Bulls n Bears Daily Market Commentary : 06 October 2021

Thu Oct 7 05:40:48 CAT 2021

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:bulls at bulls.co.zw> Views & Comments
<http://www.bullszimbabwe.com> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 06 October 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE was lifted by descent gains from blue chip counters headlined by
National Foods and Innscor while other medium cap counters and blue chips
lifted turnover. This comes amidst confusion over foreign currency trading
in the country after the central bank's admission that it had limited
foreign currency to sustain trades at the auction. Activity levels improved
marginally to 443 trades with a negative market bias as 20 stocks declined
against 17 gainers and 3 of the active stocks remained unchanged. Medtech
was the most active stock at 35 trades followed by Star Africa and OK
Zimbabwe at 29 and 28 trades respectively. OK Zimbabwe anchored volume
aggregate trading 1 340 200 shares and Delta anchored value aggregate with a
value of ZW$80.5 million.

The All-Share Index was up by 3.14%. The Top 10 Index added 4.47%. The Top
15 Index gained 4.01%. The Medium Cap Index traded higher to 20 311.48
points appreciating by 0.71% whilst the Small Cap Index pared 0.55% to close
at 258 540.29. Leading the risers pack of the day was National Foods and Rio
Zimbabwe  which added 20.00% each. Innscor added 8.78% to 14 895.26c. TSL
added 8.77% and CBZ was up by 8.38%. Mitigating the gains were losses in
Nampak  and Wildale which shaded 12.69% and 4.64% respectively. Mashonaland
Holdings shaded 4.55% to 428.45c and Zimre lost 3.22%. Edgars shaded 2.82%.
The Old Mutual Top Ten ETF closed at 400.76c down by 2.11% after 83 885
units were traded worth ZW$336 180 in 49 trades.-wealthaccess

Global Currencies & Equity Markets

Nigeria

Naira loses further at official market

Naira fell marginally against the U.S. dollar at the official market on
Wednesday, as foreign exchange supply increased significantly from what was
recorded in the previous session on Tuesday.

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 N414.73 per $1.

The local unit performance on Wednesday represents a N0.43 or 0.10 per cent
devaluation from N414.30 it exchanged on Tuesday.

This became significant as foreign exchange supply rose by 85.30 per cent
with $226.32 recorded as against the $122.15 million recorded at the close
of business in the previous session on Tuesday.

Naira touched an intraday high of N404.00 and oscillated to a low of N415.20
before closing at N414.73 per $1 on Wednesday.

At the black market in Abuja dealers exchanged the currency at N565.00 and
N568.00 per $1 on Wednesday. This represents a N5.00(N2.00) or 0.90(0.4) per
cent devaluation from N570.00 it exchanged on Tuesday.

In Uyo, dealers said the currency exchanged at N578.00 and N580.00 to a
dollar due to increased demand they experienced.

South Africa

South Africa's rand falls on subdued risk appetite

(Reuters) - South Africa's rand retreated early on Wednesday, pressured by a
firmer dollar and rising U.S. Treasury yields, as investors sought
safe-haven assets amid nervousness surging energy prices could spur
inflation and interest rate hikes.

At 0630 GMT, the rand ZAR=D3 traded 0.53% weaker at 15.0950 against the
dollar, retreating after gaining in the previous session. The central bank
highlighted inflation risks, with Governor Lesetja Kganyago saying the bank
stood ready to act if it saw them materialising.

On Wednesday, focus was back on global events, mostly on U.S. jobs data to
be released on Friday where investors will look for clues on the timing of
Federal Reserve policy tightening.

Higher rates in developed countries often drain capital away from
higher-yielding but riskier emerging markets such as South Africa, weighing
on their currencies.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar advances on inflation worries; payrolls data eyed

The dollar climbed across the board on Wednesday, as surging energy prices
fueled concerns about inflation and interest rate hikes, knocking investors'
appetite for riskier assets and driving flows to safe-havens.

