Bulls n Bears Daily Market Commentary : 22 June 2021

Tue Jun 22 18:22:16 CAT 2021

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Bulls n Bears Daily Market Commentary : 22 June 2021

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

ZSE commentary

The ZSE closed today's session with losses across the board except for small
cap stocks which registered an impressive gain. Turnover improved to ZW$170
million from a trade of over 8.79 million shares. Activity levels were
higher at 685 trades. Medtech was the most active stock at 68 trades
followed by GBH and OK Zimbabwe. The market breadth was positive after 22
stocks appreciated against 18 that depreciated in a total of 43 stocks which
traded. Econet was the most liquid counter as it anchored both volume and
value aggregate trading 2 370 300 shares with a value of ZW$65.2 million.
ZSE market share to ZW$720.68 billion.

The benchmark All Share Index was down 1.23% and the Top 10 Index also down
by 1.68%. The Top 15 Index shaded 1.75%. The Medium Cap Index traded lower
to 15 640.80 points whilst the Small Cap Index added 10.84% to close at 131
620.71 points. Leading the risers pack of the day was General Beltings which
added 19.43% to close at 266.32c. Get Bucks Microfinance was up by 17.28% to
950c. Truworths and the insurance group Fidelity  also added 8.33% and 7.14%
respectively. Dairibord added 5.37% to 2638.10c. Leading in the shakers pack
was Hippo shading 17.65%. Turnall Holdings lost 15.43%. Rio Zimbabwe and
Lafarge were down by 11.22% and 11.11% respectively. Art Corporation pared
10.28% to 708.49c. Please find a summary of the market activity as shown
below; The Old Mutual Top Ten ETF closed at 182.29c down 3.99% from a trade
of 13 007 units worth ZW$23 710.35 in 10 trades..-wealthaccess

Global Currencies & Equity Markets

South Africa

South African rand weaker as dollar creeps higher

(Reuters) - The South African rand opened weaker on Tuesday, as the dollar
crept higher before U.S. Federal Reserve Chair Jerome Powell's testimony
before Congress.

Investors will scrutinise Powell's remarks for clues about the outlook for
U.S. monetary policy, after a surprise hawkish shift from the Fed last week
sent the dollar soaring and emerging market assets tumbling.

At 0630 GMT, the rand ZAR=D3 traded at 14.2500 against the dollar, roughly
0.3% weaker than its previous close. It had gained more than 1% on Monday
after steep losses of more than 4% last week.

Powell is due to appear before Congress from 1800 GMT. In prepared remarks
he noted sustained labour market improvement and the recent increase in
inflation.

Among other factors that could influence the rand on Tuesday, the South
African Reserve Bank will publish its composite leading business cycle
indicator ZALEAD=ECI, which gauges the outlook for Africa's most
industrialised economy, around 0700 GMT.

South Africa's economic recovery from the COVID-19 pandemic has been uneven
and halting to date.

Government bonds were a touch firmer in early deals, as the yield on the
2030 instrument ZAR2030= dipped 1 basis point to 9.08%.

Nigeria

Naira loses at official, black markets

The Naira depreciated further against the U.S. dollar at the unofficial
market on Monday, data posted on abokiFX.com, a website that collates
parallel market rates in Lagos showed.

The currency also slumped at the official Investors and Exporters (I&E)
window on Monday after it recorded a slight gain in the previous session
last week Friday.

According to data posted on abokiFX.com, the local unit exchanged hands with
the hard currency at N500.00 per $1 on the dot at the black market. This
implies a N2.00 or 0.40 devaluation from N498.00, the rate it traded in the
previous session last week Friday.

Similarly, data posted on the FMDQ Security Exchange where forex is
officially traded showed that naira closed at N411.67 per $1 at the Nafex
window, after forex supply saw a slight boost from what was recorded in the
previous session on Friday last week.

The currency's performance on Monday represents a 0.16 per cent depreciation
from N411.00 the rate it traded in the previous session on Friday last week.

The Over-the-Counter (OTC) market segment saw a forex turnover of $94.17
million, this translates to a 25.88 per cent increase from $74.81 million
posted in the previous session on Friday last week.

