Bulls n Bears Daily Market Commentary : 04 October 2021

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Bulls n Bears Daily Market Commentary : 04 October 2021

 

 	

 <mailto:info at bulls.co.zw> 

 

 	


ZSE commentary

 

The ZSE opened this week with significant gains from heavyweight counters which led the market rally. Activity levels were near flat at 447 trades with market bias positive as 19 stocks rose against 16 decliners and 4 of the active stocks remained unchanged. OK Zimbabwe was the most active stock at 38 trades followed by Seed Co and Star Africa at 34 and 31 trades respectively. OK Zimbabwe anchored volume aggregate trading 1 013 400 shares and BAT anchored value aggregate with a value of ZW$25 million contributing 14.9% to total turnover.

 

The benchmark All Share Index closed at 8 849.44 points, up by 1.49%. The Top 10 Index added 2.44%. The Top 15 Index gained 2.25%. The Medium Cap Index traded lower to 20 296.41 points depreciating by 0.82% whilst the Small Cap Index added 0.27% to close at 256 093.56 points. Leading the risers pack of the day was Turnall  which added 14.94%. National Foods added 12.61% to 90000c. CBZ Holdings added 11.20% and OK Zimbabwe was up by 4.78%. TSL added 3.76%. Mitigating the gains were losses in First Capital Bank and Proplastics which shaded 10.32% and 6.67%. Axia Corporation and NMB Holdings lost 6.58% and 6.25% respectively. Zimplow shaded 4.92% to 1900c. The Old Mutual Top Ten ETF closed at 361.32c up by 15.28% after trading 12 268 units with a value of ZW$44 326.84 in 19 trades.wealthaccess

 



 

Global Currencies & Equity Markets

 

 

South Africa

 

Rand tests R15/$ mark, amid market concerns over China's Evergrande

On a week-on-week basis, the local unit last week lost 0.7% against the dollar, the Bureau for Economic Research (BER) noted in an economic update. Relative to the euro and pound, it ended the week 1.7% weaker.

 

It started Monday at R14.89 and at one point touched R14.99 to the greenback.

 

Trade of Evergrande's shares was suspended, with investors awaiting an announcement on its future, BBC News reported.

 

Citing Chinese media, Reuters reported that Hopson Development Holdings, whose shares were also suspended, plans to buy a 51% stake in Evergrande. The transaction is valued at more than $5 billion, according to the report.

 

A decline in the number of Americans filing new claims for unemployment benefits signals an improvement in the US economy, noted Bianca Botes, director at Citadel Global.

 

Commodities are also an important factor to observe. "Elevated commodity prices boost exports, and South Africa remains strong in this respect, although in the long term, Eskom's newly stated commitment to transitioning from coal to renewable energy could impact coal mining demand," Botes explained. 

 

The BER noted that the rand was helped last week by export commodity prices - specifically the Richards Bay coal price surged by almost 30% - exceeding $200 per ton.   -news24

 

 

 

Zambia

 

BoZ reduces borrowing from domestic market

TO LIMIT borrowing from the domestic market, the Bank of Zambia (BoZ) says auction sizes for treasury bills and government bonds for the remainder of the year will not exceed K1.4 billion and K1.5 billion respectively.

 

And the Kwacha has finally broken the margin to trade at over K17.00 per United States (US) dollar due to insufficient inflows of the hard currency.

Government, through BoZ, frequently enters the local markets to borrow money through issuance of these high yielding but short (treasury bills) and long-term (government bonds) financial instruments.

 

Seven auction sales for treasury bills and three for government bonds are planned to take place before December 31, 2021.

According to a notice from BoZ, auction frequency for treasury bills will be once every two weeks while government bonds will be issued once every month.

 

 

 

 

 <mailto:info at bulls.co.zw> 

 

 

Global Markets

 

Dollar sturdy after 4 consecutive weeks of advances

(Reuters) - The dollar consolidated gains against its rivals on Monday after four consecutive weeks of increases as widening concerns about the Chinese property sector and firm U.S. Treasury yields have encouraged hedge funds to ramp up their long positions.

