Bulls n Bears Daily Market Commentary : 10 May 2021

Tue May 11 06:48:51 CAT 2021

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Bulls n Bears Daily Market Commentary : 10 May 2021

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

ZSE commentary

The ZSE holds on to gains opening the week in the positive. Heavyweight
counters continue to dominate turnover in today's session although
retreating to ZW$87.8 million (44.5% lower) from a trade of over 3.9 million
shares. Trading activity was higher at 418 trades. Econet was the most
active stock at 57 trades followed by First Capital Bank and Simbisa. The
market breadth was positive after 22 stocks appreciated against 9 that
depreciated in a total of 40 stocks which traded. Econet was the most liquid
counter as it anchored both volume and value aggregates trading 1 306 400
million shares with a value of ZW$30.04 million.

At close, the benchmark All Share Index gained 1.84% and the Top 10 Index
was up by 1.23%. The Top 15 Index added 1.66%. The Medium Cap Index traded
higher to 11 837.65 points appreciating by 2.92% whilst the Small Cap Index
gained 0.70% to close at 46 458.36 points.

Leading the risers pack of the day was Simbisa Brands up by 13.73% followed
by the packaging manufacturer Nampak which added 9.86%. The ART Corporation
added 8.54% to 740.55c. the construction giant Masimba was 8.09% up to
2400c. the brick maker Wildale added 7.70% to 118.52c. Leading in the
shakers pack was Zimpapers  which pared 4.95% followed by ZIMRE Holdings
shading 2.87%. Bindura and Zimplow pared 1.41% and 0.50% respectively.
Please find a summary of the market activity as shown below; The Old Mutual
Top Ten ETF closed at 170.93c down 1.76% after 25 400 units with a value of
ZW$43 417 in 17 trades exchanged hands.-wealthaccess

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

Rand at 16 month high against the dollar

JOHANNESBURG - The local currency enters the week at 16-month highs against
the US dollar.

A stronger rand exchange rate makes imports more affordable and tames
inflation, including fuel price rises.

By the end of last week, the rand edged closer to R14 to the dollar mark.

Analysts say demand for the country's mining commodities, higher interest
rates, and a weaker dollar have led to the local currency making strong
gains.

The rand is now 30 percent stronger than it was a year ago when it traded at
more than R18.50 to the US dollar.-eNCA

Mixed fortunes for SADC currencies

Harare - The first quarter of 2021 was not good to currencies in several
SADC countries, as the US dollar strengthened and economic recovery from the
impact of the COVID-19 was not as rapid as anticipated.

The South African rand weakened in March 2021 against most major currencies.

Data from Stats SA revealed that the unweighted average change in the value
of the rand amounted to -0.3 percent. Month-on-month, the rand depreciated
by 1.3 percent against the US dollar and by 1.6 percent against the British
pound, but was stable against the euro and 1.6 percent stronger against the
Japanese yen. The rand was 2.1 percent stronger against the Swiss franc, but
lost 0.6 percent against the Chinese yuan and 1.1 percent against the
Australian dollar.

The Botswana pula depreciated by 0.9 percent against the rand early in the
year, but appreciated by 0.3 percent against IMF Special Drawing Rights
(SDR).

The pula recorded a mixed performance against the SDR constituent
currencies. It appreciated by 2.1 percent against the Japanese yen and 0.5
percent against both the US dollar and the Chinese yuan, while it
depreciated against other currencies.

According to a joint press statement by the Bank of Namibia and the Namibian
Financial Institutions Supervisory Authority, the Namibian dollar
depreciated against all major trading currencies.

However, the country's international reserves grew even as Namibia's and
South Africa's - sovereign credit outlooks were revised downwards by all
major credit rating agencies.

The depreciation of the Namibian dollar against major currencies was
attributed to investors' risk aversion towards emerging markets and
developing economies during the COVID-19 pandemic.

The Zambian kwacha has been falling against the dollar, and analysts believe
the trend will continue until the government sorts out its external debt
issues.

Foreign exchange reserves continue to slide and the weakening kwacha has
seen inflation surpass 20 percent.

Tanzania's shilling is expected to hold steady in the coming quarter of the
year as agricultural exports continue to grow.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar hovers near 10-week lows as inflation expectations skyrocket

The dollar languished at around 2-1/2 month lows on Monday as investors bet
that rising inflation would erode the currency's value as the U.S. Federal
Reserve maintains its loose monetary policy.

The five-year breakeven inflation rate - which measures expectations of
inflation five years out - reached its highest since April 2011 on Monday.
The 10-year breakeven inflation rate - a measure of expectations of
inflation in 10 years time - rose to its highest since March 2013.

