Bulls n Bears Daily Market Commentary : 22 November 2021

Mon Nov 22 16:49:32 CAT 2021

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Bulls n Bears Daily Market Commentary : 22 November 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE closed in the red in a dull session with losses being headlined by
heavyweight counters. Activity levels were at 371 trades. Star Africa and
Delta were the most active stocks at 25 trades and 24 trades respectively.
Investor sentiment was negative after the session yielded 25 decliners
against 11 risers while two of the active stocks remained unchanged. Star
Africa anchored volume aggregate trading 350 900 shares and National Foods
anchored value aggregate with a value of ZW$46.9 million. 

The benchmark All-Share Index shaded 1.09% to close at 11 518.12 points. The
Top 10 Index lost 1.87%. The Top 15 Index also shaded 1.55%. The Medium Cap
Index was up by 1.04% to 21 607.37 points whilst the Small Cap Index pared
0.60% to 393 197.38 points. Leading the shakers pack of the day was National
Foods shading 6.66% and Bindura down by 5.16%. First Mutual Holdings pared
4.17% and CFI Holdings lost 3.92% to 7 206c. General Beltings was down by
3.59%. Mitigating the losses were gains in Medtech Holdings which recently
undergo a share consolidation which added 319.72% to 104.93c. Ariston
Holdings was up by 15.54% to 395.15c. Fidelity and TSL  added 12.50% and
7.69% respectively. The Old Mutual Top Ten ETF closed at 528.92c up by 3.92%
after 13 339 units were traded worth ZW$70 553 in 25 trades..-wealthaccess

Global Currencies & Equity Markets

South Africa

South Africa's rand steadies against stronger dollar

(Reuters) - South Africa's rand steadied early on Monday, trading close to a
one-year low as a stronger dollar and concerns of rising coronavirus cases
weighed on sentiment.

At 0645 GMT, the rand traded at 15.7100 against the dollar, largely
unchanged from its previous close, when it fell to its weakest since
November 2020.

The currency continued to take its cue from swings in global market
sentiment, and was largely unmoved by news that rating agencies S&P and
Moody's opted not to release reviews on South African debt on Friday.

S&P currently has South Africa's long-term foreign-currency rating on BB-
and the long-term local-currency rating on BB, with a stable outlook, while
Moody's has South African debt at Ba2 with a negative outlook.

The dollar got support amid growing anxiety over the impact of surging
COVID-19 infections in Europe, with Austria reimposing a full lockdown and
Germany considering following suit. read more

Government bonds weakened in early deals, with the yield on 2030 maturity up
3.5 basis points to 9.515%.

The Thomson Reuters Trust Principles.

Nigeria

Naira hits strong at parallel market

The naira was trading at N545 to the dollar on the parallel  market at the
weekend, maintaining its strongest level since early September 2021. The
local currency exchanges at N411.59 to the dollar at the official market.

The naira stability was triggered by drop in dollar demand by importers and
other forex users who are going for substitutes for importee products and
raw materials.

The Nigeria's foreign exchange reserves declined to $41.5 billion this week,
a drop of around $100 million, according to the Central Bank's 30-day moving
average benchmark.

Trading Desk Manager, AZA, global forex dealer, Murega Mungai, said
inflation also fell for a seventh consecutive month, with prices rising by
15.99 per cent in October compared to 16.63 per cent a month earlier, driven
lower by falling food costs.

Responding to the naira position, the International Monetary Fund(IMF),
welcomed steps taken toward unification of the exchange rate and stressed
the need for further actions.

 <mailto:info at bulls.co.zw> 

Global Markets

US dollar extend gains

The US dollar rally continued on Friday after Austria announced a full
national lockdown due to spiralling Covid-19 cases. Fears that new virus
restrictions across the Eurozone would derail its recovery saw the US dollar
rise against the euro, but it was also evident that haven-related buying
also boosted the greenback generally. The dollar index rose 0.57% to 96.06,
edging higher to 96.11 in Asia.

The deteriorating risk sentiment weighed on the Australian and New Zealand
dollars, which gave up over 0.60% to 0.7250 and 0.7000 respectively. With
commodity prices also softening still, AUD/USD is likely to remain under
pressure with a failure of 0.7220 opening further falls to 0.7150 initially.
NZD/USD may find some support ahead of Retail Sales data and the RBNZ policy
decision on Wednesday, With 0.25% priced in, if the RBNZ does not go 0.50%,
NZD/USD could fall below 0.6900 this week.

USD/JPY is trading at 114.00 this morning and looks to have settled into a
113.50 to 115.00 trading range for now. Haven buying will support the yen,
limiting USD/JPY gains unless long-dated US yields start moving higher
across the curve again. With anti-lockdown riots sweeping Europe over the
weekend, the environment for the single currency is challenging, without
also pricing in a potential economic slowdown because of them. EUR/USD could
test 1.1160 this week and that in turn sets up a potential retest of 1.1000.
GBP/USD continues to find support due to its more impressive data of late
but will remain guilty by geographic association with the euro. GBP/USD is
steady at 1.3445 today and looks likely to trade in a choppy 1.3400 to
1.3500 range through the start of the week.

The US dollar strength story has been confirmed mostly to the G-10 space so
far with Asian currencies remaining firm, mostly due to a constantly
appreciating Chinese yuan. The PBOC set a weaker yuan fixing this morning,
and noises were made from China officials over the weekend about speculation
in the yuan by banks, which means buying yuan. Taken together, it seems that
the PBOC may have felt yuan strength had gone far enough for now and thus
regional Asian currencies are likely to struggle this week. I expect them to
cautiously mark time for now unless the yuan weakens rapidly, which is
unlikely, or US data does not impress this week. Any signs of a slowing in
the US would be the catalyst for further Asian FX weakness, as would more
Fed officials jumping on the Fed Vice-Chairman's faster taper narrative.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold pressured by stronger dollar, faster Fed taper bets

Gold eased on Monday, hovering near a two-week low, weighed down by a firmer
dollar and expectations that rising inflation might push the Federal Reserve
to accelerate its monetary policy tightening.

Spot gold fell 0.2% to $1,841.20 per ounce, after hitting its lowest since
Nov. 10 at $1,836.00. U.S. gold futures eased 0.6% to $1,841.30.

A break below $1,830 could open gold up to the risk of a return to $1,800,
Hansen added.

Fed policymakers are debating whether to withdraw support more quickly to
deal with inflation, with one of its most influential officials signaling
that the idea will be on the table at their December meeting.

The U.S. economy's resilience has also benefited the dollar and fueled
speculation the Fed might go faster with tapering, CMC Markets UK analyst
Michael Hewson said in a note.

A stronger dollar makes bullion expensive for overseas buyers, while higher
rates translate into increased opportunity cost of holding non-yielding
gold.

Investors also kept tabs on U.S. President Joe Biden's appointment of a new
Fed Chair and the return of COVID-19 restrictions in parts of Europe.

Elsewhere, spot silver rose 0.6% to $24.72 per ounce, platinum edged 0.2%
higher to $1,033.13, while palladium fell 0.9% to $2,042.62.

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
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