Bulls n Bears Daily Market Commentary : 16 November 2021

Tue Nov 16 19:34:55 CAT 2021

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:bulls at bulls.co.zw> Views & Comments
<http://www.bullszimbabwe.com> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 16 November 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE continues to inch down for the second day this week in sluggish
trades as investors continued to choose discretion over valor as they await
new policy signals from government. Activity levels were below recent
average at 366 trades. Delta was the most active stock at 48 trades followed
by OK Zimbabwe and Star Africa at 31 and 24 trades respectively. Investor
sentiment was negative after the session yielded 20 decliners against 10
risers while seven of the active stocks remained unchanged. Delta anchored
both volume and value aggregate trading 921 900 shares with a value of
ZW$167.4 million contributing 62.68% to total turnover.

The All-Share Index shaded 0.37% to close at 12 330.22 points. The Top 10
Index lost 0.52%. The Top 15 Index also shaded 0.48%. The Medium Cap Index
was up by a paltry 0.02% to 21 784.07 points whilst the Small Cap Index
shaded a marginal 0.02% to 397 388.42 points. Leading the risers pack of the
day was CBZ Holdings adding 13.45% and Get Bucks Microfinance Bank up by
8.89%. Cassava gained 4.36% and ZB Holdings gained 2.67% to 7700c. Seed Co
was up by 2.07%. Mitigating the gains were losses in Art Corporation and
Delta Corporation which shaded 8.33% and 5.93% respectively. Innscor  was
down by 2.71% to 19 071.23c. OK Zimbabwe and Nampak pared 2.06% and 1.79%
respectively. The Old Mutual Top Ten ETF closed at 499.99c up by 0.13% after
38 040 units were traded worth ZW$190 196 in 22 trades. wealthaccess

Global Currencies & Equity Markets

South Africa

Rand trades firmer ahead of SA Reserve Bank monetary policy meeting

The rand was firm in early trade on Tuesday, holding on to gains made in the
previous session, as traders awaited the South African Reserve Bank's
monetary policy decision due later in the week.

At 06.15 GMT, the rand traded 15.2350 against the dollar, 0.1 percent firmer
than its close on Monday when the currency was buoyed by improving global
sentiment as upbeat Chinese economic data eased concerns about a slowdown in
the world's second-largest economy.

Investors are awaiting domestic inflation data, due alongside retail sales
data on Wednesday, and the South African Reserve Bank's (SARB) monetary
policy committee meeting.

"The market focus remains on the SARB MPC, although there does not appear to
be a consensus view yet on any action from the central bank," Nedbank
analysts said in a note.

The central bank starts its three-day monetary policy committee meeting
later in the day, with the decision on interest rates due on Thursday.

The SARB slashed its repo rate by 300 basis points last year to a record low
as the economy battled the coronavirus crisis. However, inflation has
accelerated since July's 4.6 percent year-on-year, to 5 percent in
September.

A Reuters poll found 13 of 20 economists surveyed between November 10 and12
said the repo rate would be kept unchanged at 3.50 percent, while the other
seven predicted a hike of 25 basis points.

But in an extra question answered by 12 economists, a median of responses
suggested there was an almost 50 percent chance the SARB would hike interest
rates at this meeting.

REUTERS

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar dominates as inflation heats up

(Reuters) - Surging inflation and expectations of a potentially more hawkish
Federal Reserve are accelerating a rally in the U.S. dollar, buoying the
currency to a near 16-month high against its peers and putting it on pace
for its biggest annual gain in six years.

On Monday the U.S. Dollar Currency Index rose 0.3% to 95.437, its highest
since July 2020.

The dollar index has rallied after hitting a multi-year low in early January

The dollar index has rallied after hitting a multi-year low in early January

A number of banks including HSBC, Citi and JPMorgan have in recent days
forecast more gains for the greenback, as Wall Street gauges whether rising
inflation will push the Fed to speed up the unwind of its bond-buying
program and raise rates more aggressively than expected.

Here is a look at some factors driving the dollar's rally.

Inflation has run hotter than expected in recent months, bolstering the
argument that the Fed will have to act more aggressively to tame rising
consumer prices. Higher U.S. rates tend to make some dollar-denominated
assets, like Treasuries, more attractive to yield-seeking investors.

