Bulls n Bears Daily Market Commentary : 14 October 2021

Fri Oct 15 05:01:48 CAT 2021

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Bulls n Bears Daily Market Commentary : 14 October 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE extended gains amid lower market turnover and activity levels than
recent averages. Investor sentiment, as measured by market breath was,
positive as 16 stocks registered gains against 13 losers while seven of the
active stocks remained unchanged. Activity levels were retreated to 236
trades with a share volume of 3.3 million shares. OK Zimbabwe was the most
active stock at 33 trades followed by Econet and Star Africa at 32 and 17
trades respectively. OK Zimbabwe anchored volume aggregate trading 742 100
shares and Delta topped value aggregate with a value of ZW$41.3 million.

The All-Share Index gained 1.30% to 10 184.95 points. The Top 10 Index added
0.72%. The Top 15 Index gained 1.40%. The Medium Cap Index added 2.76% to 21
528.31 points whilst the Small Cap Index shaded 0.14% to 316 365.60 points.
Leading the risers pack of the day was OK Zimbabwe adding 16.69% to close at
2847.06c. Axia  added 14.80% and Proplastics added 11.96% to 2798.96c.
Meikles added 7.94% and Seed Co was up by 6.61%. Mitigating the gains were
losses in Fidelity and Zimre Holdings  which shaded 8.18% and 7.19%
respectively. Masimba shaded 5.84% to 5000c. Bindura and Medtech Holdings
pared 5.72% and 2.10% respectively. The Old Mutual Top Ten ETF closed at
401.53c up down by 0.59% after 14 207 units were traded worth ZW$57 046 in
13 trades. On the VFEX, Padenga shaded 0.20% to US 24.45 cents after 50
shares exchanged hands worth US$12.23.wealthaccess

Global Currencies & Equity Markets

Kenyan Shilling seen weaker, other African currencies stable

NAIROBI: Kenya's currency is likely to come under pressure in the coming
week while Nigeria, Zambia, Uganda and Tanzania's are expected to trade
sideways.

Kenya

Kenya's shilling is expected to weaken due to increased dollar demand from
importers. Commercial banks quoted the shilling at 110.75/95 to the dollar,
compared with last Thursday's close of 110.65/75.

Nigeria

Nigeria's naira is seen flat in the coming week as traders weigh the vice
president's comments this week urging the central bank to ensure naira's
valuation reflects market reality.

The naira traded at 573 per dollar on the black market , last week's level,
while it was quoted at 414 naira on the official market, broadly in a range
held since June.

Vice President Yemi Osinbajo urged the central bank on Monday to rethink its
demand management policy, which it has used to restrict imports in an
attempt to manage pressure on the currency.

Nigeria has several exchange rates operating in parallel, a system put in
place during a 2016 oil price crash because the government was seeking to
avoid a large official devaluation of the naira as a matter of national
pride.

Kenyan shilling seen hurt by strong dollar appetite

Zambia

The kwacha will likely hold steady next week due to support from the central
bank even as demand for hard currency, mainly driven by agricultural
imports, outweighs supply.

On Thursday, commercial banks quoted the currency of Africa's second-largest
copper producer at 16.8750 per dollar from 17.0266 at the close of business
a week ago.

Uganda

The Ugandan shilling is expected to be steady after the central bank held
its benchmark lending rate, citing economic risks from the COVID-19
pandemic.

Commercial banks quoted the shilling at 3,605/3,615, compared with last
Thursday's close of 3,560/3,570.

On Thursday the central bank kept its benchmark lending rate at 6.5%.

Tanzania

Tanzania's shilling is expected to hold steady as dollar inflows from
agricultural exports help to cushion demand for the greenback.

Commercial banks quoted the shilling at 2,300/2,310 per dollar, unchanged
from last Thursday's close.

South Africa 

South African rand pauses after strong gains; stocks rise

The South African rand was steady against the dollar on Thursday, taking a
breather after two days of strong gains.

(Reuters) - The South African rand was steady against the dollar on
Thursday, taking a breather after two days of strong gains.

At 1600 GMT, the rand ZAR=D3 traded at 14.7975 against the dollar, close to
its previous close of 14.7950.

The dollar .DXY edged down on global markets.

This week the rand has been boosted by market bets that the South African
central bank would raise its main lending rate at its next monetary policy
meeting in November, as well as an increase in the gold price XAU= and
demand for local bonds.

It shrugged off mixed domestic economic data, including August manufacturing
ZAMAN=ECI and mining ZAMNG=ECI numbers, which reinforced the view that the
economic recovery from the COVID-19 pandemic has been uneven across sectors.

Stocks advanced, with the Johannesburg Stock Exchange's Top-40 Index .JTOPI
rising 1.47% to 60,391 points and the broader All-Share Index .JALSH
climbing 1.26% to 66,846 points.

Miners topped the blue-chip index for the second day in a row as gold
continued to rise to a one-month high. Platinum and other precious metals
were also on the up.

