Bulls n Bears Daily Market Commentary : 15 September 2021

Wed Sep 15 15:36:15 CAT 2021

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Bulls n Bears Daily Market Commentary : 15 September 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE was lifted by a block trade on Star Africa in a session marked by
low activity. Activity levels were lower at 297 trades. At close, market
bias was positive as 19 stocks registered gains against 16 losers while 3 of
the active stocks remained unchanged. OK Zimbabwe was the most active stock
at 28 trades followed by Delta and Star Africa at 24 trades each. Star
Africa anchored both volume and value aggregate trading 2 760 335 942 shares
with a value of ZW$1 098.7 million contributing 94.5% to total turnover.

The benchmark All Share Index added 0.55% to 6 894.11 points. The Top 10
Index was up by 0.86%. The Top 15 Index was up by 0.72%. The Medium Cap
Index traded higher to 17 247.44 points appreciating by a paltry 0.07%
whilst the Small Cap Index added 0.52% to close at 222 563.67 points.
Leading the risers pack of the day was Edgars which was up by 9.74%. Masimba
Holdings added 7.94% to 3895.33c. Zimpapers added 7.41% and Proplastics was
up by 5.70%. CBZ Holdings was up by 5.68%. Leading in the shakers' pack were
Zimre Holdings and NMB which shaded 10.80% and 6.25% respectively. Bindura
and Truworths were down 5.13% and 4.49% respectively. Star Africa shaded
2.11%. The Old Mutual Top Ten ETF closed at 230c down 1.91% after 14 136
units with a value of ZW$32 512.80 in 15 trades exchanged hands. Elsewhere
on the VFEX, Padenga traded 450 000 shares worth US$112 500 to close 18.65%
higher at US 25 cents.-wealthaccess

Global Currencies & Equity Markets

South Africa

South Africa's rand extends losses as JPMorgan recommends selling

(Reuters) - South Africa's rand extended its losses against the dollar early
on Wednesday, weighed down by a JPMorgan recommendation to sell the currency
and subdued risk appetite.

At 0614 GMT, the rand traded at 14.3530 against the dollar, 0.24% weaker
than its close on Tuesday, when it also slid.

JPMorgan told clients in a note on Tuesday that the rand had reached high
levels on the bank's emerging market risk appetite index, key terms of trade
were starting to look less favourable and investors might look at hedging
options soon.

Appetite towards riskier assets was subdued on Wednesday amid uncertainty
surrounding the U.S. Federal Reserve's tapering timeline after a
tamer-than-expected rise in U.S. inflation and as weaker-than-expected
Chinese economic data rekindled worries about slowing global growth. 

The Thomson Reuters Trust Principles.

Nigeria

Naira sinks further against dollar, pounds

The Naira depreciated further in the parallel market on Tuesday hitting N557
to the US dollar.

While the value was stable on the official window at N409.51-N410.50, it
continues to be blown apart in the black market and the BDC.

Quotes by ngnrates.com, showed that the currency fell by 1.3 percent to hit
an unprecedented rate of N557.

The BDC selling rate was N555.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar drifts after soft inflation, Chinese data weighs on Asian currencies

(Reuters) - The dollar held recent ranges against peers on Wednesday after
softer-than-expected U.S. inflation figures tempered immediate expectations
about Federal Reserve tapering while disappointing Chinese data weighed on
the yuan and Aussie.

The dollar index stood at 92.632, little changed from Tuesday, when it
dropped following the inflation data only to recover on haven demand as
stocks slid on Wall Street.

The index has meandered between 92.3 and 92.9 over the past week as several
Fed officials have suggested the U.S. central bank could reduce its buying
of debt securities by the end of the year, even after a
much-weaker-than-expected payrolls report at the start of the month.

While elevated inflation has kept pressure on policymakers, data overnight
showed the U.S. consumer price index, excluding the volatile food and energy
components, edged up just 0.1% last month. read more

The Federal Open Market Committee (FOMC) holds its monetary policy meeting
next week, with investors keen to find out whether a tapering announcement
will be made.

Tapering tends to benefit the dollar as it suggests the Fed is one step
closer toward tighter monetary policy. It also means the central bank will
be buying fewer debt assets, effectively reducing the number of dollars in
circulation.

