Bulls n Bears Daily Market Commentary : 04 March 2021

Thu Mar 4 15:36:51 CAT 2021

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Bulls n Bears Daily Market Commentary : 04 March 2021

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

ZSE commentary

Today’s session closed with a positive market breath after 23 stocks registered gains against 14 decliners. Activity levels improved to 557 trades on a higher turnover of ZW$111.8 million. Total traded volume was at 13.4 million shares with First Capital Bank and Medtech trading over 3 million shares each. The All-Share Index was up 0.75% to 4 518.48 mainly moved by gains in heavy weight stocks Econet, Innscor, CBZ and Cassava. Trading was relatively mixed although skewed in favor of gains at 22. The Small Cap Index was the best performer after it gained 1.59% and the Top 10 Index, Top 15 Index closed higher after gaining 0.83% and 0.93% respectively. The Medium Cap Indices also closed the day in the positive territory adding 0.58%.

The tyre manufacturer NTS led the top 5 risers after gaining 19.88% to 202c. Nampak and Fidelity followed the riser’s pack gaining 18.02% and 17.38% respectively. RTG and the hotelier giant African Sun followed after gaining 15.29% to close at 190c and 10.41% to 209.7c respectively. The gains were reversed by losses in Proplastics and First Capital Bank  which shaded 13.04% to 2000c and 9.05% to 165.17c respectively. Medtech Holdings followed the shakers pack after losing 8.84%. OK Zimbabwe was down 6.23% to 1562.18c. Masimba  pared 5.88% to 1600c. The Old Mutual Top Ten ETF shaded 0.32% to 179.26c after 19 181 units with a value of ZW$34 383.80..-wealthaccess

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

Global Currencies & Equity Markets

Zambia

Kwacha will hit K22.50 per dollar by June 30 – Report

THE kwacha is expected to trade at around K22.50 per dollar by the end of the half-year period, mainly in response to continued strong demand for foreign currency, compounded by weak supply. According to a detailed economic analytical report, the Kwacha Arbitrageur, taking into account Zambia’s economic outlook this year, the local currency is forecast to further deteriorate to an unprecedented K22.50 per dollar by June 30, mainly triggered by sustained demand for foreign currency, but with weak supply of dollars to help shore up the local unit. 

South Africa

South Africa's rand firms, focus on Powell's speech

(Reuters) - South Africa's rand firmed in early trade on Thursday, as investors awaited a speech by U.S. Federal Reserve Chairman Jerome Powell that may determine the trend for global bond markets and currencies.

At 0630 GMT, the rand ZAR=D3 traded at 15.0700 against the U.S. dollar, 0.25% firmer than its previous close.

With a light local data calendar this week, the rand's movements have been mainly driven by offshore events.

The currency rallied to a 2021 peak of 14.3950 last week on fiscal consolidation plans laid out by South Africa's finance minister, but has struggled to firm further as soaring U.S. bond yields sapped enthusiasm for risk currencies worldwide.

Investors waited to see if Powell, who is due to speak at a Wall Street Journal conference at 1705 GMT, would address concerns about the risk of a rapid rise in long-term borrowing costs.MKTS/GLOB

Government bonds weakened in early deals, with the yield on the instrument due in 2030 ZAR2030= rising 11 basis points to 9.145%.

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

Global Markets

Rupee falls by 11 paise to 72.83 against US dollar

The rupee ended 11 paise lower at 72.83 (provisional) against the US dollar on Thursday, weighed down by a rebound in the US dollar and muted domestic equities. At the interbank forex market, the local unit opened at 72.99 against the greenback and witnessed an intra-day high of 72.62 and a low of 72.99.

It finally ended at 72.83 against the American currency, registering a fall of 11 paise over its previous closing. On Wednesday, the rupee had settled at 72.72 against the American currency.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.27 percent to 91.19. Meanwhile, Brent crude futures, the global oil benchmark, fell 0.34 percent to USD 63.85 per barrel.

On the domestic equity market front, the BSE Sensex ended 598.57 points or 1.16 percent lower at 50,846.08, while the broader NSE Nifty declined 164.85 points or 1.08 percent to 15,080.75. Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 2,088.70 crore on Wednesday, according to exchange data.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices today extend fall, down ₹11,500 from record highs; silver slumps

Gold today extended its recent fall in Indian markets amid rising US bond yields. On MCX, gold futures fell 0.4% to 10-month low of ₹44,768 per 10 gram while silver slid 0.8% to ₹67,473 per kg. In the previous session, gold had dipped 1.2% or ₹600 per 10 gram while silver had slumped 1.6% or ₹1150 per kg. After strong gains in 2020, gold has been under pressure so far this year amid a rally in equity markets and rising US bond yields. Gold is down over ₹5,000 from the start of this year and ₹11,500 from August highs of ₹56,200.

In global markets, gold prices were flat today at $1,711 an ounce after hitting a nine-month low in the previous session. Higher US Treasury yields continued to weigh on the precious metal. Benchmark US Treasury yields hovered near near 1.5%, increasing the opportunity cost of holding gold, which pays no interest.

Kshitij Purohit, Lead – International & Commodity at CapitalVia Advisor, said international gold has been moving in a marginally sideways to bearish trend. "It is trading below the major support levels of 1770.75-1760.65. For MCX gold, support levels are at 45000-44900."

ETF interest remained weak. Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 0.4% to 1,082.38 tonnes on Wednesday.

Gold traders will look for clues on the outlook of the US central bank's monetary policy when Fed Chair Jerome Powell's speaks at a virtual summit later in the day. The progress on US stimulus package will also be on their radar. The US Senate has delayed the start of debate on a $1.9 trillion COVID-19 relief bill.

Among other precious metals, silver rose 0.4% to $26.18 an ounce, while palladium eased 0.3% at $2,347.52. Platinum shed 0.5% to $1,161.50.

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

Counters trading under cautionary

ART

Seed co Int.

Dairibord

Starafrica

Medtech

Turnall

Seed co

Invest Wisely!

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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 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.

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