Bulls n Bears Daily Market Commentary : 12 October 2021

Tue Oct 12 14:46:23 CAT 2021

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Bulls n Bears Daily Market Commentary : 12 October 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE booked its eighth consecutive positive close as traded market value
retreated from nearly a billion on Monday to around ZW$365 million. Activity
levels were higher to 570 trades with a share volume of 8.2 million shares.
Consumer staples contributed the most to volume at 71.70% followed by
Materials and Consumer discretionary at 10.16% and 8.28% respectively. Star
Africa was the most active stock at 60 trades followed by Econet and Delta
at 39 and 33 trades respectively. OK Zimbabwe anchored volume aggregate
trading 2 860 300 shares and Delta topped value aggregate with a value of
ZW$110.97 million contributing 30% to total turnover. The All-Share Index
gained 2.10% to 9 979.75 points. The Top 10 Index added 2.58%.

The Top 15 Index gained 2.45%. The Medium Cap Index traded lower to 20
939.05 points depreciating by a paltry 0.07% whilst the Small Cap Index
jumped by a massive 22.19%. Leading the risers pack of the day was CFI
Holdings registering its first trades since its return to the bourse adding
5 712.04% to close at 4 112.02c. BAT added 20.00% and First Capital Bank
added 7.48% to 358.27c. Econet added 6.21% and Axia Corporation was up by
4.97%. Mitigating the gains were losses in African Sun  and Proplastics
which shaded 15.75% and 5.41% respectively. Wildale shaded 2.36% to 410.05c
and RTG Limited and CBZ Holdings pared 1.69% and 0.95% respectively. The Old
Mutual Top Ten ETF closed unchanged at 400c after 35 875 units were traded
worth ZW$143 500 in 49 trades. On the VFEX, Padenga shaded 6.12% to US 23
cents after 15 000 shares exchanged hands worth US$3 450..-wealthaccess

Global Currencies & Equity Markets

South Africa

South Africa's rand steadies as risk-off mood weighs

South Africa's rand steadied early on Tuesday as a firm dollar and
expectations that the U.S. Federal Reserve will announce a tapering of its
bond purchases next month capped gains in the local unit.

(Reuters) - South Africa's rand steadied early on Tuesday as a firm dollar
and expectations that the U.S. Federal Reserve will announce a tapering of
its bond purchases next month capped gains in the local unit.

At 0620 GMT, the rand ZAR=D3 traded at 15.0650 against the dollar, not far
off Monday's close of 15.0750.

TreasuryONE currency strategist Andre Cilliers said the rand was trading in
line with a general risk-off move in emerging market currencies.

"We are likely to stick to an R15.00/R15.20 range as we track international
dollar moves for now," Cilliers said.

The dollar hovered close to a one-year high touched last month amid surging
energy prices and expectations the Fed would soon start normalising policy.
USD/

The domestic focus is on August mining ZAMNG=ECI and manufacturing ZAMAN=ECI
numbers due later in the day, and retail sales ZARET=ECI figures on
Wednesday for insights on the health of the economy in the third quarter.

Nigeria

Nigerian Naira Performs Poorly Against Dollar

The Nigerian Naira opened the week on a negative note against the United
States Dollar at the Nigerian Autonomous Foreign Exchange Rate Fixing
(NAFEX) or Investors and Exporters (I&E) window of the foreign exchange (FX)
market on Monday.

Data showed that the Naira lost 10 kobo or 0.02 per cent against the
greenback at the market segment to settle at N414.40/$1 in contrast to
N414.30/$1 it traded last Friday.

This occurred even as the demand for forex eased the pressure on the local
currency at the I&E window as transactions valued at $184.31 million were
executed by FX traders compared with the $359.48 million carried out at the
preceding trading day.

This indicated that the turnover for Monday went down by 48.7 per cent or
$175.17 million.

Business Post reports that proceedings at the interbank segment of the
market were not different from what was witnessed at the I&E segment as the
domestic currency suffered a loss against the American currency yesterday.

The Naira depreciated against the Dollar at the window by 6 kobo or 0.02 per
cent to finish at N410.87/$1 in contrast to N410.81/$1 it traded last Friday
at the same segment.

Meanwhile, October continues to prove a good month for the cryptocurrency
market despite witnessing profit-taking that plunged the prices of six of
the 10 tokens tracked by this newspaper across several trading platforms on
Monday.

Dogecoin (DOGE) fell by 5.9 per cent to trade N134.72, Cardano (ADA)
witnessed a 4.3 per cent drop to trade at N1,277.56, while Tron (TRX) made a
2.6 per cent depreciation to sell at N54.95.

In addition, Ripple (XRP) went southwards by 2.5 per cent to trade at
N645.75, Binance Coin (BNB) lost 2.3 per cent to trade at N168,968.64, while
Dash (DASH) recorded a 1.4 per cent loss to sell at N107,439.00.

On the gainers' angle, Litecoin (LTC) appreciated by 4.4 per cent to trade
at N107,439.00, Bitcoin (BTC) grew by 1.6 per cent to settle at
N32,399,974.22, Ethereum (ETH) went up by 0.9 per cent quote at
N2,020,430.70, while the United States Dollar Tether moved up by 0.4 per
cent to trade at N572.24.

 <mailto:info at bulls.co.zw> 

Global Markets

Turkish lira touches record low level against dollar

Turkey's lira weakened on Monday to equal its record low level of 8.9750
against the dollar, which it set on Friday, weighed down by strength in the
greenback as well lingering concerns over Turkish monetary policy.

Last month the central bank unexpectedly cut its policy rate by 100 basis
points to 18%.

At 1000 GMT, the lira stood at 8.9650 against the U.S. currency, edging back
from the record level. It has weakened 17% against the dollar so far this
year.

Source(s): Reuters

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold firms on subdued risk appetite, growth concerns

Gold prices edged higher on Tuesday drawing strength from rising inflation
fears that has rattled financial markets, although concerns over looming
U.S. Federal Reserve tapering limited gains.

Spot gold rose 0.2% to $1,757.84 per ounce by 0904 GMT, while U.S. gold
futures were up 0.1% at $1,757.70.

Risk sentiment in wider financial markets was subdued, as inflation fears
triggered by a global energy crunch threatened the economic outlook and
drove some investors towards safe-haven assets.

If stagflation talks come to the fore increasingly, that should help gold
clock $1,900 by year end as interest rates should remain relatively low even
if the Fed starts tapering, Briesemann added.

Gold is traditionally seen as an inflation hedge. However, reduced central
bank stimulus and interest rate hikes tend to push government bond yields
up, translating into a higher opportunity cost for holding gold that pays no
interest.

Gold also defied gains in the benchmark U.S. Treasury yields, which hit a
peak since early June. The dollar index, on the other hand, was largely
steady.

Focus also remains on minutes of the Fed's Sept. 21-22 policy meeting and
the consumer price index, both due on Wednesday.

Economic data will be closely watched for the health of global economy and
signs of prolonged stagflation could push gold towards $1,800, said Harshal
Barot, a senior research consultant for South Asia at Metals Focus.

Spot silver rose 0.1% to $22.58 per ounce, and platinum gained 0.6% at
$1,014.23.

Palladium inched 0.1% higher to $2,113.46, having hit its highest since
Sept. 10 at $2,182.67 on Monday.

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!

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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
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