Impala Platinum IMPJ.J was the biggest winner, rising 4.42%, followed by
Glencore GLNJ.J, Anglo American ANGJ.J and BHP Group BHPJ.J, all up more
than 3%.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar dips in choppy trading as risk appetite improves

(Reuters) - The dollar was slightly lower on Thursday in choppy trading,
having erased most of its early session losses, as investors bet the Federal
Reserve would begin tapering its asset purchases next month and attention
turned to the timing of interest rate hikes.

The greenback had rallied since early September on expectations the U.S.
central bank would tighten monetary policy more quickly than previously
expected amid an improving economy and surging inflation.

But the dollar reversed course on Wednesday, even after the minutes of the
Fed's Sept. 21-22 policy meeting confirmed the tapering of stimulus is
likely to start this yearand data showed that pricing pressures were still
hitting U.S. consumers. read more

The market is expecting that the Fed will begin tapering its asset purchases
as early as next month, and that the wind-down of the massive bond-buying
program will happen fairly quickly, Osborne added.

At 3:25 p.m. EDT, the dollar index was down 0.036% at 93.982, having climbed
back from a 10-day low of 93.754 earlier in the session. On Tuesday, the
greenback hit a one-year high of 94.563 .

The euro was flat against the dollar, at $1.15955, falling from a nine-day
high reached overnight, while the British pound was up 0.15% against the
dollar, at $1.36815.

A return in risk appetite may also have dented demand for the safe-haven
greenback, with U.S. equity markets notching solid gains on upbeat earnings,
said Vassili Serebriakov, FX and macro strategist at UBS.

Data on Thursday showed the number of Americans filing new claims for
unemployment benefits fell sharply last week to the lowest level since
mid-March 2020. read more

In another report, the Labor Department said its producer price index for
final demand rose, but the increase was less than economists polled by
Reuters expected, both on a monthly and a year-on-year basis.

The Australian dollar, which is seen as a liquid proxy for risk appetite,
was up 0.47% versus the dollar at $0.7414, its highest level since Sept. 7.

The New Zealand dollar also rose, up 0.93% at $0.7030, its highest mark in
2-1/2 weeks .

Elsewhere, the cryptocurrency bitcoin was up 0.13% at $57,451. It hit a
five-month high of $58,550 earlier in the session.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold poised for best week since early May as dollar, yields ease

Gold was set on Friday for its best week in more than five months as a
retreat in the U.S. dollar and Treasury yields lifted the metal's appeal
despite a looming Federal Reserve taper.

Fundamentals

Spot gold held steady at $1,794.09 per ounce by 0115 GMT but was up 2.1% for
the week so far. On Thursday, prices hit a one-month high of $1,800.12.

U.S. gold futures inched down 0.1% to $1,795.50.

Both the dollar index and benchmark U.S. 10-year Treasury yields pulled back
from their multi-month highs.

Despite a broadly shared view that the U.S. labor market has healed enough
to allow the Fed to start reducing its monthly bond purchases as soon as
next month, policymakers are sharply divided over inflation and what they
should do about it.

The International Monetary Fund's steering committee on Thursday urged
global policymakers to monitor pricing dynamics closely, but to "look
through" inflationary pressures that are transitory and will fade as
economies normalize.

The number of Americans filing new claims for unemployment benefits dropped
below 300,000 last week for the first time in 19 months.

The Labor Department said its producer price index for final demand rose
0.5% in September, the smallest gain in nine months.

Miner Barrick Gold Corp on Thursday reported a nearly 5% rise in
third-quarter gold production from the previous three months, as output
jumped at its Veladero mine in Argentina.

Spot silver fell 0.4% to $23.45 per ounce but was headed for its biggest
weekly gain in seven.

Platinum eased 0.1% to $1,054.09, having hit a peak since Aug. 2 at
$1,062.50 on Thursday.

Palladium rose 0.2% to $2,132.21.

Copper prices hit two-month peak

Copper prices have hit a two-month peak, reaching their highest levels since
the beginning of August.

On Wednesday, copper futures for December delivery erased earlier losses to
trade at $4.499/lb, for a gain of 4.0%. The price rebound comes after
short-term concerns over China and its debt-saddled real estate sector, in
addition to the growing power crisis gripping the world.

An impact of this price rise has been a renewed interest from major
diversified miners in countries they previously considered too risky to
invest in. BHP has already signaled its intent to look at "tougher
jurisdictions" to secure reserves of essential transition materials.

However, some observers have argued that these high prices are unlikely to
continue. Citigroup recently warned Bloomberg that prices could fall another
10%, with demand shrinking over three months.

A threat to the energy transition

The price surge of copper poses significant issues for renewable developers.
Renewable energy is highly dependent on base metals, including copper, which
is extensively used in the production of electric vehicles, wind turbines,
and solar panels.

Due to their extensive cabling, offshore wind farms are particularly
copper-intensive, requiring 9.6 tonnes of copper per megawatt of energy
capacity. Therefore, the surge in prices has a knock-on impact on many clean
energy projects, erasing the margins and making it very difficult to turn a
profit.

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
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
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