 

After spending the second quarter of 2021 on the back foot the dollar has received a fresh boost in recent weeks, climbing to its highest levels in a year against its rivals last week as top investment banks have revised up their forecasts.

 

Every other major currency weakened against the greenback last week with traders now firmly eyeing on the U.S. jobs data for September due on Friday to decide on whether the Fed will press the button on its decision to taper its bond purchases.

 

 

Citigroup strategists expect more upside in the dollar due to challenges in the Chinese real estate sector, higher U.S. yields not driven by a global economic recovery and the negative impact for energy importers.

 

Shares in embattled developer China Evergrande (3333.HK) were halted in Hong Kong, rekindling market nerves about the possibility of contagion. read more

 

A bullish dollar is also supported by Kit Juckes, a strategist at Societe Generale, who is bearish on the euro.

 

The dollar's gains were more pronounced against some of its top rivals with the greenback scaling a 14-month high on the euro and a 19-month peak versus the yen last week as markets reckoned U.S. interest rates could rise ahead of global peers.

 

In London trading on Monday, the euro dipped back below $1.16 and at $1.1598 is not far from last week's trough at $1.1563.

 

Versus a basket of its rivals, the dollar was broadly steady at 93.96 after gaining for four consecutive weeks, its biggest rising streak since late June, according to Refinitiv data.

 

Latest weekly positioning data showed hedge funds have increased their dollar holdings against its rivals to its highest levels since November 2019.

 

The dollar's gains has also infused life in the moribund currency volatility markets with a gauge measuring daily swings rising to its highest levels in 2-1/2 months at 6.2%.

 

 

With Chinese markets shut for a holiday, traders attention will be firmly focused on monthly U.S. jobs data on Friday that analysts believe will pave the way for U.S. policymakers to strike a more hawkish tone. Yields on benchmark 10-year U.S. Treasury debt were holding near their highest levels in more than three months at 1.47%.

 

Friday's U.S. labour data is expected to show continued improvement in the job market, with a forecast for 460,000 jobs to have been added in September - enough to keep the Federal Reserve on course to begin tapering before year's end.

 

The Thomson Reuters Trust Principles.

 

 

 <mailto:info at bulls.co.zw> 

 

 

 

 

Commodities Markets



 

Gold price today struggles, down ₹10,000 from record high, silver dips

Gold may be supported by increasing risk aversion in global market but any major upside is unlikely as US dollar is still on firmer footing and Fed’s monetary tightening expectations persist, say analysts. 

Listen to this article

Gold and silver rates were subdued in Indian markets today. On MCX, gold futures were up slightly at ₹46,543 per 10 gram while silver futures were flat at ₹60,530 per kg.  In the previous session, gold had settled slightly lower while silver had jumped 1.5%. In global markets, gold was down slightly at $1,759 an ounce as the dollar steadied after two sessions of losses. 

 

 

Gold traders will be watching US jobs data at the end of week amid fears about slowing economic growth. Expect recovery upticks if the support of $1760 holds, domestic brokerage Geojit said. 

 

China's Evergrande crisis was back in spotlight after trading of China Evergrande Group shares was suspended in Hong Kong. Investors are watching for further news on the beleaguered property developer which faces a bond repayment.

 

ETFs continued to suffer outflows. SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings slipped 0.4% to 986.54 tonnes on Friday.

 

Gold is traditionally seen as an inflation hedge, but reduced central bank stimulus and interest rate hikes tend to push government bond yields up. This in turn increases opportunity cost for gold that pays no interest.

 

 

Among other precious metals, silver was down 0.1% at $22.51 an ounce while platinum fell 0.1% to $971.22.

 

If silver is not able to move past $23.10 expect weak bias to continue in near term, added Geojit. 

 

Gold rates have been volatile this year after hitting record high of ₹56,200 in August last year.

 

 

 


 

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 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

 

 	

 

 

 	
							

 

 

 

 

 

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