Bulls n Bears Daily Market Commentary : 09 September 2021

Thu Sep 9 17:04:11 CAT 2021

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:bulls at bulls.co.zw> Views & Comments
<http://www.bullszimbabwe.com> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 09 September 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE maintained positivity firming amid weaknesses on small cap stocks
and mid cap stocks. At close, market bias was positive as 17 stocks
registered gains against 15 losers while 4 of the active stocks remained
unchanged. Shares of 36 out of 49 companies were traded. Activity levels
retreated to 338 trades. OK Zimbabwe and Bindura were the most active stocks
at 31 trades each closely followed by Cassava and Medtech at 30 and 26
trades respectively. Econet anchored both volume and value aggregate trading
1 311 500 shares with a value of ZW$45.96 million.

The benchmark All Share Index gained 0.83% to 6 769.01 points. The Top 10
Index was up by 1.90%. The Top 15 Index was up 1.51%. The Medium Cap Index
traded lower to 17 482.16 points depreciating by 0.57% whilst the Small Cap
Index shaded 0.89% to close at 221 895 points. Leading the risers pack of
the day was ZB Holdings  which was up by 20.00%.  Simbisa added 9.88%.
Innscor added 7.15% and Truworths was up by 2.54%. Cassava was up by 1.68%.
Leading in the shakers' pack were African Sun  and Seed Co which shaded
13.82% and 6.66% respectively. Wildale  was down by 4.76%. Zimplow shaded
3.28%. The Old Mutual Top Ten ETF closed at 244.41c up 3.76% after 10 608
units with a value of ZW$25 927 in 16 trades exchanged hands. On the VFEX,
Seed Co International traded 465 402 shares for a total of US$121 004.52
closing at US26 cents per share, 8.33% increase. wealthaccess

Global Currencies & Equity Markets

South Africa

South African rand dips before current account, manufacturing data

(Reuters) - South Africa's rand dipped early on Thursday, taking its cue
from a cautious mood on global markets and a strong dollar before current
account and manufacturing data due later in the day.

At 0553 GMT the rand ZAR=D3 traded at 14.2200 against the dollar, around
0.2% weaker than its previous close.

The dollar .DXY was up 0.1% against a basket of peers, as doubts over the
global economy's strength subdued risk sentiment.

South Africa's central bank will publish second-quarter current account
numbers ZACAGP=ECI at 0900 GMT. These are expected to show a surplus of 4.9%
of gross domestic product (GDP) versus a 5.0% surplus in the first quarter.

July manufacturing figures ZAMAN=ECI, ZAMFG=ECI are due at 1100 GMT, and are
forecast to record year-on-year growth of 3.6% but a month-on-month decline
of 3.0%.

On Tuesday second-quarter GDP came in better than expected, growing 1.2%
quarter on quarter, but a sectoral breakdown showed the country's economic
recovery from COVID-19 remained uneven.

In the second three months of the year industries like communications and
agriculture expanded, but manufacturing and construction contracted.

Nigeria

Naira Now N535/$ Despite Increased Dollar Supply

Despite a significant increase in foreign exchange (dollar) supply on
Wednesday, the Naira depreciated at both black and official markets.

Findings from abokiFX.com, a website that collates the parallel market rates
in Lagos showed that the local unit exchanged hands with the greenback
currency at N535. 00 per dollar ($1).

This represents a N3.00 or 0.56 per cent devaluation from the N532.00 it
traded in the previous session on Tuesday.

Similarly, the Naira weakened against the U.S dollar at the official market
on Wednesday as foreign exchange supply rose significantly.

According to data posted on Financial Markets Dealers Quote (FMDQ),
securities exchange window where forex is officially traded, naira exchanged
hands with the hard currency at N411.50 per  $1 at the segment.

This implies a N0.83 or 0.20 per cent depreciation from the N410.67 rate it
traded in the previous session on Tuesday.

Foreign exchange supply increased by 130.60 per cent with $295.39 million
recorded at the market segment as against the $128.11 million posted in the
previous session on Tuesday.

Dealers say the domestic currency touched an intraday high of N400.00 and a
low of N412.16 at the trading session before closing at N411.50 at the close
of business on Wednesday.

The spread between the parallel market and  official market rates stood at
N123.50 as of the close of business on Wednesday, which leaves a disparity
of 23.10 per cent

Meanwhile, the increased dollar supply aligns with the Central Bank of
Nigeria's (CBN's)  focus.

The apex bank earlier on Tuesday revealed that it is not worried about the
Naira's valuation but boosting the supply of dollars in the currency market.

This was disclosed in a report by Reuters on Tuesday morning during a
virtual investor conference.

