Bulls n Bears Daily Market Commentary : 12 November 2021

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Bulls n Bears Daily Market Commentary : 12 November 2021

 

 	

 <mailto:info at bulls.co.zw> 

 

 	


ZSE commentary

 

 

The ZSE was near flat in today’s session with marginal losses in heavyweight counters. Activity levels were at 456 trades. Delta was the most active stock at 43 trades followed by Star Africa and Econet at 28 trades each while Innscor was at 27 trades. Investor sentiment was mixed but near flat after the session yielded 17 risers against 16 fallers while five of the active stocks remained unchanged. First Capital Bank anchored volume aggregate trading 4 744 200 shares and Delta anchored value aggregate with a value of ZW$132.57 million contributing 47.5% to total turnover. The All-Share Index shaded a paltry 0.08% to 12 442.42 points. The Top 10 Index lost 0.16%. The Top 15 Index also shaded 0.12%. The Medium Cap Index was up by a marginal 0.07% to 21 662.66 points whilst the Small Cap Index added 3.55% to 398 342.34 points.

 

Leading the risers pack of the day was NMB Holdings adding 14.18% and Zimplow up by 7.45%. CFI Holdings gained 5.56% and Art Corporation gained 3.99% to 1200c. Ariston Holdings was up by 2.99%. Mitigating the gains were losses in Lafarge Cement Zimbabwe and Simbisa Brands which shaded 6.25% and 5.56% respectively. First Mutual Properties was down by 5.16% to 901.67c. ZB Holdings and RTG pared 3.85% and 3.67% respectively. The Old Mutual Top Ten ETF closed at 491.59c up by 3.44% after 12 150 units were traded worth ZW$59 728 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.

 

 

 <mailto:info at bulls.co.zw> 

 

 

 

Global Markets

 

Dollar dips but shows biggest weekly gain in almost 3 months

(Reuters) - The U.S. dollar lost a little ground on Friday as high inflation wreaked havoc on consumer sentiment, but the greenback was on track for its biggest weekly gain in almost three months after a surprisingly strong U.S. inflation print on Wednesday prompted investors to advance their bets for a U.S rate hike.

 

The dollar turned red on Friday morning after the University of Michigan survey showed a plunge in U.S. consumer sentiment in early November to its lowest level in a decade as surging inflation cut into households' living standards, with few believing policymakers are doing enough to mitigate the issue. read more

 

With short-dated U.S. Treasury yields edging higher -- five-year bond yields rose to a February 2020 high -- investors were ramping up bets this week that the Federal Reserve will have to raise interest rates sooner than expected.

 

Against a basket of its rivals, at 1517 EST (2017 GMT) the dollar index was down 0.04% at 95.116 after falling as low as 94.991 in response to consumer sentiment. Earlier in the session it had risen to its highest level since July 2020.

 

The dollar was down 0.14% at 113.915 yen after falling as low as 113.77.

 

Currency markets have been shaken up since Wednesday when data showed a broad-based rise in U.S. consumer prices last month at the fastest annual pace since 1990, casting doubts on the Fed's stance that price pressure will be transitory.

 

But while Friday's survey raised some eyebrows, strategists were bullish on the dollar, which was boasting its biggest weekly percentage gain since the week ending Aug. 22.

 

While the closure of bond markets on Thursday interrupted the flow of the market this week, still "the focus is clearly on inflation" according to Osborne, who says this "should mean that the US dollar stays relatively well supported."

 

The renewed strength in the dollar earlier during the week injected fresh life into the moribund currency volatility markets, as traders have scrambled to buy options to protect themselves against further dollar strength. A currency volatility index (.DBCVIX) hit a fresh six-month high on Friday.

 

Markets were pricing a first rate increase by July and a high likelihood of another by November. CME data is assigning a 50% probability of a rate hike by then, compared with less than 30% a month earlier.

 

The euro was down 0.06% at $1.1443 after falling earlier to an almost 16-month low at $1.1433.

