Bulls n Bears Daily Market Commentary : 30 July 2021

Fri Jul 30 15:39:41 CAT 2021

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Bulls n Bears Daily Market Commentary : 30 July 2021

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ZSE commentary

The ZSE closed with capitalization firming marginally above the ZW$800
billion mark as it rallied closing the week with a marginal improvement in
liquidity and activity level. Total turnover was near flat at ZW$135.5
million from a trade of over 7.99 million shares. Activity levels were
slightly higher at 573 trades. Medtech was the most active stock at 72
trades followed by Star Africa and OK Zimbabwe at 53 and 49 respectively.
Medtech was the most liquid counter as it anchored volume traded trading 4
537 900 shares and African Distillers anchored value traded with a value of
ZW$94.5 million contributing 69.7% to total turnover. At close, the
benchmark All Share Index added a marginal 0.11% with 16 advancers and 22
losers while 3 counters remained unchanged. The Top 10 Index was up by a
paltry 0.37%.

The Top 15 Index added 0.18%. The Medium Cap Index traded lower to 17 739.47
points depreciating by 0.22% whilst the Small Cap Index shaded 0.62% to
close at 237 236.00 points. Leading the risers pack of the day was Bindura
up by 13.67% followed by CBZ and Art Corporation which added 6.74% and 5.00%
respectively. Seed Co was up 2.98%. Leading in the shakers' pack were Edgars
and Truworths which shaded 17.22% and 7.12% respectively. First Mutual
Holdings shaded 3.57%. the holding bank NMB and Nampak  pared 3.08% and
2.74% respectively. The Old Mutual Top Ten ETF closed at 199.94c down by
0.03% after 27 124 units with a value of ZW$54 233 in 19 trades exchanged
hands.- WealthAccess

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa 

South Africa's rand falls but set for weekly gains

(Reuters) - South Africa's rand fell early on Friday, but was on course for
weekly gains on renewed signs that the U.S. Federal Reserve might not taper
economic support and hike interest rates in the near term.

At 0620 GMT, the rand ZAR= traded at 14.6030 against the dollar, 0.37%
weaker than its previous close.

The rand is up more than 1% since Monday, thanks to a weaker dollar after
Fed Chairman Jerome Powell wrongfooted bulls after a policy meeting this
week by saying that rate increases were "a ways away" and the job market
still had "some ground to cover".

Riskier currencies such as the rand thrive on U.S. interest rates remaining
low because they benefit from the interest rate differential that increases
their appeal for the so-called carry trade, in which investors borrow in a
low yielding currency to invest in higher yielding assets.

Zambia

Kwacha chips away 5 Ngwee

THE Kwacha has continued its upward trend against the United States (US)
dollar by gaining K0.05 (five ngwee) in yesterday's trading sessions to
close at K19.15 from the marketing opening of K19.20. And Zambia Chambers of
Commerce and Industry (ZACCI) president Chabuka Kawesha says appreciation of
the Kwacha should be sustainable and backed by a competitive market to
increase production of local goods and services.

Last week on Monday, a US$1 was close to K23.00 until Friday when it broke
the barrier to trade below K21.00, as the market continued to witness
inflows of the hard currency. Since then, the Kwacha has been posting gains
to trade this week between K19.00 and K20.00, as foreign exchange traders
stayed on the fence waiting to see the local currency's next move. "At
market opening, the Kwacha was quoted at K19.15 and K19.20, five ngwee
stronger than its previous close and trade unchanged until end of business.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar at lowest in a month after Fed knock; U.S. data disappoints

(Reuters) - The dollar fell to a one-month low on Thursday, a day after the
U.S. Federal Reserve said the job market still had "some ground to cover"
before it would be time to ease monetary stimulus, taking the steam out of a
monthlong rally by the greenback.

The dollar index , which measures the greenback against a basket of six
other currencies, was down 0.383% at 91.905, its lowest since June 29.

The euro gained 0.35% against the dollar, to 1.1885.

The index, which is still up 1.6% since the Fed's June meeting, after a
hawkish shift from the U.S. central bank, found little support from U.S.
gross domestic product numbers released on Thursday.

Data showed that while the U.S. economy grew solidly in the second quarter,
boosted by massive government aid, growth fell short of economists'
expectations.

GDP increased at a 6.5% annualised rate last quarter, the Commerce
Department said on Thursday, well below the 8.5% rate economists polled by
Reuters had forecast. read more

U.S. Treasury yields trended lower after Wednesday's Fed statement, with
inflation-adjusted real yields tumbling to a new low, weighing on the U.S.
currency. , .

The market took Wednesday's Fed announcement as a positive for risk as it
leaves the lower-rates-for-longer scenario intact, said Brad Bechtel, global
head of FX at Jefferies.

China stepped up attempts to calm frayed investor nerves after a wild
markets rout this week by telling foreign brokerages not to "overinterpret"
its latest regulatory actions. read more

The Australian and New Zealand dollars, reliant on world and Chinese
economic growth, rose 0.33% and 0.7% respectively.

The U.S. dollar's weaker tone and a fall in coronavirus cases in Britain
helped lift the British pound to its highest in over a month against the
dollar. read more

Our Standards: The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold loses its lustre as investors chase reflation trades

Investors swapped gold for assets tied to the post-pandemic economic
recovery in the first half of the year, leading to a 10 per cent drop in
demand for the precious metal, according to a new report.

The World Gold Council said the decline was driven by gold-backed exchange
traded funds, which had 129 tonnes of net outflows in the six months to June
- the biggest decline since 2014 - as investors become less bullish about
the metal and back reflation trades.

While sentiment towards gold picked up in the second quarter and consumer
buying increased, it was not enough to offset the heavy outflows seen
earlier in the year and gold demand fell 10 per cent year on year in the
first half of 2021 to 1,833 tonnes, the report said.

Gold has continued to disappoint, failing to ramp up despite rising concerns
about inflation and fears about a slowdown in growth due to the spread of
the more contagious Delta variant of coronavirus. Gold has usually been
viewed by investors as a hedge against broad-based price rises.

After rising to a year-high of $1,916 a troy ounce in May, it has fallen
back to $1,827. Year to date, the metal is down 6 per cent and remains
adrift of its record high of above $2,000 reached nearly a year ago.

Investors are turning to other commodities such as base metals that are tied
to economic growth, or other assets such as inflation-linked bonds, or
equities to hedge against inflation, Rebecca Patterson, director of
investment research at the hedge fund Bridgewater Associates, said in a
webinar last week.

Gold-backed ETFs only had "modest" inflows of 40.7 tonnes during the second
quarter, said the WGC, as some investors became more concerned about the
outlook for growth and inflation.

Consumer demand for gold in the form of jewellery, gold bars and coins has
rebounded this year, the report said. It added that central banks remained
strong buyers, purchasing a net total of 333.2 tonnes of gold in the first
half of the year - 39 per cent above the five-year average for the period -
driven by Thailand, Hungary and Brazil.

Copper futures rise on spot demand

NEW DELHI: Copper prices on Friday traded up by 0.15 per cent to Rs 758.65
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 August
traded higher by Rs 1.10, or 0.15 per cent, to Rs 758.65 per kg in a
business turnover of 3,994 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
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
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for guideline purposes only and sourced from third parties.

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