Bulls n Bears Daily Market Commentary : 28 July 2021

Wed Jul 28 14:05:32 CAT 2021

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Bulls n Bears Daily Market Commentary : 28 July 2021

ZSE commentary

The ZSE firmed in the positive ahead of the mid-term budget review tomorrow.
This is also amid concerns by market players of the parallel market rates
ticking up in the past two weeks. Total turnover was higher at ZW$233.8
million from a trade of over 8.8 million shares. Activity levels were lower
at 571 trades. OK Zimbabwe was the most active stock at 80 trades followed
by Medtech at 75 and Delta and Star Africa at 47 each. NMB was the most
liquid counter as it anchored volume traded trading 3 259 000 shares and
Delta anchored value traded with a value of ZW$78.5 million contributing
33.6% to total turnover. At close, the benchmark All Share Index added 0.89%
to 6 765.30 points with 27 advancers and 7 losers while 6 counters remained
unchanged. The Top 10 Index was up

by a paltry 0.20%. The Top 15 Index added 0.55%. The Medium Cap Index traded
higher to 17 901.00 points appreciating by 1.75% whilst the Small Cap Index
also added 3.01% to close at 235 714.65 points. Leading the risers pack of
the day was African Distillers up by 13.24% followed by First Mutual
Holdings and Truworths which added 12.00% and 9.92% respectively. Fidelity
was up 8.70%. Leading in the shakers' pack were Edgars and CBZ which shaded
7.89% and 5.26% respectively followed by Art Corporation shading 3.84%.
Cassava and ZIMRE Holdings pared 2.16% and 0.30% respectively. The Old
Mutual Top Ten ETF closed at 191.34c up by 0.70% after 28 400 units with a
value of ZW$54 340 in 8 trades exchanged hands..- WealthAccess

Global Currencies & Equity Markets

South Africa

Rand trades slightly firmer overnight

THE rand oscillated during the European session as traders await to outcome
of the Federal Open Market Committee (FOMC) meeting on Wednesday, although
general risk aversion started to lift, according to NKC Research.

NKC Research foresees no major change in the FOMC policy statement and
expects chairperson Jerome Powell will retain a very dovish tone, even as
the FOMC pivots away from its "extremely dovish and patient" stance. While
he will probably reiterate that "the standard of substantial further
progress (towards their dual mandate) is a ways' off", he will also relay
that policymakers advanced their discussion on the timing, composition and
size of prospective QE tapering.

At the close of local trade, the rand quoted 0.3 percent firmer, at
R14.80/$, after trading in range of R14.77/$ to R14.95/$. The rand traded
slightly firmer overnight. The expected range of the rand against the dollar
today is R14.70/$ to R15.00/$.

South African bourse

The JSE All Share (-1.04 percent) ended weaker on Tuesday as large tech
weighed. In local news, Kumba Iron Ore declared a significant dividend on
the back of increased production volumes and sales. Even so, Kumba's share
price closed at R729.2, ending the day 0.10 percent lower. In the overall
emerging market sphere, the MSCI Emerging Market Index (-2.15 percent)
traded lower.

The Brent oil price traded sideways yesterday, as rising vaccination rates
and tight supplies are being weighed against the surging Covid-19 cases
globally, which could hamper demand. At the close of local trade, benchmark
Brent crude futures quoted 0.04 percent lower, at $74.51pb. Crude prices
traded firmer during Asian trade this morning.

BUSINESS REPORT ONLINE

Nigeria

Naira falls after CBN stops forex sales to BDCs

Naira fell marginally against the U.S dollar at the parallel market on
Tuesday, after the Central Bank of Nigeria (CBN) announced that it has ended
the sales of forex to Bureau De Change operators.

The bank said the parallel market had become a conduit for illicit forex
flows and graft.

The CBN said it will also call off the processing of applications for for
BDC licences in the country.

The CBN governor, Godwin Emefiele, who disclosed this during a live TV
broadcasting while announcing that the bank has retained its benchmark
policy rate, noted that weekly sales of foreign exchange by the CBN will
henceforth go directly to commercial banks.

Data recorded on abokiFX.com, a website that collates the parallel market
rates in Lagos, showed that naira closed at N505.00 per $1 on Tuesday, a
N1.00 or 0.20 per cent devaluation from N504.00, the rate it traded in the
previous session on Monday.

Similarly, the local unit also fell against the greenback currency at the
official market segment on Tuesday, data posted on the FMDQ Security
Exchange where forex is officially traded showed.

According to data posted, the naira closed at N411.67 per $1 on Tuesday,
this represents a N0.17 or 0.04 per cent depreciation from N411.50, the rate
it exchanged hands with the hard currency in the previous session on Monday.

This became evident as forex turnover slumped by 17.10 per cent, with
$115.67 million posted at the end of the market session as against the
$139.49 million recorded in the previous session on Monday.

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

Global Markets

Dollar stands firm with Fed decision in focus

(Reuters) - The dollar stood firm on Wednesday after being pinned down
earlier, with investors holding off on placing major bets ahead of the
outcome of a U.S. Federal Reserve meeting.