The U.S. Dollar Currency Index jumped nearly 1% last Wednesday, its largest
one-day move in nearly five months, after data showed U.S. consumer prices
posted their biggest annual gain in 31 years last month. read more

"The dollar may be in the early stages of an uptrend if higher inflation
should prompt the Fed to retire its bond buying program and raise interest
rates ahead of current market expectations," said Joe Manimbo, senior market
analyst at Western Union Business Solutions.

The U.S. dollar index has appreciated at the start of the last four of the
Fed's hiking cycles, with a mean gain of 3.1% in the first seven months,
economists at Citi noted in a recent report. The bank expects the Fed to
speed up the unwind of its $120 billion a month bond buying program in
January as inflation pressures mount.

UBS Global Wealth Management analysts, meanwhile, believe a comparatively
more hawkish monetary policy from the Fed could push the euro to $1.10 by
the end of 2022, from $1.14 on Monday.

Net bullish positions on the dollar in futures markets have edged lower in
recent weeks, though at $19.51 billion they still remain near recent highs
after flipping from bearish in mid-July, according to calculations by
Reuters and U.S. Commodity Futures Trading Commission data released on Nov.
5.

BofA Global Research's Bull-Bear Index for exposure and view, which tracks
fund managers' responses on FX surveys, recently stood close to its highest
level since December 2016, indicating bullishness on the U.S. currency.

The index, which moderated slightly recently, is likely to have readjusted
after the latest inflation data, BofA Global Research strategists said in a
note last week.

"Positioning is not stretched here, but has unwound the 2020 shorts," the
strategists wrote.

EMERGING MARKETS

A strong dollar can be particularly troublesome for emerging markets, making
it more expensive for developing countries to pay down debt denominated in
the U.S. currency.

The dollar is up 35% against the Turkish lira this year and has gained 5%
against the Brazilian real. The MSCI Emerging Market Currency Index
(.MIEM00000CUS) is up 0.9%, on pace for its smallest annual gain in three
years.

On Monday, the lira touched a fresh all-time low against the dollar as
concerns of another rate cut from the central bank this week continued to
weigh on the currency.

"The Fed is starting to tighten monetary policy, worries around China and
the pandemic persist, and many emerging markets won't be able to keep up
with the sound growth outlook for developed markets," Tilmann Kolb, analyst
at UBS Global Wealth Management said in a note last week. "We think this
means more weakness against the U.S. dollar."

Inflation fears have raised the allure of other assets, including oil, metal
and other raw materials. Some analysts believe they have also contributed to
the recent rise in bitcoin, which hit a fresh record earlier this month. The
world's largest cryptocurrency by market capitalization is up 120% in 2021.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold gains as inflation fears overshadow firmer dollar, yields

(Reuters) - Gold prices gained on Tuesday, with worries over more persistent
inflation keeping bullion's appeal as a hedge against higher prices intact,
despite a stronger U.S. dollar and elevated bond yields.

Spot gold rose 0.2% to $1,865.81 per ounce by 0652 GMT. U.S. gold futures
were up 0.1% to $1,868.40.

Gold prices have rallied 1.7% since last Wednesday's surge in U.S. consumer
prices last month, even as the dollar hit a 16-month high and 10-year
Treasury yields moved higher.

A stronger dollar makes gold more expensive for buyers holding other
currencies, while higher yields increase the metal's opportunity cost.

Investors now eye U.S. retail sales data due at 1330 GMT which follows last
week's weak consumer sentiment reading.

Richmond Federal Reserve President Thomas Barkin said on Monday that while
the Fed will not hesitate to raise interest rates, the central bank should
wait to gauge if inflation and labor shortages prove to be more
long-lasting.

Rate hikes tend to weigh on gold, as higher interest rates raise the
non-yielding metal's opportunity cost.

Elsewhere, spot silver rose 0.1% to $25.06 per ounce. Platinum fell 0.2% to
$1,085.28 and palladium dropped 0.9% to $2,133.89.

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 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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.

(c) 2021 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20211116/6f99626b/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20211116/6f99626b/attachment-0002.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 22328 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20211116/6f99626b/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 107064 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20211116/6f99626b/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20211116/6f99626b/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20211116/6f99626b/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65550 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20211116/6f99626b/attachment-0001.obj>