Bulls n Bears Daily Market Commentary : 20 October 2021

Wed Oct 20 21:33:29 CAT 2021

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Bulls n Bears Daily Market Commentary : 20 October 2021

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ZSE commentary

Overally, the market registerd a solid performance during today's trading
session, with profits registered across all the benchmark indices.The Top 10
index and the top 15 index added 8.34% and 7.53% to close at 7162.15 and
7960.48 points respectively. The small cap index was up 5.92% to close the
day at 341442.97 points while the medium cap index was stronger 3.22% to
close at 22886.68 points. The All Share Index gained 6.64% to close at
11519.56. The ZSE market capitalization stood at ZWL$1,377.44, for sometime
the market has been bullish registering new year highs on a daily basis.

Gains for the day were registered in Cassava and Dairibord which
strengthened by 19.15% to close at 4525.26c and 15.94% to close at 5200c
respectively. Meikles  added 13.78% to close at 16351.48c and Nampak settled
at 1260.45c after gaining by 13.73%. Gains were offset by losses recorded in
FBC which closed the day at 3009.10c following a decrease of 5.97% and
Proplastics shaded 3.06% to 3490c. Other losses were also recorded in
Medtech which edged down by 2.51% to 20.56c, while Ariston  shaded 2.40% to
360.89c and RTG was 2.30% down to 566c. On the ETF market, the Old Mutual
TOP 10 fund saw 72 trades valued at ZWL$2,864,473 from 715 968 units traded.
This led to marginal gain of 0.12% to 400.08c. Turnover stood at
ZW$306,951,283.20 in 618 trades. Medtech was the most active with 41 trades.
The market breath was positive after 25 stocks appreciated while 13
depreciated. Total trades were 618 with 6 counters remaining unchanged and 6
with zero.-wealthaccess

Global Currencies & Equity Markets

South Africa

South African rand strengthens as inflation quickens

(Reuters) - The South African rand advanced on Wednesday, bolstered by data
showing consumer price inflation quickened slightly to 5.0% last month.

At 1602 GMT, the rand ZAR=D3 traded at 14.4325 against the dollar, roughly
0.7% stronger than its previous close.

Although the rise in the consumer price index ZACPIY=ECI in September was in
line with analysts' forecasts, for some traders it served as further
evidence that pressure is building on the central bank to raise interest
rates.

The South African Reserve Bank (SARB) has kept its main lending rate on hold
at a record low of 3.5% ZAREPO=ECI for its past seven monetary policy
meetings, lagging other emerging market central banks like those of Russia
and Brazil which have tightened policy substantially.

The SARB has been able to keep its stance accommodative to support an
economic recovery from the COVID-19 pandemic, as inflation has not risen
above its target range of between 3% and 6%. But after it highlighted
inflation risks in a recent monetary policy document, market bets for a rate
hike at its November meeting grew.

Economists polled by Reuters predict a later lift-off in the repo rate,
coming in the first quarter of next year.

Johannesburg-listed stocks closed slightly firmer on Wednesday, with the
Top-40 .JTOPI index ending up 0.26% and the All-share index .JALSH up 0.18%.

The biggest gainers on the blue-chip index included tech investor Prosus
PRXJn.J and AngloGold Ashanti ANGJ.J, while fallers included retailers Mr
Price MRPJ.J and Woolworths WHLJ.J.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar dips as risk sentiment improves, bitcoin hits record high

NEW YORK (Reuters) - The dollar dipped on Wednesday as risk sentiment
improved and as investors focused on rising commodity prices and when global
central banks are likely to begin hiking interest rates to fend off
persistently high inflation.

The greenback hit a one-year high against a basket of other currencies last
week as market participants ramped up bets that the Federal Reserve will
raise rates sooner than expected to quell rising price pressures.

Those bets have faded, however, while investors are pricing for even more
aggressive rate increases in other countries and as commodity-linked
currencies including the Canadian and Australian dollars outperform.

The dollar index was last down 0.09% at 93.71.

Market participants are pricing for the Fed to raise rates twice by the end
of 2022.

ING FX strategists said in a client note the dollar's recent decline could
be due to a combination of markets closing long-dollar positions and "a
benign risk environment, where a strong U.S. earnings season has continued
to offset inflation/monetary tightening concerns."

