Bulls n Bears Daily Market Commentary : 10 March 2021

Wed Mar 10 16:57:00 CAT 2021

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Bulls n Bears Daily Market Commentary : 10 March 2021

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

ZSE commentary

In today's mid-week session, CBZ continued to lift turnover over the ZW$1
million mark. A total of 19 622 138 shares making 2.80% of issued share
capital exchanged hands in trades worth ZW$1 824 841 514. In spite of the
huge turnover, the financial services stock lost 0.17% to 8434c. The ZSE All
share index added 1.44% to 4 640.88 as it slid back in the positive in a
session which yielded 27 risers against 8 fallers. Activity levels improved
to 520 trades on a higher turnover of ZW$1 952.4 million. Total traded
volume was 94% higher at 28 million shares. Top gains were in the Small Cap
Index which put on 6.87% to 40 925.77. Medtech, NTS and Wildale were among
the small cap risers in today's session. The Top 10 Index, Top 15 Index
closed higher after adding 1.98% and 1.78% respectively. The Medium Cap
Indices closed the day in the positive territory adding 0.26% to 10 768.06.

Turnall and NTS led the top 5 risers after gaining 19.97% each. Medtech
Holdings and Wildale followed the riser's pack gaining 19.21% and 17.49%
respectively. Hippo Valley Estates anchored the top 5 risers after gaining
16.05% to close at 13750.93c. The gains were reversed by losses in banking
company NMB and RTG which shaded 9.61% to 674c and 1.86% to 200c
respectively. Ariston Holdings followed the shakers pack after losing 1.66%.
National Foods was down 1.27% to 31500c. Cassava  pared 0.59% to 1485.08c.
The Old Mutual Top Ten ETF closed today at 200c after 27 900 units with a
value of ZW$55 800 in 13 trades exchanged hands.-wealthaccess

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

Global Currencies & Equity Markets

South Africa

Rand claws back some losses

JOHANNESBURG - The South African currency garnered strength from a
better-than-expected Q4 GDP release and rising external tailwinds according
to NKC Research.

The latest South African GDP print came in slightly stronger than our
prediction for the last quarter of 2020. However, we do not expect this
slight positive momentum generated in Q4 2020 to be carried over to Q1 2021.
In fact, the second wave of Covid-19 infections resulted in renewed adjusted
level-3 restrictions lasting from late-December into Q1, which will have a
significant impact on economic output.

The outlook for the rest of the year hinges very much on the success of
government's vaccine rollout programme. At this point in time the
vaccination progress has been slow, and we do not see government achieving
its goal of herd-immunity by year-end. We project economic growth of 2.0
percent for 2021.

At the close of local trade, the rand quoted 0.84 percent stronger at
R15.35/$, after trading in range of R15.29/$ - R15.55/$. The rand traded
firmer overnight. The expected range of the rand against the dollar today is
R15.20/$ - R15.50/$.

South African bourse

The JSE All Share (+0.34 percent) strengthened on Tuesday, thanks to a 5.22
percent surge in gold mining stocks. Meanwhile, technology shares were up
1.72 percent and industrials rose by 1.28 percent. In the overall emerging
market sphere, the MSCI Emerging Market Index (+0.74 percent) traded in the
black.

Brent crude oil

The Brent oil price stepped onto the back foot amid choppy trade yesterday
ahead of the American Petroleum Institute's inventory report. At the close
of local trade, benchmark Brent crude futures quoted 0.88 percent lower at
$67.90pb. Crude prices traded weaker during Asian trade this morning.

BUSINESS REPORT

Nigeria

Naira Sees Second Big Fall in Months At Parallel Market

The decline comes days after the Central Bank of Nigeria (CBN) announced a
new incentive for diaspora remittances.

Naira on Tuesday fell significantly at the parallel market below the 480th
mark to the dollar, the first time in nearly four months.

The decline comes days after the Central Bank of Nigeria (CBN) announced a
new incentive for diaspora remittances.

On March 5, the CBN had directed all Deposit Money Banks and International
Money Transfer Operators to henceforth pay recipients of diaspora
remittances N5 for every $1 received as inflow.

At the unofficial market, data from abokiFX.com showed the domestic currency
exchanged for the greenback at N484, a N2.0 or 0.42 depreciation from N482
it traded on Monday.

The margin is significant as naira had been at or below 480 for months,
after touching an all-time low at the unofficial market on November 20 last
year, when it traded at the black market for N500.

I&E Too

The currency also weakened 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.

Naira closed at N412.00 at the I&E window. This represents a N0.12 or 0.03
per cent depreciation from N411.88, the rate at which it closed on Monday.

Tuesday's margin leaves a 17.48 per cent spread between the unofficial
market and the I&E window.

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

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

Global Markets

China's yuan dips as stabilising yields boost dollar

(Reuters) - China's yuan shrugged off a stronger daily fixing to weaken on
Wednesday as stabilising U.S. bond yields supported the dollar, a day after
after a volatile session for the Chinese currency.

The greenback has moved in tandem with surging U.S. Treasury yields recently
even as Chinese benchmark yields have risen much more slowly, pressuring the
yuan.

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Traders said the likely implementation of a $1.9 trillion U.S. stimulus bill
could continue to support the U.S. currency but that corporate dollar
selling would limit the yuan's losses.

Before the market open, the People's Bank of China (PBOC) set the midpoint
of the yuan's daily trading band CNY=PBOC at 6.5106 per dollar, firmer than
6.5338 previously.

Spot yuan CNY=CFXS opened at 6.5105 per dollar and was trading at 6.5120 at
midday, 36 pips weaker than the previous day's late session close. On
Tuesday, it had swung sharply higher from early losses.

