Bulls n Bears Daily Market Commentary : 15 June 2021

Wed Jun 16 05:51:51 CAT 2021

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Bulls n Bears Daily Market Commentary : 15 June 2021

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

ZSE commentary

An impressive stock market performance saw the ZSE equities total market
capitalization firming above the ZW$700 billion mark closing at ZW$726.8
billion. Gains were headlined by medium and small cap stocks. Turnover
improved to ZW$223 million from a trade of over 6.2 million shares with
Econet contributing 35% of total turnover. Activity level was higher at 564
trades. Simbisa was the most active stock at 61 trades followed by Econet
and Star Africa. The market breadth was positive after 30 stocks appreciated
against 10 that depreciated in a total of 44 stocks which traded. Econet was
the most liquid counter as it anchored both volume and value aggregate
trading over 2.78 million shares with a value of ZW$78.9 million.

The benchmark All Share Index was up a 1.39% and the Top 10 Index was up by
0.67%. The Top 15 Index added 1.25%. The Medium Cap Index traded higher to
15 757.33 points appreciating by 2.09% whilst the Small Cap Index added
7.82% to close at 112 026.56 points with a year to date gains of 840.28%.
Leading the risers pack of the day was General Beltings  which added 19.84%
and Medtech which added 13.13% to 16.97c. Get Bucks Microfinance and African
Sun also added 10.08% and 9.24% respectively. Truworths added 9.01% to
889.89c. Leading in the shakers pack was ART Corporation losing 7.87%.
Fidelity pared 6.25% and Ariston lost 3.57%. OK Zimbabwe lost 2.85%. Please
find a summary of the market activity as shown below; The Old Mutual Top Ten
ETF closed at 196.63c up 3.60% from a trade of 30 400 units worth ZW$59 774
in 5 trades.-wealthaccess

Global Currencies & Equity Markets

South Africa

South African rand steady as markets await U.S. Fed meeting

(Reuters) - South Africa's rand steadied on Tuesday, as investors cautiously
awaited a much-anticipated Federal Reserve meeting outcome to check if the
central bank would signal any change to the U.S. monetary policy outlook.

At 0626 GMT, the rand ZAR= traded at 13.7585 against the dollar, not far off
its previous close of 13.7650.

The rand has been 2021's top performing emerging market currency, gaining
more than 6% in the year so far, spurred by a boom in global commodity
prices and low-interest rate environment in developed markets.

But the currency has suffered losses in the past six sessions as traders
cash in some of the gains.

Traders globally will look closely at any hints from the Fed meeting's final
statement about whether and when the Fed plans to taper its bond buying
programme, amid concerns from some quarters about inflation as the U.S.
economy bounces back from the pandemic fallout. The two-day meeting starts
on Tuesday.

Read More

The yield on the benchmark 2030 government bond ZAR2030=, which moves
inversely to its price, was flat at 8.685% in early deals.

Nigeria

Nigeria's foreign reserves hit four-year low

Nigeria's foreign reserves plunged to its lowest level in four years last
week, hardly reflecting the marginal gains in rising oil prices in recent
months, central bank figures show.

The reserves fell by $222.3 million between May 31 and June 10 to $34.0
billion, according to figures published by the Central Bank of Nigeria.

The last time it fell below that mark was between June and July of 2017.

Before recording a gradual slump, the reserves had reached $36.5 billion at
the start of the new year. The rise, which began mid-December 2020, was
buoyed by a steady rise in oil prices in the international market.

It was unclear why the reserves fell at a time of rising crude oil prices,
although similar declines in the past were attributed to the interventions
by the apex bank to stabilise the exchange rate. The spokesperson for the
CBN, Osita Nwasinobi, did not return calls on Monday.

The CBN, which operates a managed float, periodically supports naira from
the reserves, and a lower reserve is expected to affect the value of the
currency which closed Friday at 410.80 a $1, 0.1 per cent higher than it
traded the previous session.

The dip

Foreign exchange reserves are assets held on reserve by a monetary authority
in foreign currencies, quite often used to back liabilities and influence
monetary policies.

They could be in the form of foreign banknotes, deposits, bonds, treasury
bills and other foreign government securities.

 <mailto:info at bulls.co.zw> 

Global Markets

Sterling slips to one-month low versus dollar

The pound fell to a one-month low against the dollar on Tuesday in what
analysts said was the breaking of a technical level that did not change the
bullish narrative on the British currency.

Sterling had held firm above $1.41 earlier in the session, showing no
reaction to news that Britain was to delay its reopening from COVID-19
lockdown restrictions by a month because of the rapid spread of the more
infectious Delta variant.

Currency markets were generally quiet before the U.S. Federal Reserve
meeting, which ends on Wednesday.

But the pound slid gradually during the morning session, reaching as low as
$1.4035 at 1149 GMT - its lowest in one month. By 1440 GMT, it had partially
recovered and was at $1.40755, down 0.2% on the day.

Versus the euro, it was down 0.2% at 86.115 pence per euro .

Simon Harvey, FX analyst at Monex Europe, said the move did not stem from
any particular news event but rather a breaching of the $1.4070 level to
which it had come close in previous sessions.

Still, he said that he was bullish on the pound as the delay in lifting
remaining lockdown measures did not change the "structural backdrop" -
expectation of an economic recovery.

Sterling rallied at the start of the year, boosted by Britain's early start
to its COVID-19 vaccine roll-out. In May, it reached a three-year high of
$1.425.

Juckes also said he was bullish on the pound versus the dollar, but that it
would take substantial news to push the pair significantly higher.

Jobs data released earlier in the session showed the number of employees on
British company payrolls surged by a record amount in May as pandemic
restrictions eased.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold slips on dollar strength as markets await U.S. Fed statement

(Reuters) - Gold prices edged lower on Wednesday due to a stronger dollar as
investors look forward to the outcome of the U.S. Federal Reserve meeting
for hints on tapering of economic support measures.

* Spot gold was down 0.2% at $1,855.12 per ounce, by 0114 GMT.

* U.S. gold futures were steady at $1,856.20 per ounce.

* The dollar held steady near a one-month high against its rivals, making
gold more expensive for holders of other currencies.

* U.S. retail sales dropped more than expected in May, data on Tuesday
showed, while producer prices jumped by 6.6% year-over-year during the
month, the largest gain since November 2010.

* The U.S. central bank is expected to acknowledge the first conversations
among its policymakers on when and how fast to pare back the massive
bond-buying program launched in 2020 at its policy meeting later in the day.

* Recent data showing a spike in U.S. consumer prices have raised concerns
over rising inflation. But, Fed officials have said rising inflationary
pressures are transitory and ultra-easy monetary settings will stay in place
for some time.

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

* Demand for gold from jewellers and central banks will recover in 2021 but
remain below pre-pandemic levels, while buying of bullion by exchange traded
funds (ETFs) will fall sharply, consultants Metals Focus said.

* Silver eased 0.1% to $27.62 per ounce, palladium gained 0.1% to $2,765.96,
while platinum fell 0.2% to $1,151.54.

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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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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