With oil prices hitting their highest in seven years, shares fell and
government bond yields rose across the world early on Wednesday, before
reversing some of the moves later in the session.

Rising inflationary pressures could pose headwinds to growth and have
implications for how soon the Federal reserve can raise interest rates.

The Federal Reserve has said it is likely to begin reducing its monthly bond
purchases as soon as November and then follow it up with interest rate
increases, as the U.S. central bank's turn from pandemic crisis policies
gains momentum.

The U.S. Dollar Currency Index , which measures the greenback against a
basket of six currencies, was 0.3% higher at 94.228. The index hit a 1-year
high of 94.504 last week.

Investors remained on edge regarding U.S. debt ceiling negotiations, even as
the top U.S. Senate Republican Mitch McConnell said his party would allow an
extension of the federal debt ceiling into December, a move that would head
off a historic default with a heavy economic toll.

The U.S. payrolls report at the end of the week, which could provide clues
to the U.S. Federal Reserve's next move, remains a point of focus for
investors.

Friday's non-farm payrolls data is expected to show continued improvement in
the labor market, with a forecast for 473,000 jobs to have been added in
September, a Reuters poll showed.

U.S. private payrolls increased more than expected in September as COVID-19
infections started subsiding, allowing Americans to travel, frequent
restaurants and reengage in other high-contact activities, the ADP National
Employment Report showed on Wednesday. 

Sterling/dollar implied volatility, a gauge of expected swings embedded in
currency options, rose to a seven-month high around 7.9% on Wednesday, as
soaring energy prices and a surge in bond yields sent the pound 0.3% lower
against the greenback.

On Wednesday, Poland's central bank raised its main interest rate to 0.5%
from 0.1% on Wednesday, it said in a statement, moving to increase borrowing
costs earlier than analysts had expected to counter a surge in inflation.
The move helped lift the Polish zloty up about 0.4%.

The greenback's strength, combined with an aversion toward riskier
currencies, sent the New Zealand dollar down 0.7% despite New Zealand's
central bank hiking interest rates on Wednesday for the first time in seven
years and signalling further tightening to come.

Meanwhile, bitcoin, the world's biggest cryptocurrency by market value,
jumped 6.27% to $54,728.39, its highest since May.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold firms as yields pull back; focus on U.S. jobs data

(Reuters) - Gold ticked up in tight trading on Wednesday on a retreat in
U.S. Treasury yields, although a stronger dollar put a lid on gains for the
safe-haven metal, with investors awaiting U.S. labour market data due later
this week.

Spot gold was up 0.1% at $1,760.78 per ounce by 1:38 p.m. EDT (1738 GMT),
reversing from an earlier session low of $1,744.84. U.S. gold futures
settled up 0.1% at $1,761.8.

The yield on 10-year U.S. Treasuries pulled back after hitting a more than
three-month high, but remained above 1.5%.

Taking cues from surging energy prices that could spur inflation and
interest rate hikes, the U.S. dollar rose, making bullion expensive for
holders of other currencies, and restricting gains.

Following data showing a strong rise in U.S. private jobs in September,
investors' focus shifts to key U.S. non-farm payrolls data on Friday that is
expected to shape the Federal Reserve's tapering plan.

Xiao Fu, head of commodities markets strategy at Bank of China
International, said that even if the non-farm payrolls data is not
"spectacular and just in line with expectations", some Fed members already
think the condition for tapering has been fulfilled, and that is putting
pressure on gold.

Reduced stimulus and higher interest rates could dull bullion's appeal as it
translates to higher opportunity cost.

Spot silver fell 0.6% to $22.52 per ounce and palladium shed 1.8% to
$1,879.42. Platinum jumped 1.9% to $980.50 per ounce.  

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 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20211007/f97148de/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20211007/f97148de/attachment-0002.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 22328 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20211007/f97148de/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 107064 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20211007/f97148de/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20211007/f97148de/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20211007/f97148de/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65552 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20211007/f97148de/attachment-0001.obj>