Bulls n Bears Daily Market Commentary : 18 May 2021

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Bulls n Bears Daily Market Commentary : 18 May 2021

 

 	

 

 

 	

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

 

 	


ZSE commentary

 

The ZSE closed today's session with losses in heavyweight and mid-tier
stocks. Turnover for the day was ZW$143.3 million (28.67% lower) from a
trade of over 10.6 million shares. Star Africa was the most active stock at
49 trades followed by Econet and Bindura in a total of a record high 729
trades inching closer to 1 000 trades target. The market breadth was
positive after 23 stocks appreciated against 17 that depreciated in a total
of 45 stocks which traded. Medtech was the most liquid counter as it
anchored volume traded at 5 687 400 shares and Delta anchored value
aggregate a value of ZW$52.2 million.

 

At close, the benchmark All Share Index was down by 0.44% and the Top 10
Index was also down by 1.09%. The Top 15 Index shaded 0.71%. The Medium Cap
Index traded higher to 13 669.67 points appreciating by a marginal 0.40%.
The Small Cap Index also added 5.65% to 53 534.81 points. Leading the risers
pack of the day was Get Bucks Microfinance up by 19.94% followed by Ariston
Holdings and Mashonaland Holdings which added 17.63% and 13.48%
respectively. Medtech Holdings added 12.16% to 16.8128c. Star Africa was
10.06% up to 93.55c. Leading in the shakers pack was the packaging
manufacturer Nampak which pared 13.38% followed by Masimba Holdings shading
11.81%. OK Zimbabwe and Padenga pared 10.94% and 6.95% respectively. Please
find a summary of the market activity as shown below; The Old Mutual Top Ten
ETF closed at 189.02c up 4.52% after 25100 units with a value of ZW$47445 in
15 trades exchanged hands..-wealthaccess



 

 <mailto:info at bulls.co.zw> 

 

 


Global Currencies & Equity Markets

 

 

South Africa

 

Rand oscillates above R14/$

JOHANNESBURG - The rand moved within a relatively narrow range on Monday,
holding onto the gains made this past month but unable to drop back to
recent lows of under R14/$, according to NKC Research.

 

South Africa's mass vaccination programme commenced on Monday, with 80
vaccination locations opened across the country. However, reports suggest
that South Africa has around 1.2 million health workers, and less than half
received the vaccine during the first phase of vaccinations.

 

 

The government now plans to target health workers, citizens aged over 60,
and those with significant risk factors. The slow rollout has prompted
repeated criticism of the government's ability to effectively implement its
vaccination programme.

 

At the close of local trade, the rand quoted 0.35 percent stronger, at
R14.10/$, after trading in range of R14.10/$ to R14.18/$. The rand extended
gains overnight. Expected range today is R13.95/$ to R14.20/$.

 

The JSE All Share (+0.93 percent) ended higher yesterday, thanks to gains in
large resource (+1.84 percent) and technology (+1.60 percent) stocks. In the
overall emerging market sphere, the MSCI Emerging Market Index (+0.30
percent) traded stronger.

 

Brent crude oil

 

The Brent oil price started the week on the front foot as European economic
re-openings boosted fuel demand prospects. At the close of local trade,
benchmark Brent crude futures quoted 1.30 percent higher, at $69.30pb. Crude
prices were firmer during Asian trade this morning.

 

 

 

Nigeria

 

Naira Gains At Official Market

The local unit remained stable at the parallel market.

 

However, the local unit remained stable at the parallel market.

 

Data posted on the FMDQ Security Exchange window where forex is officially
traded showed that the local currency (naira) closed at N411.50 at the
trading session of the NAFEX window on Monday.

 

Monday's performance represents a N0.17 or 0.04 per cent appreciation from
N411.67, the rate it traded in the previous session on Friday last week.

This became effective as foreign exchange supply dipped substantially. The
forex turnover decreased by 45.17 per cent, with $111.53 million recorded as
against the $203.42 million posted in the previous session on Friday last
week.

 

The local currency touched an intraday high of N395.00 and oscillated to a
low of N425.90 before closing at N411.50 on Monday.

 

The naira last traded at the rate of N411.00 and above on May 14 when it
exchanged with the hard currency at N411.67.

 

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

 

Data posted revealed that the local currency again closed at N484.00 at the
black market.-Premium Times.

 

 

 <mailto:info at bulls.co.zw> 

 

Global Markets

 

Dollar left wounded, Fed minutes and inflation in focus

The U.S. dollar teetered near a six-year low against its Canadian
counterpart and nursed losses against European currencies as expectations
that U.S. interest rates will remain low undermined the greenback.

 

The minutes from the U.S. Federal Reserve's most recent meeting due later on
Wednesday are expected to confirm that policymakers think a rate hike is
still in the distance.

 

Investors will also be scrutinising consumer price data in Britain and
Canada later in the trading day to determine how quickly major economies
will be forced to rein in their accommodative monetary policy, which holds
the key to the dollar's trend in the medium term.

 

Against the Canadian dollar , the greenback traded at C$1.2069, close to its
weakest since May 2015.

 

The British pound bought $1.4188, which was near its strongest level since
late February.

 

The euro was steady at $1.2223.

 

 

The dollar was little changed at 108.90 yen and 0.8976 Swiss franc .

