Bulls n Bears Daily Market Commentary : 25 March 2021

Fri Mar 26 05:03:32 CAT 2021

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Bulls n Bears Daily Market Commentary : 25 March 2021

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

ZSE commentary

The ZSE shares were near flat in today's session for the second day as
mid-tier stocks drives gains ensuring a small positive close. Marginal gains
were recorded in heavyweight stocks Delta, Econet, Innscor and Simbisa.
Turnover improved and activity levels improved in today's session with 6 415
770 shares exchanging hands in 388 trades. Econet was the most liquid
counter as it anchored both volume traded and value aggregate.

The benchmark All Share Index was up by a marginal 0.39% and the Top 10
Index was also up 0.41%. The Top 15 Index also added 0.38%. The Medium Cap
Index traded firmer to close with a 0.36% appreciation, whilst the Small Cap
Index added 0.15% to close at 45 151.32. The market breadth was positive
after 17 stocks appreciated while 14 registered losses in total out of the
33 ZSE counters which traded. Leading the gainers of the day was General
Beltings with a 12.12% share appreciation to 56.08c followed by the hotelier
African Sun with 9.81% to 189.88c. Star Africa appreciated by 2.04%.
Truworths gained by 4.55% to 99.46c. Leading in the shakers pack was First
Capital Bank  which pared 3.27% followed by CBZ shading 2.70%. Mashonaland
Holdings and Medtech also pared 2.26% and 2.12% respectively. Please find a
summary of the market activity as shown below; The Old Mutual Top Ten ETF
closed at 181.12c down 0.60% after 313 574 units with a value of ZW$567 942
in 21 trades exchanged hands.-wealthaccess

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

Global Currencies & Equity Markets

South Africa

South Africa's rand firmer ahead of cenbank's interest rate decision

JOHANNESBURG (Reuters) - South Africa's rand firmed in early trade on
Thursday, as investors awaited the outcome of a central bank monetary policy
meeting later in the day, where the regulator is expected to leave its
benchmark lending rate unchanged.

At 0610 GMT, the rand traded at 14.9275 against the dollar, 0.35% firmer
than its previous close.

Data on Wednesday showing consumer price inflation in February dipped below
the central bank's target range of 3-6% did little to change market
expectations that the central bank's monetary policy committee (MPC) will
not cut interest rates any further, keeping the rate at 3.5%.

Emerging market central banks have come under increasing pressure in recent
weeks from global rising yields, weakening currencies and rising inflation
strains with policymakers in Brazil, Russia and Turkey delivering a surprise
cumulative rate hike of 300 basis points last week.

This adds to signs that an easing cycle across emerging market central banks
which started in 2019 and was the longest easing cycle since the 2008
financial crisis and the 2010 euro crisis - might be coming to an end.

The South African economy contracted 7.0% last year despite the Reserve Bank
cutting interest rates by a cumulative 300 basis points to counteract the
damage caused by pandemic-induced lockdowns.

In fixed income, with the yield on the benchmark government bond due in 2030
was up 4.5 basis points to 9.485% in early deals.

Nigeria

Naira falls at official market

Naira fell marginally against the U.S. dollar at the I&E window of the
foreign exchange market on Thursday, data posted on the FMDQ Security
Exchange where forex is officially traded showed.

However, the currency remained stable on the black market.

Naira closed at N409.75 at the trading session of the I&E window, this
represents N1.00 or 0.25 per cent increase from N408.75 the rate at which it
closed at the previous session on Wednesday.

The local currency experienced an intraday high of N393.00 and a low of
N411.40, before closing at N409.75 on Thursday.

This became evident as turnover skyrocketed by 394.40 per cent, with $171.85
million recorded as against the $34.76 million posted on Wednesday.

Meanwhile, the domestic currency still maintained a similar spot it traded
at the previous session at the unofficial market, data posted on
abokiFX.com, a website that collates parallel market rates in Lagos showed.

The Naira again closed at N486.00 on Thursday, the same rate it exchanged
with the greenback in the previous session on Wednesday.

This leaves the spread between the unofficial market and the I&E window
exchange rate at N76.25, which translates to a gap of 15.69 per cent.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar inches higher after Yellen, Powell signal U.S. 

NEW YORK (Reuters) - The dollar inched higher on Wednesday as the U.S.
Treasury Secretary and Fed chair indicated to Congress that they had
confidence in the U.S. economy.

The dollar index, which touched a four-month high earlier in the session,
was supported by safe-haven flows even as some investors fretted over
potential U.S. tax hikes.

The dollar rose against a basket of currencies to 92.5100. Yields on the
10-year Treasury fell a bit to 1.612% but remained near recent highs after
an auction of five-year notes.

Euro-dollar was down 0.24% at $1.1821 on Wednesday.

U.S. Treasury Secretary Janet Yellen told Congress she was open to banks
buying back stock and paying dividends, an updated view showing her
confidence in the economy. Federal Reserve Chair Jerome Powell also said
that he thinks 2021 will be a "very, very strong year in the most likely
case."

Risks remain, however, such as the ongoing resurgence of COVID-19 in Europe
and possible tax hikes in the United States. Inflation could also rear its
head as disruptions in the supply chain exert cost pressures for
manufacturers, with U.S. factory activity picking up in early March.

Euro zone business activity unexpectedly grew this month, a preliminary
survey showed, but with much of Europe suffering a third wave of coronavirus
infections and renewed lockdown measures, that may not last through April.

The index that measures the dollar's strength against a basket of peer
currencies is up nearly 3% year to date, confounding widely held
expectations among analysts for a decline.

The safe-haven yen rose 0.14% in afternoon trading in the United States.

Australia's dollar - considered a liquid proxy for risk - weakened further
on Wednesday. The Aussie slipped to as low as $0.7582, a level not seen
since Feb. 5., before recovering.

In cryptocurrencies, bitcoin gained almost 2% to $55,377, off a record high
of $61,781.83.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper price crashes through $4 as bull case fades

US dollar made greenback-priced metals more expensive to holders of other
currencies.

Copper for delivery in May was down 2.95% by midday, with futures touching
$3.944 per pound ($8,676 a tonne) on the Comex market in New York.

Escalating tensions between China and the West, as well as potential US tax
hikes hit sentiment and led to investors buying into safe-haven dollar.

The analyst sees prices "trending lower from current levels on a
six-to-nine-month horizon."

Trafigura, the world's biggest copper trader, said on Tuesday it expects the
metal to hit $15,000 a tonne in the coming decade as demand from global
decarbonization produces a deep market deficit.

Even in the early stages of the covid-19 crisis, Trafigura Group was betting
on the rebound that's seen copper double over the past year to trade at more
than $9,000 a tonne.

Now the commodities giant sees the metal soaring past record highs above
$10,000 as western economies pull out of the pandemic and the green
revolution takes hold, head of copper trading Kostas Bintas said in an
interview.-Reuters

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

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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