Bulls n Bears Daily Market Commentary : 05 October 2021

Tue Oct 5 13:27:41 CAT 2021

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Bulls n Bears Daily Market Commentary : 05 October 2021

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ZSE commentary

The ZSE maintained gains in today's session headlined by blue chip counters.
Activity levels dropped to 439 trades with a negative market bias as 19
stocks declined against 12 gainers and 6 of the active stocks remained
unchanged. Delta and Star Africa were the most active stocks at 40 trades
each followed by Econet at 30 trades. Delta anchored both volume and value
aggregate trading 871 800 shares with a value of ZW$98.8 million.

The broader market was up at 8 900.41 points, up by 0.58%. The Top 10 Index
added 1.46%. The Top 15 Index gained 0.93%. The Medium Cap Index traded
lower to 20 167.52 points depreciating by 0.64% whilst the Small Cap Index
added 1.52% to close at 259 979.16 points. Leading the risers pack of the
day was National Foods which added 11.11%. Zimplow added 5.36% to 2001.95c.
Econet added 4.73% and Turnall was up by 3.00%. Axia Corporation added
1.92%. Mitigating the gains were losses in First Mutual Holdings and Nampak
which shaded 13.79% and 8.24% respectively. Art Corporation shaded 7.69% to
900c and NMB lost 6.00%. GBH shaded 5.78%. The Old Mutual Top Ten ETF closed
at 409.40c up by 13.30% after 36 755 units were traded worth ZW$150 473.30
in 38 trades. On the VFEX, Padenga Holdings  added 8.30% to close at US
28.05c after 2 000 shares traded worth US$561.-wealthaccess

Global Currencies & Equity Markets

South Africa

South Africa's rand falls on subdued risk appetite

(Reuters) - South Africa's rand fell against a stronger dollar early on
Tuesday as investors turned risk averse amid rising U.S. Treasury yields and
concerns over the China Evergrande crisis.

At 0625 GMT, the rand ZAR=D3 traded at 15.0950 against the dollar, 0.43%
weaker than its previous close.

The dollar was supported by rising U.S. Treasury yields as Washington
wrangled over the debt ceiling. Yields have also been pushed higher recently
by concerns that elevated inflation could bring forward a timeline for the
Federal Reserve to taper its stimulus measures.

Investors are also concerned that ongoing debt troubles at China's
second-largest real estate developer China Evergrande 3333.HK could hurt an
already fragile Chinese economy and drag on global growth.

South Africa-focused investors will look to the central bank's Monetary
Policy Review later in the day for clues about the interest rate trajectory
in Africa's most industrialised economy.

A purchasing managers' index survey ZAPMIM=ECI is due at 0715 GMT.

Government bonds also weakened, with the yield on the 2030 paper ZAR2030=
rising 6.5 basis points to 9.455%.

Nigeria

Naira loses at official market

Foreign exchange supply plummeted by 77.00 per cent to $108.83 million.

Naira fell slightly against the U.S. dollar at the official market on
Monday, as foreign exchange supply dropped significantly at the market
segment.

Data from FMDQ securities exchange window, also known as the Investor and
Exporters (I&E) window where forex is officially traded showed naira closed
at N413. 55 per $1.

Monday's performance implies N0.17 or 0.04 per cent depreciation from
N413.38 it exchanged hands with the greenback currency on Thursday last
week.

This happened as foreign exchange supply plummeted by 77.00 per cent with
$108.83 million recorded as against the $467.56 million recorded at the
close of business on Monday .

The local unit touched an intraday high of N404.00 and a low of N415.50
before closing at N413.55 per $1 on Monday.

At the black market in Abuja and Oshogbo, dealers exchanged the currency at
N570.00 per $1 on Monday

In Uyo, dealers said it traded at N575.00 a dollar. The same rate it traded
in the previous session on Thursday last week.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar inches toward one-year high as payrolls test looms

(Reuters) - The U.S. dollar edged back toward a one-year high versus major
peers on Tuesday ahead of a key payrolls report at the end of the week that
could boost the case for the Federal Reserve to start tapering stimulus as
soon as next month.

The safe-haven greenback was also supported by an equity sell-off that
spread from Wall Street to Asia.

The risk-sensitive Australian dollar was among the biggest decliners, with
the Reserve Bank of Australia reiterating it doesn't expect to raise
interest rates until 2024 after keeping policy steady, as expected.

The U.S. dollar index , which measures the currency against six rivals, rose
0.13% to 93.957, moving back toward Thursday's peak at 94.504, its highest
since late September 2020.

The index had rallied as much as 2.8% since Sept. 3 as traders rushed to
price in tapering this year and possible rate rises for 2022.

The dollar has also benefited from haven demand amid worries spanning the
risk of global stagflation to the U.S. debt ceiling standoff.

Friday's non-farm payrolls data is expected to show continued improvement in
the labour market, with a forecast for 488,000 jobs to have been added in
September, according to a Reuters poll.

Meanwhile, an index of Asia-Pacific equities (.MIAP00000PUS) skidded 0.92%,
following a 1.3% tumble overnight for the S&P 500 (.SPX).

The Aussie dropped 0.34% to $0.7263, retreating further from Monday's
four-day high of $0.73045.

The New Zealand dollar declined 0.34% to $0.6939, also backing away from a
four-day peak at $0.6981. The Reserve Bank of New Zealand decides policy on
Wednesday, with markets priced for a quarter point rate hike.

For the RBNZ, "with markets already pricing a rate hike cycle, the
likelihood of material NZD upside is low," he said.

The dollar gained 0.25% to 111.19 yen , while the euro slid 0.21% to
$1.15965.

Sterling traded flat at $1.3612.

While the consensus view is for further gains for the greenback - with
speculators pushing net long bets to the highest since March 2020 - TD
Securities warns that headroom may be limited.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold dips on dollar advance as traders wait for U.S. jobs data

(Reuters) - Gold prices fell on Tuesday as the dollar benefited from subdued
risk sentiment, with bullion likely to see choppy trade in the run up to
Friday's U.S. jobs numbers that could dictate the Federal Reserve's tapering
plans.

Spot gold fell 0.6% to $1,758.27 per ounce by 0643 GMT, after hitting
$1,770.41 on Monday, its highest since Sept. 23. U.S. gold futures shed 0.6%
to $1,757.30.

The dollar index rose, making gold more expensive for buyers holding other
currencies, while equity markets slid on concerns that soaring energy prices
could dampen economic growth.

Subdued shares are prompting Asian investors to buy the dollar, pressuring
gold, said Jeffrey Halley, a senior market analyst for Asia-Pacific at
OANDA, adding the metal would be in a $1,750-$1,785.00 range ahead of the
U.S. jobs report.

Apart from inflation, fragile U.S.-China trade ties, China Evergrande's debt
crisis and a stalemate over the U.S. debt ceiling prompted some safe-haven
inflows into gold as well, providing a floor to bullion prices.

While the uncertainties will support gold to an extent, the U.S. monetary
policy direction will be the winner in the end, Halley added.

Nonfarm payrolls are expected to show continued improvement in the labour
market, likely allowing the Fed to begin tapering stimulus before year-end.

Reduced stimulus and higher interest rates lift bond yields, pressuring gold
as it translates into increased opportunity cost of holding
non-interest-bearing bullion.

Some analysts said the impact on gold may be limited since tapering has been
priced in.

Spot silver fell 0.8% to $22.48 per ounce, platinum shed 0.9% to $958.83,
while palladium rose 0.1% to $1,906.45.

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
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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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opinions expressed and recommendations made are subject to change without
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