Bulls n Bears Daily Market Commentary : 16 June 2021

Wed Jun 16 18:35:51 CAT 2021

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:bulls at bulls.co.zw> Views & Comments
<http://www.bullszimbabwe.com> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 16 June 2021

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

ZSE commentary

The ZSE halted its twelve-day long rally closing the day in the negative.
Penny stocks however managed to escape with gains mainly driven by retail
investors. Turnover declined to ZW$156.3 million from a trade of over 6.8
million shares with Innscor contributing 28% of total turnover. Activity
levels were higher at 541 trades. OK Zimbabwe and Medtech were the most
active stocks at 44 trades each followed by GBH and Padenga. The market
breadth was negative after 20 stocks depreciated against 14 that appreciated
in a total of 38 stocks which traded. ZIMRE was the most liquid counter as
it anchored volume aggregate trading 1 265 400 shares and Innscor anchored
value aggregate trading 487 700 shares with a value of ZW$43.9 million.

The benchmark All Share Index was down 1.21% and the Top 10 Index also down
by 1.73%. The Top 15 Index shaded 1.56%. The Medium Cap Index traded lower
to 15 645.64 points depreciating by 0.71% whilst the Small Cap Index added
1.96% to close at 114 222.46 points.

Leading the shakers pack of the day was Unifreight which shaded 12.74% and
Padenga which shaded 11.65% to 2438.46c. ZB Financial Holdings and OK
Zimbabwe also pared 10.47% and 7.08% respectively. First Capital Bank lost
7.01% to 362.06c. Leading in the risers' pack was Ariston adding 19.01%.
Lafarge added 18.18% and Star Africa  was up 11.46%. General Beltings added
7.73%. Please find a summary of the market activity as shown below; The Old
Mutual Top Ten ETF closed at 196.94c up 0.16% from a trade of 29 433 units
worth ZW$57 964.01 in 7 trades..-wealthaccess

Global Currencies & Equity Markets

Nigeria

Naira Weakens to Four-Year Low as Nigeria's Dollar Push Fails

Nigeria's currency weakened to a four-year low in the parallel market after
the central bank's efforts to coax banks to sell more dollars to customers
failed to bridge the widening gap between the official and street rates.

Unauthorized dealers were offering the naira at 502 per dollar on Wednesday
from 500 last week according to abokifx.com, a website that collates the
data. That's the weakest since February 2017. The rate widens the spread
between the official and the parallel market rate to 22%, when compared with
the spot rate of 411.13 naira a dollar as of 1.55 p.m. in Lagos on
Wednesday.

Nigeria, Africa's biggest economy, has devalued its currency thrice since
March last year as lower oil income, which accounts for about 90% of dollar
earnings put pressure on external reserves. Some people are switching their
naira savings into dollars fearing further devaluation. Goldman Sachs Group
Inc. forecasts the naira could weaken to between 440 to 460 a dollar in the
short term.

Read more: Nigeria's Cratering Economy May Become Africa's Biggest Threat

Central bank Governor Godwin Emefiele met with chief executives of
commercial banks last week. The lenders agreed to increase dollar supply and
operate special accounts to meet the requirements of business and travelers,
according to Osita Nwanisobi, spokesman for the central bank.

The central bank aims to use lenders to make more foreign currency available
to buyers, at around the official rate of between 410 naira to 412 naira to
the dollar to reduce pressure on the streets where rates are crashing from
excess demand.

Wider Differential

Naira spot and black market rates widen since devaluation in 2020

South Africa

The South African rand has a strong seasonal pattern

The fallout from the Federal Reserve meeting will be key to whether this
seasonal pattern plays out. If the market sees sooner tapering and interest
rate hikes than before the Fed meeting then emerging market currencies like
the South African Rand are liable to see weakness. 

However, if the market embraces USD weakness once again and the FED is
dovish in their actions then this seasonal pattern could be perfect for
emerging market currency traders. A dovish action by the Fed would be the
dot plot unchanged, no talk of bond tapering, and downside risks stressed.

Over the last 15 years, ZARUSD has gained in value twelve times between June
17 and July 30. The largest gain was in 2016 with an 8.62% profit. The
largest loss was -3.44% in 2015 and the average return over the last 15
years has been 2.30%.

Major Trade Risks: A hawkish tone from the Federal Reserve would invalidate
this outlook as it will cause USD bears to step aside and allow the USD to
rally. So, the markets considered reaction to the latest Fed meeting will be
key.

 <mailto:info at bulls.co.zw> 

Global Markets

Rupee ends marginally lower to close at 73.32 against US dollar

The rupee on Wednesday fell by 1 paisa to end at 73.32 (provisional) against
the US dollar ahead of the outcome of the US Federal Reserve meeting.

At the interbank foreign exchange market, the rupee opened at 73.29 per
dollar as against its previous close of 73.31. It hovered in the range of
73.26 to 73.38 during the day.

The domestic currency has lost 52 paise in the seven trading sessions to
Wednesday.

Meanwhile, the dollar index, which gauges the greenback's strength against a
basket of six currencies, fell 0.04 per cent to 90.50.

On the domestic equity market front, the BSE Sensex ended 271.07 points or
0.51 per cent lower at 52,501.98, while the broader NSE Nifty fell 101.70
points or 0.64 per cent to 15,767.55.

Brent crude futures, the global oil benchmark, rose 0.27 per cent to USD
74.19 per barrel.

Foreign institutional investors were net buyers in the capital market on
Tuesday as they purchased shares worth Rs 633.69 crore, according to the
exchange data.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold subdued as market awaits Fed stimulus strategy

Gold prices were subdued and confined to a narrow range on Wednesday as
investors awaited for any signs of early tapering from the U.S. Federal
Reserve meeting.

Fundamentals

Spot gold was down about 0.3% at $1,853.80 per ounce at 1132 GMT. It fell to
its lowest since May 17 at $1,843.99 on Monday.

U.S. gold futures was marginally up at $1,857.00.

In a new policy statement and economic projections due on Wednesday, the Fed
is expected to acknowledge the first conversations among its policymakers on
when and how fast to pare back its massive bond-buying program, launched to
support the economy.

UBS analyst Giovanni Staunovo said the market was looking for any hawkish
signals so they would be more likely to move gold prices than the Fed
reiterating it would stick with the dovish path of recent months.

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

This comes on the back of recent data showing a spike in U.S. consumer
prices, which have raised concerns over rising inflation.

However, Fed officials have said rising inflationary pressures are
transitory and ultra-easy monetary settings will remain for some time.

Market participants will be focused on any comments over inflation risks, as
some corners of the market are convinced the Fed is underestimating the
chance that inflation could be persistent, she added.

Elsewhere, silver rose 0.3% to $27.72 per ounce, palladium rose 0.5% to
$2,775.31, and platinum fell 0.8% to $1,144.74.

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 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com  

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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.

(c) 2021 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210616/341c11d5/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210616/341c11d5/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 32702 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210616/341c11d5/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 22328 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210616/341c11d5/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210616/341c11d5/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130904 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210616/341c11d5/attachment-0001.obj>