Bulls n Bears Daily Market Commentary : 15 November 2021

Tue Nov 16 06:28:24 CAT 2021

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Bulls n Bears Daily Market Commentary : 15 November 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE closed today's session with marginal losses across the board despite
the increase in liquidity from Simbisa and Delta. Activity levels were below
recent average at 361 trades. Econet was the most active stock at 28 trades
followed by OK Zimbabwe and Star Africa at 27 and 26 trades respectively.
Investor sentiment was positive after the session yielded 18 risers against
14 fallers while three of the active stocks remained unchanged. First
Capital Bank anchored volume aggregate trading 7 029 700 shares and Simbisa
anchored value aggregate with a value of ZW$372.38 million contributing
72.48% to total turnover.

The All-Share Index shaded 0.53% to 12 376.10 points. The Top 10 Index lost
0.91%. The Top 15 Index also shaded 0.54%. The Medium Cap Index was up by
0.47% to 21 779.39 points whilst the Small Cap Index shaded 0.22% to 397
450.47points. Leading the risers pack of the day was Turnall Holdings adding
10.00% and First Mutual Holdings up by 8.67%. FBC Holdings gained 6.25% and
Medtech Holdings gained 3.95% to 18.96c. OK Zimbabwe was up by 3.22%.
Mitigating the gains were losses in NMB Holdings and Meikles which shaded
14.29% and 9.84% respectively. Mashonaland Holdings was down by 4.61% to
400.63c. Zimplow Holdings and CBZ Holdings pared 3.60% and 3.00%
respectively. The Old Mutual Top Ten ETF closed at 499.32c up by 1.57% after
15 455 units were traded worth ZW$77 169.50 in 24 trades. On the VFEX,
Padenga traded 1 300 shares worth US$253.50 to close 0.41% down at US 19.50
cents.wealthaccess

Global Currencies & Equity Markets

Nigeria

Nigeria's E-Naira Lures About Half a Million People Weeks After Its Launch

Nigerian central bank's digital currency has lured about half a million
users three weeks after it was introduced in a move to entice people away
from crypto currencies.

Adoption rate for the Central Bank of Nigeria digital currency called eNaira
"has been excellent," according to Osita Nwanisobi, spokesman for the
Abuja-based lender. More than 488,000 people have downloaded the consumer
wallet -- that's needed to transact eNaira -- while about 78,000 merchants
from more than 160 countries have enrolled, Nwanisobi said by phone. 

South Africa

Rand trades flat overnight against the US dollar

The rand retained positive sentiment as budget optimism carried through to
Friday's session to counter dollar strength as rate hike bets rose after
last week's above-expectations inflation print, according to Oxford
Economics Africa.

US Fed funds futures are now pricing in nearly three full rate hikes priced
in by the end of next year, up from two at the start of the week. Strong
demand and constrained supply will drive inflation higher in early 2022,
which could lead the Fed to raise rates earlier than our December 2022
forecast. If inflation continues to outstrip expectations, the Fed might
also accelerate its QE tapering, but for now, we foresee consistent tapering
through mid-2022.

At the close of local trade on Friday, the rand ended at R15.30/$, after
trading in a range of R15.23/$ - R15.37/$. The rand traded flat overnight.
The expected range of the rand against the dollar today is R15.20/$ -
R15.50/$.

South African bourse

The JSE All Share (+1.14 percent) ended higher on Friday as investors
remained optimistic following the medium-term budget policy statement
revealed on Thursday. The local bourse was boosted by gains in Technology
(+4.36 percent) and Industrials (+3.37 percent), offsetting losses recorded
in the Telecommunication (-1.89 percent) and Financials (-1.13 percent)
indices.

Brent crude oil

The Brent oil price traded lower for most of Friday as the US dollar
strengthened, with investors expecting the Fed to increase interest rates
sooner in order to stem the uptick in inflation. By the close of local trade
on Friday, the Brent oil price stood at $82.26/pb. Crude prices traded lower
during Asian trade this morning.

