Bulls n Bears Daily Market Commentary : 03 March 2021

Wed Mar 3 17:46:18 CAT 2021

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Bulls n Bears Daily Market Commentary : 03 March 2021

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

ZSE commentary

The mid-week session market breath was positive after 22 stocks registered
gains against 17 decliners. Activity levels improved to 550 trades on a
lower turnover of ZW$49.2 million. Total traded volume was at 4.5 million
shares with First Capital Bank contributing the most at 1 398 800 shares.
The All-Share Index was up 1.92% to 4484.78 mainly moved by gains in heavy
weight stocks Econet, Innscor and Cassava. Trading was relatively mixed
although skewed in favor of gains at 22. The Medium Cap Index was the best
performer after it gained 2.83% and the Top 10 Index, Top 15 Index closed
higher after gaining 1.44% and 1.41% respectively. The Small Cap Indices
also closed the day in the positive territory adding 1.46%.

The cement manufacturer Lafarge led the top 5 risers after gaining 20.00% to
3960c. NTS and Turnall followed the riser's pack gaining 19.93% and 19.41%
respectively.

National Foods and the gold mining giant Rio Zimbabwe followed after gaining
15.69% to close at 46.29c and 14.27% to 2399.61c respectively. The gains
were reversed by losses in Fidelity and Unifreight which shaded 10.65% to
366.32c and 9.49% to 1030.8c respectively. Masimba Holdings followed the
shakers pack after losing 6.51%. First Capital Bank was down 3.40% to
181.6c. Star Africa pared 2.65% to 49.91c. The Old Mutual Top Ten ETF added
0.21% to 179.84c after 100 288 units with a value of ZW$180
361.40.-wealthaccess

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

Global Currencies & Equity Markets

South Africa

South Africa's rand weakens in early trade

(Reuters) - South Africa's rand weakened early on Wednesday, reversing some
gains from the previous session, as investors weighed the prospect of
further loosening of monetary policy globally against signs of returning
inflation.

At 0630 GMT the rand ZAR=D3 was 0.22% weaker at 14.9725 per dollar compared
to an overnight close of 14.9400 overnight in New York.

The rand rallied to a year's best of 14.3950 a week ago on fiscal
consolidation plans laid out by South Africa's finance minister, but has
struggled to strengthen further as soaring U.S. bond yields sapped
enthusiasm for risk currencies worldwide.

The sharp jump in U.S. bond yields in recent weeks sparked a selloff in
emerging markets seen as more fragile to long COVID-19 inspired recessions,
but talk of continued fiscal and monetary stimulus, especially from the
U.S., tamed those fears.

Analysts expect more inflow for high-yielding units including the rand from
U.S. President's $1.9 trillion spending package proposal and the Federal
Reserve's insistence to move slowly on normalising monetary policy.

With a light local data calendar in coming days, the rand is set to continue
being driven by offshore events.

Bonds were firmer, with the yield on the 2030 government bond ZAR2030= down
5.5 basis points to 8.970%.

Nigeria

Naira gains at parallel market

Nigeria's naira fell against the U.S. dollar at the Investors & Exporters
(I&E) window of the foreign exchange market on Tuesday, data from the FMDQ
Security Exchange where forex is officially traded showed.

However, the currency strengthened significantly on the parallel market .

Naira closed at N411.63 at the trading session of the I&E window on Tuesday.
This represents a N2.33 or 0.57 per cent depreciation from N409.30, the rate
at which it closed at the previous session on Monday.

This occurred as the local currency witnessed an intraday high of N388.25
and a low of N415.00, before closing at N411.63 on Monday.

The depreciation of the domestic currency happened as turnover increased by
142.7 per cent, with $59.17 million recorded as against the $24.38 million
posted on Monday.

However, on the unofficial market, data posted on abokiFX.com, a website
that collates parallel market rates in Lagos showed the domestic currency
strengthened against the greenback currency on Tuesday.

According to the data posted, the currency closed at N480.00, this
represents N2.00 or 0.42 per cent appreciation from N482.00, the rate it
exchanged in the previous session on Monday.

By this, the spread between the unofficial market and the I&E window
exchange rate is pegged at N68.37, which translates to a gap of 14.20 per
cent.