Even so, NAB predicts that the focus of global growth is shifting away from
the United States, pushing the currency down to $1.23 versus the euro by
year-end.

One euro bought $1.1808 on Wednesday, mostly flat from the previous session.

European Central Bank Chief Economist Philip Lane speaks at the IMFS webinar
later in the global day.

The dollar slipped slightly to 109.595 yen , keeping close to the centre of
the trading range of the past two months.

Commonwealth Bank of Australia is more bullish on the dollar's prospects,
predicting that accelerating employment costs in the United States will keep
consumer prices elevated.

Meanwhile, the yuan and the Australian dollar were knocked lower after
Chinese data showed factory and retail sales growth cooled more sharply than
expected last month. L1N2QH08P read more

Adding to the broader China worries in financial markets was a media report
that embattled property developer China Evergrande Group (3333.HK) won't be
able to make interest payments on its debt next week. read more

The yuan extended its decline for the day to as far as 6.4433 yuan per
dollar before trading about 0.1% weaker at 6.4410, threatening to snap a
five-day string of gains.

The Aussie sank as low as $0.73015 for the first time in more than two weeks
following China's data, but recovered to be little changed at $0.7320.

 <mailto:info at bulls.co.zw> 

Commodities Markets

London copper rises as dollar weakens on U.S. inflation data

(Reuters) - Copper prices in London climbed on Wednesday as the dollar came
under pressure after data showed a tamer-than-expected rise in U.S.
inflation, leading to uncertainty over the U.S. Federal Reserve's timeline
for tapering its monetary stimulus.

A weaker dollar supports metals prices by making greenback-priced
commodities cheaper for holders of other currencies.

Three-month copper on the London Metal Exchange was up 0.5% at $9,486.50 a
tonne, as of 0755 GMT, while the most-traded October copper contract on the
Shanghai Futures Exchange closed down 0.7% at 69,810 yuan ($10,846.13) a
tonne.

Underlying U.S. consumer prices increased at their slowest pace in six
months in August, suggesting that inflation had probably peaked though it
could remain high for a while.

Putting a lid on prices was China's factory and retail sectors faltering in
August with output and sales growth hitting one-year lows as fresh
coronavirus outbreaks and supply disruptions threatened the country's
economic recovery.

* Accelerating production cuts in top producer China will create large
shortages of aluminium this year, while worries about supply chain
disruptions in Guinea have helped propel prices to 13-year highs.

* The discount of LME cash aluminium on the three-month contract CMAL0-3
expanded to $21.25 a tonne, its biggest since July 6, indicating easing
tightness in nearby supply.

* LME aluminium rose 1.3% to $2,867 a tonne, nickel increased 0.4% to
$19,710 a tonne, lead fell 2.2% to $2,222.50 a tonne while ShFE aluminium
shed 1.3% to 22,495 yuan a tonne and ShFE lead was down 1.9% at 14,660 yuan
a tonne.

Gold price back above $1,800 on US inflation data miss

Gold pared earlier losses and rose above the $1,800 level once again after
the latest US inflation data came in slightly lower than expected, which may
ease fears that the Federal Reserve will be forced to taper its bond buying
soon.

Spot gold gained 0.6% by 11:40 a.m. EDT, trading at a near one-week high of
$1,806.10 per ounce. US gold futures were up 0.7% at $1,807.90 per ounce.

The US Labor Department said on Tuesday its Consumer Price Index (CPI),
excluding the volatile food and energy components, edged up 0.1% in August,
short of the 0.3% forecast by economists. This was the smallest gain since
February, following a 0.3% rise in July.

The dollar declined after the inflation report, which may suggest that some
of the upward pressure on inflation is beginning to wane.

This miss is a "good news for bullion", making a September taper
announcement from the Fed less likely, said Ed Moya, senior market analyst
at brokerage OANDA, in a Reuters interview. The Federal Open Market
Committee (FOMC) is scheduled to next meet on September 21-22.

Right now the gold market is still in a flux, given its inability to stab
above the $1,800 level and could likely keep consolidating going into the
FOMC meeting, Moya added.

The recent data could reinforce the view that the Fed may go slow on
unwinding economic support measures and keep interest rates low, translating
into reduced opportunity cost for holding non-interest bearing
bullion.-Bloomberg and Reuters)

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.

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