Bulls n Bears Daily Market Commentary : 24 May 2021

Mon May 24 16:25:16 CAT 2021

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Bulls n Bears Daily Market Commentary : 24 May 2021

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

ZSE commentary

The ZSE closed the first day of the Africa day shortened week with marginal
gains. Turnover for the day retreated to ZW$42.7 million (97.31% lower) from
a trade of over 5.4 million shares. Delta contributed the most at 47.31% of
the total turnover. OK Zimbabwe was the most active stock at 34 trades
followed by Star Africa and Delta in a total of 420 trades. The market
breadth was positive after 20 stocks apreciated against 17 that depreciated
in a total of 40 stocks which traded. Medtech Holdings was the most liquid
counter as it anchored volume traded at 1 064 100 shares and Delta anchored
value traded at ZW$20.2 million respectively.

At close, the benchmark All Share Index was up by 0.82% and the Top 10 Index
was down by 0.43%. The Top 15 Index added 0.42%. The Medium Cap Index traded
higher to 13 876.80 points appreciating by 2.53%. The Small Cap Index added
5.84% to 61 941.89 points. Leading the risers pack of the day was First
Mutual Property  up 19.94% followed by Get Bucks Microfinance adding 19.70%.
Meikles was up by 14.50%. Aristo and Unifreight added 9.15% and 8.33%
respectively. Leading in the shakers pack was Star Africa which pared 9.27%
followed by ZIMRE Holdings shading 6.77%. Mashonaland Holdings and RTG pared
4.79% and 4.69% respectively. Please find a summary of the market activity
as shown below; The Old Mutual Top Ten ETF closed at 200.03c down 0.22%
after 110 000 units with a value of ZW$220 030 in 14 trades exchanged
hands.-wealthaccess

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

Rand extends gains as rating agencies maintain outlook

JOHANNESBURG - The rand extended gains on Monday, passing the 18-month best
reached on Friday as the currency drew strength from rating agencies holding
the country's credit rating and outlook at current levels.

At 0650 GMT the rand was trading at 13.9350, up 0.3 percent against the
dollar. It had raced past its December 2019 level to 13.9400 on Friday
evening after the central bank said it could raise interest rates if
consumer prices keeps rising.

S&P Global Ratings late on Friday affirmed South Africa's long-term foreign
currency rating at BB-, three notches below investment grade, and kept local
currency debt at BB. It predicted a stable outlook for both.

Fitch also affirmed South Africa's long-term foreign currency issuer default
rating at 'BB-' on Friday and maintained a negative outlook.

The agencies cited South Africa's improving public finances, primarily
because higher commodity prices helped to lift tax revenue last year.

Analysts have said that rising commodity prices could also help to boost
government revenue for the 2021-22 financial year.-REUTERS

African currencies week ahead: Kenyan, Ugandan and Zambian units seen under
pressure

NAIROBI: Kenyan, Ugandan and Zambian currencies are likely to trade on the
back foot against the US dollar next week as Nigeria and Tanzania's hold
steady.

KENYA - The Kenyan shilling will be under pressure in the coming week, as
companies are getting ready for their end of month obligations amid
projected lower economic growth.

At 0824 GMT on Thursday, traders quoted the shilling at 108.00/108.20
compared with last week's close of 107.00/107.20.

The IMF and Kenyan authorities reached a staff-level agreement on economic
policies to conclude the first review of its 38-month extended fund facility
and extended credit facility financed programme, the IMF said on Monday.

UGANDA - The Uganda shilling is seen trading on a weak footing against the
dollar in coming days as traders start to rebuild oversold positions,
traders said.

At 1001 GMT commercial banks quoted the shilling at 3,560/3,570, compared to
last Friday's close of 3,530/3,540.

ZAMBIA - The kwacha is likely to continue depreciating against the dollar in
the coming week, albeit at a slower pace as demand for hard currency
continues to outweigh supply.

On Thursday, commercial banks quoted the currency of Africa's second largest
copper producer at 22.4500 per dollar from 22.3850 at the close of business
last Thursday.