The CBN's official rate on Tuesday was still N379 per dollar.

 <https://www.facebook.com/Hyundaizimbabwe/> 

Global Markets

Dollar Edges Lower; Sterling in Focus Ahead of Budget

Investing.com - The dollar traded marginally lower in early European trading
Wednesday, remaining on the defensive as U.S. Treasury yields retreated,
boosting risk sentiment. Sterling will also be in focus ahead of the U.K.
budget.

At 3:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback
against a basket of six other currencies, was down 0.1% at 90.748, hitting a
three-week high.

EUR/USD rose 0.1% to 1.2094, USD/JPY was up 0.2% at 106.82, while the
risk-sensitive AUD/USD rose 0.1% to 0.7828, adding to recent strong gains
after GDP data showed the Australian economy grew much faster than expected
in the fourth quarter, up 3.1% on the quarter.

Movements in the global bond market have been very influential in guiding
the foreign exchange rates, following last week's dramatic jump in bond
yields amid concerns inflationary pressures would cause central bankers, and
the Federal Reserve in particular, to end the easy monetary policies which
have been in place since the start of the Covid pandemic.

However, Treasury yields have stabilized this week, with the benchmark
10-year note currently yielding 1.40% after briefly hitting 1.60% last week,
with Fed speakers keen to let the market know their accommodative monetary
policy stance will be around for a while.

Fed Governor Lael Brainard is the latest to express such an opinion, saying
it will take "some time" to meet the conditions needed for scaling back
asset purchases. Even so, she admitted that the speed of last week's move up
in bond yields had 'caught her eye'.

Also boosting risk sentiment was the decision by Texas Governor Greg Abbott
to lift the state's remaining lockdown restrictions, and President Joe
Biden's statement that the U.S. should have enough vaccines for all adults
by the end of May, two months earlier than previously thought.

European authorities, meanwhile, have expressed more concern about the
difficulties associated with rising yields.

European Central Bank board member Fabio Panetta said Tuesday that the
bloc's monetary authority should expand bond purchases or even increase the
quota earmarked for them if needed to keep yields down.

Elsewhere, GBP/USD rose 0.2% to 1.3982 ahead of the U.K.'s annual budget,
with Finance Minister Rishi Sunak set to outline the country's latest
taxation and spending plans as it struggles to cope with the financial
damage caused by the pandemic.

Additionally, USD/PLN rose 0.1% to 3.7566 ahead of the latest meeting by
Poland's central bank. It is expected to keep interest rates unchanged at a
record low as it weighs the impact of accelerating inflation against the
threat of new Covid-19 restrictions stifling economic growth.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Firm dollar pushes gold to eight-month low

Bengaluru - Gold prices slumped to their lowest in eight  months on Tuesday,
as a stronger dollar and elevated US Treasury yields eroded investor
appetite for the non-yielding metal.

Spot gold was down 0.7% at $1,711.13 an ounce by 3.10am GMT, having dropped
to its lowest since June 15 at $1,708.60 earlier in the session. US gold
futures slipped 0.8% to $1,709.80.

The potential for higher yields is putting pressure on gold, while a
stronger dollar is also contributing to its fall, Michael McCarthy, chief
market strategist at CMC Markets said, adding that a minor retreat in
10-year yields was "too small to count".

Benchmark US Treasury yields have come down from a one-year high hit last
week, but continue to remain elevated, while the dollar index held near a
four-week peak.

While gold is considered a shield against inflation, higher yields have
threatened that status, since they translate into higher opportunity cost of
holding bullion, which pays no return.

European Central Bank policymakers have been dropping hints that the central
bank is ready to rein in yields and prevent a premature increase in
borrowing costs for firms and households struggling to cope with a
pandemic-induced recession.

Focus also remains on the developments of the $1.9-trillion US coronavirus
relief bill that will be debated in the Senate this week.

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold
Trust fell to their lowest since May 2020 on Monday. Silver eased 1.6% to
$26.06 an ounce, having earlier dipped to a near one-month low. Palladium
slipped 0.2% to $2,345.67 and platinum fell 0.8% to $1,175.-Reuters

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
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suitable for all investors. Securities of emerging and mid-size growth
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