Bulls n Bears Daily Market Commentary : 29 November 2021

Mon Nov 29 16:17:12 CAT 2021

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Bulls n Bears Daily Market Commentary : 29 November 2021

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ZSE commentary

The ZSE was in the positive for the second day after registering marginal
gains across the board. Activity levels were bolstered by significant trades
in ZB Holdings which boosted both volume and value traded for the day.
Activity levels were at 450 trades. Delta was the most active stock at 59
trades followed by Econet and Star Africa 35 and 33 trades respectively.
Investor sentiment was negative after the session yielded 21 decliners
against 13 risers while three of the active stocks remained unchanged. ZB
Holdings anchored both volume and value aggregate trading 2 027 400 shares
with a value of ZW$156.11 million contributing 58.5% to total turnover. The
benchmark All-Share Index added 0.34% to close at 10 749.54 points. The Top
10 Index gained 0.66%. 

The Top 15 Index also added 0.35%. The Medium Cap Index was down by 0.49% to
20 730.73 points whilst the Small Cap Index added a marginal 0.27% to 390
108.80 points. Leading the risers pack of the day was Masimba Holdings
adding 18.75% and Art Corporation up by 9.53%. Econet gained 8.40% and
Fidelity  added 6.67% to 960c. Bindura which is set to migrate to the VFEX
next month was up by 5.31%. Mitigating the gains were losses in Axia
Corporation and BAT which shaded 7.64% and 6.90% to 3071c and 270 000.15c
respectively. First Mutual Properties was down by 6.32% to 799.38c. RTG and
OK Zimbabwe shaded 3.24% and 2.03% respectively. The Old Mutual Top Ten ETF
closed at 502.09c up by 7.66% after 13 366 units were traded worth ZW$67
108.75 in 28 trades.-wealthaccess

Global Currencies & Equity Markets

South Africa

South Africa's rand, stocks recover after sinking on Omicron worries

(Reuters) - South Africa's rand firmed early on Monday, recovering from last
week's plunge to its lowest since October 2020 on concerns around the
discovery of a COVID-19 variant in the country that has been described as
the most concerning.

Stock markets also recovered, after hospitality shares fell sharply on the
news a host of countries would bar travel from southern Africa, hitting
hopes of a bumper season for a tourism industry hurt badly by the pandemic.

At 0630 GMT, the rand traded at 16.1250 against the dollar, 1% firmer than
its close on Friday, when it sank to 16.3675.

Global authorities reacted with alarm on Friday to the new variant, Omicron,
which was detected in South Africa, with the EU and Britain among those
tightening border controls as scientists sought to find out if the mutation
was vaccine-resistant. read more

With little still known about the new coronavirus strain, market
participants remained cautious.

Opting not to impose further coronavirus curbs, Ramaphosa said on Sunday
that authorities were considering making COVID-19 shots compulsory for
certain places and activities, as a rise in infections linked to a new
variant threatened to become a fourth wave. read more

The Johannesburg Stock Exchange's All-Share Index (.JALSH) was over 1%
higher, with investors welcoming the news that domestic tourism remained
unaffected for now. The blue-chip Top-40 (.JTOPI) was also up 1%.

Hoteliers City Lodge (CLHJ.J), Sun International (SUIJ.J), which also owns
the country's biggest casino chain, and Tsogo Sun Hotels (TGOJ.J) were up
over 5%, 3.6% and 2.41% respectively after crashing on Friday.

Government bonds also recovered, with the yield on the benchmark 2030
maturity down 5.5 basis points to 9.845%. The yield hit 10% on Friday, its
highest since early May 2020.

The Thomson Reuters Trust Principles.

Nigeria

Naira Stays Flat at Official Market 

After closing at N415.07 per dollar on Thursday, the Naira maintained a flat
rate and went on to close at the exact same price on Friday. This is
according to the data released by the FMDQ group, on the group's official
website.

This connotes a certain stability around the currency, as the recent rates
at which the currency has been closing at in recent days and weeks have
hovered around this particular price range. It further strengthens the idea
that the festive period will see the Nigerian currency trade at that range.

The FMDQ group as usual also updated the Forward rate and the Spot trade of
the Naira's trades on Friday. The prices appeared to have returned to some
of the usual, standard rates which they consistently traded for a while.

The Spot rate returned to its usual price range, falling as low as N444 per
dollar and rising up to N404 per dollar. What this means is that throughout
the entire day, the Naira traded at different prices at different times,
trading between N404 per dollar and N444 per dollar.

For the Forward rate, a high of N411 per dollar was reached while a low of
N455.97 per dollar was gotten. The Forward rate, which is used for future
transactions generally trades at lower prices than the Spot rate.

