Bulls n Bears Daily Market Commentary : 16 March 2021

Tue Mar 16 21:00:34 CAT 2021

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Bulls n Bears Daily Market Commentary : 16 March 2021

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

ZSE commentary

The ZSE closed today's session losing for a third day in a row with turnover
improving closing at ZWL$112 050 000.45, corresponding to 14 235 101 shares
exchanging hands. First Capital Bank and Medtech Holdings were the most
liquid counters as they anchored volume traded and Delta anchored value
aggregate. However, this movement wasn't enough to pull the All Share Index
and the ZSE 10 back into the positive as they closed with a marginal
depreciation of 0.63% and 0.62% respectively. The Top 15 Index and the
Medium Cap Index also traded weaker to close with 0.81% and 0.73%
respectively, whilst the Small Cap Index gained a marginal of 0.82%. The ZSE
current market capitalization is ZWL$516.36 billion.

The market breadth was negative after 18 stocks depreciated while 14
registered gains in total out of the 36 ZSE counters which traded. Leading
the gainers of the day was the holding company ZB  with a 19.28% share
appreciation followed by Axia  with 6.18% to 1592.75c. Cassava appreciated
by 4.18%. Unifreight gained by 3.99% to 1500c. Leading in the shakers pack
was the property firm First Mutual Properties  which pared 15.72% followed
by Medtech shading 14.06%. African Sun and Meikles also pared 7.23% and
7.06% respectively. Please find a summary of the market activity as shown
below; The Old Mutual Top Ten ETF closed at 190.36c down 2.40% after 39 100
units with a value of ZW$74 429 in 13 trades exchanged hands.-wealthaccess

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

Global Currencies & Equity Markets

South Africa

South Africa's rand range-bound, tracks global sentiment

(Reuters) - South Africa's rand was little changed early on Tuesday, as the
currency continued to take its cue from swings in global market sentiment.

At 0618 GMT, the rand ZAR=D3 traded at 14.8675 versus the dollar, less than
0.1% weaker than its previous close.

Government bonds were also broadly flat, with the yield on the instrument
due in 2030 ZAR2030= down 1 basis point at 9.26%.

The only major local economic data release this week is retail sales
ZARET=ECI on Wednesday.

Retail sales were last in positive territory in annual terms in March 2020,
after which they collapsed because of a strict lockdown to contain the
spread of the coronavirus.

Next week, the data calendar is busier, with the central bank's interest
rate decision ZAREPO=ECI and the release of the consumer price index
ZACPIY=ECI and producer price index ZAPPIY=ECI.

Meanwhile, supermarket group Shoprite SHPJ.J reported a 10.4% rise in
half-year earnings and declared an interim dividend of 191 cents.

Nigeria

Naira gains at NAFEX window despite low dollar supply

The Naira appreciated against the US Dollar on Monday to close at
N408.90/$1, representing a 0.27% gain when compared to N410/$1 recorded on
Friday, 12th March 2021 despite drop in dollar supply

Also, the Naira remained stable against the US Dollar in the parallel
market, to close at N485 to a dollar. the same as the rate that was recorded
on the previous day.

This is coming after the Association of Bureau De Change Operators in
Nigeria (ABCON) said that BDCs will collaborate with the CBN to defend the
naira

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

Global Market

Dollar little changed as investors await Fed meeting outcome

The dollar was little changed to slightly higher on Tuesday in choppy
trading, with currencies generally lacking direction as market participants
awaited the outcome of a Federal Reserve meeting for clues as to where U.S.
interest rates are headed.

The greenback overall posted gains against the euro and commodity currencies
such as the Australian and New Zealand dollars.

At the Fed's two-day monetary policy meeting, policymakers are expected to
forecast that the U.S.

economy will grow in 2021 at its fastest rate in decades, with unemployment
falling and inflation rising, but they are unlikely to change their monetary
policy.

Tuesday's data showed U.S. retail sales dropped by a seasonally adjusted
3.0% last month due in part to harsh weather in February. Excluding
automobiles, gasoline, building materials and food services, retail sales
decreased 3.5% last month after surging by an upwardly revised 8.7% in
January.

In midmorning trading, the dollar index was up 0.1% at 91.902. It has gained
for a third straight session.

Investors will also pore over whatever the Fed has to say about the rise in
yields, which have gained on bets that economic growth and inflation could
prompt a faster-than-expected normalization of monetary policy.

U.S. Treasury yields were down overall, with the benchmark 10-year note at
1.589%. The euro was down 0.2% at $1.1906.

It has held below $1.20 since March 5, hurt by expectations for a slower
economic recovery in Europe compared with the UK and the United States due
to problems rolling out coronavirus vaccines.

Germany, France and Italy said on Monday they would suspend AstraZeneca
COVID-19 shots after several countries reported possible serious side
effects, but the World Health Organization said there was no proven link and
people should not panic.

The Australian dollar - which is seen as a barometer for risk appetite - was
down 0.2% at US$0.7742 . The New Zealand dollar also slipped, down 0.1% at
US$0.7191.

