Bulls n Bears Daily Market Commentary : 25 November 2021

Fri Nov 26 05:46:09 CAT 2021

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Bulls n Bears Daily Market Commentary : 25 November 2021

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ZSE commentary

The ZSE turnover rose in today's session boosted by the Masimba transaction
but the ZSE remains significantly weak ahead of the 2022 National Budget
presentation this afternoon. Activity levels were at 386 trades. Bindura was
the most active stock at 40 trades followed by Econet and Delta 39 and 34
trades respectively. Investor sentiment was near flat after the session
yielded 15 decliners against 14 risers while three of the active stocks
remained unchanged. Masimba Holdings anchored both volume and value
aggregate trading 8 586 600 shares which represents 3.55% if its issued
shares with a value of ZW$412.16 million which is 82.26% of total turnover.
The benchmark All-Share Index shaded 1.51% to close at 10 603.20 points. The
Top 10 Index lost 2.12%. The Top 15 Index also pared 1.80%. The Medium Cap
Index was down by 0.19% to 20 952.01 points whilst the Small Cap Index added
0.89% to 391 170.27 points.

Leading the shakers pack of the day was Meikles shading 17.14% and African
Sun down by 8.36%. Mashonaland Holdings pared 6.84% and Simbisa lost 5.41%
to 8018.59c. Cassava was down by 4.58%. Mitigating the losses were gains in
Medtech B and Medtech Holdings which added 17999900% and 14.10% to 1800c and
5060c respectively. First Mutual Properties was up by 6.67% to 853.33c. Art
Corporation and Star Africa added 5.26% and 4.87% respectively. The Old
Mutual Top Ten ETF closed at 526.98c down by 2.08% after 10 739 units were
traded worth ZW$56 592.20 in 18 trades. wealthaccess

Global Currencies & Equity Markets

South Africa

South African rand rises as dollar slips, stocks fall

(Reuters) - South Africa's rand firmed slightly on Thursday, as the dollar
slipped but still traded near a 16-month high after investors bet that the
U.S. Federal Reserve will tighten monetary policy faster than its peers.

At 1500 GMT, the rand traded 0.2% firmer at 15.8600 against the dollar.

Fed minutes showed on Wednesday that various policymakers at the U.S.
central bank would be open to speeding up the taper of their bond-buying
programme and raising interest rates more quickly if high inflation held.
read more

Dollar (.DXY) moves have been one of the main drivers for the rand in recent
days, along with emerging market contagion linked to a meltdown in the
Turkish lira .

On the domestic front, data showed producer inflation (ZAPPIY=ECI) quickened
in October, providing more clues about price pressures in Africa's most
industrialised economy.

Last week, the South African Reserve Bank raised rates for the first time in
three years in response to broadening inflationary risks, but that has done
little to buttress the rand, which is down roughly 4% against the dollar
this month.

The yield on the government's benchmark 2030 bond was down 3 basis points to
9.725%.

Shares on the Johannesburg Stock Exchange (JSE) slipped, though the fall was
limited, despite strong global markets, as a new coronavirus variant
discovered in South Africa spooked investors.

The daily tally of COVID-19 cases has started rising in the country,
signalling the early phase of a fourth wave.

On Thursday, scientists said they had detected a new COVID-19 variant -
called B.1.1.529 - in the country, which had a "very unusual constellation"
of mutations. They called it concerning. read more

The stock market, which had been hovering around its all-time highs for past
two weeks, shed early gains, with the blue-chip index of top 40 companies
(.JTOPI) losing 0.17% to end at 64,063 points.

The benchmark all-share index (.JALSH) closed down 0.01% to 70,555 points.

Register now for FREE unlimited access to reuters.com

The Thomson Reuters Trust Principles.

Malawi

Mwanamvekha says 5000 Malawi Kwacha banknote will fuel inflation and money
laundering

Democratic Progressive Party (DPP) spokesperson on Finance Joseph
Mwanamvekha who is also Member of Parliament for Chiradzulu South and a
former Finance Minister says the introduction of K5000 Malawi Kwacha
banknote has a potential of fueling inflation as well as money laundering in
the country

Mwanamvekha was speaking this yesterday in Parliament when he was commenting
on the introduction of the 5000 Malawi Kwacha banknote.

He said higher currency denominations are associated with economies in
hyperinflation and are near collapse.

