Bulls n Bears Daily Market Commentary : 18 March 2021

Thu Mar 18 16:17:01 CAT 2021

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Bulls n Bears Daily Market Commentary : 18 March 2021

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

ZSE commentary

The ZSE maintained losses today as it continues to be weighed down by selected heavyweight losses. Turnover and activity levels improved in today’s session with

turnover closing at ZWL$82.98 million corresponding to 10 720 350 shares exchanging hands in 468 trades. Medtech Holdings was the most liquid counter as it anchored volume traded and Innscor anchored value aggregate.

The benchmark All Share Index and the ZSE 10 shed 2.38% and 2.81% respectively. The Top 15 Index and the Medium Cap Index also traded weaker to close with 2.55% and

1.55% respectively, whilst the Small Cap Index shaded a marginal 0.17%. The market breadth was negative after 26 stocks depreciated while 10 registered gains

in total out of the 39 ZSE counters which traded. Leading the gainers of the day was Lafarge (LACZ.zw) with a 20.00% share appreciation to 4800c followed by Zimpapers

(ZIMP.zw) with 13.85% to 125.24c. Zimre (ZIMR.zw) appreciated by 8.64%. NMB gained by 7.53% to 765.09c. Leading in the shakers pack was ZBFH which pared 19.25%

followed by Rio Zim (RIOZ.zw) shading 19.05%. African Sun and First Mutual Properties also pared 11.99% and 11.06% respectively. Please find a summary of the market activity as shown below;

The Old Mutual Top Ten ETF closed at 172.12c down 8.76% after 198 546 units with a value of ZW$341 728.78 in 25 trades exchanged hands. Elsewhere, on the Victoria Falls Stock Exchange, Seed Co International (SCIL.vx) traded 4 389 shares with a total value of US$877.80 closing with a 11.11% share appreciation at a price of US$0.20.

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

Global Currencies & Equity Markets

Kenya's shilling to ease, Nigeria's naira to hold steady

NAIROBI: Kenya's shilling is expected to weaken against the US dollar in the next week to Thursday, while Uganda's shilling and Zambia's kwacha will hold steady, traders said.

KENYA

The Kenyan shilling is seen easing, on strong dollar demand from general merchandise importers and manufacturers.

Commercial banks quoted the shilling at 109.75/109.95, compared with last Thursday's close of 109.55/109.75.

UGANDA

The Ugandan shilling is seen trading in a broadly stable range on the back of a slowdown in demand from foreign-owned corporates.

Commercial banks quoted the shilling at 3,665/3,675, per dollar compared with last Thursday's close of 3,660/3,670.

The local currency, he said, would likely oscillate in the 3,655-3,685 range.

NIGERIA

The naira is seen flat in the coming week as dollar shortages persist and traders bid for the currency with a range on the spot market in an attempt to fill their order book.

The currency was quoted at 485 per dollar on the black market on Thursday, the same level it was quoted at last week.

It traded with a range of 407 to 410 naira on the spot market but remained flat on the official market backed by the central bank at 381 naira since last July.

Nigeria's central bank governor this week said the economy needs to be given a chance to reset and diversify, addressing foreign exchange management concerns raised by the World Trade Organization.

ZAMBIA

The kwacha will likely continue trading within the current range against the dollar supported by month-end hard currency sales.

On Thursday, commercial banks quoted the currency of Africa's second-largest copper producer at 21.9800 per dollar from a close of 21.9450 last Thursday.

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

Global Markets

Rupee rises 9 paise against US dollar in early trade

The rupee appreciated by 9 paise to 72.46 against the US dollar in opening trade on Thursday, supported by positive domestic equity markets and easing crude prices. However, a strong US dollar against major currencies overseas restricted the rupee rise, forex dealers said.

At the interbank forex market, the local unit opened at 72.48 against the US dollar, then inched higher to 72.46, registering a rise of 9 paise over its previous close. On Wednesday, the rupee had settled at 72.55 against the American currency.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 292.68 points higher at 50,094.30, and the broader NSE Nifty rose 90.50 points to 14,811.80. After its two-day policy meeting, the US Fed reassured investors that it expects to keep its key interest rate near zero through 2023.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, surged 0.10 percent to 91.53. Brent crude futures, the global oil benchmark, fell 0.69 percent to USD 67.53 per barrel.

Foreign institutional investors remained net buyers in the capital market as they bought shares worth Rs 2,625.82 crore on Wednesday, according to exchange data.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper price up on strong demand outlook and supply disruptions

Copper prices rose on Wednesday as a bright demand outlook and supply disruptions in some South American mines offset pressure from rising inventories.

Copper for delivery in May was up 0.91% by midday, with futures touching $4.1055 per pound ($9,031 a tonne) on the Comex market in New York.

Three-month copper on the London Metal Exchange rose 0.8% to $9,028 a tonne, while the most-traded May copper contract on the Shanghai Futures Exchange closed down 0.7% at 66,940 yuan ($10,298.46) a tonne.

WAGE TALKS WITH UNIONS REMAIN UNRESOLVED, ANTOFAGASTA REPORTED

High waves at ports in top copper producer Chile disrupted exports of concentrate and copper metal for most of January.

Data from top consumer China showed stronger-than-expected industrial growth in the first two months of 2021, while new lending in the country fell less than expected in February.

Meanwhile, tight concentrate supply remained a concern for downstream copper players.

Supply

Antofagasta expects to reach a pay deal with its workers this month, it said on Tuesday after posting a 12.3% jump in annual profit on high copper and gold prices.

Wage talks with unions remain unresolved after workers rejected the company’s latest offer at its Los Pelambres mine in Chile, the world’s top copper producer.

A union representing workers at Antofagasta’s Los Pelambres mine on Tuesday it will agree to extend government-mediated talks into next week in an effort to avoid a strike.

Gold prices today dip below key level, down ₹11500 from record high, silver up

Heightened concerns about inflation had driven US bond yields sharply higher, putting pressure on asset classes like equities and gold

Gold in Indian markets could not sustain early gains and again dipped below the ₹45,000 level while silver was also off highs. Gold futures rose to ₹45,299 in early trade before dipping to near ₹44,800. Silver rates were up 0.6% to ₹67,638 per kg after hitting ₹68,470 at day's high. In global markets, gold slid 1% today, retreating from a more than two-week high as rising US Treasury yields and a stronger dollar dented demand for the safe-haven metal.

Spot gold was down 0.9% to $1,728.51 an ounce after touching its highest since March 1 at $1,755.25 in the session.

Analysts say the main headwind for gold right now is surging bond yields. The benchmark U.S. 10-year Treasury yield rose to 1.74% for the first time since January 2020, while the dollar gained 0.3% against its rivals. Higher interest rates increase the opportunity cost of holding the non-yielding bullion and weigh on the dollar.

Overnight, the S&P 500 hit a record as Fed Chairman Jerome Powell reiterated the central bank’s tolerant stance on inflation and the recent rise in bond yields.

Analysts say that Fed's emphasis on continued policy support reassured the markets. Heightened concerns about inflation have driven bond yields sharply higher, putting pressure on asset classes like equities and gold. The precious metal has fallen sharply from its August highs of ₹56,200.

Gold traders will also be watching monetary policy decision of Bank of Japan and Bank of England, both due later this week.

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 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 77 344 1674

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