Britain's pound was little changed at $1.3891. Economic growth in the UK
will fall by 4% in the first quarter of 2021 compared with the first quarter
of 2020, the governor of the Bank of England said.

The dollar fell 0.3% against the yen to 108.79 ahead of the Bank of Japan's
two-day policy meeting, which ends on Friday. The central bank's governor
said on Tuesday it was important to keep long-term interest rates "stably
low".

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold Prices Rise to $1740, Ignore Fresh ETF Outflows as World Stock Markets
Set New Records Ahead of the Fed

GOLD PRICES touched 2-week highs above $1740 per ounce in London trade
Tuesday, ignoring yet more investor outflows from gold-backed ETF trust
funds and gaining $10 amid a raft of unexpectedly weak US economic data as
the US Federal Reserve began its March policy meeting.

World stock markets rose to fresh all-time highs as the Fed met to discuss
its zero interest-rate and record QE bond-purchasing policies in the face of
new President Biden's historic $1.9 trillion Covid stimulus package.

The bond market struggled to rally, holding longer-term government borrowing
costs near their recent multi-year highs.

Oil meantime led a retreat in commodity prices Tuesday, losing $1 per barrel
to $67 for Brent crude as the surge in Iran's oil exports to China were seen
"hurting" the Opec+ cartel of producer nation's efforts to limit output and
support prices.

$1700 is "an important level" for gold prices, says the precious-metals team
at French bank and London bullion market maker BNP Paribas.

Looking at gold-backed ETF investment funds, "Long liquidation persists,"
BNP goes on, "but it's a fading flow which may indicates that current
holders are comfortable with their gold holdings now."

The giant GLD yesterday saw its 9th consecutive day of investor outflows,
shrinking to the smallest since late-April 2020 and down by more than 1/10th
so far this year, as its competitor the IAU also shrank yet again.

After Comex gold futures climbed to their highest finish in nearly 2 weeks
overnight, prices in China - the metal's No.1 consumer nation - today cut
their premium to global quotes in half, retreating to offer an incentive of
$5 per ounce to new imports but staying positive after last year's historic
discounts showed a collapse of domestic demand against supply amid the Covid
Crisis.

The MSCI World Index of developed-economy equities today ticked 0.3% higher
as New York opened, edging ahead of the most recent record-high close - set
1 month ago today - and extending its gains from the Covid Crash low, hit 12
months ago this week, to more than 71%.

Platinum prices dropped $20 in an hour from this morning's 3-week highs near
$1237, and silver prices also retreated in contrast to gold, dropping back
below $26 per ounce and unchanged for the week so far as 10-year US Treasury
bond yields slipped to 1.58%, down 6 basis points from last week's 13-month
peak.

Japan's industrial output for January today showed a 5.2% year-on-year drop,
in line with analyst forecasts.

Data from France and Italy - the Eurozone's 2nd and 3rd largest economies -
also met predictions for last month's consumer-price inflation at 0.8% and
1.0% per year respectively, and economic sentiment across the 19-nation
currency union, the world's 2nd largest economic bloc, has now edged ahead
of last September's Covid rebound to set the highest reading on the ZEW
survey since 2004, separate figures said Tuesday.

But with the US Fed now starting its 2-day March meeting, new data today
said the world's largest economy saw both import and export prices rise
faster than analysts expected last month, while industrial production sank
2.2% from January - pulling capacity utilization down to what would have
been an 11-year low if not for 2020's Covid Crash - and retail sales fell
3.0% for the month, worsened by a drop in auto demand.

Last month's freak winter storms in the south-western US killed at least 57
people in Texas, mostly from hypothermia.

Griddy Energy, the electricity firm which sent 4-figure energy bills to
Texan households trying to heat their homes using their air-con units,
yesterday filed for bankruptcy, saying that the state regulator "destroyed
our business and caused financial harm to our customers" by letting
wholesale prices rise to their statutory limit of $9 per kilowatt hour.

Despite the surge in Washington's deficit spending, "Interest payments on US
national debt fell last year," says Bloomberg, dropping to 1.6% of gross
domestic product.

Interest payments will fall below 1% of GDP in 2024 on the news-wire and
data agency's analysis, before rising above 2% by 2031.

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Adrian Ash is director of research at BullionVault, the physical gold and
silver market for private investors online. Formerly head of editorial at
London's top publisher of private-investment advice, he was City
correspondent for The Daily Reckoning from 2003 to 2008, and is now a
regular contributor to many leading analysis sites including Forbes and a
regular guest on BBC national and international radio and television news.
Adrian's views on the gold market have been sought by the Financial Times
and Economist magazine in London; CNBC, Bloomberg and TheStreet.com in New
York; Germany's Der Stern; Italy's Il Sole 24 Ore, and many other respected
finance publications.

Please Note: All articles published here are to inform your thinking, not
lead it. Only you can decide the best place for your money, and any decision
you make will put your money at risk. Information or data included here may
have already been overtaken by events - and must be verified elsewhere -
should you choose to act on it. Please review our Terms & Conditions for
accessing Gold News.

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

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
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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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