It touched an intraday low of N420.88 and a high of N400.00 before closing
at N411.67 on the dot on Monday.

The spread between the parallel market and Nafex window rates is pegged at
N88.33. This translates to a disparity of 17.70 per cent as of the close of
business on Monday.

 <mailto:info at bulls.co.zw> 

Global Markets

Sterling falls against strengthening dollar, back below $1.39

(Reuters) - Sterling fell back below $1.39 on Tuesday as the dollar picked
up in early trading, but the British currency was still above the two-month
lows it reached on Monday after the Fed's hawkish shift.

The U.S. Federal Reserve surprised some market participants last week by
signalling that it would raise interest rates and end emergency bond-buying
sooner than expected - prompting the dollar to rise and riskier currencies
to lose out.

The pound hit a two-month low of $1.37865 early on Monday, recovered later
in the session, then dipped back down again on Tuesday, down 0.3% at
$1.38965 at 0745 GMT.

Versus the euro, it was down 0.2% at 85.70 pence per euro, still trading
within recent ranges.

Speculators increased their net long position on the pound versus the dollar
in the week to June 15, CFTC data showed.

Investors are focused on the UK's reopening plans, after the full easing of
lockdown was delayed by a month due to the more infectious Delta variant of
COVID-19.

British Health Minister Matt Hancock suggested on Tuesday that England's
lockdown could fully end as planned on July 19 because a recent rise in
cases is not resulting in deaths.

Also in focus is the Bank of England meeting on Thursday. Analysts expect no
changes to policy after the BoE last month said it would slightly slow the
weekly pace of its bond purchases.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold Declines as Dollar Strengthens Ahead of Powell Testimony

Gold slipped as the dollar strengthened ahead of testimony by Federal
Reserve Chair Jerome Powell, who may provide more clues on the outlook for
monetary policy.

Inflation had picked up but should move back toward the Fed's target once
supply imbalances clear, Powell said in written remarks for his appearance
Tuesday before a U.S. House subcommittee. Powell may face questions on his
views about the pace of the economic rebound.

Bullion tumbled the most in 15 months last week after the Fed brought
forward the time line for projected rate hikes at its policy meeting. Hedge
funds and other large speculators cut their bullish gold bets to the lowest
in a month in the week ended June 15, U.S. government data showed on Monday.

Spot gold fell 0.3% to $1,777.58 an ounce at 10:14 a.m. in New York, after
climbing 1.1% on Monday. Prices fell 6% last week, the most since March
2020. Silver, platinum and palladium all declined on Tuesday. The Bloomberg
Dollar Spot Index advanced 0.3%.

Copper rises as dollar weakens ahead of Fed chief testimony

(Reuters) - Copper prices rose on Tuesday, as the dollar paused for breath
ahead of a highly-anticipated testimony from the U.S. Federal Reserve chair
Jerome Powell due later in the day, making the greenback-priced metals
cheaper to holders of other currencies.

The dollar has gained sharply since the Fed last week flagged
sooner-than-expected interest rate hikes, but dipped on Monday as markets
looked to testimony from Powell for guidance on the U.S. central bank.

Three-month copper on the London Metal Exchange CMCU3 was up 0.6% at $9,238
a tonne, as of 0336 GMT, while the most-traded July copper contract on the
Shanghai Futures Exchange SCFcv1 advanced 1.2% to 67,600 yuan ($10,461.00) a
tonne.

FUNDAMENTALS

* The global world refined copper market showed a 19,000 tonnes deficit in
March, compared with a 108,000 tonnes surplus in February, the International
Copper Study Group said in its latest monthly bulletin.

* Global primary aluminium output rose to 5.744 million tonnes last month
from revised 5.543 million tonnes in April, data from the International
Aluminium Institute showed on Monday.

* The global nickel market deficit narrowed to 15,600 tonnes in April from a
shortfall of 17,100 tonnes in March, data from the International Nickel
Study Group (showed on Monday.

* LME nickel CMNI3 rose 1.4% to $17,695 a tonne and ShFE nickel SNIcv1
climbed 3% to 132,010 yuan a tonne.

($1 = 6.4621 yuan)

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
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for guideline purposes only and sourced from third parties.

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