Bulls n Bears Daily Market Commentary : 22 March 2021

Mon Mar 22 13:52:43 CAT 2021

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Bulls n Bears Daily Market Commentary : 22 March 2021

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

ZSE commentary

The ZSE slid back in the negative after a short-lived gain last Friday being
weighed down today by losses in Econet, Padenga and CBZ. Turnover and
activity levels however improved in today's session with turnover closing at
ZWL$85.95 million corresponding to 3 912 878 shares exchanging hands in 460
trades. Padenga was the most liquid counter as it anchored volume traded and
Delta anchored value aggregate.

The benchmark All Share Index and the ZSE 10 lost by a marginal 0.71% and
1.74% respectively. The Top 15 Index also shaded 1.68% to close at 2 715.82.
The Medium Cap Index traded firmer to close with 0.97%, whilst the Small Cap
Index pared a marginal 0.38%. The market breadth was negative after 22
stocks depreciated while 14 registered gains in total out of the 38 ZSE
counters which traded. Leading the gainers of the day was First Mutual
Properties  with a 19.95% share appreciation to 481c followed by Nampak
with 10.34% to 800c. NTS appreciated by 7.32%. Zimpapers gained by 5.52% to
151.86c. Leading in the shakers pack was General Beltings which pared 7.79%
followed by Econet  shading 7.46%. Fidelity and Padenga Holdings also pared
6.67% and 6.61% respectively. Please find a summary of the market activity
as shown below;

The Old Mutual Top Ten ETF closed at 184.93c up 2.47% after 25 099 units
with a value of ZW$46 414.55 in 16 trades exchanged hands.- wealthaccess
<https://www.firstmutual.co.zw/> 

Global Currencies & Equity Markets

African currencies week ahead: 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.

TANZANIA - Tanzania's shilling is expected to face minor pressure next week
due to economic activities slowing as the East African nation mourns the
death of President John Magufuli on Wednesday.

Commercial banks quoted the shilling at 2,314/2,324 on Thursday, the same
levels as last week's close.

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

Dollar cements gains as hedge funds cut short bets; lira slumps

LONDON, (Reuters) - The U.S. dollar held near a four-month high on Monday
after Turkey's President Tayyip Erdogan stunned investors over the weekend
by replacing the hawkish central bank governor, sending shockwaves through
global currency markets.

The lira slid 15% to near its all-time low and bond yields soared after
Turkey's decision sparked fears of a reversal of recent rate hikes and
undermined the bank's credibility.

Turkey's move comes against a backdrop of investors turning increasingly
bullish on the prospects of the greenback in the short-term following rising
U.S. Treasury yields and reinforces the safe-haven appeal of the greenback.

Benchmark yields on 10-year U.S. Treasury debt has risen for seven
consecutive weeks and triggered an unwind of short dollar positions across
the board against every major currency.

Traders cut their long euro bets to their lowest levels since June 2020
while net positions against the Japanese yen flipped into positive territory
for the first time in more than a year, according to latest positioning
data.

JP Morgan increased its long U.S. dollar position in its currency portfolio
by shorting the Swedish crown along with existing shorts of the euro, Swiss
franc and the Japanese yen.

Against a basket of its rivals, the dollar was broadly steady at 92.022 and
within sight of a near four-month high of 92.50 hit earlier this month.

Worries that events in Turkey will ripple over into other currencies also
supported the dollar.

The Turkish lira stood at 7.9600 per dollar, down nearly 10% from its close
on Friday. At one point the lira fell by as much as 14.9% to 8.4850, which
is close to a record low of 8.5800.

The euro fell slightly to $1.1892.

A decline in risk appetite weighed on the Australian dollar , which fell
0.3% to $0.7724. The New Zealand dollar fell 0.1% to $0.7158.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices slide 1% as Turkey upheaval buoys U.S. dollar

Gold prices fell 1% on Monday as investors opted for alternative safe-haven
assets such as the U.S. dollar and bonds after Turkey's abrupt decision to
replace its central bank head with a critic of high interest rates sparked
financial uncertainty.

Spot gold slipped 0.8% to $1,730.45 per ounce, having dipped as much as 1%
earlier in the session. U.S. gold futures were down 0.7% at $1,729.60 per
ounce.

Turkey President Tayyip Erdogan replaced a hawkish central bank chief with
an opponent of tight monetary policy on Saturday, in a shock move that
raised concerns about the impact on other financial markets and supported
the dollar as a safe-haven currency.

Gold, which is priced in dollar, also lost safe-haven flows to the yen and
bonds. The metal may retest a support at $1,716 per ounce, a break below
could cause a fall into the range of $1,669 to $1,691, according to Reuters
technical analyst Wang Tao.

Meanwhile, the U.S. Federal Reserve said on Friday it would not extend a
temporary pandemic regulatory break on capital requirements due to expire
this month.

Elsewhere, palladium dipped 2.8% to $2,565.74, silver fell 3% to $25.46 and
platinum slipped 2.3% to $1,168.77.

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.

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