The offshore yuan CNH=D3 eased to 6.5208 per dollar from the previous close
of 6.5169.

Analysts said they continue to see an upside for the yuan over the next
year, but that appreciation would not match its nearly 7% gain in 2020.

On Wednesday, the U.S. 10-year yield US10YT=RR stabilised around 1.54% after
a three-day drop from a one-year high of 1.6250.

That put a floor under the global dollar index, which rose to 92.139 from
the previous close of 91.998. =USD

In a note on Wednesday, Zhang Ming, an economist at the Chinese Academy of
Social Sciences, also pointed to a likely reduction in Sino-U.S. frictions
as a factor that could support the yuan.

A senior Biden administration official said on Tuesday that the United
States was in talks with China about a possible "near-term" senior-level
meeting between the two countries.

The yuan market at 4:05 GMT:

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold edges down as U.S. yields, dollar firm

Gold edged lower on Wednesday after registering its biggest jump in two
months in the last session, as higher U.S. Treasury yields and a buoyant
dollar remained a stumbling block for bullion.

Spot gold eased 0.1% to $1,714.23 per ounce after rising more than 2% on
Tuesday. U.S. gold futures fell 0.3% to $1,711.70. U.S. yields regained
momentum on Wednesday, raising the opportunity cost of holding bullion while
the dollar also rose.

The U.S. House of Representatives cleared the way for the $1.9 trillion U.S.
COVID-19 relief bill to be considered on Wednesday, when it is expected to
be approved.

Although gold is widely considered a hedge against higher inflation
anticipated to be fuelled by stimulus measures, higher yields have
challenged that status this year.

Policymakers were divided on a large-scale market intervention to counter a
rise in yields ahead of a European Central Bank meeting on Thursday.

The U.S. Federal Reserve "would have to flood markets even more, blue in the
balance sheet further to keep yields at a low level, but that would here in
the current environment only fuel more inflation expectations," said
Quantitative Commodity Research analyst Peter Fertig.

Silver fell 0.3% to $25.82 an ounce. Palladium shed 0.1% to $2,295.37, while
platinum was steady at $1,168.32.

More platinum deficits loom this year after a record undersupply of almost a
million ounces in 2020, the World Platinum Investment Council said.

Analysts at Swiss bank UBS forecast platinum prices reaching $1,300 over the
next 12 months, driven by high investment demand and strained supply.

Oil extends slide on strong dollarAs market volatility climbs.

Oil extended declines as the dollar strengthened, adding more volatility to
the market after a mixed industry report on US stockpiles.

Futures in New York have lost more than 3% over the past two sessions in a
volatile start to the week that included a brief surge to an October 2018
high on Monday. A stronger dollar reduces the appeal of commodities priced
in the currency. The American Petroleum Institute reported crude inventories
rose last week, while gasoline stockpiles fell, according to people
familiar.

Despite the dip this week, crude is expected to resume its upward trend,
which may encourage more activity from US drillers. Oil production across
American shale patches next year is expected to climb to the highest annual
rate since 2019, according to a government report.

Oil is still up more than 30% this year as the market tightens amid output
cuts from Saudi Arabia and OPEC+, and as the demand outlook improves with
the rollout of Covid-19 vaccines. Tensions have also escalated in the Middle
East after a key crude export terminal in the kingdom was attacked on
Sunday, adding to a recent series of assaults on the major producer.

Prices

West Texas Intermediate for April delivery dropped 0.8% to $63.53 a barrel
on the New York Mercantile Exchange at 7:40 a.m. London time after sliding
1.6% on Tuesday.

Brent for May settlement fell 0.9% to $66.91 on the ICE Futures Europe
exchange after losing 1.1% in the previous session.

The prompt timespread for Brent was 47 cents in backwardation, compared with
50 cents a week earlier.

Elevated prices and reduced barrels from Middle East producers due to OPEC+
curbs is accelerating India's push to diversify its sources of crude and
pursue alternative energy, according to the chairman of Hindustan Petroleum
Corp. The output cuts are also have an impact on the shipping market, with
tanker owners losing money hauling oil on a key route to China.

US gasoline inventories dropped by 8.5 million barrels last week, while
distillates - a category that includes diesel - fell by 4.8 million barrels,
the API said. Crude stockpiles rose by almost 13 million barrels, which
would be a third weekly gain if confirmed by government figures on
Wednesday.-Bloomberg

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

Nampak

AGM

Virtual | Boardroom, 68 Birmingham Road, Southerton

10/03/21 | 9am

Mash

AGM

Virtual | 19th Floor, ZB Life Towers, 77 Jason Moyo Avenue

11/03/21 | 11am

Art

AGM

Virtual | https://escrowagm.com/eagmZim/Login.aspx

11/03/21 | 12pm

Old Mutual

analysts briefing

24/03/21 | 2:30pm

Willdale

AGM

Boardroom, Willdale Administration Block, Teneriffe, 19.5km peg Lomagundi
Road, Mt Hampden

25/03/21 | 11am

TSL

AGM

Virtual | https://eagm.creg.co.zw/eagmzim/ Login.aspx | in the Auditorium,
Ground Floor, 28 Simon Mazorodze Road, Southerton

25/03/21 | 12pm

CFI

AGM

Farm & City Boardroom, 1st Floor Farm & City Complex, 1 Wynne Street

31/03/21 | 11am

Good Friday

02/04/21

Easter Sunday

04/04/21

Easter Monday

05/04/21

Independence Day

18/04/21

Public Holiday in lieu of Independence Day falling on a Sunday

19/04/21

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
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.

(c) 2021 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
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