Bulls n Bears Daily Market Commentary : 26 October 2021

Tue Oct 26 20:22:10 CAT 2021

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Bulls n Bears Daily Market Commentary : 26 October 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE shares closed in the negative for the third consecutive session as
liquidity levels remains low amid liquidity mop up by the RBZ with reserve
money declining to ZW$26.11 billion according to latest statistics. Market
bias was still negative as 23 stocks declined against 14 advancers while
seven of the active stocks remained unchanged. Activity levels was at 515
trades. Delta was the most active stock at 57 trades followed by Medtech at
36 trades. Delta anchored both volume and value aggregates trading 461 200
shares with a value of ZW$72.4 million contributing 40% to total turnover.
All the indices in our review closed in the red. The All-Share Index lost
3.34% to 11 456.15 points. The Top 10 Index shaded 4.60%. The Top 15 Index
pared 4.21%. The Medium Cap Index shaded 0.28% to 22 306.68 points whilst
the Small Cap Index also

lost 0.11% to 319 126.12 points.

Leading the shakers pack of the day was National Tyre Services shading
14.29% and Hippo lost 12.50%. Cassava pared 12.22% and National Foods  lost
11.76% to 150 000.01c. RIO Zimbabwe was down by 10.26%. Mitigating the
losses were gains in Zeco Holdings and Meikles which added 100.00% and
13.17% respectively. NMB Holdings was up by 9.22% to 1390c. Masimba Holdings
and Medtech Holdings added 8.32% and 6.66% respectively. The Old Mutual Top
Ten ETF closed at 452.16c up by 0.36% after 111 003 units were traded worth
ZW$501 915.45 in 42 trades. On the VFEX Padenga traded 2 200 shares worth
US$484 at 22 US cents to close unchanged at US 22 cents.  wealthaccess

Global Currencies & Equity Markets

South Africa

South African rand falls as commodity prices drop

(Reuters) - The South African rand weakened on Tuesday as precious metals
prices fell and power utility Eskom extended scheduled power cuts because of
a shortage of generation capacity.

At 1500 GMT, the rand traded at 14.8400 against the dollar, 0.76% weaker
than its previous close.

With the local economy remaining weak and facing power cuts, the rand had
rallied on Monday mainly on the back of global factors, including higher
commodity prices which benefit resource-rich South Africa.

But gold, platinum and palladium all fell back on Tuesday.

Eskom, which regularly enforces outages over faults at its coal-fired power
stations that hold back economic growth in Africa's most industrialised
nation, said it would extend rolling blackouts to Saturday.

In fixed income, the yield on the benchmark 2030 government bond was down
4.5 basis points to 9.51%.

Stocks rose, led by technology stocks and companies that derive much of
their income abroad and benefit from weakness in the local currency. Luxury
goods maker Richemont, Sibanye Stillwater and tech investor Naspers were the
three biggest climbers on the Johannesburg Top-40 index, gaining 2.69%,
2.57% and 2.26% respectively.

The Johannesburg All-Share index climbed 0.95% while the Top-40 rose 0.96%.

A weaker rand helps mining companies who export gold in dollars.

Some stellar earnings reports have helped drive the Dow and the S&P 500 to
record highs, lifting investor sentiment in October after concerns around
inflation, the U.S. Fed's tapering and China Evergrande Group's crisis
rattled markets last month. 

Nigeria

Naira stable as eNaira launches

Naira was stable against the U.S. dollar at the official market on Monday as
the government officially launched Nigeria's digital currency (eNaira).

The performance stretched the currency's stability to three consecutive days
at the official market.

The Central Bank Digital Currency (CBDC), eNaira, went live on Monday
following an official launch by President Muhammadu Buhari at the State
House in Abuja.

The digital currency was developed by fintech company Bitt, which is also
behind the creation of CBDC in some East Caribbean countries.

Godwin Emefiele, the Central Bank of Nigeria governor, said 500 million
eNaira ($1.21 million) had already been minted, and that of this figure,
N200 million eNaira has already been issued to banks integrated on the
platform.

Data from FMDQ securities exchange windows where forex is officially traded,
showed that naira exchanged hands with the foreign currency at N415.07 to a
dollar on Monday. The same rate it exchanged in the past two sessions
(Thursday and Friday) last week.

Forex turnover at the market plummeted by 63.00 per cent with $90.36 million
recorded on Monday as against the $240.97 million posted at the close of
business on Friday last week.

The local unit saw an intraday high of N404.00 and a low of N415.20 before
closing at N415.07 to a dollar again on Monday.

At the black market in Uyo, dealers said they exchanged the currency at
N560.00 to a dollar on Monday, as against the N565.00 per $1 exchanged
Friday last week.

While at Abuja, dealers exchanged the naira at the rate of N568.00 and sold
at N570.00 to a dollar on Monday.

