Bulls n Bears Daily Market Commentary : 27 October 2021

Wed Oct 27 14:30:12 CAT 2021

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Bulls n Bears Daily Market Commentary : 27 October 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE was near flat today, halting a three-day losing streak characterized
by profit taking mainly in blue chip counters. Market bias was still
negative as 21 stocks declined against 13 advancers while six of the active
stocks remained unchanged. Activity levels was at 586 trades. Econet was the
most active stock at 55 trades followed by Star Africa and OK Zimbabwe at 44
and 41 trades respectively. Star Africa anchored volume aggregate trading 1
346 200 shares and Econet anchored value aggregate with a value of ZW$47.1
million.

The All-Share Index was near flat adding a paltry 0.03% to 11 459.10 points.
The Top 10 Index shaded 0.03%. The Top 15 Index added 0.15%. The Medium Cap
Index added 0.21% to 22 353.32 points whilst the Small Cap Index also added
0.40% to 320 416.44 points. Leading the shakers pack of the day was
Mashonaland Holdings shading 12.13% and Medtech Holdings lost 8.80%. Art
Corporation pared 4.76% and Cassava lost 4.37% to 4 329.11c. African
Distillers was down by 4.18%. Mitigating the losses were gains in Nampak and
First Mutual Holdings which added 8.29% and 8.00% respectively. Hippo was up
by 7.14% to 30 000c. Meikles and ZIMRE Holdings added 4.52% and 4.03%
respectively. The Old Mutual Top Ten ETF closed at 452.14c down by 0.005%
after 16 500 units were traded worth ZW$74 603 in 26 trades. wealthaccess

Global Currencies & Equity Markets

South Africa

South African rand slips on weaker precious metals

(Reuters) - South Africa's rand slipped in early trade on Wednesday, hit by
subdued prices of precious metals, which are among the country's major
exports.

At 0720 GMT, the rand ZAR=D3 traded at 14.8850 against the dollar, around
0.3% weaker than its previous close.

Gold XAU= fell 0.4% as firmer U.S. bond yields dented bullion's appeal,
while platinum XPT= dropped 0.7%.

The dollar .DXY was down 0.1% against a basket of currencies.

Some analysts expect the dollar to weaken when tapering happens, after the
U.S. currency hit a one-year high earlier this month on expectations that
the Federal Reserve would start to taper its bond purchases.

The focus later in the week will be on a series of domestic data releases,
including producer inflation numbers ZAPPIY=ECI on Thursday, as well as
budget ZABUDM=ECI and trade ZATBAL=ECI numbers on Friday.

Next week, attention will turn to a municipal election on Monday, which will
gauge voter support for the governing African National Congress.

On the Johannesburg Stock Exchange, the Top-40 .JTOPI index was down 0.4% in
early trade.

The government's 2030 bond ZAR2030= was slightly stronger, with the yield
falling three basis points to 9.48%.

Nigeria

Nigeria Launches Africa's First Digital Currency

ABUJA - Nigeria, Africa's largest economy, has launched the continent's
first digital currency, the e-Naira. The launch also ranks Nigeria among
very few nations in the world to adopt the electronic money system which
leaders hope will help boost the country's GDP and fight inflation.

The official launch of the Central Bank of Nigeria Digital Currency, CBDC,
took place at the state house in Abuja on Monday, with top government
officials attending.

Nigerian president, Muhammadu Buhari unveiled the e-Naira and said it could
potentially boost Nigeria's Gross Domestic Product by up to $29 billion over
the next decade.

Blockchain technology expert, Jadel Chidi welcomes the launch.

The e-Naira app went live and became available for citizens to download,
immediately after the launch.

A digital currency is a means of payment that exists purely in electronic
form. Other types include the cryptocurrency which authorities banned in
February saying its instability exposed citizens to huge financial risks.

The government expects the e-Naira to improve store of value for Nigeria
weakening currently as well as drive financial inclusion for millions of
citizens.

But digital money experts like Janet Kaatyo say Internet penetration and
tech savviness could present initial problems.

Jadel Chidi said there are also concerns about the e-Naira's regulation by
Nigeria's government.

The use of digital currencies has grown in recent years in Nigeria,
especially among the younger population.

Authorities say with the e-Naira, they can better monitor transactions, curb
black market trading for the paper currency, protect against devaluation,
and lower inflation.

 <mailto:info at bulls.co.zw> 

Global Markets

Australian dollar calms after inflation jump

(Reuters) - The U.S. dollar struggled to gain momentum on Wednesday, while
the Australian dollar pared gains following a jump on surprisingly strong
inflation data, and the Japanese yen edged up ahead of the Bank of Japan
rate decision on Thursday.

Currency markets have been generally quiet in recent sessions as investors
wait for the U.S. Federal Reserve meeting next week. read more

Investors are also looking to policy announcements this week from the
European, Canadian and Japanese central banks for clues on the outlook for
rates against a backdrop of supply-side driven global inflation pressures.

At 1135 GMT, the U.S. dollar index was little changed on the day at 93.896 .

Short-term U.S. Treasury yields spiked overnight as investors bet that
inflation would bring forward interest rate rises, and they hovered just
below these levels during the European morning session.

