Bulls n Bears Daily Market Commentary : 11 October 2021

Mon Oct 11 15:28:01 CAT 2021

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Bulls n Bears Daily Market Commentary : 11 October 2021

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ZSE commentary

The ZSE opened this week with solid gains from blue chip and mid-tier
stocks. Heavyweight stocks completely dominated in terms of market value on
Monday. Activity levels were higher to 416 trades with a share volume of
13.15 million shares. Consumer staples contributed the most to volume at
55.24% followed by Consumer discretionary and materials at 27.91% and 10.94%
respectively. OK Zimbabwe was the most active stock at 38 trades followed by
Bindura and Proplastics at 26 and 22 trades respectively.

OK Zimbabwe anchored volume aggregate trading 4 479 500 shares and Hippo
topped value aggregate with a value of ZW$362.96 million. The All-Share
Index gained 2.14% to 9 774.81 points. The Top 10 Index added 2.59%. The Top
15 Index gained 2.48%. The Medium Cap Index traded higher to 20 952.96
points appreciating by 1.31% whilst the Small Cap Index gained 0.44%.
Leading the risers pack of the day was Simbisa Brands and Dairibord which
added 12.33% and 10.47% respectively. Nampak added 9.09% to 1200c. Delta
added 6.18% and Zimpapers was up by 4.71%. Mitigating the gains were losses
in Wildale and Proplastics which shaded 4.42% and 3.98% respectively. NMB
Holdings shaded 3.45% to 1400c and Meikles and African Sun pared 2.11% and
1.14% respectively. The Old Mutual Top Ten ETF closed unchanged at 400c
after 52 441 units were traded worth ZW$209 764 in 50 trades.-wealthaccess

Global Currencies & Equity Markets

South Africa

Rand trades on the back foot overnight

THE rand started the session on the back foot as traders awaited the US
payrolls release for tapering cues, according to NKC Research.

The September US jobs report showed a slowdown in job creation amid
lingering health concerns and persistent supply constraints. The rand
recovered some lost ground and, at the close of local trade, quoted 0.43
percent stronger, at R14.91/$, after trading in range of R14.79/$ to
R15.00/$. The rand traded on the back foot overnight. The expected range of
the rand against the dollar today is R15.00/$ to R15.30/$.

South African bourse

The JSE All Share (+0.13 percent) ended firmer on Friday, as the gains in
resources (+2.66 percent) outweighed losses in financials (-1.74 percent),
technology (-1.09 percent) and industrials (-0.86 percent). In the overall
emerging market sphere, the MSCI Emerging Market Index (+0.3 percent) traded
higher.

BUSINESS REPORT ONLINE

Nigeria 

Naira sustains gain at official market as forex liquidity rises sharply by
189%

The exchange rate between the naira and the US dollar closed at N414.30/$1,
at the Investors and Exporters window, where forex is traded officially.

Naira appreciated again against the US dollar on Friday, for the second time
last week to close at N414.30/$1, representing a 0.09% gain compared to
N414.67/$1 recorded on Thursday, 7th October, 2021.

Similarly, the exchange rate at the parallel market closed at N570/$1, the
same that it traded the previous day. This is according to information
obtained by Nairametrics from BDC operators in Lagos. The local currency
gained at the official market as dollar supply improved significantly by
189%.

The exchange rate appreciated against the US dollar on Friday, 8th October
2021 to close the day at N414.30 to a dollar, representing a 37 kobo gain
compared to N414.67/$1 recorded on Thursday, 7th October 2021.

The opening indicative rate closed at N414.44/$1 on Friday, representing a
24 kobo drop when compared to N414.2/$1 recorded the previous trading day.

An exchange rate of N416 to a dollar was the highest rate recorded during
intra-day trading before it settled at N414.30/$1, while it sold for as low
as N404.60/$1 during intra-day trading, a point higher than that recorded in
the previous trading day.

Meanwhile, forex turnover at the official window rose sharply by 189.1% on
Friday, 8th October 2021.

According to data tracked by Nairametrics from FMDQ, forex turnover
increased from $124.35 million recorded on Thursday to $359.48 million on
Friday, 8th October 2021.

Cryptocurrency watch

The world's most popular and largest cryptocurrency, Bitcoin, was down by
0.01% on Sunday evening to trade at $54,847.55.

Bitcoin price on Thursday reached $55,000 for the first time in 5 months.
After a poor show in September, Bitcoin returned to the $50,000-mark at the
starting of last week. The world's largest cryptocurrency by market
capitalisation is now just about $10,000 away from the all-time-high price
it touched in April this year.

Analysts often find it hard to pin a single event behind Bitcoin's volatile
price surge or drop.

The global cryptocurrency market capitalisation increased 2.97% to reach
$2.29 trillion. The market volume climbed 32.48% to $147.59 billion in the
last 24 hours, a whopping rise in the last few months.

