Bulls n Bears Daily Market Commentary : 10 June 2021

Thu Jun 10 21:06:12 CAT 2021

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Bulls n Bears Daily Market Commentary : 10 June 2021

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ZSE commentary

The ZSE continued its rally in today’s session with notable gains across the board headlined by small cap stocks. Turnover improved significantly to ZW$1.47 billion from a trade of over 54.8 million shares. Activity level was higher at 491 trades. Star Africa was the most active stock at 38 trades followed by Zimplow and Mashonaland Holdings. The market breadth was positive after 33 stocks appreciated against 8 that depreciated in a total of 41 stocks which traded. FBC Holdings was the most liquid counter as it anchored both volume and value aggregate trading over 47.9 million shares with a value of ZW$1.34 billion. The ZSE closed with a market cap of ZW$693.5 billion.

The benchmark All Share Index was up a 1.22% and the Top 10 Index was up by 1.50% spurred by gains in Masimba, Innscor and Meikles. The Top 15 Index added 0.79%. The Medium Cap Index traded higher to 15 003.60 appreciating by 0.74% whilst the Small Cap Index added 3.30% to close at 95 265.79 points. Leading the risers pack of the day was Padenga which added 12.93% and the financial holding group ZB which added 12.64% to 7885c. National Tyre Serves and Masimba Holdings  also added 11.78% and 9.83% respectively. Zimplow added 8.77% to 887.63c. Leading in the shakers pack was TSL losing 9.88%. First Mutual Holdings pared 5.15% and Hippo lost 3.40%. First Mutual Properties lost 2.50%. Please find a summary of the market activity as shown below; The Old Mutual Top Ten ETF closed at 179c up 7.25% from a trade of 257 916 units worth ZW$461 662.80 in 13 trades..- wealthaccess

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Global Currencies & Equity Markets

Kenyan shilling seen steady, Zambian kwacha under pressure

Kenya's shilling is expected to hold steady in the next week, as the market digests contents of the East African economy's 2021/22 fiscal budget, such as new tax measures.

NAIROBI: Kenya's shilling is expected to be stable against the dollar in the next week to Thursday, traders said, while the Zambian kwacha could weaken.

KENYA

Kenya's shilling is expected to hold steady in the next week, as the market digests contents of the East African economy's 2021/22 fiscal budget, such as new tax measures.

Commercial banks quoted the shilling at 107.80/108.00 per dollar, from 107.70/90 at last Thursday's close.

ZAMBIA

The kwacha is likely to remain under pressure against the dollar next week, weighed by sustained demand for hard currency unmatched by supply.

On Thursday, commercial banks quoted the currency of Africa's second largest copper producer at 22.5350 per dollar from 22.5200 at the close of business a week ago.

UGANDA

The Ugandan shilling is expected to trade in a range as traders gauge the implications of possible new policy pronouncements in the 2021/22 budget, set to be unveiled later on Thursday.

Commercial banks quoted the shilling at 3,512/3,522 per dollar, compared with 3,540/3,550 the previous week. Markets were closed last Thursday for a holiday in Uganda.

The shilling was likely to trade around 3,510, the trader said.

TANZANIA

Tanzania's shilling is expected to gain slightly next week as inflows from food exports outpace dollar demand from manufacturing and energy importers.

Commercial banks quoted the shilling at 2,314/2,324 on Thursday, unchanged from last week's close. The local currency has been trading around the same levels for more than six months.

NIGERIA

Nigeria's naira is seen flat on the black market in the coming week after it slid past a three-and-half year low of 500 to the dollar on the informal market.

The naira was quoted at 502 per dollar on the unofficial market, a level it reached last week after the country devalued its official exchange rate.

The central bank unified the currency's official rate with the traded market rates of 410 naira in May, effectively letting the naira weaken by 7.7%.

The unit traded at 411.50 naira per dollar on the spot market, from last Thursday's close of 410.

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Global Markets

Rupee falls by 9 paise, breaches 73-mark against US dollar

At the interbank foreign exchange market, the rupee opened at 72.96 per dollar as against its previous close of 72.97

Extending losses for the third straight session, the rupee on Thursday fell by 9 paise to end at 73.06 (provisional) against the U.S. dollar even as the domestic equity markets settled with significant gains.

Forex traders said the local unit is trading in a narrow range as investors looked to key U.S. inflation data and European Central Bank meeting later in the day for further cues.

At the interbank foreign exchange market, the rupee opened at 72.96 per dollar as against its previous close of 72.97.

It hovered in the range of 72.94 to 73.12 during the day before ending at 73.06.

The domestic currency has lost 26 paise in the last three trading sessions.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.09% to 90.20.

On the domestic equity market front, the BSE Sensex ended 358.83 points or 0.69% higher at 52,300.47, while the broader NSE Nifty rose 102.40 points or 0.65% to 15,737.75.

Brent crude futures, the global oil benchmark, rose 0.07% to $72.27 per barrel.

Foreign institutional investors were net sellers in the capital market on Wednesday as they offloaded shares worth ₹846.37 crore, as per exchange data.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold Erases Losses After U.S. Inflation Data, ECB Decision

Gold erased early losses after U.S. inflation data showed domestic prices rising slightly faster than expected, causing real Treasury yields to decline.

The increase in the U.S. consumer price index in May extends a months-long buildup in inflation that risks becoming more established as the economy strengthens. Real yields eased after the data due to the strong gain in inflation expectations, boosting the appeal of non-interest-bearing bullion.

The data came after the European Central Bank renewed its pledge to maintain faster emergency bond buying. Also helping gold was speculation that the rise in the U.S. price index won’t be enough to force the Federal Reserve to change its dovish stance, said Carsten Fritsch, an analyst at Commerzbank AG.

Gold gives up early losses after U.S. inflation data

Traders will now focus on the Fed’s meeting next week and the annual gathering in Jackson Hole, Wyoming, according to Paul Wong, market strategist at Sprott Asset Management. Investors are trying to assess how long will inflation can run hot before the Fed tapers, said Wong.

Spot gold was up 0.1% to $1,890.35 an ounce at 10:05 a.m. in New York, after dropping as much as 1% earlier. Silver gained, while platinum and palladium fell. The Bloomberg Dollar Spot Index declined 0.1%.

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 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 the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and sourced from third parties.

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