Bulls n Bears Daily Market Commentary : 19 May 2021

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Bulls n Bears Daily Market Commentary : 19 May 2021

 

 	

 

 

 	

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ZSE commentary

 

The ZSE closed today’s session with losses across the board as investors take profits after a 10-day winning run which eased off starting yesterday. Turnover for the day was ZW$151.9 million (6.01% higher) from a trade of over 7.9 million shares. First Capital Bank was the most active stock at 40 trades followed by Star Africa and Medtech in a total of a record high 463 trades. The market breadth was negative after 24 stocks depreciated against 16 that appreciated in a total of 43 stocks which traded. First Mutual Holdings was the most liquid counter as it anchored both volume and value traded at 2 804 700 shares and ZW$70 million respectively.

 

At close, the benchmark All Share Index was down by 1.80% and the Top 10 Index was also down by 2.45%. The Top 15 Index shaded 1.94%. The Medium Cap Index traded lower to 13 531.79 points depreciating by 1.01%. The Small Cap Index also added 3.09% to 55 190.98 points.

 

Leading the risers pack of the day was Get Bucks Microfinance up by 20.00% followed by the gold mining firm Rio Zimbabwe and Art Corporation which added 11.82% and 11.46% respectively. Mashonaland Holdings added 6.50% to 346.65c. First Mutual Holdings was 6.37% up to 2499.9c. Leading in the shakers pack was the construction company Masimba which pared 14.62% followed by ZB Holdings shading 9.09%. First Mutual Properties and Innscor pared 8.11% and 7.62% respectively. Please find a summary of the market activity as shown below; The Old Mutual Top Ten ETF closed at 192.52c up 1.85% after 500 000 units with a value of ZW$962 614.50 in 18 trades exchanged hands.-wealthaccess



 

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Global Currencies & Equity Markets

 

 

South Africa

 

Rand strengthens against the dollar

JOHANNESBURG - The rand firmed as bets of interest rate normalisation on US soil receded to boost risk appetite, according to NKC Research.

 

High-frequency indicators of global activity continue to suggest accelerating global growth, which should give investors the confidence to maintain a risk-positive asset allocation.

 

 

The rationale has been a the same all along – periods of world trade expansion have tended to help growth outside the US catch up with that in the US. And world trade expansion has been aided by China’s credit cycle, the impulse of which is unlikely to begin fading until Q4 this year.

 

At the close of local trade, the rand quoted 0.35 percent stronger, at R13.98/$, after trading in range of R13.97/$ to R14.08/$. The rand traded little changed overnight. The expected range of the rand against the dollar today is R13.90/$ to R14.15/$.

 

 

The Brent oil price rose to the psychological $70 level yesterday, but paired gains soon afterwards amid spreading coronavirus cases in Asia. At the close of local trade, benchmark Brent crude futures quoted 0.65 percent weaker, at $69.28pb. Crude prices softened during Asian trade this morning.

 

BUSINESS REPORT ONLINE

 

 

Nigeria

 

Nigeria's naira firms 8% after hitting record low on official market

(Reuters) - The Nigerian currency, the naira, briefly firmed 8% on Wednesday to 394 to the dollar NGN=D1 on the official market after dropping to a record low in early trades, Refinitiv Eikon data showed.

 

The naira had hit a record low of 425.90 to the dollar after opening at 407.24. At 1118 GMT, it traded at 405.84.

 

The naira has weakened recently on the official market after the cenral bank allowed it to slip on the official market, a possible move to unify Nigeria's numerous exchange rates.

 

 

 

 <mailto:info at bulls.co.zw> 

 

Global Markets

 

Dollar steadies ahead of Fed, cryptos plummet after China move

The dollar steadied amid a broad equity market sell-off on Wednesday, hovering near multi-month lows as market participants looked to the Fed for any change in nuance that could shed light on its monetary outlook.

 

But cryptocurrencies took the spotlight, plunging in the wake of regulatory moves from China.

 

Bitcoin plunged to its lowest level since January in the wake of China's decision to ban financial and payment institutions from providing digital currency services. read more

 

Rival cryptocurrency Ethereum sank 28% to $2,444.

 

Inflation pressures are mounting, with recent data showing the extent to which a supply/demand imbalance has caused prices to surge as materials producers struggle to keep pace with a reopening economy.

 

That has aroused fears that the Federal Reserve could hike interest rates sooner than expected despite the central bank's assurances that current price spikes are temporary.

 

The dollar index , which measures the greenback against a basket of world currencies, was last flat at 89.795.

 

The minutes from the Fed's most recent meeting, due later on Wednesday, are widely expected to reiterate policymakers' intention to stay the course and leave key interest rates near zero for the foreseeable future.

 

Meanwhile, U.S. Treasury yields were little changed.

 

Pricing pressures are being felt elsewhere. UK inflation more than doubled in April to 1.5% from a month earlier, sparking similar concerns over longer-term inflation. 

 

The British pound eased 0.1% against the dollar to $1.4173.

 

Canada also released its latest inflation data, which showed consumer prices jumping to an annual rate of 3.4%.

 

The greenback gained 0.2% against the Canadian dollar to $1.208, but was still hovering near its weakest level since May 2015.

 

The euro , which touched its highest against the dollar since the beginning of January, fueled by economic optimism, inched up 0.04% to $1.2229.

 

The dollar fell 0.13% to 108.755 Japanese yen .

 

 

 

 <mailto:info at bulls.co.zw> 

 

 

 

 

Commodities Markets

 

 

Gold prices today fall for second day in a row, silver rates slump

Gold may see bouts of profit-taking if rally in equity markets continue, says analysts though they maintain positive outlook on the precious metal. Gold prices in India dipped today for second day in a row despite positive global cues. On MCX, gold futures fell 0.12% to ₹48,250 per 10 gram while silver future slumped 0.9% to ₹72,540 per kg. In international markets, gold prices were flat near a four-month high, ahead of the release of minutes from the US Federal Reserve's last policy meeting. Gold traders are likely to look for more clues on policymakers' view on inflation.

 

MCX gold has support at ₹46360 and resistance at ₹49,400, say analysts.

 

Spot gold in global markets was flat at $1,866.54 per ounce after hitting $1,874.80 in the previous session. The Fed minutes due later today may offer more insight into how policy makers view price pressures, and any hints of a timeline for tapering stimulus.

 

Technically, "breaking the important resistance of $1880 is required to continue the positive momentum towards $1925 or more. Else, there are chances of corrective selling but major downside turnaround point is placed at $1805," says Geojit.

 

The US dollar index was flat near a three-month low against its rivals, making gold less expensive for other currency holders.

 

In global markets, gold rates have risen more than 10% after falling to a nine-month low in early March. A retreat in US dollar and inflation expectations has supported the rebound in gold. Concerns over rising inflation intensified after U.S. consumer prices in April rose 4.2% on-year, the fastest increase in more than a decade even though Fed officials have repeatedly maintained they expect any rise in inflation to be short-lived. Gold is often seen as a hedge against inflation.

 

Among other precious metals, silver today fell 1% to $27.93 per ounce while platinum eased 0.3% to $1,215.

 

The rebound in gold has also been helped by resumption of inflows into bullion-backed exchange-traded funds or gold ETFs.

 

 

Many analysts still maintain a positive outlook on gold amid easy monetary policy stances by central banks across the world.

 

 


 

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 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 other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and sourced from third parties.

 

 	

 

 

 	

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