Bulls n Bears Daily Market Commentary : 11 May 2021

Tue May 11 15:36:42 CAT 2021

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Bulls n Bears Daily Market Commentary : 11 May 2021

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

ZSE commentary

The ZSE continued on a winning streak closing today's session in the
positive. Heavyweight counters continue to dominate turnover closing in
today's session at ZW$78.84 million (10% lower) from a trade of over 9.4
million shares. Trading activity was at 400 trades. OK Zimbabwe was the most
active stock at 50 trades followed by First Capital Bank and Delta. The
market breadth was positive after 28 stocks appreciated against 7 that
depreciated in a total of 38 stocks which traded. Medtech Holdings was the
most liquid counter as it anchored volume traded at 5 353 100 shares and
Econet anchored value aggregate a value of ZW$34.9 million.

At close, the benchmark All Share Index gained 2.05% and the Top 10 Index
was up by 2.16%. The Top 15 Index added 1.97%. The Medium Cap Index traded
higher to 12 080.43 points appreciating by 2.05% whilst the Small Cap Index
pared 0.91% to close at 46 037.78 points. Leading the risers pack of the day
was wine maker African Distillers up by 20.00% followed by the brick maker
Wildale which added 16.25%. The only listed Microfinance bank Get Bucks
added 14.58% to 55c. Proplastics  was 11.91% up to 2350c. The property firm
Mashonaland Holdings added 7.78% to 223c. Leading in the shakers pack was
General Beltings  which pared 6.44% followed by National Tyre Services
shading 5.00%. Art Corporation and Truworths pared 2.50% and 1.84%
respectively. Please find a summary of the market activity as shown below;
The Old Mutual Top Ten ETF closed at 171.42c up 0.29% after 264 184 units
with a value of ZW$452 864 in 23 trades exchanged hands..-wealthaccess

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South Africa's rand retreats from 16-month high against dollar

South Africa's rand weakened in early trade on Tuesday, breaking back above
14.000 against the U.S. dollar, in cautious trade ahead of local
manufacturing data and U.S. inflation figures.

At 0631 GMT, the rand traded at 14.0600 against the dollar, 0.31% weaker
than its previous close.

On Monday, the rand rallied to 13.9650 - its strongest since early January
2020.

The governing African National Congress (ANC) suspended Secretary General
Ace Magashule last week in line with tougher rules for members charged with
corruption and other serious crimes. Such members have been told to "step
aside" or vacate their positions within 30 days or face suspension.

Magashule has called corruption charges against him flimsy and said he was
being treated unfairly.

On Monday President Cyril Ramaphosa said the party will further discipline
Magashule, if he does not apologise for a letter he wrote resisting his
suspension. 

Politics aside, investors are awaiting local manufacturing data due on
Tuesday as well as U.S. consumer price figures on Wednesday to measure
whether inflationary pressure was building.

Government bonds firmed in early deals, with the yield on the instrument due
in 2030 slipping 5 basis points to 8.940%.

Our Standards: The Thomson Reuters Trust Principles.

Nigeria

Naira slides on official window

The naira remained unchanged against the U.S. dollar at the unofficial
market on Monday.

The naira fell marginally against the U.S dollar at the I&E window of the
foreign exchange market on Monday as foreign exchange supply plummeted
significantly.

According to data posted on the FMDQ Security Exchange window where forex is
officially traded, the local currency (naira) closed at N410.67 at the
trading session of the NAFEX window on Monday.

The performance on Monday represents N0.34 or 0.08 per cent depreciation
from N410.33, the rate it traded in the previous session on Friday last
week.

This came to be as foreign exchange supply nosedive significantly. The forex
turnover decreased by 77.74 per cent, with $32.61 million recorded as
against the $146.52 million posted in the previous session on Friday last
week.

The naira touched an intraday high of N401.10 and a low of N422.00 before
closing at N410.67 on Monday.

The last time the domestic currency hovered around N410.00 and above was on
May 7 last week.

However, the naira remained unchanged against the U.S. dollar at the
unofficial market on Monday, data posted on abokiFX.com, a website that
collates parallel market rates in Lagos showed.

Data posted showed that the naira closed at N483.00 at the black market, the
same rate it traded in the previous session on Friday last week.

