Bulls n Bears Daily Market Commentary : 19 October 2021

Tue Oct 19 17:31:01 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 : 19 October 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE maintains momentum this week on decent turnover with the market
already with a month to date gain of over 26%, stocks are expected to firm
up further supported by brisk buying into heavyweight counters. Market bias
was positive as 29 stocks registered gains against 9 losers while four of
the active stocks remained unchanged. Activity levels improved to 544 trades
with a share volume of 4.3 million shares. Star Africa was the most active
stock at 73 trades followed by OK Zimbabwe at 35 trades. Star Africa
anchored volume aggregate trading 907 700 shares and Innscor anchored value
aggregate with a value of ZW$50.3 million. The All-Share Index gained 2.95%
to 11 120.98 points breaking yet another plateau. The Top 10 Index added
3.60%. The Top 15 Index gained 3.42%. The Medium Cap Index added 1.64% to 22
537.51 points whilst the Small Cap Index also added 2.05% to 328 978.27
points.

Leading the risers pack of the day was Cassava adding 20.64% and Delta
adding 8.60%. Axia added 8.17% and Truworths added 6.71% to 260c. African
Sun added 6.12%. Mitigating the gains were losses in BAT and Mashonaland
Holdings which shaded 20.00% and 7.40% respectively. Hippo lost 5.67% to
27151.22c. CBZ Holdings and ZB Holdings pared 4.94% and 2.64% respectively.
The Old Mutual Top Ten ETF closed at 400c up by 0.10% after 39 930 units
were traded worth ZW$159 720. Elsewhere on the VFEX, Padenga pared 10.19% to
close at US 22 cents after 41 524 shares traded worth US$9
136.91.wealthaccess

Global Currencies & Equity Markets

South Africa

Rand weakens against the dollar as risk aversion returns to markets on weak
Chinese growth

THE rand kicked off the week on the back foot yesterday, weakening to R14.78
against the dollar as risk aversion returned to the markets due to weak
Chinese economic growth.

This was a far cry for the rand as it firmed strongly on Friday, closing 1.2
percent firmer on the day at R14.59 as the dollar softened slightly and risk
sentiment improved.

China's economy grew less than expected in the third quarter, expanding 4.9
percent year-on-year from 7.9 percent growth in the previous quarter.

This was the slowest pace of expansion since the third quarter last year on
headwinds brought about by power shortages, supply chain bottlenecks, and a
persistent property bubble.

Currency Strategist at TreasuryONE Andre Cilliers said the poor Chinese
growth and a weak industrial production number had seen emerging markets'
currencies retreat.

However, the rand managed to make gains later in the day, hovering around
R14.68 to the greenback, as risk-off subsided somewhat, with an increased
chance that the US tapering could be pushed out to December.

Investec chief economist Annabel Bishop said the rand would remain volatile
on sentiment over tapering, global inflation and indeed over the likelihood
of interest rate hikes in South Africa.

The SA Reserve Bank has given a strong hint of a rate hike in the fourth
quarter after consecutive quarters of rates pause as inflation is on an
upward swing.

Headline consumer inflation for September is expected to post 5.1 percent
year-on-year on elevated food and fuel inflation, up from 4.9 percent in
August.

Bishop said the continued rise in the oil price, in particular, was also
causing some near-term concerns, which will push up inflation in November.

The most recent update on movements in the components in the fuel price
shows an increase in petrol prices of around R1 per litre for South Africa
from the recent high oil price moves.

BUSINESS REPORT

Nigeria

Naira extends gain at official market

Naira gained further against the U.S dollar at the official market on
Monday, stretching the currency's appreciation momentum to two business days
on a stretch after it staged an all-time record low in the market segment
last week.

Data from FMDQ securities exchange window where forex is officially traded
showed the domestic unit exchanged hands with the hard currency at N414.73
per $1 on Monday, which implies a N0.34 or 0.10 per cent increase from the
N415.07 rate it exchanged on Friday last week.

The spot market forex turnover decreased by 54.41 per cent with $172.00
million recorded on Monday as against the $377.28 million posted at the
close of business in the previous session on Friday last week .

Naira touched an intraday high of N405.00 and a low of N425.00 before
closing at N414.73 to a dollar on Monday.

At the black market in Abuja, dealers exchanged the currency at the rate of
N568.00 and sold at N574.00 to a dollar on Monday.