In his remarks, Minister of Finance Felix Mlusu said one of the reasons they
have introduced 5000 Kwacha banknote is that they want to consolidate the
carrying of notes at least to much smaller quantities but of higher value.

He also indicated that the introduction of the 5000 Kwacha banknote does not
mean inflation will rise because inflation is an issue to do with demand and
supply and people should not worry so much and link it to inflation.

On 23 November 2021, the Reserve Bank of Malawi introduced 5000 kwacha
banknote and an upgraded 2000 kwacha banknote. The new banknotes will come
into circulation next year on 24 February.

 <mailto:info at bulls.co.zw> 

Global Markets

US Dollar Advances On Continuous Rise Of Inflation

The US dollar gained ground against most of a basket of currencies in late
trading amid rising inflation pressure and expectation of an earlier hike of
interest rate by the Federal Reserve.

The dollar index, which measures the greenback against six major peers, rose
0.39 per cent at 96.8639 in late trading on Wednesday.

US personal consumption expenditure price index in October grew 0.6 per cent
month on month, higher than 0.4 per cent of expansion in the previous month,
according to the data issued by the US Department of Commerce on Wednesday
morning.

The index posted year-on-year growth of 5 per cent in October, up from 4.4
per cent in September, according to the US Department of Commerce.

The Federal Reserve is expected to raise benchmark interest rates as early
as mid-2022 with some calling for faster tapering of the bond purchasing
programme, Xinhua news agency reported. 

San Francisco Fed President Mary Daly on Wednesday said she certainly sees a
case to be made for speeding up the tapering of Fed's bond purchasing
programme.

The Fed has as much as 91.2 per cent probability of raising benchmark
interest rate by at least 25 basis points by the scheduled meeting of the
Federal Open Market Committee on June 15, 2022, according to the FedWatch
Tool on the website of CME Group.

The probability for at least 25 basis points of interest rate hike by then
stood at 73.5 per cent a day ago, according to the FedWatch Tool.

In late New York trading, the euro fell to $1.1199 from $1.1250 in the
previous session, and the British pound fell to $1.3323 from $1.3381 in the
previous session. The Australian dollar fell to $0.7192 from $0.7223.

The US dollar bought 115.43 Japanese yen, higher than 115.06 Japanese yen of
the previous session. The US dollar was up to 0.9341 Swiss franc from 0.9332
Swiss franc, and it fell to 1.2671 Canadian dollars from 1.2682 Canadian
dollars.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold set for worst week in 5 months on hawkish Fed view

(Reuters) - Gold was set on Friday for its worst week in five months, as
bullion prices were hammered by increasing bets that the U.S. Federal
Reserve would accelerate the pace of stimulus tapering and raise interest
rates sooner to curb rising inflation.

FUNDAMENTALS

* Spot gold rose 0.2% to $1,792.62 per ounce by 0051 GMT. U.S. gold futures
advanced 0.5% to $1,793.90.

* The metal has declined more than 2.8% this week, heading for its worst
week since June 18.

* The dollar index was steady but not far off a 16- month peak hit earlier
this week. A stronger dollar makes bullion costlier for buyers holding other
currencies.

* The Fed will likely double the pace of tapering its monthly bond purchases
from January to $30 billion, and wind down its pandemic-era bond buying
scheme by mid-March, Goldman Sachs strategists said in a daily note on
Thursday.

* Reduced stimulus and interest rate hikes tend to push government bond
yields up, raising the opportunity cost of gold, which pays no interest.

* The European Central Bank is coming under pressure from bankers to lend
more of its stash of German government bonds to avert a market squeeze that
would undo some of its own stimulus efforts. read more

* A surge in coronavirus infections in Germany and high inflation are
weighing on the consumer morale in Europe's largest economy, dampening the
business prospects for the upcoming Christmas shopping season, a survey
showed.

* China's net gold imports via Hong Kong jumped to the highest since June
2018 in October, as buyers in the top consumer stocked up on the metal as a
cushion against rising inflation. read more

* Spot silver fell 0.1% to $23.55 per ounce. Platinum dropped 0.6% to
$989.77, while palladium rose 0.4% to $1,866.34.

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
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been compiled from sources believed to be reliable, but no representation or
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opinions expressed and recommendations made are subject to change without
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