Bulls n Bears Daily Market Commentary : 29 June 2021

Tue Jun 29 14:02:41 CAT 2021

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Bulls n Bears Daily Market Commentary : 29 June 2021

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

ZSE commentary

The ZSE closed today's session in the positive spurred by gains in medium
cap stocks. Small cap stocks continued on their winning streak in today's
session although the gain was marginal. Activity levels were lower to 567
trades. Medtech was the most active stock at 86 trades followed by OK
Zimbabwe and Star Africa at 50 and 44 trades each. The market bias was flat
after 17 stocks registered gains against 17 losers while 6 of the active
stocks remain unchanged. Medtech was the most liquid counter as it anchored
volume aggregate trading over 10.1 million shares while Masimba anchored
value traded with a value of ZW$43.8 million contributing 24% to total
turnover. The benchmark All Share Index was up 1.16% and the Top 10 Index
also up by a paltry 0.15%. The Top 15 Index added 1.14%. The Medium Cap
Index traded higher to 17 104.53 points whilst the Small Cap Index added a
marginal 0.59% to close at 179 235.79 points.

Leading the risers pack of the day was Wildale and Star Africa which added
19.29% and 19.01% respectively. The hotelier RTG hit 450c up by 10.29%.
National Foods  was up by 15.59% to 52013.42c. Medtech also added 9.05%.
Leading in the shakers pack was Masimba shading 10.36%. Seed Co and Ariston
Holdings shares retreated 9.22% and 4.18% to 5030.85c and 398.55c
respectively. ZIMRE Holdings and Cassava were down by 3.64% and 3.23%
respectively. The Old Mutual Top Ten ETF closed at 179c down by 0.63% from a
trade of 1 000 units worth ZW$1 790 in 2 trades.-wealthaccess

Global Currencies & Equity Markets

South Africa

South Africa's rand eases as virus fears grow

(Reuters) - South Africa's rand weakened slightly early on Tuesday with the
safe-haven U.S. dollar on a firm footing amid concerns new coronavirus
outbreaks could undermine a global economic recovery.

At 0620 GMT, the rand ZAR= traded at 14.2505 against the dollar, 0.11%
weaker than its previous close.

The greenback hovered just below a two-month high, with investors waiting
for Friday's U.S. jobs report that could influence the Federal Reserve's
view on stimulus tapering and interest rate hikes. FRX/

Fears over the spread of the highly infectious Delta coronavirus variant are
denting sentiment at a time when markets are on edge after the Fed shocked
traders with a hawkish tilt earlier this month.

South African President Cyril Ramaphosa has tightened COVID-19 restrictions
for 14 days, 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.

In fixed income, the yield on the benchmark 2030 government bond ZAR2030=
was up 0.5 basis point at 8.965%, reflecting slightly weaker prices.

Zambia

Zambia inflation skyrockets to 19-year high

LUSAKA, (CAJ News) - INFLATION shooting to an all-time high in 19 years and
the local Kwacha currency sliding in value against the greenback in recent
months, as well as the impact of the pandemic, Zambia's economy is going
through turbulence.

Annual inflation accelerated to 24,6 percent in June from 23,2 percent year
on year in May.

According to the Central Statistical Office, food inflation, which printed
at 31,2 percent y/y, continues to be a factor with global food prices
increasing by 17 percent this year and thus having a direct bearing on the
consumer price index (CPI) basket.

The currency weakness continues to feed into inflation with the unit having
lost 7 percent of its value against the United States dollar this year.

The CSO also released the first quarter 2021 gross domestic product (GDP)
numbers, which showed that the economy registered modest gains of 0,7
percent y/y compared to -2,4 percent in the fourth quarter of 2020.

The agriculture, forestry and fishing sector contributed the most to growth
having registered 14,5 percent growth while mining and quarrying fell by 2,2
percent despite the recovery in copper prices internationally.

Rand Merchant Bank maintained its growth expectations for 2021 at 2,4
percent y/y as the economy continues on its path of recovery from the
effects of the pandemic.

The International Monetary Fund projects growth of 0,6 percent.

- CAJ News

 <mailto:info at bulls.co.zw> 

Global Markets

Rupee falls 4 paise to close at 74.23 against US dollar

The rupee weakened by 4 paise to end at 74.23 (provisional) against the US
dollar on Tuesday as weaker domestic equities and a stronger dollar index
weighed on forex market sentiment. At the interbank foreign exchange market,
the rupee opened at 74.26 per dollar as against its previous close of 74.19.
It hovered in the range of 74.20 to 74.28 during the day before ending at
74.23 against the greenback.

The expectations of higher-than-expected fiscal deficit after governments'
announcement of a new relief package on Monday weighed on investor
sentiment.

Meanwhile, the dollar index, which gauges the greenback's strength against a
basket of six currencies, rose 0.10 percent to 91.97.

On the domestic equity market front, the BSE Sensex ended 185.93 points or
0.35 percent lower at 52,549.66, while the broader NSE Nifty fell 66.25
points or 0.42 percent to 15,748.45. Brent crude futures, the global oil
benchmark, declined 0.24 percent to USD 74.50 per barrel.

Foreign institutional investors were net sellers in the capital market on
Monday as they offloaded shares worth Rs 1,658.72 crore, as per exchange
data.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold Declines as Dollar Gains on Europe's Covid Variant Concerns

Gold slipped to the lowest in more than a week as the dollar firmed on
concerns about the delta virus strain in Europe.

Rapidly rising infections in the U.K. have prompted restrictions on
travelers from the country. Asian nations are also struggling to contain the
highly transmissible Covid-19 variant. Much of the pressure on gold has come
through the dollar.

Bullion is headed for the biggest monthly drop in more than four years after
the Federal Reserve pulled forward its forecasts for interest rate hikes.
Gold has slid below $1,800 an ounce this month and traders are now focused
on the timing of when policy makers may start dialing back stimulus.

Gold heads for biggest monthly decline since November 2016

Spot gold fell 0.4% to $1,771.39 an ounce at 11:13 a.m. in London. Prices
are down 7.1% this month, the most since November 2016. Silver, palladium
and platinum all retreated. The Bloomberg Dollar Spot Index is up 1.8% in
June, heading for the biggest monthly gain since March 2020.

Other central banks are showing hints of switching to a less dovish stance.
The Bank of Japan announced Tuesday it would begin to trim its bond
purchases under its new asset purchasing schedule.

Oil prices hold near 2018 highs as OPEC output looks to trail global crude
demand

(Bloomberg) --Oil held near its highest level since 2018, with an OPEC+
meeting this week expected to bring supply increases that won't keep pace
with the global demand recovery.

The Organization of Petroleum Exporting Countries and its allies will meet
Thursday, when they may decide to boost output by 550,000 barrels a day in
August, a Bloomberg survey shows. That's barely a quarter of the global
deficit that OPEC+ anticipates during the month.

Physical oil markets are screaming for more supply. Prices are rising in the
North Sea, the key region that's central to the value of many oil
transactions, while differentials for Nigerian grades have also made notable
gains.

Still, Saudi Arabia, OPEC's top producer, has so far proceeded cautiously,
with the persistence of Covid-19 and the potential restoration of Iranian
supply clouding the market outlook. In a possible complication to talks on
an Iranian nuclear deal, U.S. forces conducted air strikes Sunday against
Iran-backed militias blamed for attacking American facilities in Iraq, the
Defense Department said.

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
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