The U.S. dollar index moved into positive territory after trading lower in
Asian hours. The greenback was last up a sliver at 92.474.

The Japanese yen, Swiss franc and the euro held onto the previous day's
gains in Asian trading hours, with the safe-haven yen trading at 109.93 per
dollar and the euro at $1.1812.

The dollar has enjoyed a month-long rally after a hawkish shift from the Fed
in June. Markets are waiting to see whether it will provide any clues on the
timing of tapering later in the day amid surging U.S. inflation.

The Fed publishes a statement at 1800 GMT followed by a news conference from
Chair Jerome Powell at 1830 GMT.

Still, foreign exchange analysts said the chances were high that the Fed
would not shift policy, given its view that the recent spike in inflation
will likely be transitory and worries that growing COVID-19 cases could
derail the global recovery.

Declining U.S. bond yields, fuelled by concerns about high inflation and the
economic outlook, also cast a shadow over the dollar earlier. The 10-year
inflation-linked bond yield hit a record low overnight .

YUAN CONTAGION?

The Chinese yuan pulled away from three-month lows hit on Tuesday, when it
saw its biggest daily losses since October, after the country's stock market
stabilised following a bruising couple of days.

The yuan's bounce was modest, however, and the risk-sensitive Australian and
New Zealand dollars were both subdued as sentiment remained fragile.

The Aussie was last down 0.2% at $0.7344, not far from last week's
eight-month low of $0.7289.

Elsewhere, the British pound traded close to its highest in 13 days and was
steady against the euro, with analysts attributing its gains to COVID-19
cases in Britain declining over the last seven days.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Oil rises to $75 as U.S. inventory drop counters virus worry

(Reuters) - Oil rose to around $75 a barrel on Wednesday ahead of an
industry report expected to show U.S. crude inventories fell more than
expected, bringing the focus back to a tight supply and demand balance
rather than rising coronavirus infections.

U.S. crude stocks fell 4.7 million barrels, two market sources citing
American Petroleum Institute figures said, more than analysts forecast.
Official U.S. Energy Information Administration inventory figures are out at
1430 GMT.

Brent crude rose 57 cents, or 0.8%, to $75.05 a barrel at 0950 GMT, after
posting on Tuesday its first decline in six days. U.S. West Texas
Intermediate (WTI) crude advanced 79 cents, or 1.1%, to $72.44.

Oil has risen 45% this year, helped by demand recovery and supply curbs by
the Organization of the Petroleum Exporting Countries and allies, known as
OPEC+.

OPEC+ agreed to increase supply by 400,000 barrels per day from August,
unwinding more of last year's record supply cut, but this is seen as too low
by some analysts given the rebound in demand expected this year.

A rising number of coronavirus cases worldwide, despite vaccination
programmes, has limited the upside for oil and remains a concern. read more

As well as the EIA report, a statement from a U.S. Federal Reserve policy
meeting due at 1800 GMT will also be in focus. The dollar was firmer ahead
of the meeting, which tends to weigh on oil as it makes crude more expensive
for other currency holders.

The Thomson Reuters Trust Principles.

Copper prices hover near multi-week highs on solid H2 outlook

(Reuters) - Prices of copper, which is widely viewed as a gauge of global
economic health, continued to hover near their multi-week highs scaled in
the previous session, as investors bet on a strong outlook for the metal in
the second half of this year.

The metal was supported on Wednesday by falling inventories in ShFE
CU-STX-SGH, which hit their lowest since Feb. 10 at 96,087 tonnes last week,
exchange data showed.

However, gains in copper were short-lived as a strong dollar made
greenback-priced metals more expensive and less appealing to holders of
other currencies, ahead of a policy verdict by the U.S. Federal Reserve
later in the day.

Three-month copper on the London Metal Exchange gained for most of the Asian
trading hours, before reversing course to edge down 0.2% to $9,740 a tonne,
as of 0729 GMT.

The contract was still holding near its highest level in six weeks.

The most-traded September copper contract on the Shanghai Futures Exchange
dipped 0.2% to 71,850 yuan ($11,051.47) a tonne, but still hovered near an
eight-week high touched in the previous session.

Yangshan copper premium SMM-CUYP-CN was last traded at $45 a tonne, hovering
near its highest level since end-April, indicating higher demand for
importing the metal into top consumer China.

FUNDAMENTALS

* The difference between the LME cash aluminium and the three-month contract
CMAL0-3 flipped to a premium of $6.50 a tonne, having stayed in a discount
since June 18, indicating tightening nearby supplies as stockpiles fell in
both LME and ShFE warehouses. MALSTX-TOTALAL-STX-SGH

* LME aluminium fell 0.3% to $2,481.50 a tonne, nickel rose 0.9% to $19,535
a tonne, while zinc declined 0.8% to $2,960 a tonne.

* ShFE nickel rose as much as 1.3% to 148,550 yuan a tonne, its highest
since Feb. 22, while aluminium fell 1.3% to 19,375 yuan a tonne, and lead
shed 1.5% to 15,870 yuan a tonne.

* For the top stories in metals and other news, click or

$1 = 6.5014 yuan 

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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