Bulls n Bears Daily Market Commentary : 06 September 2021

Mon Sep 6 18:33:18 CAT 2021

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Bulls n Bears Daily Market Commentary : 06 September 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The All Share Index opened the week in red at 6,600.93 points after trimming
0.86% in today’s session. INNSCOR AFRICA retreated by $7.0552 to $93.0054,
CASSAVA SMARTECH lost $2.6471 to $16.5364 while ZIMPLOW slid $0.8913 to
$15.1087. 

ECONET ZIMBABWE shed $0.7320 to $34.2844 together with NMB BANK which eased
$0.5686 to $15.4271. Major gains were recorded in; DAIRIBORD ZIMBABWE which
jumped $3.5412 to end at $39.2588, CBZ HOLDINGS advanced by $3.1285 to
$79.9981 and NATIONAL FOODS LIMITED added $1.5000 to $521.5000. TURNALL
HOLDINGS  went up to $4.6800 by $0.6800 while FBC HOLDINGS  was $0.5000
firmer at $29.5000.-zse

Global Currencies & Equity Markets

South Africa

South African rand starts week stronger following US jobs report

(Reuters) - South Africa's rand strengthened early on Monday, continuing to
trade on the front foot after a disappointing U.S. jobs report made
investors push back expectations for when the Federal Reserve will begin
tapering stimulus measures.

At 0650 GMT, the rand traded at 14.3000 against the dollar, around 0.2%
firmer than its previous close.

The dollar (.DXY) hovered near a one-month low versus peers. read more

The rand rallied on Friday after the U.S. jobs report came in below market
expectations, as the Fed has made a labour market recovery a condition for
paring back its pandemic-era asset purchases.

Along with other risk-sensitive currencies, the rand moves regularly on
shifts in the outlook for U.S. monetary policy.

This week's economic data releases include South Africa's second-quarter
gross domestic product (GDP) figures (ZAGDP=ECI) on Tuesday, as well as July
manufacturing (ZAMAN=ECI) and second-quarter current account (ZACACT=ECI)
numbers on Thursday.

Analysts polled by Reuters predict that GDP expanded 0.6% quarter on quarter
(ZAGDPN=ECI), seasonally adjusted but not annualised, in the April-June
quarter -- down from 1.1% in the prior three-month period, reflecting a
sluggish economic recovery from the COVID-19 pandemic.

The government's benchmark 2030 bond was little changed early on Monday,
with the yield dipping 0.5 basis points to 8.805%.

The Thomson Reuters Trust Principles.

Nigeria

Nigeria's naira hits record black market low against dollar

ABUJA: The Nigerian naira hit a record low of 532 to the dollar on the black
market on Monday, with dollars hard to come by, traders said.

The naira has been hitting new lows on the parallel market since July,
following central bank actions to try to draw business into the official
exchange channels.

The central bank has banned micro-lenders from dealing in foreign currency
after clamping down on dollar sales to exchange bureaus, in a strings of
curbs on the currency market.

It ordered lenders to publish the names of individuals that violate rules
for buying dollars for foreign travel.

Nigeria is battling dollar shortages brought on by low oil prices following
disruptions linked to the COVID-19 pandemic. The central bank has devalued
the currency three times since March 2020, but the naira has continued to
weaken.

Demand is rising as individuals with dollar expenses such as school fees buy
foreign currency from unofficial sources, traders said.

The naira traded at 410.50 per dollar on the official spot market on Monday,
in the range of 407 to 412 naira where it has been since June.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar shakes off jobs report blues in big central bank week

(Reuters) - The U.S. dollar on Monday clawed back some of the losses
sustained after last week's poor U.S. jobs report, helped by firmer U.S.
Treasury yields in a big week for major central banks.

The dollar index , which measures the currency against six rivals, edged
0.1% higher to 92.23, after dipping to 91.941 for the first time since Aug.
4 on Friday, when a closely watched U.S. labour report showed the world's
largest economy created the fewest jobs in seven months in August. read more

But the weak jobs report did not spark a new wave of dollar selling on
Monday as the greenback spent the Asian session pushing higher against its
rivals, prompting some major currencies including the euro and the
Australian dollar to move back to pre-Friday jobs report levels.

Benchmark 10-year U.S. Treasury yields firming to more than one-week highs
also boosted the dollar. U.S. markets are shut for a holiday, contributing
to lower volumes.

