Bulls n Bears Daily Market Commentary : 23 March 2021

Tue Mar 23 15:28:03 CAT 2021

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Bulls n Bears Daily Market Commentary : 23 March 2021

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

ZSE commentary

The ZSE halted its downward trend in today's session as seen by a paltry
gain of 0.10% in market capitalization. Marginal gains were recorded in
heavyweight stocks Econet, Innscor and Padenga. Turnover declined marginally
and activity levels however improved in today's session with 5 337 659
shares exchanging hands in 429 trades. RTG was the most liquid counter as it
anchored volume traded and Delta anchored value aggregate. The benchmark All
Share Index was up by a marginal 0.08% and the Top 10 Index was down 0.10%
weighed down by losses in Delta, and Cassava. The Top 15 Index also shaded
0.20%. The Medium Cap Index traded firmer to close with 0.34%, whilst the
Small Cap Index added 0.84% to close at 45 082.36.

The market breadth was negative after 20 stocks depreciated while 14
registered gains in total out of the 39 ZSE counters which traded. Leading
the gainers of the day was the mining firm RioZim  with a 20.00% share
appreciation to 2040c followed by Zimpapers  with 14.58% to 174c. Zimre
Holdings appreciated by 5.88%. NMB gained by 5.34% to 790.06c. Leading in
the shakers pack was African Sun (ASUN.zw) which pared 12.59% followed by
General Beltings shading 10.47%. Mashonaland Holdings and Fidelity also
pared 7.58% and 6.99% respectively. Please find a summary of the market
activity as shown below; 

The Old Mutual Top Ten ETF closed at 182.22c down 1.47% after 115 897 units
with a value of ZW$211 186.32 in 20 trades exchanged hands.- wealthaccess
<https://www.firstmutual.co.zw/> 

Global Currencies & Equity Markets

South Africa

Rand trades weaker against the dollar

JOHANNESBURG - Rand weakened in early trade on Tuesday as caution prevailed
ahead of a closely watched testimony by top US policymakers, with investors
looking out for comments on the rise of bond yields.

At 0625 GMT, the rand traded at 14.8200 versus the dollar, 0.68 percent
weaker than its previous close. South African markets were closed for a
public holiday on Monday.

The rand had tumbled about 1 percent in early trade on spillover from the
Turkish lira's tumble on Monday, but the local currency pared losses later
as the US dollar gave up its gains.

The market's immediate focus remained on the Congressional testimony by US
Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen
later in the day.

Investors fear that a sharp run-up in US Treasury yields since mid-February
could lead the Fed to allow lending rates to rise, which could draw money
away from high-yielding, but risky currencies like the rand.

In fixed income, the yield on the government bond due in 2030 was flat at
9.335 percent.

REUTERS

Nigeria

Naira loses as Nigerian govt adopts flexible exchange rate policy

Naira on Monday fell against the U.S. dollar at the Investors and Exporters
window as well as the parallel market, as the federal government said it has
adopted the rate for the I&E window for its official transactions.

It was the second big fall recorded this month at the black market,
according to data posted on abokiFX.com, a website that collates parallel
market rates in Lagos.

According to the data posted, the currency closed at N486.00 on Monday, a
N1.0 or 0.21 per cent devaluation from N485, the rate it stood since March
12.

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.

This occurred as Nigeria adopted a new flexible exchange-rate policy for
official transactions, a move that effectively marks the third devaluation
of the local unit within year, Bloomberg reported.

Mrs Ahmed said "Within the government and the central bank, there is only
one official rate and that's the Nafex rate,"

Since the beginning of the year, the Nafex rate has been pegged at an
average of N410 to the greenback currency, as against the Central Bank of
Nigeria's initial rate of N379.

On Monday, the currency fell slightly against the U.S. dollar at the I&E
window, data posted on the FMDQ Security Exchange where forex is officially
traded showed.

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

Global Markets

NZ dollar near 3-month low, Aussie weakens as oil underperforms

(Reuters) - The New Zealand dollar on Tuesday hovered near its lowest levels
this year as investors bet measures to cool its red-hot housing market will
lessen the likelihood of rate hikes, while continued weakness in commodity
markets hit the Aussie dollar.

The kiwi dollar weakened 0.8% to $0.7105 against the greenback, a level it
has only breached four times this year and less than a 10th of a cent away
from its 2021 trough of $0.7097.

The Australian dollar was down 0.41% at $0.7713 during midday trading,
reversing previous session's gains that were driven by an easing in 10-year
U.S. bond yields.

Oil prices were more than 1% lower on Tuesday on concerns that new pandemic
curbs and slow vaccine rollouts in Europe will dampen a recovery in fuel
demand and as producers cut prices, indicating ample oil supply.

"We have seen some of the commodity markets still underperforming after the
sell-off in oil on Thursday, and that has really hit some of these
commodity-related currencies such as the Aussie, the kiwi and the Canadian
dollar," said Steven Dooley, APAC currency strategist at Western Union
Business Solutions.

New Zealand on Tuesday introduced a raft of measures to cool its housing
market, slugging investors with higher taxes and promising to boost supply,
which should take off some of the pressure on the central bank to hike
rates, strategists said.

New Zealand government bonds rose with yields about 5-9 basis points lower
at the shorter end of the curve, and the 10-year bond yield falling 7 basis
points to 1.715%, the lowest since March 12.

The Australian 10-year government bond yield was unchanged at 1.75% while
the futures contract was three ticks higher at 98.225, implying a yield of
1.77%.

There was little in the economic calendar on Tuesday but traders will be
focused on fresh comments from Federal Reserve Chair Jerome Powell and
Treasury Secretary Janet Yellen due at a Congressional hearing later in the
day.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold steadies as market awaits Powell remarks

Gold prices were little changed on Tuesday as investors awaited comments on
U.S. economic health from Federal Reserve Chairman Jerome Powell and
Treasury Secretary Janet Yellen later in the day.

Spot gold was almost unchanged at $1,738.50 per ounce by 0736 GMT, after
declining as much as 0.5% earlier in the day as the U.S. dollar strengthened
along with Treasury yields. U.S. gold futures were up 0.1% at $1,738.90 per
ounce.

The U.S. economy is "much improved," Powell said on Monday, but at the same
time warned that the recovery was still "far from complete."

The dollar index was up 0.1% against a basket of currencies, supported by
firm U.S. Treasury yields.

Elsewhere, palladium slipped 1.1% to $2,587.69, trading close to a more than
one-year high of $2,755.18 hit on March 18.

Silver fell 0.6% to $25.61 and platinum was down 0.3% to $1,179.32.

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
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opinions expressed and recommendations made are subject to change without
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