A weaker-than-expected jobs report on Friday helped persuade market
participants that the Fed would keep rates low and continue purchasing
assets, even if inflation rises. The United States created a little more
than a quarter of the jobs that economists had forecast last month and the
unemployment rate unexpectedly ticked higher. read more

In recent years, rising inflation expectations have helped the dollar
because investors have assumed interest rates would be raised in response to
higher prices.

The dollar index , which measures the greenback against six rivals, was last
at 90.205, up 0.06% on the day, having earlier hit its lowest since Feb. 25.

The market this week will be focused on U.S. consumer price data reported
Wednesday as well as retail sales on Friday. Wednesday's CPI data will show
the state of inflation today, and while that may have some effect on the
market, the higher breakeven rates seen Monday reflect broader bets that
inflation will rise in the next several years.

The British pound was the biggest gainer among the G10 currencies, rallying
as high as $1.416, the highest since Feb. 25. It was last up 1.02% at
$1.413. This was despite Scotland's leader saying that another referendum on
independence is inevitable after her party's resounding election victory.

Also benefiting was the Canadian dollar , which was 0.36% stronger on the
day to $1.209, the highest since September 2017.

In cryptocurrencies, ether extended this month's record run, surging to an
unprecedented $4,148.88. The second-biggest digital token has rallied 41% so
far in May and was up 4.52% on Monday.

Our Standards: The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper eases from record high as weak China demand stalls rally

(Reuters) - Prices of Shanghai copper slipped 1.5% on Tuesday, as investors
exercised caution following a recent rally that pushed the metal to a record
high while tepid demand from industrial buyers in top consumer China also
weighed.

The most-traded June copper contract on the Shanghai Futures Exchange was
down at 75,600 yuan ($11,773.68) a tonne, as of 0237 GMT, slipping from a
record high of 78,270 yuan a tonne notched in the previous session.

Yangshan copper premium SMM-CUYP-CN fell to $38.50 a tonne, the lowest since
February 2016, indicating subdued Chinese appetite for imported metal.

Three-month copper on the London Metal Exchange rose 0.4% to $10,420 a
tonne.

FUNDAMENTALS

* A union representing workers at BHP Group's Escondida and Spence copper
mines in Chile has called for a strike vote among its members after contract
negotiations stalled.

* A shortage of copper and dwindling inventories in the long-term are likely
to propel prices of the industrial metal to levels beyond current record
highs, unless scrap supplies rise significantly, analysts said.

* About 50-80% of LME copper warrants are currently held by one party.
<0#LME-WHL>

* More than 90% of LME tin inventories and short-term futures are currently
held by a party. <0#LME-WHT>

* LME aluminium rose 0.8% to $2,552 a tonne, while ShFE nickel dropped 2.3%
to 130,370 yuan a tonne, ShFE zinc declined 1.7% to 22,425 yuan a tonne and
ShFE aluminium was down 1% at 19,890 yuan a tonne.

Gold flat as U.S. yields negate firmer dollar

(Reuters) - Gold prices were steady on Tuesday as a retreat in U.S. Treasury
yields countered a slight rebound in the dollar, while investors awaited key
data on inflation due later this week.

FUNDAMENTALS

* Spot gold was steady at $1,836.26 per ounce by 0134 GMT, after hitting its
highest since Feb. 11 at $1,842.91 on Friday. 

* U.S. gold futures were down 0.1% at $1,836.40 per ounce.

* The dollar index was up 0.1%, making gold more expensive for other
currency holders.    

* The U.S. currency slipped to a more than two-month low in the previous
session after U.S. non-farm payrolls data on Friday showed jobs growth
unexpectedly slowed in April.    

* Benchmark U.S. 10-year Treasury yields were pinned below 1.6%. Lower bond
yields reduce the opportunity cost of holding non-yielding gold. 

* Bank of Japan policymakers warned of uncertainties over the country's
economic recovery as pandemic curbs hurt service consumption, a summary of
their opinions voiced at an April policy meeting showed on Tuesday. 

* Market participants awaited the release of U.S. consumer price data due on
Wednesday to gauge inflationary pressure and the Federal reserve's policy
stance. 

* Fed officials would like to see higher inflation, more wage growth and
several months of strong employment gains averaging 1 million jobs added
before they would consider adjusting monetary policy, Chicago Fed Bank
President Charles Evans said on Monday.    

* U.S. President Joe Biden on Monday urged U.S. companies to help workers
gain access to vaccines and to raise their pay while touting an infusion of
$350 billion in federal aid to state and local governments.   

* Palladium fell 0.2% to $2,953.59 per ounce.

* Silver was little changed at $27.31 per ounce, while platinum was down
0.4% at $1,242.17. 

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
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been compiled from sources believed to be reliable, but no representation or
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