Bulls n Bears Daily Market Commentary : 02 November 2021

Tue Nov 2 16:38:20 CAT 2021

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Bulls n Bears Daily Market Commentary : 02 November 2021

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ZSE commentary

The ZSE closed in the positive headlined by small cap stocks although they
contributed little to total turnover. Activity levels improved to 422
trades. Delta was the most active stock at 63 trades followed by Econet and
Innscor at 48 and 44 trades respectively. Market bias was positive as 18
stocks advanced against 12 decliners while four of the active stocks
remained unchanged. Innscor anchored both volume and value aggregate trading
901 400 shares with a value of ZW$154.3 million contributing 45.5% to total
turnover.

The All-Share Index closed 0.97% higher at 11 604.88 points. The Top 10
Index added 0.72%. The Top 15 Index also added 0.61%. The Medium Cap Index
added 1.58% to 22 441.63 points whilst the Small Cap Index also added 2.79%
to 356 349.28 points. Leading the risers pack of the day was Zimpapers
adding margin up 20.00% and TSL up by 19.57%. The nickel giant Bindura
gained 16.00% and African Distillers gained 9.65% to 10970c. NMB Holdings
was up by 7.69%. Mitigating the gains were losses in Mashonaland Holdings
and Star Africa which shaded 10.79% and 5.33% respectively. Unifreight was
down by 4.11% to 3500c. Zimre Holdings and Wildale pared 3.33% and 2.23%
respectively. The Old Mutual Top Ten ETF closed at 463.13c up by 2.65% after
18 463 units were traded worth ZW$85 507.10 in 32 trades..-wealthaccess

Global Currencies & Equity Markets

South Africa

Rand slips against the dollar

JOHANNESBURG - The rand continues to weaken against the US dollar.

Analysts say while much of the weakening is due to international events,
power cuts are not helping investor sentiment.

The local currency is now hovering around R15.50 to the US dollar.

Interest rate decisions are due to be taken in many developed countries,
including the US.

Higher rates in those countries often drain capital away from riskier
emerging markets, such as South Africa.

The rand is also dipping because of lower prices for commodities that South
Africa exports.

A weaker rand increases import prices and puts pressure on the fuel price.

Source

eNCA

Nigeria

Naira gains at official FX market as foreign reserve records first decline
in over 2 months

Monday, 1st November 2021: The exchange rate between the naira and the US
dollar closed at N414.98/$1, at the official Investors and Exporters window.
Naira gained against the US dollar to close at N414.98/$1, Monday 1st
November 2021, representing a 0.03% appreciation compared to N415.1/$1
recorded at the close of trading activities on Friday.

On the other hand, naira depreciated against the US dollar at the parallel
market on Monday by 0.88% to close at N570/$1 compared to N565/$1 recorded
as of the close of trading activities on Friday, 29th October 2021. This is
according to information obtained by Nairametrics from BDC operators in
Lagos.

Meanwhile, Nigeria's foreign reserve recorded the first decline in over 2
months to close at $41.82 billion on Friday, 29th October 2021, representing
an $8.8 million drop in the reserve position. The nation's forex reserve
decreased marginally by 0.02% on Friday from $41.828 billion recorded as of
the previous day.

 <mailto:info at bulls.co.zw> 

Global Markets

Indian Rupee gains 19 paise to end at 74.68 against US dollar

The dollar index, which gauges the greenback's strength against a basket of
six currencies, advanced 0.06 per cent to 93.94

The rupee gained 19 paise to close at 74.68 (provisional) against the US
dollar on Tuesday, as IPO related inflows supported the local unit amid a
lacklustre trend in the domestic equity market.

At the interbank forex market, the domestic unit opened at 74.83 against the
greenback and witnessed an intra-day high of 74.66 and a low of 74.86 during
the day's trade. It finally ended at 74.68 a dollar.

On Monday, the rupee had settled at 74.87 against the US dollar.

The dollar index, which gauges the greenback's strength against a basket of
six currencies, advanced 0.06 per cent to 93.94.

Dollar supply remained high on the back of IPOs, while traders may remain
light in holiday truncated weeks, Parmar said, adding "Spot USD/INR is
expected to trade in a tight range of 74.50 to 75".