 

Data last week showing U.S. consumer prices rose 4.2% in April from a year
earlier was the fastest increase in more than a decade, which stunned
investors.

 

Fed policymakers have said this is a temporary spike and reiterated that
they expect interest rates to remain low, which has taken some steam out of
the dollar, but not all are convinced by the Fed's persuasion.

 

Expectations for policy tightening in Canada and the gradual lifting of
coronavirus restrictions in Britain have lifted both countries' currencies,
but any suggestion of benign inflation could help the greenback recoup some
of its losses.

 

 

Elsewhere, the Australian and New Zealand dollars held onto recent gains,
but traders are closing watching commodity prices to determine whether the
Antipodeans will break out of their recent trading range.

 

In the cryptocurrency market, bitcoin stabilised at $43,253, and rival
digital currency ether traded at $3,409, but some jitters remain after China
banned its financial institutions and payment companies from providing
services related to cryptocurrency transactions.  

 

 <mailto:info at bulls.co.zw> 

 

 

 

 

Commodities Markets

 

 

Gold edges closer to 4-month high on weaker dollar, inflation fears

(Reuters) - Gold hit nearly a four-month peak on Tuesday before easing
slightly as yields on U.S. Treasuries inched higher, with a weaker dollar
and inflation fears maintaining a floor under bullion prices.

 

Spot gold was up 0.1% to $1,868.57 per ounce by 1:47 p.m. EDT (1747 GMT)
after hitting its highest level since Jan. 29 earlier in the session. U.S.
gold futures settled at $1,868, largely unchanged from Monday.

 

Benchmark U.S. Treasury yields inched higher, increasing the opportunity
cost of holding gold.

 

The dollar index fell to near a three-month low, making gold cheaper for
holders of other currencies.

 

Analysts also noted that inflows into gold exchange-traded-funds indicated
investors were buying the precious metal to hedge against inflation worries.

 

In the wake of rising prices in the United States, the minutes of the
Federal Reserve's last policy meeting are expected to provide more clarity
on its monetary policy outlook and policymakers' views on inflation. The
U.S. central bank is due to release the minutes on Wednesday.

 

Gold is also getting support from chart-based buyers after bullion broke
above its 200-day moving average, considered to be a bullish signal.

 

Elsewhere, silver rose 0.3% to $28.26 per ounce after hitting its highest
level since Feb. 2 in the session.

 

Palladium rose 0.1% to $2,904.87 per ounce, while platinum dipped 1.6% to
$1,219.98.

 

Reporting by Sumita Layek and Arundhati Sarkar in Bengaluru; Editing by
Alexandra Hudson, Alexander Smith and Paul Simao

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

 

Brent crude hits $70 as traders bet on sustained revival in oil demand

Brent crude oil hit $70 a barrel on Tuesday, reaching the highest level in
two months in a broad commodities rally that has stoked worries about
inflation.

 

The international oil benchmark, which slumped below $20 a barrel last April
as Covid-19 lockdowns hammered fuel demand, is now comfortably back at its
pre-pandemic level as traders bet oil demand will rise later this year.

 

The rollout of vaccines in developed countries and the tapering of
restrictions is expected to lead to a surge in international travel and a
pick-up in the wider economy, while concerns about long-term supplies of
commodities such as copper and oil have intensified.

 

Brent rose as much as 1.1 per cent at $70.24 a barrel in early London
trading, but later pulled back to $68.65. West Texas Intermediate, the US
marker, also gave up its gains to trade down 1.3 per cent to $65.42 a
barrel.

 

Despite Tuesday's rally fizzling, both Brent and WTI are up about a third
for the year-to-date.

 

 

He cautioned, however, that the recovery still faced headwinds such as the
emergence of the coronavirus variant first identified in India.

 

The recent gains in the oil price can be partially attributed to concerns
that long-term oil supplies may not keep pace with rebounding consumption in
the coming years, as international oil companies scale back investments in
future production because of environmental concerns.

 

Long-term oil demand is widely expected to peak within the next decade or
so, but that still potentially leaves a period where consumption is
expanding while output growth slows.

 

The International Energy Agency said on Tuesday that all new oil and gas
exploration projects must stop from this year if the world is to have any
chance of hitting the target of limiting global warming to 1.5C above
pre-industrial levels.

 

While that is only one scenario from the OECD-funded agency, it shows the
pressure large oil producers - especially the publicly listed majors such as
BP and Royal Dutch Shell - are facing to limit investments in fossil fuel
projects.

 

Opec and other large oil producers, which have been curtailing production
during the pandemic due to the fall in demand, are starting to add barrels
back to the market as consumption improves, but it is unclear whether they
hold enough spare capacity should demand start to rise significantly above
its pre-pandemic level of about 100m barrels a day.

 

The IEA acknowledged that "continued investment in existing sources of oil
production are needed".

 

Energy Aspects, a consultancy, said that Opec and allies such as Russia were
first likely to cap production increases from July in a bid to draw down
inflated global inventories, but said they did not expect prices to rally
much further in the short term.

 

The recovery in oil demand is still expected to be uneven for the next few
months.

 

 


 

INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 

 	

 

 

 

 

 

 	

 

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
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for guideline purposes only and sourced from third parties.

 

 	

 

 

 	

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