On Friday, the total turnover of the dollar sat at $215.47 million. Turnover
refers to the amount of the currency that is involved in the trade
throughout the entire day. Everything that was traded on Friday amounts to
215 million dollars. This was a huge increase from the turnover of the
previous day, which sat at $98 million.

It has been reported that in a bid to save the naira, the Central Bank of
Nigeria threw a little over $2 billion into the Investors & Exporters window
in the seven months to July this year (2021). In the corresponding period
last year, the apex bank only injected $628 million into the window.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar wobbles, currencies partly pull back on Omicron shock moves

(Reuters) - The dollar strengthened then dipped in early European trading on
Monday, the euro fell and the yen steadied, as currency markets reversed
some of Friday's moves, calming somewhat after the initial shock over the
new variant of COVID-19.

The Omicron variant, first detected in southern Africa, prompted a financial
markets sell-off on Friday on fears that it would further disrupt the
economic recovery after the two-year pandemic. read more

The World Health Organization said it was not yet clear whether Omicron,
which has been found around the world, is more transmissible than other
variants or if it causes more severe disease. read more

Markets calmed somewhat on Monday, however, with U.S. stock futures and oil
prices rebounding, as investors took a more balanced view, waiting until the
impact of the variant becomes more clear. read more

The U.S. dollar index, which had its biggest one-day drop since May on
Friday, was at 91.195 at 1054 GMT, overall unchanged on the day and still
close to Friday's levels .

The dollar's status as a safe-haven currency means it can benefit from
uncertainty, but it fell on Friday because the Omicron variant was seen as
possibly affecting when the Federal Reserve and other major central banks
will raise rates.

Euro-dollar one-month volatility hit its highest since December 2020 around
0100 GMT on Monday before dropping back down .

The euro, which rose versus the dollar on Friday, was down around 0.3% at
$1.12815 .

VACCINE EFFICACY

European Central Bank policymakers sought to reassure investors, arguing
that the euro zone's economy had learned to cope with successive waves of
the pandemic. 

Commerzbank's head of FX and commodity research Ulrich Leuchtmann wrote in a
client note that the euro had initially benefited from the Omicron variant
because of the dovishness of the ECB.

Japan's yen steadied and was flat on the day versus the dollar at 113.47 .
Euro-yen hit a new nine-month low .

The Swiss franc likewise reversed recent moves. On Friday it had its biggest
one-day jump versus the dollar since June 2016, a slightly bigger daily move
than at the peak of the first coronavirus-induced market shock in March
2020, but on Monday it was down 0.5% on the day, at 0.92605 .

Analysts said that currency markets would likely remain volatile until the
new variant was better understood.

Goldman Sachs said it would not change its economic forecasts on the basis
of the Omicron variant until its likely impact became clearer.

BioNTech said on Friday it may know within two weeks if the vaccine it
developed with Pfizer needs to be reworked. read more

Meanwhile, in cryptocurrencies, bitcoin hit a seven-week low on Sunday
before picking up. At 1100 GMT, it was at $57,228.88, down around 0.2% on
the day. Its all-time high of $69,000 was hit earlier this month .

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold rises as Omicron fears offset strength in dollar

(Reuters) - Gold prices edged higher on Monday as concerns over the impact
of the Omicron coronavirus variant offset a stronger dollar, with investors
assessing whether the emergence of the variant could change the U.S. Federal
Reserve's hawkish stance.

Spot gold rose 0.2% to $1,794.87 per ounce by 0646 GMT, while U.S. gold
futures advanced 0.5% to $1,794.20.

With new cases of the Omicron variant found in the Netherlands, Denmark and
Australia, more countries imposed travel restrictions to try to seal
themselves off. read more

Barot also said while it was too soon to gauge if virus concerns have eased
rate hike expectations, there is an upside risk for gold that the variant
eventually leads the Fed to scale back on its stimulus tapering and rate
rise plans.

Atlanta U.S. Fed President Raphael Bostic was the latest among a growing
number of policymakers to say he remained open to accelerating the pace of
the central bank's bond taper. read more

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

Capping gold's gains, was a stronger dollar which increased bullion's cost
to buyers holding other currencies.

Jeffrey Halley, senior market analyst at OANDA, partly attributed gold's
retreat from Friday's peak to the steep decline in platinum and palladium,
and said gold's inability to rise substantially from their recovery on
Monday was a negative factor for gold's price action, potentially pushing it
lower.

Spot silver rose 1% to $23.37 per ounce. Platinum gained 1.6% to $968.83,
while palladium added 2.4% to $1,790.37.

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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