While at Uyo, dealers said they exchanged the currency at N 565.00, and sold
within the range of N567 to 568.00 to a dollar on Monday, the same rate it
traded in the previous session on Friday last week.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar softens amid bets other central banks to outpace Fed tightening

(Reuters) - The dollar languished near the bottom of its recent range
against major peers on Tuesday, knocked back by weak U.S. factory data
overnight and on market wagers of faster normalisation of monetary policy in
other countries.

The dollar index , which measures the greenback against six peers, weakened
0.05% to 93.894 from Monday. It has oscillated for the past three weeks
between 93.671 and the one-year high of 94.563, reached last Tuesday.

Over the past week though, it has trended lower, with a tapering of Federal
Reserve stimulus as early as next month already priced in, along with a
first interest-rate increase next year.

A recovery in risk sentiment has also weighed on the safe-haven U.S.
currency.

Elsewhere, Bank of England Governor Andrew Bailey sent a fresh signal for
early U.K. rate hikes by saying on Sunday that the central bank will "have
to act" to counter rising inflation risks. In New Zealand, bets for faster
policy normalisation were stoked on Monday by data showing the fastest
consumer-price inflation in more than a decade. read more

The U.K. and New Zealand led a rise in short-term bond yields globally, with
rates in Europe and Australia climbing comparatively more than those in the
U.S., pressuring the dollar.

However, the U.S. is likely to be insulated by energy market bottleneck that
is "casting an ongoing cloud over rebound prospects in Europe and China,"
which "should leave yield spreads at the front end continuing to drift in
the USD's favour," they said, adding that pullbacks in the dollar index
should be limited to 93.70.

However, Westpac remains bullish on New Zealand's kiwi dollar - which isn't
part of the dollar index - targeting a climb to $0.74 by year-end, and
recommending buying any dips to $0.6985.

The kiwi rose 0.11% to $0.7093, edging back toward a one-month high of
$0.7105 reached on Monday.

The Aussie dollar gained 0.09% to $0.74225, approaching a more than
one-month high of $0.7440 touched at the end of last week, even after
minutes of the Reserve Bank of Australia's September meeting showed on
Tuesday that policymakers are concerned tighter policy could harm the labour
market. read more

Sterling added 0.13% to $1.37455, nearing Friday's one-month peak at
$1.3773.

The euro advanced 0.09% to $1.16205, approaching the top of this month's
trading range.

Against the safe-haven yen , the dollar was little changed at 114.275, but
not far from the almost three-year high of 114.47 touched on Friday.

U.S. manufacturing output was hurt as an ongoing global shortage of
semiconductors depressed motor vehicle output, providing further evidence
that supply constraints were hampering economic growth. read more

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold jumps 1% propelled by a weaker dollar

(Reuters) - Gold prices were on the front foot on Tuesday, rising as much as
1%, as a sluggish dollar lifted bullion's appeal in the face of increasing
inflation expectations.

Spot gold was up 0.8% at $1,778.76 per ounce by 1224 GMT, after hitting a
session high of $1,784.26. U.S. gold futures gained 1% to $1,783.00.

Making gold more attractive for buyers holding other currencies, the dollar
retreated, hit by a growing rate-hike bets in other markets.

A weaker dollar is gold supportive and the metal remains an "interesting
asset for investors looking to hedge against the risk of inflation going out
of control," said Carlo Alberto De Casa, external analyst at Kinesis Money.

He added that, while gold has created a solid support zone between $1,750
and $1,760, "a clear indication from the European Central Bank on tapering
could be a negative catalyst for bullion."

Elsewhere, Bank of England Governor Andrew Bailey sent a fresh signal for
early UK rate hikes by saying that the BoE will "have to act" to counter
rising inflation risks. In New Zealand, bets for faster policy normalisation
were stoked by data showing the fastest consumer-price inflation in more
than a decade.

Gold is often considered an inflation hedge, though reduced stimulus and
interest rate hikes tend to drive up government bond yields, raising
non-yielding bullion's opportunity cost.

U.S. benchmark 10-year Treasury yields also eased.

Among other precious metals, spot silver rose 3.1% to $23.88 per ounce,
scaling a more than one-month high.

Platinum climbed 1.4% to $1,049.84, and palladium jumped 3.1% to $2,076.52.

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/20211019/28e876a4/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/20211019/28e876a4/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/20211019/28e876a4/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/20211019/28e876a4/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/20211019/28e876a4/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/20211019/28e876a4/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65609 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20211019/28e876a4/attachment-0001.obj>