While analysts remain bearish on the outlook for the greenback with Citibank
strategists expecting it to weaken in the coming months as the Fed postpones
tapering plans to November, hedge funds have quietly ramped up bullish bets.

Latest data showed they have increased bets on the greenback versus the euro
for a second consecutive week, boosting net bets to their highest since
March 2020.

Most of the dollar's gains was focused on the Australian dollar which
weakened 0.17% to $0.7435 ahead of a central bank decision on Tuesday where
analysts remain divided on whether the Reserve Bank of Australia will call
time on its stimulus plans.

National Australia Bank predicts the central bank will reduce asset
purchases again, "although the optics of tapering amid protracted lockdowns
means it is likely to be a close decision," NAB analyst Tapas Strickland
wrote in a report.

The euro also failed to extend its gains on Monday after rising above the
$1.19 levels for the first time since the end of July. It was trading 0.1%
weaker at $1.1873 before an European Central Bank policy decision on
Thursday.

Economists reckon it is still too early for the ECB to call time on
emergency stimulus, but it could agree to slow the pace of its bond buys
after euro area inflation surged to a 10-year high at 3% last week.

In cryptocurrencies, bitcoin was about flat at $51,785.60, after earlier
touching $51,920, a level not seen since May 12. Smaller rival ether traded
little changed at $3,942.77 after topping $4,000 last week for the first
time since mid-May.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

New highs for LME aluminium price on further supply issues, nickel down 1%

Aluminium's three-month price set a new year-to-date high of $2,775.50 per
tonne during early trading on Monday September 6, with political turmoil in
Guinea – the world's top bauxite exporter – lending further supply-side
support to the metal.

The metal's three-month price was $2,755 per tonne on Monday morning, a 1%
rise on the previous Friday's closing price of $2,727 per tonne, with more
than double copper's volumes at 6,400 lots traded by 9:30am. Aluminium was
up 6.9% from one month before, when it was $2,578 per tonne.

Guinea's military staged a coup on Sunday September 5, claiming to have
seized power after ousting long-standing president, Alpha Condé. The coup
leaders have declared the country's constitution invalid and closed the West
African country's borders.

Oil steady as Ida outages offset Saudi price cuts

LONDON (Reuters) - Oil prices were little changed on Monday as gains on
production outages after Hurricane Ida were tempered by Saudi Arabia’s sharp
cuts to crude contract prices for Asia, reviving concerns over the demand
outlook.

Brent crude futures for November were up 3 cents, or 0.04%, at $72.64 a
barrel by 1354 GMT. U.S. West Texas Intermediate crude for October was up 4
cents, or 0.06%, at $69.33.

Both contracts had been down more than $1 in earlier trade.

State oil group Saudi Aramco notified customers in a statement on Sunday
that it will cut October official selling prices (OSPs) for all crude grades
sold to Asia, its biggest buying region, by at least $1 a barrel.

The price cuts were larger than expected, based on a Reuters poll of Asian
refiners.

The monthly Energy Information Administration report due Wednesday will be
eagerly watched, said Varga, adding that solid demand estimates for the
balance of this year and 2022 could lift oil prices towards their July
highs.

Global oil supplies are increasing as the Organization of the Petroleum
Exporting Countries and its allies, a grouping known as OPEC+, are raising
output by 400,000 barrels per day (bpd) each month between August and
December.

The earlier decline in crude futures added to falls on Friday after a weaker
than expected U.S. jobs report indicated a patchy economic recovery that
could mean slower fuel demand during a resurgent pandemic.

Losses were capped by concerns that U.S. supply would remain limited in the
wake of Hurricane Ida.

The U.S. government is releasing crude from strategic petroleum reserves as
production in the U.S. Gulf Coast struggles to recover.

Some 1.7 million barrels of oil and 1.99 billion cubic feet of natural gas
output remained offline, government data showed on Friday, while power
shortages are preventing some refineries from resuming operations.

The hurricane also led U.S. energy companies to cut the number of oil and
natural gas rigs operating for the first time in five weeks, data from Baker
Hughes showed on Friday. The oil rig count last week fell the most since
June 2020.

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

BAT

Analyst Briefing

H1 Virtual

September 7 -1230pm

Hippo

AGM

virtual

September 17 -  (9am)

Star Africa

AGM

virtual

September 23 -11am

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

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
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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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