BUSINESS REPORT ONLINE

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar hits 16-month high as investors await fresh data

The safe-haven dollar hit a 16-month high against a basket of major peers on
Monday, fueled by global growth and inflation concerns, as investors looked
forward to fresh data this week on the state of the U.S. consumer.

The dollar was boosted on Wednesday by data that showed U.S. consumer prices
rose last month at the fastest annual pace since 1990, casting doubt on the
Federal Reserve's view that price pressures will be transitory and fueling
speculation that interest rates will be lifted sooner than previously
thought. 

The dollar index, which measures the currency against six peers, hit 95.287
on Monday, its highest since July 2020, and was last up 0.14% at 95.266.

Demand for the greenback had softened on Friday, when a report showed
consumer sentiment dropped to its lowest in a decade, due in part to the
surge in inflation, but firmed again on Monday after central bankers in
Europe and the United Kingdom voiced growth and pricing concerns.

Investors will look to U.S. retail sales data on Tuesday for clues as to
where the dollar may be headed next. The data are expected to show retail
sales rose 1.1% last month, according to a Reuters poll.

Gains in the heavily euro-weighted dollar index have also been helped by a
decline in the single currency, with European Central Bank President
Christine Lagarde continuing to push back on market bets for tighter policy.

Supply-chain bottlenecks and soaring energy costs are slowing euro zone
growth and will keep inflation high for longer than had been thought,
Lagarde told the European Parliament's committee on economic affairs on
Monday. Euro zone inflation will ease next year, she said.

Lagarde "reiterating the dovish outlook of policy makers" kept the euro in
check, said Jane Foley, head of FX Strategy at Rabobank London.

The euro hit a 16-month low against the greenback, and was last down 0.29%
at $1.1409.

Versus the Swiss franc , the euro slid to its weakest level in 18 months,
and was last down 0.15% at 1.05235.

Interest in the euro/Swiss franc cross has grown sharply, said Simon Harvey,
senior FX market analyst at Monex Europe, "because the Swiss franc is a
natural hedge against inflation".

Swiss National Bank (SNB) governing board member Andrea Maechler said modest
Swiss inflation, at an annual rate of around 1.2%, was capping the franc's
rise. But she reiterated the SNB's commitment to currency market
interventions designed to limit, if needed, the effect that the Swiss
franc's strength has on Switzerland's export-orientated economy. 

In Britain, the pound rose 0.18% to $1.3435, ahead of a data-heavy week with
employment, inflation and retail sales numbers expected to provide clues
about whether the Bank of England will raise rates in December, as expected
by markets . On Friday, sterling touched its lowest level this year versus
the dollar. 

Investors will also be watching any comments at a virtual summit between
President Joe Biden and Chinese leader Xi Jinping on Monday.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper price down on fears of slowdown in China

The copper price fell on Monday as economic data in China showed
unexpectedly strong industrial output but weakness in the property sector.

Copper for delivery in December was down 0.6% on the Comex market in New
York, touching $4.42 per pound ($9,724 per tonne).

China's production of 10 nonferrous metals - including copper, aluminum,
lead, zinc and nickel - was 5.26 million tonnes in October, up 0.5% from
September but down 2.6% year-on-year, the statistics bureau said.

The Chinese property market, accounting for a quarter of gross domestic
product by some metrics, has slowed sharply since May.

Prices of new homes dropped 0.2% on average last month from September,
according to Reuters calculations of data released by the National Bureau of
Statistics (NBS) on Monday, the first decline since March 2015. In the
resale market, prices slumped in all but six of the 70 major cities tracked
by the bureau.

On the supply side, new construction starts plunged 33.14% on year in
October, extending the 13.54% fall in September, while overall investment by
developers in projects dropped 5.4%, deepening from the 3.5% decline a month
earlier, Reuters calculations of the NBS data showed.

Fears of a slowdown in China are overblown with the government likely to act
if needed to support growth, said Commerzbank analyst Daniel Briesemann.

He said copper should rally strongly later in the decade as demand increases
and supply runs short. "The copper market will head into a structural
deficit in the next few years but not in the next few months," he
said.-Reuters

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
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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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