3.68%, which helped offset a fall in industrials,
led by a slump in the shares of Naspers Ltd and subsidiary Prosus, which
were down on increased scrutiny of tech companies in China.

Naspers, through Prosus, holds around a 30% stake in Chinese internet and
gaming giant Tencent.

Bonds strengthened, with the yield on the benchmark government bond due in
2030 down 13 basis points at 8.83%. 

Nigeria

Nigeria's Naira exchanges for 503/$ at parallel market

Naija247news is an investigative news platform that tracks news on Nigerian
Economy, Business, Politics, Financial and Africa and Global Economy.

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.

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

Global Markets

Dollar loiters near highs as traders await Fed

(Reuters) - The U.S. dollar hovered just below recent peaks on Tuesday, as
investors turned to this week's Federal Reserve meeting for clues on the
policy outlook, while cryptocurrencies pulled back sharply after an attempt
to break out of a monthslong range.

The dollar had dipped about 0.3% against the euro overnight.

But the greenback has been rising broadly for more than a month as markets
are wary of the Fed starting to taper its monetary support, and data shows
investors are now long dollars for the first time since March 2020.

The dollar traded at $1.1809 per euro and bought 110.27 yen early in the
Asia session. The Australian and New Zealand dollars held on to modest
overnight gains.

The Fed meeting is on Wednesday and the focus is on discussions around bond
purchases and insight into the bank's comfort with surging inflation, with
the upshot for currency markets not clear cut.

Commonwealth Bank of Australia strategist Joe Capurso said a hint that
tapering could soon begin would lift the dollar.

Steve Englander, head of G10 FX research at Standard Chartered, however,
said that a steer on the Fed's thinking about a sharp but likely transitory
jump in inflation will be just as important.

A tick higher in inflation expectations on Monday pushed U.S. 10-year real
yields to a record low of -1.123%, which also contributed to overnight
softness in the dollar.

The U.S. dollar index fell 0.3% overnight and was last steady at 92.584.

Elsewhere, concern at the spread of the Delta coronavirus variant and
jitters in China's stock market kept trade cautious during Asia hours. The
risk-sensitive Australian dollar was steady at $0.7382 and the kiwi at
$0.7000.

Sterling was above its 20-day moving average and near a one-week high at
$1.3827 as early data seemed to show an ebb in surging COVID-19 cases in
Britain in spite of the removal of many social curbs last week.

The Chinese yuan has held up despite turmoil in equities and was steady at
6.4790 on Tuesday while investors awaited industrial profit figures due at
0130 GMT.

Bitcoin dropped sharply to $37,470 from a Monday peak of $40,581 after
Amazon.com (AMZN.O) offered a qualified denial of a weekend news report that
said it was preparing to accept cryptocurrencies.

Our Standards: The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold subdued as investors await cues from Fed meeting

(Reuters) - Gold prices lingered below the key $1,800 per-ounce level on
Tuesday, as investors maintained a cautious stance ahead of the Federal
Reserve policy meeting and awaited cues on the U.S. central bank's timeline
for tightening its monetary policies.

Spot gold was flat at $1,796.75 per ounce, as of 1048 GMT, after hitting a
session low of $1,792.00, with a firmer dollar curbing the precious metal's
appeal further.

The dollar index was up 0.2%, hovering near the 3-1/2-month peak, making
gold more expensive for holders of other currencies.

U.S. gold futures eased 0.1% to $1,796.90 per ounce.

Rising coronavirus cases in the United States "is certainly something that
keeps the Fed to not change its outlook and rate policy for the time being,"
Quantitative Commodity Research Analyst Peter Fertig said.

The Fed's meeting will start later in the day and a policy statement will be
issued at 1800 GMT on Wednesday, followed by a news conference by Fed
Chairman Jerome Powell.

Investors will be looking at how the Fed responds to fast-rising prices
while facing increasing threat posed by the more contagious Delta variant of
the coronavirus.

Elsewhere, silver fell 0.2% to $25.10 per ounce, while platinum shed 0.8% to
$1,055.94.

Palladium dropped 0.6% to $2,640.29, having earlier hit a one-week low of
$2,613.51.

Copper hits multi-week highs on weaker dollar

(Reuters) - Shanghai and London copper jumped on Tuesday to multi-week
highs, as a softer dollar made greenback-priced metals cheaper to holders of
other currencies.

The dollar eased, hovering just below recent peaks, as investors turned
their focus to this week's Federal Reserve meeting for clues on the policy
outlook.

The most-traded September copper contract on the Shanghai Futures Exchange
climbed as much as 3.1% to 72,740 yuan a tonne, its highest since June 3.

Three-month copper on the London Metal Exchange hit a high of $9,924 a
tonne, a level unseen since June 15.

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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