Bulls n Bears Daily Market Commentary : 11 March 2021

Thu Mar 11 13:56:03 CAT 2021

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Bulls n Bears Daily Market Commentary : 11 March 2021

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

ZSE commentary

Activity levels on the ZSE improved but turnover remain subdued closing at
ZWL$79 282 528.67, corresponding to 10 845 804 shares exchanging hands.
First Mutual Properties was the most liquid counter as it anchored volume
and Delta anchored value aggregates. However, this movement wasn't enough to
pull the All Share Index and the ZSE 10 into the positive as they closed
with a depreciation of 1.38% and 2.00% respectively. The Top 15 Index and
the Medium Cap Index also traded weaker to close with 1.72% and 0.47%
respectively, whilst the Small Cap Index gained a margin of 2.16% owing to
the appreciation of Small cap stocks namely NTS, Truworths and Medtech. The
ZSE current market capitalization is ZWL$544.7 billion.

The market breadth was negative after 16 stocks depreciated while 22
registered gains in total out of the 42 ZSE counters which traded. Leading
the gainers of the day was National Tyre Services  which headlined the
market rally with 19.94%, followed by Medtech Holdings which appreciated by
19.88%. the banking counters ZBFH and FBC led in today's fallers as they
shaded 20.00% and 10.69% respectively. Please find a summary of the market
activity as shown below; The Old Mutual Top Ten ETF closed unchanged today
at 200c after 43 516 units with a value of ZW$87 032 in 14 trades exchanged
hands..-wealthaccess

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

Global Currencies & Equity Markets

South Africa

Weaker dollar pushes rand higher

JOHANNESBURG - The rand strengthened as optimism surrounding Tuesday's GDP
release died down and souring business confidence weighed, but the dollar
index turned negative after the US CPI release according to NKC Research.

Against the broader external backdrop, the ongoing discount-rate shock will
be a temporary setback to risk asset valuations rather than scuttle the
equity bull market in place since March last year.

Despite the latest sell-off, the divergence between our growth outlook and
bond yields is large enough to keep the pressure on Treasury yields upward
in coming months.

At the close of local trade, the rand quoted 1.29 percent stronger at
R15.16/$, after trading in range of R15.11/$ - R15.37/$. The rand extend
gains overnight. The expected range of the rand against the dollar today is
R14.90/$ - R15.20/$.

South African bourse

The JSE All Share (-0.20 percent) ended in the red on Wednesday dragged by
losses in large gold mining (-4.15 percent) and resources (-1.02 percent)
stocks. Meanwhile, a stronger rand meant that financial (+1.34 percent)
shares provided some respite. In the overall emerging market sphere, the
MSCI Emerging Market Index (+0.53 percent) traded on the front foot.

Brent crude oil

The Brent oil price traded stronger yesterday on the back of upbeat OECD
global economic forecasts and Opec+ crude production cuts. At the close of
local trade, benchmark Brent crude futures quoted 2.32 percent higher at
$68.37pb. Crude prices traded firmer during Asian trade this morning.

BUSINESS REPORT ONLINE

Nigeria

Naira falls to N412/$1 at NAFEX window as dollar supply jumps by 238%

Possibilities of a second wave of COVID-19 infections Limits U.S dollar
gains

Tuesday 9th March 2021: The exchange rate between the naira and the US
Dollar closed at N412 to a dollar at the Investors and Exporters window.

Naira depreciated yet again at the NAFEX window to close at a record low of
N412/$1 on Tuesday 9th March 2021, representing a 0.03% decline when
compared to N411.88/$1 recorded on Monday, 8th March 2021.

Also, Naira weakened further against the US Dollar in the parallel market to
close at N482/$1 on Tuesday, 9th March 2021, despite recording a similar
decline on Monday. This decline at the NAFEX window and at the parallel
market came on the back of CBN's announcement of a Naira4Dollar scheme.

According to the Apex bank, beneficiaries of diaspora remittances will be
paid N5 for every $1 remitted through the banks.

Trading at the official NAFEX window

Naira depreciated further against the US Dollar to a record low at the
Investors and Exporters window on Tuesday to close at N412 to a dollar. This
represents a 12 kobo decline when compared to N411.88/$1 recorded on the
previous trading day.

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

Global Markets

U.S. dollar at one-week lows after benign inflation data

The dollar index against six major currencies was flat at 91.79 after
hitting a one-week low of 91.75 earlier in Asia as data showed U.S. core
consumer price growth slowed slightly in February.

Against the euro, the dollar was quoted at $1.1932 per dollar, nursing a
0.2% loss from the previous session.

The euro was in focus ahead of a European Central Bank meeting later in the
day where policymakers are expected to send a message that they will prevent
bond yields from rising further and harming the bloc's economic outlook.

The dollar languished near one-week lows on Thursday after benign data on
U.S. consumer prices and a decline in Treasury yields led some investors to
trim bets on a rapid acceleration in inflation.

The euro was in focus ahead of a European Central Bank meeting later in the
day where policymakers are expected to send a message that they will prevent
bond yields from rising further and harming the bloc's economic outlook.