Director of Monetary Policy, Hassan Mahmud said, "We are not really bothered
much about valuation. What we are worried about is the supply side and the
confidence in the system."

Mahmud added that the level of the currency is expected to adjust based on
demand but that market failure had made the bank adopt a managed float
regime.

It should be remembered that the CBN has been trying to curtail a dollar
supply problem with policies, such as ordering of banks to publish on their
websites, the names and Bank Verification Numbers (BVN) of customers who
participate in fraudulent and unscrupulous tactics to obtain foreign
exchange from banks.

The apex bank also warned that customers who do not comply with the new
foreign exchange policy may face criminal prosecution. - tribuneonlineng

Zambia

Now Kwacha depreciates marginally, sheds gains

THE Kwacha has continued to shed out marginal gains made in previous weeks
against the United States (US) dollar due to a reduction in the supply of
the green back. The local currency has depreciated marginally to trade above
K16.00 on average at selected commercial banks and bureaux de change in
Lusaka and Kitwe. 

Since July 22, 2021 when the Kwacha traded close to K23.00 per US dollar,
the local currency has been bullish and traded at K15.50 until last Friday.
At Dondou bureau de change in Kitwe, the Kwacha was trading between K16.00
and K16.32 while at Unifinance in Lusaka, it was trading at K16.15 and
K16.42 for buying and selling, respectively. 

At Golden Coin, C&A and Dilt bureaux de change, the local currency was
trading between K16.15 and K16.42 on bid and offer, respectively. In its
daily treasury newsletter, Zanaco Plc stated that the Kwacha was little
changed for the second straight session as supply flows continue to hold at
low levels. 

 <mailto:info at bulls.co.zw> 

Global Markets

Rupee plunges 25 paise to 73.85 against US dollar

MUMBAI: The Indian rupee plunged 25 paise to 73.85 against the US dollar in
opening trade on Thursday, weighed down by the uptrend in the dollar index
and importer hedging.

Forex traders said a muted trend in domestic equities also dragged the local
unit down.

At the interbank foreign exchange, the rupee opened at 73.77 against the
dollar, then fell to 73.85, registering a decline of 25 paise from the last
close.

In the previous session, the rupee had settled at 73.60 against the US
dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a
basket of six currencies, rose 0.08 per cent to 92.72.

Foreign institutional investors were net sellers in the capital market on
Wednesday as they offloaded shares worth Rs 802.51 crore, as per exchange
data.

On the domestic equity market front, the 30-share index was trading 84.31
points or 0.14 per cent lower at 58,165.95. Similarly, the broader NSE Nifty
was trading 33.80 points or 0.19 per cent down at 17,319.70.

Global oil benchmark Brent crude futures advanced 0.10 per cent to USD 72.67
per barrel.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold rises as dollar stalls in run-up to ECB verdict

(Reuters) - Gold prices rose on Thursday after three straight sessions of
losses as the dollar rally paused and investors' focus turned to a European
Central Bank (ECB) meeting expected to signal a tapering of its emergency
economic support.

Spot gold rose 0.6% to $1,799.36 an ounce by 1130 GMT, bouncing off a
two-week low touched on Wednesday.

U.S. gold futures were up 0.3% at $1,799.30.

Gold received a slight fillip as the dollar index edged down while the euro
eked out gains amid expectations that the ECB could reduce the pace of bond
buying.

Gold prices tend to gain when interest rates are low, while some investors
also view bullion as a hedge against higher inflation that could follow
stimulus measures. It also competes with the dollar as a safe store of value
in times of uncertainty.

But bullion has been losing its shine as a safe haven, with risk aversion
favouring the U.S. dollar of late, said Han Tan, chief market analyst at
Exinity Group, adding that gold was still being driven largely by the
greenback's reaction to the U.S. Federal Reserve's tapering outlook.

The Fed reported on Wednesday that the U.S. economy "downshifted slightly"
in August in the face of a renewed COVID-19 surge.

Potentially offsetting any inflows into gold, several policymakers signalled
that the Fed remains on track to trim asset purchases this year.

Focus was also on weekly U.S. initial jobless claim data at 1230 GMT, given
the Fed's recent emphasis on the labour market being an important
determinant to tapering strategy.

In other precious metals, silver rose 0.9% to $24.18 an ounce, platinum
gained 0.4% to $983.50 and palladium was steady at $2,250.69. 

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

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
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.

(c) 2021 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210909/127e85a5/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210909/127e85a5/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 22328 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210909/127e85a5/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 107064 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210909/127e85a5/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210909/127e85a5/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65563 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210909/127e85a5/attachment-0001.obj>