Standard Chartered FX analysts wrote in a client note that they expect
currency market risk sentiment to be limited until the Fed next week, where
"hawkish risks are still under-priced".

The Australian dollar was flat on the day at $0.7504, having reached as high
as $0.7536 overnight after data showed that Australian core inflation sped
to a six-year high in September, surprising the market. The data prompted a
spike in short-term yields. read more

The Reserve Bank of Australia meets on Tuesday next week and market pricing
is at odds with RBA policymakers' insistence that there will be no rate
hikes before 2024.

The U.S. dollar was down around 0.3% against Japan's yen, with the pair
changing hands at 113.76 - still within recent ranges and close to the
four-year high of 114.695 the dollar touched against the yen one week ago .

The Bank of Japan meets on Thursday and is widely expected to downgrade its
economic assessment, with markets betting on no rate hike in the foreseeable
future. read more

The Canadian dollar was down around 0.2% at 1.24165 ahead of Canada's
central bank policy announcement later in the session.

The central bank is expected to raise its inflation forecast and to largely
end stimulus from its pandemic-era bond buying programme, starting a
countdown of sorts to the first interest rate hike since October 2018 read
more

The euro was up around 0.1% at $1.1606 . The European Central Bank, which
meets on Thursday, is expected to take a dovish stance.

The German government cut its 2021 growth forecast for this year, as supply
bottlenecks for semiconductors and rising energy costs delay recovery in
Europe's largest economy. read more

The British pound was down 0.4% against the euro at 84.555 pence per euro as
the finance minister unveiled Britain's budget forecasts . read more

In cryptocurrencies, bitcoin fell to as low as $58,100.01 - its lowest in a
week and a half - in a move attributed to profit-taking following the
all-time high of $67,016.50 it reached last week. Since that high, the
cryptocurrency has fallen more than 13% but is on track for its best month
since February.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper to extend slump in 2022 as mines ramp up, China weakens

(Reuters) - Copper prices are due to extend their decline next year from
record levels touched in 2021 as mine supply ramps up and economic growth
tapers in top market China, a Reuters poll found.

Benchmark copper soared to a record peak of $10,747.50 a tonne in May, but
has retreated about 10% since then, weighed down by weak Chinese factory
output, debt problems in the property market and an energy crunch.

Analysts have revised their consensus forecast for the copper market balance
next year to a surplus of 82,000 tonnes from a deficit of 100,000 tonnes in
the July poll.

The cash copper contract on the London Metal Exchange (LME) is expected to
average $9,000 a tonne in 2022, a median forecast of 29 analysts showed,
down 10% from Tuesday's official price.

That forecast is still up 5% from the previous poll.

ALUMINIUM SUPPLY

Aluminium is the second best performing base metal on the LME, climbing
nearly 50% so far this year and touching 13-year highs, fuelled by strong
demand and production cutbacks in China due to power issues.

But tightness is due to ease next year, with the market deficit expected to
more than halve next year to 396,000 tonnes from 893,000 tonnes in 2021,
consensus forecasts show.

Analysts expect LME cash aluminium to average $2,695 a tonne next year, down
5% from the current price.

INDONESIAN NICKEL

The price of nickel hit seven-year highs this month on concern about supply
as inventories declined and demand boomed for stainless steel and electric
vehicles.

Supply, however, is expected to surge next year from top producer Indonesia.

The global nickel market is forecast to flip from a 62,000-tonne deficit in
2021 to a 78,000-tonne surplus next year.

LME cash nickel is seen averaging $18,375 a tonne in 2022, down 10% from
Tuesday's price.

The Thomson Reuters Trust Principles.

Gold dips on higher yields as focus turns to key c.bank meetings

(Reuters) - Gold prices eased further on Wednesday from the key level of
$1,800 per ounce, after firmer U.S. bond yields dented bullion's appeal as
investors assessed how central banks would address growing inflationary
pressure.

Spot gold was down 0.2% at $1,789.02 per ounce, as of 0649 GMT, declining
1.3% since rallying to a more than one-month high last week. U.S. gold
futures dropped 0.2% to $1,790.80.

Benchmark 10-year U.S. Treasury yields rose slightly, increasing the
opportunity cost of holding the non-interest bearing metal.

Shorter-term yields were also up with two-year yields spiking briefly above
0.5%, a level last seen in March 2020.

Market participants have now turned their attention to the Bank of Japan
(BOJ) and the European Central Bank (ECB) meetings on Thursday and the
pivotal U.S. Federal Open Market Committee (FOMC) on Nov. 3.

While the BOJ is set to maintain its massive stimulus programme and slash
this year's inflation forecast, rising inflation fears in the euro zone
could pose a challenge to the ECB.

Gold is often considered an inflation hedge, though reduced stimulus and
interest rate hikes tend to push government bond yields up, dimming
bullion's appeal.

On the technical front, spot gold looks neutral in a range of $1,783 to
$1,795 per ounce, and an escape could suggest a direction, Reuters technical
analyst Wang Tao said.

Spot silver fell 0.4% to $24.03 per ounce. Platinum eased 0.6% to $1,021.52
and palladium edged 0.1% up to $2,013.28.

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
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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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