The dollar index against six major currencies was flat at 91.79 after
hitting a one-week low of 91.75 earlier in Asia as data showed U.S. core
consumer price growth slowed slightly in February.

Against the euro, the dollar was quoted at $1.1932 per dollar, nursing a
0.2% loss from the previous session, while versus the safe-harbor Swiss
franc, the greenback bought 0.9299 franc.

The dollar and U.S. Treasury yields have been rising steadily due to
expectations that the Fed's loose monetary policy and fiscal stimulus will
stoke inflation. The yield on the benchmark 10-year Treasury was at 1.528%
on Thursday after hitting a one-year high of 1.626% last week.

Focus later in the day will be on an auction of 30-year U.S. Treasuries
after an auction of 10-year notes on Wednesday drew sufficient demand,
easing concerns about investors' ability to absorb an increase in debt
needed to finance the response to the pandemic.

Overall, analysts said sentiment for the dollar remained fairly positive as
the U.S. economy recovers from the Covid-19 pandemic and as President Joe
Biden's $1.9 trillion stimulus bill won final approval in Congress.

The British pound bought $1.3935 after rising 0.3% on Wednesday.

The yen was the only major currency to cede ground to the dollar, falling
about 0.2% to 108.55 yen.

Investors have been testing the ECB's resolve to rein in rising bond yields.
So far, the euro zone's central bank has refrained from large-scale market
intervention, and policymakers are divided on whether one is warranted ahead
of their meeting on Thursday.

Policymakers have also expressed concern about strength in the euro,
although a recent weakening of the currency has lowered expectations about
major policy changes.

Elsewhere, the Australian and New Zealand dollars rose for the third
straight session against the greenback as sentiment toward the antipodean
currencies remains strong due rising commodity prices and expectations for
an acceleration in global trade.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold 'failing' as equity hedge, faces headwinds, says BlackRock

Global money manager BlackRock Inc. just delivered a double-barreled warning
on the merits of holding traditional haven gold right now.

Bullion is proving to be a less effective hedge against moves in other
assets, such as stocks, as well as inflation, according to Russ Koesterich,
portfolio manager for BlackRock's Global Allocation Fund. Moreover, gold
faces headwinds should the recovery pick up pace, he warned in a blog post.

Bullion has lost ground in 2021 as the recovery from the pandemic gains more
traction and Treasury yields surge, although the haven has made a partial
comeback this week. The typical case for holding the metal in a multi-asset
portfolio is that it can help to balance out shifts in other holdings,
especially equities. But BlackRock says that right now gold isn't working
well as a hedge against either stock moves or inflation risks, although it
was against the dollar.

"Absent a strong view on a declining dollar, I would own less gold,"
Koesterich wrote in the March 10 entry, noting that the precious metal was
still demonstrating a strong inverse relationship with the U.S. currency.
"And for those investors still looking for a hedge, one word: cash."

Spot gold traded at $1,734.15 an ounce at 2:07 p.m. in Singapore, down more
than 8% this year, while a gauge of the U.S. currency has risen about 2%.
Among equity benchmarks, the S&P 500 Index has gained almost 4% in 2021.

As leading economies seek to strengthen the recovery from the pandemic,
President Joe Biden's $1.9 trillion Covid-19 relief bill cleared its final
congressional hurdle Wednesday, with the House passing the bill on a
220-to-211 vote. That sends the measure to the president for his signature.

Oil Climbs Above $65 on Signs of Rising U.S. Fuel Demand

Oil rose as the dollar declined and a fall in U.S. gasoline inventories
offered a signal of recovering consumption.

Futures in New York climbed above $65 a barrel, while the U.S. currency was
trading lower. Gasoline inventories have declined more than 25 million
barrels in the last two weeks, while a measure for consumption expanded last
week to the highest level since November. Profit from producing the fuel has
soared.

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Service.

The appetite for Iranian oil has grown, meanwhile, with China boosting its
purchases even as other nations wait for the easing of U.S. sanctions.
Imports have surged so much this month that ports in Shandong province are
seeing increased congestion, according to traders and analysts.

Oil's intra-day price swings have spiked this month after weeks of calm

Oil's rally of more than 30% so far this year has taken a breather in recent
days. Still the market has been tightening amid output cuts from OPEC+
members and as the outlook for demand improves with the rollout of Covid-19
vaccines.

PRICES

West Texas Intermediate added 1.3% to reach $65.27 a barrel at 10:26 a.m.
London time

Brent for May settlement rose 1.3% to $68.81

U.S. gasoline stockpiles fell by almost 12 million barrels last week,
according to the Energy Information Administration. Crude stockpiles rose by
13.8 million, taking gains over the past three weeks to almost 37 million
following a cold blast that shuttered a number of refineries.

It's possible that U.S. crude may have to trade at a bigger discount to the
global Brent benchmark, according to consultant Energy Aspects. That comes
as the Brent market faces headwinds form refinery maintenance and sharp cuts
to Saudi OSPs, forcing U.S. crude to trade even lower in turn, the
consultant said.

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
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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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