Bulls n Bears Daily Market Commentary : 28 June 2021

Mon Jun 28 14:31:50 CAT 2021

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Bulls n Bears Daily Market Commentary : 28 June 2021

 <http://www.firstmutual.co.zw/> 

ZSE commentary

The ZSE opened this week in the negative with heavy losses in heavyweight
and mid-tier counters. The small cap stocks continued on their winning
streak. Activity levels were lower to 581 trades. Medtech was the most
active stock at 81 trades followed by Star Africa and general Beltings at 59
and 52 trades each. The market bias was flat after 19 stocks registered
gains against 19 losers while 4 of the active stocks remain unchanged.
Medtech was the most liquid counter as it anchored volume aggregate trading
over 4.8 million shares while Delta anchored value traded with a value of
ZW$26.8 million. The benchmark All Share Index was down 0.66% and the Top 10
Index also down by 2.46%. The Top 15 Index shaded 2.31%. The Medium Cap
Index traded higher to 16 605.03 points whilst the Small Cap Index added
11.98% to close at 178 177.02 points.

Leading the risers pack of the day was Ariston Holdings and the microfinance
bank Get Bucks which added 19.77% and 19.28% respectively. The hotelier RTG
hit 408c up by 19.10%. Star Africa was up by 18.85% to 239.43c. Dairibord
also added 15.54%. Leading in the shakers pack was Hippo shading 19.92%.
First Mutual Properties and First Mutual Holdings shares retreated 18.78%
and 9.02% to 1400c and 2501.83c respectively. General Beltings and African
Distillers were down by 8.70% and 7.02% respectively. Please find a summary
of the market activity as shown below; The Old Mutual Top Ten ETF closed at
180.13c down by 3.56% from a trade of 16 500 units worth ZW$29 722 in 7
trades.-wealthaccess

Global Currencies & Equity Markets

South Africa

South Africa's rand weakens as government tightens COVID-19 restrictions

(Reuters) - South Africa's rand weakened early on Monday after the
government tightened COVID-19 restrictions to cope with the speed and scale
of new coronavirus infections.

At 0623 GMT, the rand traded at 14.1800 against the dollar, 0.37% weaker
than its previous close.

President Cyril Ramaphosa announced tighter COVID-19 restrictions for 14
days saying the current containment measures were insufficient with the
country, the worst-hit on the African continent in terms of recorded cases
and deaths, in the grip of a "third wave" of infections.

Government bonds also weakened, with the yield on the instrument due in 2030
rising 4.5 basis points to 9.035%. 

Nigeria

Naira remains stable across forex markets as external reserve plunges to 14
months low

The exchange rate between the naira and the US dollar closed at N411.67/$1
at the Investors and Exporters window, where forex is traded officially.

Naira remained stable against the US dollar on Friday to close at N411.67 to
a dollar, the same as recorded on the previous day. It however represents a
0.16% depreciation for the week compared to N411/$1 recorded on Friday, 18th
June 2021.

Also, the exchange rate remained flat at the parallel market to close at
N500/$1 on Friday, 25th June 2021, the same as recorded on Thursday.
Nigeria's external reserve, however, plunged $45.33 million on Thursday,
24th June 2021, bringing its month-to-date loss to $681.9 million.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar index steadies as focus shifts to U.S. jobs data

The U.S. dollar was broadly steady on Monday as global markets started the
week in a cautious mood, while currency market focus started shifting
towards key U.S. payrolls data on Friday.

Some analysts attributed the lack of momentum during Asian trading to a
spike in COVID-19 cases in the region, as Australia's most populous city,
Sydney, went into lockdown.

Indonesia is battling record-high cases while a lockdown in Malaysia is set
to be extended. Thailand too announced new restrictions in Bangkok and other
provinces.

But the Australian dollar, which is seen as a liquid proxy for risk
appetite, was up around 0.1% on the day at $0.75935 at 0737 GMT.

The U.S. dollar index was little changed at around 91.718. Last week, it
dropped 0.5%.

The New Zealand dollar was up 0.2% at $0.708.

Softer-than-expected inflation data last week did little to ease concerns
about the U.S. Federal Reserve dialling down its monetary stimulus.

The U.S. personal consumption expenditures (PCE) price index, excluding the
volatile food and energy components, increased 0.5%, short of expectations
for a 0.6% rise.

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.

Among a raft of economic indicators this week, Friday's payroll data is a
key focus - with economists expecting an increase of 675,000 jobs.