Meanwhile, the world's second-largest cryptocurrency by market
capitalization, Ethereum, dropped by 5.22% on Sunday evening to trade at
$3,396.

Nairametrics had reported that the flagship cryptocurrency, Bitcoin had
reclaimed the trillion-dollar asset status it lost after the May 2021 crash,
which was caused by China's ban on cryptocurrencies and cryptocurrency
mining activities.

Meanwhile, Nigeria traded about $32.16 million in Bitcoin in the month of
September, indicating a drop compared to $44 million recorded in the
previous month. The total trading volume between January and September 2021
stood at $315.76 million.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar creeps higher ahead of U.S. jobs report

(Reuters) - The dollar edged higher versus major peers on Friday but within
a narrow range as traders awaited clues from the U.S. non-farm payrolls
report on the pace of Federal Reserve policy normalization.

The U.S. Dollar Currency Index , which measures the greenback against a
basket of six peers, rose 0.1% to 94.294, keeping within sight of last
week's one-year peak of 94.504.

The dollar gained 0.3% to 111.96 yen , and touched 111.975, the highest
level this month, helped by higher Treasury yields, with the benchmark
10-year note hitting 1.6010% for the first time since June 4.

The euro consolidated around $1.1550, after weakening on Wednesday to a
14-month low of $1.1529.

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

The non-farm payrolls data, due out later on Friday, is expected to show
continued improvement in the labour market, with a consensus forecast for
500,000 jobs added in September, although estimates ranged from 250,000 to
700,000, a Reuters poll showed.

Following the September Federal Open Market Committee meeting, Fed Chair
Jerome Powell said the upcoming payrolls report need not be "a knock-out,
great, super-strong" report to keep policy makers on track toward tapering,
but it would need to be "reasonably good".

Powell's comment "should make markets more tolerant of a downside surprise
in particular, and the balance of risks favours a positive USD reaction" to
the jobs data, Adam Cole, the chief currency strategist at RBC Capital
Markets, wrote in a research note.

Meanwhile, the Australian dollar slipped back 0.26% to $0.7293, following a
0.55% surge on Thursday. It earlier touched $0.7324 for a second day
running, the strongest level since Sept. 16.

The Aussie has made "a decent go at breaking higher," but the test will be
whether it can stay at about $0.7315 following several failed attempts this
year, Rodrigo Catril, senior FX strategist at National Australia Bank in
Sydney, wrote in a client note.

Sterling slipped 0.16% to $1.3595, holding on to most of a 0.26% gain from
Thursday, when new Bank of England Chief Economist Huw Pill said inflation
pressures were proving stickier than initially thought, reinforcing
expectations for a rate hike by February. read more

The Canadian dollar was little changed at C$1.2548 per greenback after
earlier strengthening to a one-month peak of C$1.2534 on the back of rising
oil prices.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold slips as rising Fed taper bets boost dollar

(Reuters) - Gold eased on Monday as the dollar firmed on expectations that
the Federal Reserve would not delay its plans to taper economic support
despite a disappointing U.S. September jobs report.

Spot gold fell 0.1% to $1,754.89 per ounce by 1229 GMT, while U.S. gold
futures were little changed at $1,757.70.

Spot silver fell 0.5% to $22.55.

Bullion rallied to its highest since Sept. 22 on Friday after the latest
U.S. payrolls report, but pared gains as investors came to terms with the
possibility the Fed could still have enough fodder to start weaning the
economy off stimulus.

Gold is seeing some "bearish pressure" after not being able to hold on to
Friday's gains, said Kinesis Money analyst Carlo Alberto De Casa.

However, "a good part of tapering is already priced in" and as long as
bullion holds above $1,750, it's a positive for the metal, limiting "big
volatility", he added.

Gold is considered a hedge against inflation and currency debasement likely
from the widespread stimulus rolled out to combat the economic hit from the
pandemic.

Higher interest rates -- as monetary policy is tightened -- translate into
an increased opportunity cost of holding bullion, dulling its appeal.

The dollar gained, also hurting gold's appeal for those holding other
currencies.

In contrast, palladium was 2.9% higher at $2,138.16 per ounce, after hitting
its highest since Sept. 10 at $2,182.67, and platinum rose 0.5% to
$1,031.49, with analysts attributing the bounce to short-covering after
recent declines.

Brent crude oil

The continued rise in worldwide demand, together with the decision of Opec+
last week to not increase output more rapidly, saw the Brent oil price rise
approximately 4 percent in the span of last week. At the close of local
trade on Friday, the Brent oil price quoted 0.07 percent higher, at
$83.16/pb. Crude prices continued its rally during Asian trade this morning.

Palladium is seeing a technical rebound after prices hit support around
$1,870, said ANZ analyst Soni Kumari.

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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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
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