Bulls n Bears Daily Market Commentary : 07 May 2021

Fri May 7 17:07:47 CAT 2021

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Bulls n Bears Daily Market Commentary : 07 May 2021

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

ZSE commentary

The ZSE closed the week in the positive with gains in heavyweight stocks
Innscor, Econet, Meikles and Delta. Turnover improved to ZW$122.96 million
from a trade of over 7.1 million shares which exchanged hands in 396 trades.
Delta was the most active stock at 42 trades followed by Medtech and GBH.
The market breadth was positive after 22 stocks appreciated against 13 that
depreciated in a total of 38 stocks which traded. OK Zimbabwe was the most
liquid counter as it anchored both volume and value aggregates trading 2 666
300 million shares with a value of ZW$41.33 million which is 33.6% of total
turnover for the day.

At close, the benchmark All Share Index gained 1.15% and the Top 10 Index
was up by 1.79%. The Top 15 Index added 1.41%. The Medium Cap Index traded
higher to 11 501.55 appreciating by 0.17%, whilst the Small Cap Index gained
0.76% to close at 46 133.62 points to a year to date gain of 287.22%.

Leading the risers pack of the day was Art Corporation up by 9.13% followed
by Simbisa Brands which added 9.05%. The crocodile skin producer Padenga
added 8.25% to 3295.67c. Cassava was 7.99% up to 1350c. Meikles added 5.40%
to 6491.17c. Leading in the shakers pack was First Mutual Holdings   which
pared 11.38% followed by Ariston Holdings shading 4.75%. CAFCA and TSL pared
4.55% and 4.50% respectively. Please find a summary of the market activity
as shown below; The Old Mutual Top Ten ETF closed at 174c down 0.55% after 7
500 units with a value of ZW$13 050 in 9 trades exchanged hands. Elsewhere,
on the VFEX, Seed Co International traded 2 754 shares with a value of
US$463.32 closing at a price of 0.18c..-wealthaccess

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South Africa's rand weakens ahead of U.S. jobs data, Moody's review

South Africa's rand weakened in early trade on Friday as investors
cautiously await a key U.S. jobs report that could have an impact on
investor appetite for riskier but higher-yielding currencies.

At 0615 GMT, the rand traded at 14.2225 against the dollar, 0.25% weaker
than its previous close.

U.S. payrolls numbers are due at 1230 GMT and signs of strong job recovery
are something of a double-edged sword for markets.

They could boost risk appetite and weigh on the safe haven dollar. But if
they stoke inflation worries and lead to expectations of reduction in the
Federal Reserve's stimulus, it may boost U.S. bond yields and the dollar. 

Investors also await a scheduled review of South Africa's sovereign credit
by Moody's later in the day. The rating agency already assigns a "junk"
status to the country, but with a negative outlook there is the potential
for a further downgrade.

In fixed income, the yield on the benchmark government bond due in 2030 was
up 1.5 basis points to 9.095%.- The Thomson Reuters Trust Principles.

Nigeria

Naira gains at NAFEX window as dollar supply improves by 305%

The exchange rate between the naira and the US dollar closed at N410.5/$1 on
Wednesday, as dollar supply spiked by 305%.

Wednesday, 5th May 2021: The exchange rate between the naira and the US
dollar closed at N410.5/$1 at the Importers and Exporters window, where
forex is traded officially.

Naira appreciated marginally against the US dollar on Wednesday, 5th May
2021 to close at N410.5 to a dollar. This represents a 50 kobo gain when
compared to N411/$1 recorded on Tuesday 4th May 2021.

Meanwhile, the naira maintained stability at the parallel market as it
closed at N485/$1, while Nigeria's external reserve plunged $94.84 million
to close at $34.79 billion on Tuesday, 4th May 2021.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar slides to more than two-month low after big U.S. jobs miss

The dollar fell to its lowest in more than two months on Friday after U.S.
jobs data for April came in well below expectations, putting a damper on
hopes that a roaring economic recovery would lead to higher rates any time
soon.

Nonfarm payrolls increased by only 266,000 jobs last month after rising by
770,000 in March, the Labor Department said in its closely watched
employment report on Friday. Economists polled by Reuters had forecast
payrolls advancing by 978,000 jobs. 

The dollar was down 0.34% at 90.561 against a basket of major currencies,
having dropped as low as 90.338, its lowest since Feb. 26, following the
data.

It also means U.S. interest rates will stay at ultra-low levels for quite a
while and that is going to keep the pressure on the dollar, Schlossberg
added.