Noting a lack of volatility in currency markets, ING strategists wrote in a
note to clients that "it will probably take a jobs number closer to the one
million mark to shake up the US rates curve and FX markets once again."

News of a bipartisan U.S. infrastructure agreement helped risk appetite. The
infrastructure plan is valued at $1.2 trillion over eight years, of which
$579 billion is new spending.

The euro was up around 0.1% against the dollar at $1.1941, while euro-dollar
implied volatility gauges with a one-year maturity were close to their
lowest since March 2020.

The euro strengthened slightly versus the Norwegian crown, with the pair at
10.1376.

The Canadian dollar was down 0.1% against the U.S. dollar at 1.2292.

Oil prices slipped slightly after earlier climbing to their highest since
October 2018 on expectations demand growth will outstrip supply and OPEC+
will be cautious in returning more crude to the market from August. OPEC+
meets on Thursday.

The British pound was up 0.4% against the U.S. dollar at $1.3925.
Speculators reduced their net long position on the pound versus the dollar
to a 20-week low.

In cryptocurrencies, bitcoin was up 1.5% at around $35,100. It showed no
reaction to Britain's financial regulator saying that Binance (one of the
world's largest cryptocurrency exchanges) cannot conduct any regulated
activity and issuing a warning to consumers about the platform.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper edges higher as dollar gives up gains; U.S. bill in focus

(Reuters) - Copper prices shrugged off an early-session dip to trade
slightly higher on Monday, as the dollar lost ground after opening the week
firmer and investors looked for progress on a $1.2 trillion U.S.
infrastructure deal.

The United States "is trying to get the infrastructure spending bill through
Congress and all eyes will be on this week's employment numbers to see if
the return to work continues," Malcolm Freeman, director at Kingdom Futures,
said in a note.

Three-month copper on the London Metal Exchange was up 0.1% at $9,421 a
tonne, as of 0739 GMT, on course to snap two straight daily declines. The
most-traded August copper contract on the Shanghai Futures Exchange closed
down 0.4% at 68,630 yuan ($10,632).

The dollar's index against six other major currencies slipped 0.1% to
91.710. It had strengthened earlier in the session following
softer-than-expected U.S. inflation data last week.

A weaker dollar makes greenback-priced metals cheaper for holders of other
currencies and can support prices.

FUNDAMENTALS

* Profit growth at China's industrial firms slowed again in May as surging
raw material prices squeezed margins and weighed on factory activity.

* ShFE nickel inventories NI-STX-SGH dropped to a record low of 6,106
tonnes, while LME nickel stockpiles MNISTX-TOTAL declined to their lowest
level since July 2020 at 234,576 tonnes.

* LME nickel fell 0.7% to $18,400 a tonne, aluminium declined 0.1% to $2,484
a tonne, while lead shed 0.2% and zinc nudged up 0.1%.

* In Shanghai, aluminium was the only base metal to advance, rising 0.4% to
18,895 yuan for a fifth straight daily gain.

MARKETS NEWS

* Asian shares got the week off to a cautious start, with Chinese markets
holding steady, as a spike in coronavirus cases across the region over the
weekend hurt investor sentiment.

Gold subdued as investors evaluate Fed's policy view

Gold traded in a tight range on Monday as investors remained on the
sidelines given the U.S. Federal Reserve's mixed signals on policy
tightening, although a weaker dollar limited losses for the metal.

Spot gold eased 0.1% to $1,778.26 per ounce by 0911 GMT. U.S. gold futures
rose 0.1% to $1,779.10.

Gold suffered its biggest daily drop in five months after the Fed signaled
earlier than expected policy tightening on June 16. However, Fed Chair
Jerome Powell has said inflation would not be the only determinant in
interest rate decisions.

Meanwhile, U.S. consumer spending paused in May, with the Federal Reserve's
main inflation measure rising by the most in 29 years. Gold prices rose as
much as 0.8% on Friday after the data.

Limiting gold's losses on Monday, the dollar index fell 0.1% against six
other major currencies.

The U.S. Labor Department is likely to show nonfarm payrolls increased to
675,000 in June, after rising 559,000 in May.

Among other precious metals, silver was little changed at $26.07 per ounce,
platinum fell 0.6% to $1,104.46. Palladium gained 0.2% to $2,641.93.

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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subscribe for any securities. The information contained in this report has
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
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
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