Bulls n Bears Daily Market Commentary : 02 September 2021

Fri Sep 3 05:54:58 CAT 2021

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Bulls n Bears Daily Market Commentary : 02 September 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE closed today's session with marginal gains but lacked momentum to
pull it from the red. Trading was mixed with low liquidity and activity
across the board. At close, market bias-maintained negativity as 16 stocks
registered losses against 14 advancers while 7 of the active stocks remained
unchanged. Shares of 37 out of 49 companies were traded. Activity levels
retreated to 345 trades. Delta was the most active stock at 35 trades
closely followed by OK Zimbabwe at 33 trades and Star Africa at 29 trades.
Bindura anchored volume aggregate trading 795 900 shares and Delta anchored
value aggregate with a value of ZW$27.8 million.

The benchmark All Share Index gained a marginal 0.07% to 6 593.24 points.
The Top 10 Index was added 0.58%. The Top 15 Index was up 0.57%. The Medium
Cap Index traded lower to 16 876.20 points depreciating by 0.66% whilst the
Small Cap Index also shaded 0.20% to close at 225 141.31 points. Leading the
shakers pack of the day was National Tyre Services which was down by 16.67%.
Mashonaland Holdings shaded 10.71% and Dairibord lost 8065%. Wildale was
down by 8.50% to 292.80c. Leading in the risers' pack were ZECO Holdings
which registered its third trade for this year and NMB Holdings which added
100.00% and 11.49% respectively. Ariston Holdings  was up by 3.03% to 310c.
OK Zimbabwe added 2.73% to close at 1585.89c. The Old Mutual Top Ten ETF
closed at 253.01c up by 0.004% after 20 400 units with a value of ZW$51 614
in 6 trades exchanged hands.wealthaccess

Global Currencies & Equity Markets

Zambian, Kenyan currencies seen firm, Nigeria's soft

(Reuters) - Zambia and Kenya's currencies are expected to trade on the front
foot against the U.S. dollar in the coming week as Nigeria's eases.
Tanzanian and Ugandan currencies are seen holding steady.

ZAMBIA

The kwacha ZMW= is expected to hold onto its gains against the dollar next
week due to positive sentiment driving inflows from non-resident investors
in government bonds.

On Thursday, commercial banks quoted the currency of Africa's second largest
copper producer at 16.0500 per dollar, up from 16.4350 at the close of
business a week ago.

KENYA

The Kenyan shilling KES= is seen strengthening on the back of anticipated
hard currency inflows from a Treasury auction next week.

At 0913 GMT, commercial banks quoted the shilling at 109.90/110.10 to the
dollar, compared with last Thursday's close of 109.65/85.

NIGERIA

Nigeria's naira NGNP= is expected to ease on the black market in the coming
week, traders said, after the central bank ordered lenders to publish the
names of individuals that violate rules for buying hard currency for
international travel.

The naira was quoted at 528 to the dollar on the black market on Thursday, a
record low level it hit the previous session. The central bank is trying to
channel demand from the unofficial market, where the currency is trading
much more weakly.

Commercial banks quoted the dollar at 413 naira for retail transactions,
around the official rate NGN=, which has been trading within a range since
June.

TANZANIA

Tanzania's shilling TZS= is expected to hold steady next week with inflows
from the mineral and agricultural exports helping to balance dollar demand
in the market mainly from manufacturing and energy sectors.

Commercial banks quoted the shilling at 2,314/2,324 on Thursday, unchanged
from the week's close.

UGANDA

The Ugandan shilling UGX= is seen trading in a broadly stable range over the
coming few days as hard currency inflows from commodity exporters match
appetite from merchandise importers.

At 0927 GMT commercial banks quoted the shilling at 3,525/3,535, compared to
last Thursday's close of 3,530/3,540.

South Africa

South Africa's rand rally comes to halt; stocks drop

(Reuters) - A rally in the South African rand came to a halt on Thursday
afternoon, as investors turned cautious ahead of a U.S. jobs report on
Friday that could affect expectations over the path of the Federal Reserve's
policy.

At 1542 GMT, the rand traded at 14.4400 against the dollar, roughly 0.3%
weaker than its previous close and on course for its first daily loss in
almost two weeks.

