Bulls n Bears Daily Market Commentary : 31 March 2021

Wed Mar 31 17:54:49 CAT 2021

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Bulls n Bears Daily Market Commentary : 31 March 2021

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

ZSE commentary

The ZSE stock market closed today's session in the negative with marginal
losses as investors largely kept to the sidelines amid growing economic
uncertainties. Turnover improved by 40.67% to ZW$125.5 million and activity
levels however declined in today's session with 7 374 561 shares exchanging
hands in 513 trades. Econet was the most liquid counter as it anchored both
volume traded and value aggregate. The benchmark All Share Index was down by
0.33% and the Top 10 Index was up 0.20%. The Top 15 Index shaded a paltry
0.05% to 2 977.97. The Medium Cap Index traded weaker to close with a 1.19%
depreciation, whilst the Small Cap Index shaded 0.42% to close at 47 749.22.

The market breadth was negative after 21 stocks depreciated while 19
registered gains in total out of the 43 ZSE counters which traded. Leading
the risers pack of the day was the Rio Zimbabwe and Simbisa Brands  with a
17.02% and 11.73% share appreciation respectively. Get Bucks Microfinance
Bank added 11.73% to 40c. Econet Wireless   appreciated by 8.88%. Fidelity
gained by 7.94% to 560c. Leading in the shakers pack was Masimba Holdings
which pared 15.75% followed by the Nickel giant Bindura  shading 12.35%.
First Mutual Holdings  and Nampak pared 11.89% and 11.65% respectively.
Please find a summary of the market activity as shown below; The Old Mutual
Top Ten ETF closed at 192.8c up 1.25% after 159 700 units with a value of
ZW$307 909 in 18 trades exchanged hands.

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

Global Currencies & Equity Markets

South Africa

Rand Resilient Despite Revealing Quarterly Bulletin

Yesterdays Quarterly Bulletin exposed many underlying flaws in the South
African economy, however this did not deter the Rand which is currently up
0.74% against the U.S. Dollar. 

Some key points that should be highlighted:

.         Higher borrowing by government was financed primarily through the
issuance of domestic long-term government bonds

.         As a percentage of GDP, gross loan debt increased from 62.2% to
77.1%

.         Rand continues to fluctuate alongside global risk sentiment

.         Inflationary pressures remained muted

In addition, short-term Rand pressure was supplemented by the upcoming
restrictions over the Easter weekend which was addressed by President
Ramaphosa last night. Tighter alcohol limitations were introduced in an
attempt to curb further COVID-19 infections and a possible third wave.

The U.S. President Joe Biden will be in focus as well with his speech around
the details of the economic recovery package focusing on infrastructure and
manufacturing. This is likely the major contributing factor for Rand
strength this morning regardless of climbing U.S. 10Y Treasury yields.

Several key announcements are scheduled for this week with NFP on Friday.
Expect some volatility pre and post-announcements which demands heightened
awareness and sound risk management on trade positions.

Nigeria

Naira gains at official market

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

However, the domestic currency depreciated at the black market.

Naira closed at N409.00 at the trading session of the I&E window, this
represents N0.13 or 0.03 per cent increase from N409.13, the rate at which
it closed at the previous session on Monday.

It experienced an intraday high of N400.00 and a low of N411.00, before
closing at N409.00 on Tuesday.

This became evident as turnover increased by 55.42 per cent, with $47.93
million recorded as against the $30.84million posted on Monday.

Slight depreciation

However, naira fell slightly at the unofficial market on Tuesday, data
posted on abokiFX.com, a website that collates parallel market rates in
Lagos showed.

ALSO READ: Naira gains on black market, falls on Nafex window

According to data posted, the local unit closed at N486.00 on the black
market on Tuesday, this implies a N1.00 or 0.21 per cent devaluation from
N485.00 the rate it exchanged hands with the greenback in the previous
session on Monday.

By implication, the spread between the unofficial market and the I&E window
exchange rate is pegged at N77.00, which translates to a gap of 15.84 per
cent.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar hits one-year high on recovery bets, yields lend support

(Reuters) - The dollar hit a one-year high versus the yen and multi-month
peaks with other currencies on Wednesday as investors bet that fiscal
stimulus and aggressive vaccinations will help the United States lead a
global pandemic recovery.