 <mailto:info at bulls.co.zw> 

Global Markets

Indian Rupee recovers 12 paise to end at 74.96 against US dollar

The rupee snapped its two-session losing streak to settle 12 paise higher at
74.96 (provisional) against the US dollar on Tuesday, tracking a positive
trend in domestic equities.

At the interbank forex market, the local unit opened at 75.05 against the
greenback and witnessed an intra-day high of 74.95 and a low of 75.17 during
the day trade. It finally ended at 74.96 against the American currency.

On Monday, the rupee had declined by 18 paise to close at 75.08 against the
US currency.

The dollar index, which gauges the greenback's strength against a basket of
six currencies, fell 0.01 per cent to 93.80.

On the domestic equity market front, the BSE Sensex ended 383.21 points or
0.63 per cent higher at 61,350.26, while the broader NSE Nifty advanced 143
points or 0.79 per cent to close at 18,268.40.

Brent crude futures, the global oil benchmark, fell 0.40 per cent to USD
85.65 per barrel.

Foreign institutional investors were net sellers in the capital market on
Monday as they offloaded shares worth Rs 2,459.10 crore, as per exchange
data.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold eases on steady dollar, investors assess rate hike prospects

(Reuters) - Gold prices fell on Tuesday after a five-session rally, as the
dollar steadied and investors awaited key central bank meetings for clues
about rate hikes amid rising inflation concerns.

Spot gold fell 0.3% to $1,802.00 per ounce by 1012 GMT. U.S. gold futures
were down 0.1 % at $1,804.90.

The dollar recovered from a recent pullback, making bullion more expensive
for holders of other currencies.

The Bank of Japan and the European Central Bank are set to hold monetary
policy meetings on Thursday, while the U.S. Federal Reserve's policy meeting
is next week.

Gold, therefore, has not much room in the short term, said De Casa, adding:
"Only a dovish Fed or a slowdown of USD could lift up gold to $1,900,
otherwise it only has space for a moderate appreciation to $1,820-1,830."

Gold is often considered an inflation hedge, though reduced stimulus and
interest rate hikes push government bond yields up, increasing non-interest
bearing bullion's opportunity cost.

Fed Chairman Jerome Powell recently said the U.S. central bank should start
the process of reducing its support of the economy by cutting back on its
asset purchases, but should not yet touch the interest rate dial.

Elsewhere, spot silver fell 1% to $24.31 per ounce, platinum shed 1.1% to
$1,045.60 and palladium inched 0.6% lower to $2,038.95. 

The Thomson Reuters Trust Principles.

London copper eases as dollar firms, on-warrant stocks rise

London copper prices fell on Tuesday, on a small uptick in readily available
exchange inventories and as a firm dollar made greenback-priced metals
pricier to holders of other currencies.

(Reuters) - London copper prices fell on Tuesday, on a small uptick in
readily available exchange inventories and as a firm dollar made
greenback-priced metals pricier to holders of other currencies.

Three-month copper on the London Metal Exchange CMCU3 eased 0.1% to $9,863 a
tonne by 0324 GMT, while the most-traded December copper contract on the
Shanghai Futures Exchange SCFcv1 rose 0.6% to 72,160 yuan a tonne.

The dollar has bounced off recent lows and was firm in choppy trade ahead of
a handful of data releases and central bank meetings which investors expect
to guide the rates outlook.

On-warrant copper stockpiles in LME warehouses MCUSTX-TOTAL rose for the
fourth straight session to 23,300 tonnes, rebounding slightly from a
1998-low hit on Oct. 14 of 14,150 tonnes that sparked supply concerns and
pushed premium of cash LME to a record high over the three-month contract.

FUNDAMENTALS

* LME aluminium CMAL3 fell 0.5% to $2,860.50 a tonne, zinc CMZN3 declined
0.8% to $3,432 a tonne, and nickel CMNI3 decreased 0.1% to $20,295 a tonne.

* ShFE aluminium SAFcv1 dropped 2.9% to 20,870 yuan a tonne, nickel SNIcv1
rose 1.8% to 152,110 yuan a tonne, zinc SZNcv1 fell 0.7% to 24,395 yuan a
tonne, lead SPBcv1 rose 0.5% to 16,055 yuan a tonne and tin SSNcv1 shed 0.6%
to 281,570 yuan a tonne.

* The premium of LME cash nickel over the three-month contract CMNI0-3 shot
up to $189 a tonne, a level unseen since October 2019, indicating tightness
of nearby supplies, following Eramet's ERMT.PA report of a drop in
ferronickel output in New Caledonia due to a wave of COVID-19 infections
there.

* Asian stocks inched higher, as upbeat Wall Street earnings lifted the
broader economic outlook though fresh worries about China's property sector
hit Hong Kong and mainland markets. MKTS/GLOB DATA/EVENTS (GMT)

1400 US Consumer Confidence Oct

1400 US New Home Sales-Units Sept

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
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
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