The rand had risen steadily this week in the wake of a dovish speech from
Fed Chair Jerome Powell last Friday, when he suggested the bank was in no
rush to raise interest rates.

The local currency has shrugged off domestic data releases including budget
(ZABUDM=ECI) and trade (ZATBAL=ECI) figures to track shifts in global
sentiment and moves in the dollar (.DXY). read more

Andre Cilliers, currency strategist at TreasuryONE, said on Thursday morning
the rand was heading into "overbought territory" after closing stronger for
eight consecutive days.

On Friday, investors will look to a PMI survey (ZAPMIM=ECI) for clues about
the pace of South Africa's economic recovery from the COVID-19 pandemic.

On the Johannesburg bourse, stocks fell, with the All-Share index (.JALSH)
ending down 0.48% and the Top-40 index (.JTOPI) down 0.42%.

Leading the decliners was insurer Discovery (DSYJ.J), which dropped 7.80%
after it scrapped its annual dividend again and said it may have to raise
equity capital to cover costs linked to its investment in China's Ping An
(601318.SS). read more

Miner Impala Platinum Holdings Ltd (IMPJ.J) was another big faller, closing
6.86% weaker, as its annual headline earnings per share (HEPS) growth missed
market expectations.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar lower after initial claims, euro at one-month high

(Reuters) - The dollar was weaker on Thursday following data on the labor
market, while the euro remained near a one-month high versus the greenback
in the wake of hawkish comments from European Central Bank policymakers.

Weekly initial jobless claims in the U.S. fell last week, and layoffs
dropped to their lowest level in more than 24 years, hinting the labor
market was continuing its recovery. Rising COVID-19 cases in recent weeks
have brought on concerns the economic recovery could stall, keeping the
Federal Reserve from pulling

back on its massive stimulus.

The data comes on the heels of a much weaker than expected ADP National
Employment Report on Wednesday and ahead of Friday's key payrolls report for
August. Nonfarm payrolls are expected to rise by 750,000, with the
unemployment rate anticipated to dip to 5.2% from 5.4%, according to Reuters
estimates.  

The dollar has been subdued on uncertainty over the path of Fed policy. Fed
chair Jerome Powell said last Friday that while tapering of its stimulus
could begin this year, the central bank was in no hurry to do so.

Other data showed new orders for U.S.-made goods rose in July, while
business spending on equipment remained strong, despite supply constraints
and spending trends moving away from goods towards services.

The dollar index fell 0.158% at 92.363, after falling as low as 92.333, its
lowest level since August 6. 

In contrast, data earlier this week showing inflation rose 3% in the euro
zone for August has helped push the euro to a one-month high of 1.862, its
highest since August 4. 

Data in the region on Thursday showed manufacturing data remained strong but
supply chain issues sent prices higher.

Recent comments from a host of European Central Bank hawks including
Austria's Robert Holzman and Bundesbank boss Jens Weidman also served to
move the single currency higher.

The euro up 0.15% to $1.1855.

The ECB is scheduled to hold a policy meeting on Sept. 9.

The Japanese yen weakened 0.06% versus the greenback at 110.05 per dollar,
while Sterling was last trading at $1.3819, up 0.37% on the day.    

 <mailto:info at bulls.co.zw> 

Commodities Markets

Congo copper sales increase 10% in H1, cobalt up 15%

Copper sales in Democratic Republic of Congo rose 10% in the first half of
2021 compared to the same period last year, while cobalt sales climbed 15%,
the mines ministry said on Tuesday.

Exports and local sales of copper stood at 871,956 tonnes, while sales of
cobalt were recorded at 44,654 tonnes, the ministry said in a report.

Congo is Africa's top copper producer and the world's leading miner of
cobalt, which is used in batteries for electric cars and electronic
products.

The country registered record copper production in 2020 of 1.587 million
tonnes, while cobalt output rose to 85,856 tonnes after slumping in 2019 in
response to low prices.

Source: Reuters

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

Counters trading under cautionary

ART

Seed co Int.

Dairibord

Starafrica

Medtech

Turnall

Seed co

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.

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