 

Investors have become increasingly bearish on the outlook for the single currency as the European Central Bank appears unlikely to change its extremely dovish policy settings in the near term against the backdrop of a slowing economy.

 

Sterling bulls received a slight reprieve on Friday as GBP/USD rebounded after hitting a fresh 2021 low, though the rise may only offer temporary solace as technical and fundamental factors pointed to further declines.

 

Stering was last up 0.39% against the dollar. It had gained ground in late morning as the dollar weakened and after the European Union said it was committed to coming to an agreement with the UK regarding Northern Ireland.

 

The risk-sensitive Australian dollar was up 0.53% at $0.733 after earlier sinking as low as $0.7277 for the first time in more than a month.

 

In cryptocurrencies, bitcoin was down 1% at $64,104.89 after briefly hitting a record high of $69,000 earlier in the week.

    

 

 <mailto:info at bulls.co.zw> 

 

 

 

 

Commodities Markets



Gold price near 9-month high. Should you buy precious metal now?

Due to rising global inflation and dovish Fed outlook, Gold prices on MCX have crossed  ₹49,000 per 10-gram mark while the silver price is trading above 67,000 per kg, commodity experts said. 

 

Gold price may go up to ₹50,000 to ₹51,000 per 10 gm by the end of this year while silver price is expected to hit ₹72,000 to ₹74,000 per kg on MCX, market experts believe. After sustaining above ₹49,000 per 10 gm levels on MCX (Multi Commodity Exchange), gold price on Thursday hit 9-month highs of ₹49,292. The appreciation in the yellow metal price continued further as the precious bullion metal closed at ₹49,346 per 10 gm, logging 0.26 per cent intraday gain on Friday. Silver price too went up 0.27 per cent and closed at ₹67,148 per kg on MCX.

 

 

According to commodity market experts, rally in gold and silver prices are expected to continue till year end. They said that rising global inflation and industrial consumption of gold and silver is going to remain for next few months more and hence both these bullion metals are expected to showcase sharp upside move till 2021 end. They said that gold price may go up to ₹51,000 per 10 gm on MCX while silver price may hit ₹72,000 to ₹74,000 per kg by the end of this year.

 

 

Oil prices post third weekly drop after volatile week

(Reuters) - Oil prices fell on Friday, wiping out gains from the previous session, on worries that the U.S. Federal Reserve will accelerate plans to boost interest rates to tame inflation.

 

Brent crude futures fell 70 cents, or 0.8%, to settle at $82.17 a barrel. U.S. West Texas Intermediate (WTI) crude fell 80 cents, or 1%, to settle at $80.79 a barrel.

 

Both benchmarks fell for a third consecutive week, hit by a strengthening dollar and speculation that President Joe Biden's administration might release oil from the U.S. Strategic Petroleum Reserve to cool prices. On a weekly basis, Brent fell 0.7%, while WTI declined 0.6%.

 

U.S. Energy Secretary Jennifer Granholm said on Monday that Biden could act as soon as this week to address soaring gasoline prices. read more

 

 

U.S. energy firms this week added oil and natural gas rigs for a third week in a row. The oil and gas rig count, an early indicator of future output, rose six to 556 in the week to Nov. 12, its highest level since April 2020, energy services firm Baker Hughes Co (BKR.N) said on Friday. read more

 

Russia's Rosneft (ROSN.MM) the world's second-biggest oil company by output after Saudi Aramco, warned on Friday of a potential "super cycle" in global energy markets, raising the prospect of even higher prices as demand outstrips supply. read more

 

Still, though there are positive signs on the demand side, with air travel picking up rapidly, tighter monetary and fiscal policy and the looming Northern Hemisphere winter will act as a dampener.

 

The Organization of the Petroleum Exporting Countries (OPEC) on Thursday cut its world oil demand forecast for the fourth quarter by 330,000 barrels per day (bpd) from last month's forecast as high energy prices hampered economic recovery from the COVID-19 pandemic. read more

 

OPEC, Russia and allies, together known as OPEC+, agreed last week to stick to plans to add 400,000 bpd to the market each month.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 


 

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!

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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