Bulls n Bears Daily Market Commentary : 04 June 2021

Fri Jun 4 16:27:03 CAT 2021

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Bulls n Bears Daily Market Commentary : 04 June 2021

 <https://www.cbz.co.zw/> 

ZSE commentary

The ZSE holds on to gains in Friday session with the overall market
extending gains supported by notable performance among the mid-tier and the
small cap stocks. Turnover declined by 14% to ZW$155.5 million from a trade
of over 6.4 million shares which exchanged hands in 377 trades. OK Zimbabwe
was the most active stock at 38 trades followed by Innscor and Star Africa.
The market breadth was positive after 21 stocks appreciated against 13 that
depreciated in a total of 38 stocks which traded. OK Zimbabwe was the most
liquid counter as it anchored both volume and value aggregates trading over
3.4 million shares with a value of ZW$59.4 million contributing 38.2% to
total turnover. The ZSE closed with a market cap of ZW$670.46 billion
gaining 3.73% this week.

The benchmark All Share Index was up 1.90% and the Top 10 Index was up by a
1.21%. The Top 15 Index added 1.28%. The Medium Cap Index traded higher to
14 704.50 appreciating by 2.96% whilst the Small Cap Index added 1.57% to
close at 74 079.26. Leading the risers pack of the day was First Mutual
Properties  which added 16.68% and Dairibord which added 15.76% to 2456.6c.
Masimba Holdings and First Mutual Holdings also added 10.35% and 9.63%
respectively. Art Corporation added 8.62% to 800c. Leading in the shakers
pack was ZIMRE Holdings which pared 3.15% followed Zimpapers shading 2.77%.
the nickel giant Bindura and Mashonaland Holdings pared 2.63% and 2.16%
respectively. Please find a summary of the market activity as shown below;
The Old Mutual Top Ten ETF closed at 180.19c down 7.11% after 117 284 units
with a value of ZW$211 335.20 in 18 trades exchanged hands..-wealthaccess

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Zambia's kwacha seen on back foot, Kenyan shilling firm

The kwacha is likely to remain under pressure against the dollar as demand
for hard currency outweighs supply.

Tanzania's shilling is expected to hold steady next week with support from
moderate US dollar demand from importers and inflows from investors.

LUSAKA: Zambia's kwacha is expected to remain under pressure against the US
dollar next week as the Kenyan shilling firms and Tanzania's currency holds
steady.

ZAMBIA

The kwacha is likely to remain under pressure against the dollar as demand
for hard currency outweighs supply.

Commercial banks quoted the currency of Africa's second largest copper
producer at 22.5100 per dollar on Thursday, from 22.4850 at the close of
business a week ago.

KENYA

The Kenyan shilling is expected to strengthen as the overflow of dollar
demand from fuel and food importers from last month dwindles, traders said.

Commercial banks quoted the shilling at 107.65/85 on Thursday, slightly
weaker than the previous week's close of 107.40/60.

TANZANIA

Tanzania's shilling is expected to hold steady next week with support from
moderate US dollar demand from importers and inflows from investors.

Commercial banks quoted the shilling at 2,314/2,324 on Thursday morning,
unchanged from the last week's close.

UGANDA

Ugandan markets were closed on Thursday for a public holiday.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar at three-week high ahead of U.S. payrolls data

The dollar index held near a three-week high on Friday and currency markets
were subdued as traders waited for U.S. non-farm payrolls data later in the
session.

Currency investors are looking for indications of the strength of the U.S.
economic recovery and the possibility of the Federal Reserve tightening its
monetary policy, which is seen as positive for the dollar.

The consensus forecast for the data, due at 1230 GMT, is that about 650,000
jobs have been added in May.

Beauchamp said he expects further dollar weakness in the near term and that
the jobs data would likely need to come in above 800,000 for the market to
react.

The dollar rallied on Thursday, notching up its biggest daily gain in a
month, after weekly U.S. jobless claims fell below 400,000 for the first
time since the COVID-19 pandemic started more than a year ago and private
payrolls increased by significantly more than expected.

At 1039 GMT, the dollar index was up 0.1% on the day at 90.562, having hit a
new three-week high earlier in the session. The dollar's downward trajectory
in April and May has paused, with the dollar strengthening so far in June.

The euro was down 0.1% at $1.21100 versus the dollar .

Positioning data shows investors heavily short dollars, leaving the market
hypersensitive to any suggestion of a change in direction for the currency
or a shift in the rates outlook.

Overnight implied dollar/yen volatility shot up to a month high above 8% on
Thursday and euro/dollar implied volatility hit its highest since mid-March.

Foreign exchange strategists in a Reuters poll were almost evenly split on
the dollar's near-term direction following two months of broad weakness, as
they await clearer signs from policymakers.

The Australian dollar, which dropped to its lowest since April on Thursday,
held near these lows, at 0.76635, up less than 0.1% on the day.

The New Zealand dollar likewise was stuck near the previous session's lows,
at 0.71557.

The Japanese yen changed hands at 110.120 versus the dollar .

China's yuan softened past the 6.40 level, having shrunk away from its
three-year highs when China's central bank moved to limit the currency's
gains earlier this week.

U.S. President Joe Biden signed an executive order on Thursday that bans
U.S. entities from investing in dozens of Chinese companies with alleged
ties to defense or surveillance technology sectors, a move his
administration says expands the scope of a legally flawed Trump-era order.

Cryptocurrencies fell after a tweet from Tesla boss Elon Musk appeared to
lament a breakup with bitcoin.

Tesla's big position in bitcoin and Musk's large personal following often
set crypto markets on edge whenever he tweets.

At 1044 GMT, bitcoin was down 6.4% at around $36,700 , while ether was down
7.6% at around $2,640 .

After the jobs data, attention will turn to the European Central Bank's
meeting on June 10 and the Fed's meeting on June 15-16, with currency
markets expected to be quiet until then.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Yellow metal falls marginally, silver below Rs 71,000

NEW DELHI: Gold prices weakened to near two-week lows on Friday and looked
set for their worst week in three months. Robust US economic numbers boosted
dollar and bond yields. Yellow metal edged lower in domestic markets,
falling from five-month highs.

All focus shifts to much awaited May non-farm payroll numbers. The number of
Americans filing new claims for unemployment benefits dropped to new lows
during pandemic, while US private employers stepped up hiring in May.

The rally in the dollar index pushed it to a three-week high against its
rivals, making gold more expensive for holders of other currencies. Rise in
10-year benchmark yield challenged gold further.

Physical gold demand in India languished as shops in the majority of states
are shut due to virus related curbs. ETF inflows have turned mild recently
as investors are eyeing for riskier bets like equities. However, a rise in
rupee may help the yellow metal.

Gold futures on MCX shed 0.04 per cent or Rs 18 at Rs 48,659 per 10 grams.
Silver futures fell 0.08 per cent or Rs 57 to Rs 70,753 per kg.

In the spot market, highest purity gold was sold at Rs 49,002 while silver
was priced at Rs 71,240 on Thursday, according to the Indian Bullion and
Jewellers Association.

Global markets

Spot gold was down 0.1 per cent at $1,869.56 per ounce, as of 0038 GMT,
after hitting its lowest since May 20 in the previous session. Prices have
fallen 1.7 per cent so far this week. US gold futures eased 0.1 per cent at
$1,872.10 per ounce.

Silver fell 0.2 per cent to $27.39 per ounce, palladium dipped 0.2 per cent
to $2,832.33, and platinum slipped 0.4 per cent to $1,152.21.

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
Faith Capital (Pvt) Ltd for general information purposes only and does not
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subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
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