Zambia's central bank sold $259.7 million in the first quarter of this year
to moderate exchange rate pressure, governor, Christopher Mvunga said in a
statement on Wednesday.

NIGERIA - Nigeria's currency is seen closing range-bound within 408 naira to
412 naira per dollar next week, despite recent weakness on the official
market as the country attempts to unify its multiple spot exchange rates,
traders said.

The unit traded at 412 naira per dollar on Thursday on the official market
after slipping to a record low of 425.90 naira the previous session.

The naira was quoted at 485 per dollar on the black market on Thursday, a
level it touched two weeks ago.

TANZANIA - Tanzania's shilling is expected to hold steady next week as
supply and demand for dollars across sectors stays evenly matched.

Commercial banks quoted the Shilling at 2,314/2,324 on Thursday, unchanged
from last week's close.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar stuck near 3-month lows, bitcoin struggles

The dollar was pinned near three-month lows against a basket of major
currencies on Monday, as bets on a robust global economic recovery continued
to support currencies seen as riskier.

The dollar index hovered around the 90 mark, down 0.2% on the day and close
to a three-month low of 89.646 hit on Friday.

The dollar was pinned near three-month lows against a basket of major
currencies on Monday, as bets on a robust global economic recovery continued
to support currencies seen as riskier.

The dollar index hovered around the 90 mark, down 0.2% on the day and close
to a three-month low of 89.646 hit on Friday.

The greenback, seen as a safe-haven trade, has steadily retreated over the
past two months as optimism has built about the economic outlook.

European stocks opened up on Monday, closing in on record highs, although
several markets, including Germany's, were closed for a holiday.

Currency analysts were already looking ahead to key U.S. personal
consumption and inflation figures due Friday for any warning signs that U.S.
inflation could be gathering pace and putting pressure on the Federal
Reserve to taper policy.

Traders are also watching for progress on a new stimulus package in the
United States, after the White House pared down its infrastructure bill to
$1.7 trillion on Friday but failed to gain Senate Republican backing.

Among the currencies gaining on the dollar was the euro, up a quarter of a
percent above $1.22. The single currency has gained around 4% on the
greenback over the past three months.

In cryptocurrencies, bitcoin rebounded by 6% to just shy of $37,000, but is
still well down after crashing in recent days, falling as much as 17% to
$31,107 on Sunday.

Bitcoin halved in value just weeks after April's record peak of $64,895,
undermining the case for its mainstream acceptance.

Cryptocurrencies have tumbled after Elon Musk's Tesla said it will stop
accepting bitcoin for car purchases and after China further clamped down on
them.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold edges back towards multi-month peak as dollar holds near lows

(Reuters) - Gold firmed on Monday, edging back towards last week's
4-1/2-month peak as the dollar held near its weakest since late February,
with investor focus turning to key economic readings from the United States
this week. 

Spot gold was up 0.2% at $1,883.25 per ounce by 1222 GMT, having last week
reached its highest since Jan. 8 at $1,889.75. U.S. gold futures gained 0.4%
to $1,884.30.

Following last week's volatility, gold has moved above its 200-day moving
average, supported by a weaker dollar and bond yields and questions about
inflation, said independent analyst Robin Bhar.

Gold is considered a hedge against inflation.

The dollar was pinned near three-month lows, while U.S Treasury yields
stayed subdued. 

Meanwhile bitcoin rebounded slightly, but was still under pressure following
a recent crash.

Markets will be keen to hear if Fed speakers this week will stick to being
patient with policy, while awaiting data including U.S. gross domestic
product, jobless claims and durable goods on Thursday.

Rising U.S. inflationary risks have spooked markets, and minutes from the
Fed's last meeting suggested some policymakers were ready to talk about
reducing stimulus.         

But gold could be bound for a correction, with prices now in 'overbought'
territory, O'Connell added. Elsewhere, palladium was little changed at
$2,782.43 per ounce, silver gained 0.8% to $27.74, and platinum rose 0.5% to
$1,172.45.

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
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