Bulls n Bears Daily Market Commentary : 07 June 2021

Tue Jun 8 04:43:51 CAT 2021

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Bulls n Bears Daily Market Commentary : 07 June 2021

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

ZSE commentary

The ZSE was near flat opening the week with mixed trading although notable
gains were in small cap and mid cap stocks as they continue their rally from
last week. Turnover was low at ZW$29.9 million from a trade of 2 455 900
million shares. Activity level was higher at 422 trades. OK Zimbabwe was the
most active stock at 41 trades followed by Cassava and Econet. The market
breadth was positive after 19 stocks appreciated against 16 that depreciated
in a total of 41 stocks which traded. First Capital Bank was the most liquid
counter as it anchored volume aggregates trading 560 400 shares and OK
Zimbabwe anchored value aggregate with a value of ZW$5.85 million. The ZSE
closed with a market cap of ZW$673.97 billion.

The benchmark All Share Index was up 0.57% and the Top 10 Index was down by
a paltry 0.01%. The Top 15 Index added 0.11%. The Medium Cap Index traded
higher to 14 872.00 appreciating by 1.14% whilst the Small Cap Index added
6.40% to close at 748 820.33. Leading the risers pack of the day was Get
Bucks which added 17.12% and ZB Holdings which added 14.12% to 6725.58c.
Proplastics and Dairibord Holdings also added 7.69% and 5.93% respectively.
African Sun added 4.63% to 310.38c. Leading in the shakers pack were the
retail giants Truworths and Edgars which pared 8.45% and 6.06% respectively.
Axia shaded 2.30% and FBC pared 1.51%. Please find a summary of the market
activity as shown below; The Old Mutual Top Ten ETF closed at 179.97c down
0.12% from a trade of 208 448 units worth ZW$375 134.40 in 17
trades.-wealthaccess

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South Africa's rand weakens ahead of GDP data

(Reuters) - South Africa's rand weakened on Monday, pausing after rallying
to a 28-month high, as investors took profits and looked ahead to local
growth figures and U.S. consumer price data.

At 1500 GMT the rand ZAR=D3 was 0.76% weaker at 13.5350 per dollar, having
touched 13.4150 earlier, its firmest since February 2019.

Investors are eyeing gross domestic product (GDP) numbers for the first
quarter due to be released on Tuesday. Economists polled by Reuters expect
annualised growth to have skidded to 2.6% from 6.3% in the previous quarter.

Local mining, manufacturing and current account data are also due in the
week before the United States publishes inflation data on Thursday, with a
European Central Bank meeting concluding on the same day.

The data deluge kept investors cautious, with some booking profits from the
rand's recent run.

Data on Friday showing U.S. employers increased hiring in May but not by as
much as expected seemed to allay fears of premature policy tightening.

Bonds firmed, with the yield on the benchmark government bond due in 2030
ZAR2030= down 2.5 basis points at 8.74%.

In the equities market, both the Johannesburg all-share index .JALSH and
Top-40 index .JTOPI fell, tracking moves in global markets as investors
digested the impact of a global minimum corporate tax on technology
companies backed by the Group of Seven advanced economies.

Both indexes slipped 0.37%. Johannesburg-listed shares of diversified mining
giant Anglo American Plc AGLJ.J fell 2.06% following the spin-off of its
coal mining business Thungela Resources TGAJ.J.

The decline in stocks was also driven by weak momentum in technology stocks,
primarily index heavyweight Naspers Ltd NPNJn.J, which closed 1.22% weaker.

Nigeria

Nigeria naira slides past 500/dlr on black market, trading volumes drop

(Reuters) - Nigeria's naira slid past 500 per dollar on the black market on
Monday to a more than 3-1/2-year low, two weeks after the country devalued
its official exchange rate.

Trading volumes fell 14.49% last week to $1.07 billion across the currency
markets, data from exchange regulator FMDQ Securities Exchange showed on
Monday, citing a decrease in spot market turnover.