Based on the status of the currency at the forex markets as stated above,
the spread between the parallel market and the official market exchange rate
is pegged at N72.33 which translates to a gap of 14.96per cent.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar near 2-1/2-month lows as commodity gains stoke inflation worries

Resource-oriented currencies including the Canadian dollar and the Aussie
consolidated gains on Tuesday, as a rally in commodity prices boosted their
appeal, while the greenback held near multi-month lows on growing concerns
about price pressures.

Soaring commodity prices have sent the cost of raw materials from copper to
iron ore and lumber to record highs, raising concerns that inflation may not
be as transitory as some believe with U.S. breakeven rates scaling
multi-year peaks.

The Australian dollar steadied at $0.7827, hovering just below a two-month
high hit on Monday. The Canadian currency stabilised near a near four-year
high, while the New Zealand dollar perched comfortably at February highs.

But markets were broadly trading in narrow ranges by looming U.S. consumer
price figures due on Wednesday, as traders worried that a big number might
prompt the Fed to wind back monetary policy support sooner than expected.

Appearances later on Tuesday from U.S. Federal Reserve members John
Williams, at 1430 GMT, and Lael Brainard, at 1600 GMT, will be parsed for
clues as to central bank thinking.

Against a basket of its major rivals , the dollar steadied at 90.283, just
above a Feb. 25 low of 90.03 hit in the previous session.

Markets expect U.S. year-on-year inflation to hit 3.6% in April, juiced by
the base effect of a pandemic year contraction.

Investors seem increasingly at odds with policymakers over whether that sort
of price growth will persist, and drove up U.S. five-year breakevens - a
measure of inflation expectations - to a decade-high 2.717% on Monday.-The
Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

London copper rises on demand outlook from new energy, EV sectors

(Reuters) - London copper prices climbed on Tuesday, as traders bet on
demand prospects from metal-reliant renewable energy and electric vehicles
(EV) sectors and as the global economy steadily recovers from the fallout of
the COVID-19 pandemic.

Three-month copper on the London Metal Exchange was up 0.9% at $10,470 a
tonne, as of 0701 GMT, inching closer to a record peak of $10,747.50 notched
in the previous session.

The most-traded June copper contract on the Shanghai Futures Exchange closed
1% lower at 76,000 yuan ($11,819.23) a tonne, clawing back from early losses
of 2.5%.

Copper is also drawing investors looking to benefit from the renewable
energy and EV sectors that are expected to boost demand, they added.

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.

* ShFE copper speculative net long rose to 52.8% of open interest on Monday,
the highest since the position rose to an 18-year high of 57.9% in February,
from Friday's 47.4%, Marex Analytics data showed.

* 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 single party. <0#LME-WHT>

* LME aluminium rose 1.1% to $2,557.50 a tonne, ShFE zinc fell 1.3% to
22,515 yuan a tonne, while ShFE nickel dropped 1.4% to 131,690 yuan a tonne.
($1 = 6.4302 yuan)

Gold rises on weaker dollar; markets await U.S. inflation data

(Reuters) - Gold prices rose on Tuesday to hover near a three-month high
reached in the previous session as the dollar traded near multi-month lows,
with investors awaiting U.S. consumer price data to gauge inflation.

Spot gold rose 0.2% to $1,839.74 per ounce by 1051 GMT, after hitting its
highest since Feb. 11 at $1,845.06 on Monday.

U.S. gold futures were up 0.2% to $1,841.20 per ounce.

Prices jumped more than 3% last week as the metal surpassed a key
psychological level of $1,800 and after weaker-than-anticipated April jobs
numbers in the United States.

With investors closely watching for signs of higher prices, the U.S.
consumer price index for April, due on Wednesday, will be monitored as
investors gauge if the Federal Reserve will begin to alter its stance on
inflation.

At a time of heavy government stimulus, gold is considered a hedge against
potential inflation.

Against a basket of its major rivals, the dollar was down 0.1%, holding near
a Feb. 25 low hit in the last session.

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

Palladium was up 0.6% at $2,978.94 per ounce, and silver gained 0.6% to
$27.46. Platinum edged up 0.1% to $1,247.87.

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
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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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