Bulls n Bears Daily Market Commentary : 11 November 2021

Thu Nov 11 16:47:41 CAT 2021

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Bulls n Bears Daily Market Commentary : 11 November 2021

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ZSE commentary

The ZSE rose convincingly in today's session supported by select heavyweight
gains. Activity levels remained below average at 410 trades. First Capital
Bank was the most active stock at 42 trades followed by Cassava at 32 trades
while Innscor and Delta were at 28 trades each. Investor sentiment was mixed
but skewed to the positive after the session yielded 20 risers against 10
fallers while three of the active stocks remained unchanged. First Capital
Bank anchored volume aggregate trading 10 836 800 shares and Delta anchored
value aggregate with a value of ZW$144.26 million contributing 37.82% to
total turnover.

The All-Share Index added 1.45% to 12 451.76 points. The Top 10 Index added
2.57%. The Top 15 Index also added 2.39%. The Medium Cap Index was down by
1.58% to 21 662.66 points whilst the Small Cap Index added 0.51% to 384
669.56 points. Leading the risers pack of the day was Medtech Holdings
adding 18.23% and Art Corporation up by 13.83%. Delta gained 7.90% after it
released strong half year results yesterday and Edgars gained 7.60% to 538c.
CBZ Holdings was up by 5.11%. Mitigating the gains were losses in TSL and
Turnall which shaded 20.00% and 15.43% respectively. NMB Bank was down by
12.42% to 1226.09c. Rio Zimbabwe and Ariston Holdings pared 7.68% and 4.85%
respectively. The Old Mutual Top Ten ETF closed at 475.24c up by 0.57% after
210 554 units were traded worth ZW$1 000 642.50 in 20 trades..-wealthaccess

Global Currencies & Equity Markets

South Africa

Dollar rockets to 16-month highs after hot U.S. inflation; euro sinks

(Reuters) - The dollar rose to 16-month highs against the euro and other
currencies on Thursday, and the yen fell back towards multi-year lows, after
the hottest U.S. inflation reading in a generation encouraged bets on
interest rate hikes.

U.S. consumer prices grew last month at their fastest annual pace since
1990, data showed, and traders think the Federal Reserve could respond by
lifting interest rates faster than in Europe or Japan. read more

The euro dropped as the European Central Bank is seen lagging on policy
tightening. It slipped to $1.1454 on Thursday, its lowest since July 2020.

Sterling was also down at a new 11-month low of $1.3365. Data showing
Britain's economy lagging rivals in the July-September period did little to
help. read more

The yen extended a sharp reversal of recent gains to fall to 114.15 per
dollar - close to the Japanese currency's four-year low of 114.69 reached
last month. The Australian and New Zealand dollars recorded one-month
troughs.

Against a basket of currencies, the dollar rose to as high as 95.101, its
strongest since July 2020.

U.S. government bond yields have risen sharply, including the 30-year
Treasury yield passing 1.5% .

After the surge in Treasury yields, which rise when bond prices fall, the
difference between five-year U.S. yields and yields at the same tenor in
Japan and Germany is wider - in favour of Treasuries - than at any time
since early 2020.

Emerging market (EM) currencies have also suffered from the dollar's broad
rise, with MSCI's EM currencies index (.MIEM00000CUS) suffering its sharpest
drop in two months.

The Australian and New Zealand dollars slipped, pulled lower by the jump in
the U.S. dollar. The Aussie fell half a percent to a one-month low of
$0.7287 and the Kiwi dropped 0.6% to $0.7013.

Elsewhere, Turkey's lira tumbled to a new record low of 9.97 to the dollar
after the U.S. inflation reading and as expectations grow Turkey will cut
rates again soon. 

Our Standards: The Thomson Reuters Trust Principles.

Nigeria

Speculators lose billions as naira appreciates, exchanges for 540/$

The naira has appreciated further in the parallel market as the dollar was
sold for N540 on Wednesday, with traders saying speculators hoarding dollars
would be losing a lot of money.

The dollar, which was bought and sold for N578 and N580 as of the end of
September, was bought and sold for N540 and N543 at the parallel market on
Wednesday.

Several Bureau de Change operators who spoke to our correspondent said the
demand for foreign exchange was not high.

At the Investor & Exporter forex window, the naira appreciated by 0.8 per
cent to close at N414.73 on Wednesday, although it fell to a low of N444
during the day.

The Central Bank of Nigeria, however, maintained the official rate at
N411.37 on its website.

As part of efforts to tame the free fall of the naira in recent months, the
CBN stopped the sales of forex to the BDCs.

The CBN said the BDCs had turned themselves into "agents that facilitate
graft and corrupt activities of people who seek illicit fund flow and money
laundering in Nigeria".

It also clamped down on abokiFX after accusing the website and its owner of
manipulating the currency to sabotage the economy.

At the last Monetary Policy Committee meeting in Abuja, the committee urged
the CBN to take further steps to restrict the activities of unauthorised and
illegal dealers in the forex market.

It said all forex transactions must be conducted at the I&E window to ensure
transparency and stability.

The committee called on the CBN to intensify surveillance over forex sales
and utilisation by commercial banks and customers, to ensure that operators
adhere to stipulated guidelines set by the CBN.

The apex bank maintained its resolve to continue to restructure the forex
market and pursue all the policies targeted at sanitising the market to
improve transparency and proper functioning to eliminate illegal forex
dealers in the economy.

Copyright PUNCH.

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Global Markets