The central bank in May abandoned its official rate of 380 naira, which it
had held since July last year, in an attempt to unify its numerous exchange
rates. 

The naira traded at 412 to the dollar on the spot market on Monday and hit
502 naira on the black market as dollar liquidity declined across the
currency markets.

 <mailto:info at bulls.co.zw> 

Global Market

Dollar dips as Treasury yields subdued

The dollar edged lower on Monday as Treasury yields were moribund and
investors looked ahead to European and U.S. central bank meetings.

Friday's U.S. jobs data had put pressure on the dollar as investors bet that
jobs growth was not strong enough to raise expectations for the U.S. Federal
Reserve to tighten its monetary policy.

That move continued on Monday, with Treasury yields remaining subdued after
Friday's drop, reducing demand for the U.S. currency.

The dollar index was down 0.21% at 89.946 while the euro gained 0.23% to
$1.2194. The dollar also fell 0.23% to 109.26 Japanese yen.

Benchmark 10-year Treasury yields were last at 1.569%. They fell to 1.560%,
from 1.628%, on Friday.

While Rai said there was "some risk the dollar will rally" he noted that
investors are waiting for Federal Reserve's meeting next week.

Market participants will also be looking at U.S. inflation data and the
European Central Bank meeting, both on Thursday.

Dovish rhetoric from ECB policymakers suggests the bank is in no hurry to
slow the pace of buying under the 1.85 trillion euro ($2.24 trillion)
Pandemic Emergency Purchase Programme (PEPP).

Speculators decreased their net short dollar positions in the latest week,
according to calculations by Reuters and U.S. Commodity Futures Trading
Commission data released on Friday.

Currency investors seemed to shrug off news that the United States, Britain
and other rich nations reached a deal on Saturday to squeeze more money out
of multinational companies such as Amazon and Google and reduce their
incentive to shift profits to low-tax offshore havens.

The Australian dollar, which is seen as a proxy for risk appetite, was up
0.22% versus the U.S. dollar at 0.776.

In cryptocurrencies, bitcoin fell 0.83% to $35,507, while ether dipped 0.61%
to $2,693.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices hover near $1,900/oz on subdued U.S. dollar, yields

(Reuters) - Gold prices hovered near the key level of $1,900 an ounce on
Tuesday, supported by a weaker dollar and lower bond yields, while investors
awaited U.S. data later this week to gauge inflationary pressure.

FUNDAMENTALS

* Spot gold was steady at $1,899.94 per ounce, as of 0053 GMT.

* U.S. gold futures edged 0.2% higher to $1,902.80 per ounce.

* The dollar index, which measures the greenback against a basket of major
currencies, was flat at 90.003, well below a three-week high of 90.627 hit
last week.

* The benchmark 10-year yield was pinned near more than one-week low,
reducing the opportunity cost of holding non-interest bearing gold.

* Market participants' focus this week will be on the U.S. consumer price
index report that is expected to shed more light on the Federal Reserve's
near-term policy decision.

* Some investors view gold as a hedge against higher inflation that could
follow stimulus measures.

* Japan's economy shrank at a slower-than-initially reported pace in the
first quarter, on smaller cuts to plant and equipment spending, but the
pandemic still dealt a huge blow to overall demand.

* British retailers reported a big boost in sales in May, after lockdown
measures ended the month before and a relaxation of restrictions on
hospitality drew more shoppers into town centres, industry data showed on
Tuesday.

* A gauge of global equity markets closed at a record high on Monday.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund,
said its holdings fell 0.6% to 1,037.33 tonnes on Monday from 1,043.16
tonnes on Friday.

* Silver rose 0.1% to $27.89 per ounce, palladium gained 0.1% to $2,837.76,
while platinum edged 0.1% higher to $1,174.02.

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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opinions expressed and recommendations made are subject to change without
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