The Australian dollar, seen as a liquid proxy for risk appetite, gained
0.27% on the day to $0.7496, having hit its highest since July overnight.

The New Zealand dollar rose 0.41% to $0.7154, the highest since June.

Reduced demand for safe-haven assets saw the dollar hit a four-year high of
114.67 versus the yen overnight, before retracing to 114.26.

The Canadian dollar was higher on the day after the country's annual
inflation rate accelerated to an 18-year high in September, putting the
focus on the Bank of Canada ahead of a rate decision next week.

The greenback was last down 0.07% against the loonie at CAD$1.2352.

The British pound was down 0.05% at $1.3781 after data showed that British
inflation slowed unexpectedly last month. The figures did little to change
expectations that the Bank of England will become the world's first major
central bank to raise rates.

In cryptocurrencies, bitcoin hit a record high of $66,074, a day after the
first U.S. bitcoin futures-based exchange-traded fund began trading.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold jumps on softer dollar, inflation fears

(Reuters) - Gold prices jumped on Wednesday, after the U.S. dollar weakened,
as worries over rising inflation and supply chain issues boosted the
safe-haven metal's appeal.

Spot gold rose 0.9% to $1,785.25 per ounce by 14:00 ET (1800 GMT). U.S. gold
futures for December settled up 0.8% at $1,784.90 per ounce.

The dollar dipped, making gold more appealing to holders of foreign
currencies.

Fed Governor Christopher Waller said on Tuesday if inflation keeps rising at
its current pace in the next few months, policymakers may need to adopt "a
more aggressive policy response" next year.

Bullion is often considered an inflation hedge, although reduced stimulus
and interest rate hikes push government bond yields up, raising the
opportunity cost of holding non-yielding bullion.

Also boosting gold, U.S. benchmark 10-year Treasury yields pulled back after
hitting a five-month peak earlier in the session.

StoneX analyst Rhona O'Connell said gold would see a change in range once it
breaches the key $1,800 per ounce level, adding that the risk lies to the
upside ahead of India's Diwali festival and with steady demand in China.

Elsewhere, platinum rose 1% to $1,050.50 per ounce. Palladium fell 1.2% to
$2,072.71.

Silver rose 2.9% to $24.34 per ounce, having hit its highest in over one
month.

Oil price starts to drop after China looks to tame coal prices

Oil hit multi-year highs on the back of a global coal and gas crunch that
drove a switch to oil for power generation.

Oil prices turned down after the Chinese government flagged it was looking
for ways to tame record high coal prices and that it would ensure coal mines
operate at full capacity as Beijing moved to ease a power shortage.

Chinese coal prices and other commodity prices slumped in early trade, which
in turn pulled oil prices down from an uptick earlier in the day.

Oil markets had hit multi-year highs earlier in the week on the back of a
global coal and gas crunch, which has driven a switch to diesel and fuel oil
for power generation.

US West Texas Intermediate (WTI) crude futures fell 30 cents, or 0.4
percent, to $82.66 a barrel at 03:16 GMT, reversing most of a 52-cent gain
from Tuesday.

Brent crude futures dropped 43 cents, or 0.5 percent, to $84.65 a barrel,
paring a 75-cent rise in the previous session.

The China Electricity Council said late on Tuesday China's National
Development and Reform Commission (NDRC) discussed government intervention
in coal prices at a meeting of key coal producers.

In a separate statement, the NDRC said it would ensure coal mines operate at
full capacity and aim to achieve at least 12 million tonnes per day of
output, which would be up more than 1.6 million tonnes from late September.

The market was also pressured by data from the American Petroleum Institute
industry group which showed US crude stocks rose by 3.3 million barrels for
the week that ended on October 15, according to market sources.

That was well above nine analysts' forecasts for a rise of 1.9 million
barrels in crude stocks, according to a Reuters poll.

However, US gasoline and distillate inventories, which include diesel,
heating oil and jet fuel, fell much more than analysts had expected,
pointing to strong demand.

Gasoline stocks fell by 3.5 million barrels compared with analysts'
forecasts for a drop of about 1.3 million barrels, while distillate stocks
fell by 3 million barrels, compared with forecasts for a drop of 700,000
barrels.

Data from the US Energy Information Administration is due on Wednesday.

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
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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
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opinions expressed and recommendations made are subject to change without
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