U.S. President Joe Biden is set to outline later on Wednesday how he intends
to pay for a $3 trillion to $4 trillion infrastructure plan, after earlier
this week saying 90% of adult Americans would be eligible for vaccination by
April 19.

The dollar index rose as far as 93.439, the highest in almost five months.
It has climbed from close to 90 at the start of March, on course for its
best month since 2016.

The dollar set a one-year top of 110.97 yen and marked an almost five-month
high of $1.1705 per euro, although it gave up some of those gains in
European trading.

The euro traded 0.1% higher at $1.1730, just off a five-month low against
the dollar.

The dollar was also supported by a surge in U.S. bond yields, which make the
currency more attractive as an investment.

The yield on the benchmark 10-year Treasury note jumped to a one-year high
of 1.776% on Tuesday.

Investors will watch closely monthly U.S. nonfarm payrolls data on Friday,
with Federal Reserve policymakers so far citing slack in the jobs market for
their continued lower-for-longer stance on interest rates, which has boosted
the growth outlook but also stoked worries about inflation.

Data overnight showed U.S. consumer confidence soared this month to the
highest since the start of the pandemic, supporting views that economic
growth will accelerate in the coming months, driven by more fiscal stimulus
and an improving public health situation.

Australia's dollar edged up to $0.7614, consolidating after its drop to
$0.7564 last week, the lowest level seen this year.

The Chinese yuan traded around 6.57 per dollar in the offshore market, from
the weakest since November at 6.5838, touched on both Monday and Tuesday.

Bitcoin briefly topped $59,000, trying to close the distance to the record
peak at $61,781.83 set earlier this month.

PayPal Holdings said Tuesday it launched a "Checkout with Crypto" service,
which will allow U.S. users to use their cryptocurrency holdings to pay
online merchants worldwide, adding to the growing global acceptance of the
digital tokens on both Wall Street and Main Street.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Oil Rises After U.S. Crude Supplies Drop Ahead of OPEC+ Meeting

Oil edged up after a surprise decline in U.S. crude inventories and signs of
stronger demand injected optimism into a market awaiting a key decision from
the OPEC+ alliance on production.

Futures in New York rose as much as 1% after flipping between gains and
losses earlier in Wednesday's session. Domestic crude supplies dropped for
the first time in six weeks, according to an Energy Information
Administration report. Gasoline inventories tumbled to the lowest since
November and a gauge of fuel demand climbed further above 8 million barrels
a day to the highest in nearly seven months.

Investors remains laser-focused on the OPEC+ alliance's meetings on
production policy this week, with many expecting the group to avoid easing
output curbs. In the run-up to Thursday's ministerial talks, a producer
panel revised down consumption estimates for the year. Still, the alliance
expects the surplus built up during the pandemic to be mostly gone within
the next quarter.

Domestic oil inventories fall for the first time in six weeks

Figures from the EIA report paint the U.S. as a bright spot in the demand
recovery. U.S. refineries are getting back to work after a spate of outages
caused by February's deep freeze, processing crude at the highest rate in a
year. Yet, in other parts of the world, consumption remains spotty. In
Europe, France is leaning toward a national lockdown, further signaling how
the pandemic is preventing a full-fledged demand rebound.

PRICES:

West Texas Intermediate for May delivery rose 47 cents to $61.02 a barrel at
11:29 a.m. in New York

Brent for May settlement slipped 14 cents to $64 a barrel ahead of the
contract's expiry later on Wednesday

Brent for June delivery added 29 cents to $64.46 a barrel

The Organization of Petroleum Exporting Countries and its allies will debate
whether to revive part of the 8 million barrels of daily output -- about 8%
of global supply -- they're withholding. After surprising traders at the
last session by not easing curbs, the group is now expected to maintain that
position.

At the same time, Saudi Aramco, the state-owned oil giant, is expected to
raise its Arab Light official selling price for May supplies by 30 cents a
barrel, according to the median estimate in a Bloomberg survey of refiners
and traders. That's despite continued flows of Iranian crude into China, and
challenging conditions for many Asian refiners.

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

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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for guideline purposes only and sourced from third parties.

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