The euro was up 0.44% against the greenback at $1.21140 and the British
pound was up 0.3% at $1.3933 .

Elsewhere, China's exports unexpectedly accelerated in April and import
growth hit a decade high, helping to push the yuan and Asian stocks higher. 

China's yuan was at a more than two-month high versus the dollar, set for
its longest weekly winning streak since September, helped by the strong
trade data and softer dollar.

The MSCI emerging market currency index hit a record high of 1732.79 on
Friday, lifted by gains in the Chinese yuan. Monex Europe's Harvey said that
emerging market currencies were also benefiting from the "commodity
supercycle". 

The Canadian dollar was up 0.27% at 1.2185 to the U.S. dollar, having surged
on Thursday to its strongest in more than three years .

The Australian dollar was up 0.19% versus the U.S. dollar, at 0.77995 , more
than recouping losses from earlier in the session.

The Aussie has been supported by a strong rally in the prices of Australia's
top export earner, iron ore.

In cryptocurrencies, ether rose 0.51% to $3,507.92, having hit a all-time
high on Thursday . read more

Bitcoin was up 1.4%, at $57,237.60 .-The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper hits record high with demand expected to rise sharply

Copper prices hit a record high on Friday in the latest leg of a broad rally
across commodity markets sparked by the reopening of major economies and
booming demand for minerals needed for the green energy transition.

Copper, used in everything from electric vehicles to washing machines, rose
as much as 1.4 per cent to $10,361 a tonne, surpassing its previous peak set
in 2011 at the height of a previous commodities boom.

The price has more than doubled from its pandemic lows in March last year
due to voracious demand from China, the biggest consumer of the metal, and
also investors looking to bet on a big uptick in the global economy and
protect their portfolios against potential for rising inflation.

Government stimulus packages and the shift towards electrification to meet
the goals of the Paris agreement on climate change are expected to fuel
further demand for the metal, which analysts and industry executives believe
could hit $15,000 a tonne by 2025.

The US and Europe were becoming significant factors in the consumption of
copper for the first time in decades, he added. "Before, it's effectively
been a China-only story. That is changing fast."

Concerns about the long-term supply of copper due to lack of investment by
large miners has also pushed up prices. There are only a few large projects
in a development, while most of the world's easily produced copper has
already been mined.

The upward march of other raw materials is showing no signs of abating.
Steelmaking ingredient iron ore traded at $212.75 a tonne for the first time
as China returned to work after the Labour Day holidays in early May. 

In spite of production cuts in Tangshan and Handan, two key steelmaking
cities in China, analysts expect output to remain solid over the next couple
of quarters. 

Elsewhere, tin on Thursday rose above $30,000 a tonne for the first time in
a decade before easing. Tin is used to make solder - the substance that
binds circuit boards and wiring - and is benefiting from strong demand from
the electronics industry, which has been lifted by growing numbers of
stay-at-home workers.

US wood prices continued to race higher ahead of the peak in the US
homebuilding season in the summer with lumber futures rising to a record
high above $1,600 per 1,000 board feet length, up from $330 this time last
year.

Agricultural commodities also continued to rally as a result of a
particularly dry season in Brazil, concerns about drought in the US and
Chinese demand. Strong increases in food prices have started to affect
global consumers. Corn rose to a more than eight-year high of $7.68 this
week, while coffee has risen almost 10 per cent since the start of month,
hitting a four-year high of $1.54 a pound this week.

Gold price back above $1,800 as inflation fears linger

Gold prices jumped to their highest in nearly three months on Thursday, with
a weaker dollar and easing Treasury yields propelling it over the pivotal
$1,800/oz level once again.

Spot gold advanced 1.5% to $1,812.04/oz by noon ET, having reached an
intraday high of $1,817.39/oz earlier in the session. US gold futures gained
1.7% to $1,815.10/oz on the Comex in New York.

US 10-year Treasury yields continued to slip on Thursday, bolstering the
appeal of non-yielding bullion. The dollar index also fell 0.4%, making
bullion more attractive for those holding other currencies.

The Fed plans to keep borrowing costs near 0% and maintain monthly asset
purchases worth $120 billion until it sees "substantial further progress"
towards full employment and its 2% flexible inflation target.

Gold's uptick also came despite data showing weekly jobless claims dropped
to a 13-month low, which signaled that the US economy is on the recovery
path.

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

NMB

AGM

virtual

12/05/21 :  3:30pm

Africa Day

25/05/21

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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