On the domestic equity market front, the BSE Sensex fell 109.40 points or
1.18 per cent to end at 60,029.06, while the broader NSE Nifty declined
40.70 points or 0.23 per cent to 17,888.95.

Brent crude futures, the global oil benchmark, rose 0.27 per cent to USD
84.94 per barrel.

Foreign institutional investors were net sellers in the capital market on
Monday as they offloaded shares worth Rs 202.13 crore, as per exchange data.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold Prices Ease On Dollar Uptick As Fed Policy Verdict Looms

Spot gold dipped 0.1 per cent to $1,791.23 per ounce by 0406 GMT. U.S. gold
futures GCv1 dropped 0.2 per cent to $1,791.80.

Gold prices eased on Tuesday, hurt by an uptick in the dollar as investors
await a policy meeting of the U.S. central bank for clues to how it will
fight growing inflationary pressures and worries over weaker economic
growth.

Spot gold dipped 0.1 per cent to $1,791.23 per ounce by 0406 GMT. U.S. gold
futures GCv1 dropped 0.2 per cent to $1,791.80.

The dollar index edged up 0.1 per cent after declining 0.3 per cent on
Monday, making gold less appealing to buyers holding other currencies.

Stephen Innes, managing partner at SPI Asset Management, expects gold to
remain pressured in an environment of central bank tightening, with the Fed
most likely to announce the start of stimulus tapering in Wednesday's
meeting.

Elevated price and wage increases may challenge the Fed as they try to
strike a balance between containing inflation and supporting a recovery in
jobs lost since the pandemic. 

Benchmark 10-year yields have held above 1.5 per cent, but retreated from
the multi-month highs of around 1.7 per cent hit last month.

Innes said central banks were unlikely to start an aggressive rate hike
campaign given the weaker economic data such as the Institute for Supply
Management (ISM) survey on Monday that showed U.S. manufacturing activity
had slowed last month. (Full Story)

Gold is often considered an inflation hedge, though reduced stimulus and
interest rate hikes push government bond yields up, translating into a
higher opportunity cost for holding bullion, which pays no interest.

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Focus will also be on the Bank of England policy meeting due on Thursday, as
investors weighed chances of a first interest rate hike by a major central
bank since the start of the pandemic.

Copper slides, caution prevails ahead of Fed meeting

(Reuters) - Copper prices fell on Tuesday alongside other commodities due to
caution ahead a meeting of the U.S. central bank, but worries about
shortages and historically low stocks supported sentiment.

Benchmark copper CMCU3 on the London Metal Exchange was down 0.5% at $9,506
a tonne at 1050 GMT. Prices of the metal used in the power and construction
industries have fallen 9% over the last two weeks.

US: The U.S. Federal Reserve meets on Wednesday.

Fed officials are expected to approve plans for scaling back their current
$120 billion in monthly bond purchases and phase them out completely by the
middle of next year - a first step towards higher rates next year.

Tighter policy would raise the cost of borrowing and potentially slow
growth.

It would also boost the U.S. currency which when it rises makes
dollar-priced commodities more expensive for holders of other currencies.
FRX

More worrying for consumers are cancelled warrants -- metal earmarked for
delivery -- at 74%, suggesting another 92,250 tonnes is due to leave LME
warehouses over coming days.

Concern is reflected in the high premiums for the cash over the three-month
copper contract CMCU0-2 at $338 a tonne.

This is down from levels above $1,000 on October, but it is still a
historically high number.

OTHER METALS: Aluminium CMAL3 was down 0.4% at $2,709 a tonne, zinc CMZN3
slid 1.2% to $3,317, lead CMPB3 fell 0.4% to $2,369, tin CMSN3 lost 0.5% to
$36,800 and nickel CMNI3 ceded 1.1% to $19,495.

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

National Unity Day

December 22

Christmas Day

December 25

Boxing Day

December 26

Public Holiday in lieu of Boxing Day falling on a Sunday

December 27

Counters trading under cautionary

ART

Seed co Int.

Starafrica

Medtech

Turnall

Seed co

Invest Wisely!

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