Bulls n Bears Daily Market Commentary : 21 September 2021

Tue Sep 21 13:55:53 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 : 21 September 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE closed today's session near flat with marginal gains across the
board. It lacked liquidity and impetus for a strong positive move and is
struggling for direction. Activity levels improved to 420 trades and market
bias was positive as 20 stocks registered gains against 11 gainers while 7
of the active stocks remained unchanged. Star Africa was the most active
stock at 44 trades followed by Bindura and Star Delta at 41 and 29 trades
respectively. Bindura anchored volume aggregate trading 938 400 shares and
Innscor anchored value aggregate with a value of ZW$36.8 million.

The benchmark All Share Index added 0.16% to 7 018.48 points. The Top 10
Index was flat adding a paltry 0.03%. The Top 15 Index gained 0.21%. The
Medium Cap Index traded higher to 17 411.43 points appreciating by 0.32%
whilst the Small Cap Index also added 0.99% to close at 223 761.49 points.
Leading the risers pack of the day was Turnall Holdings which was up by
7.67%. First Mutual Holdings added 7.05%. Ariston added 6.12% and Truworths
was up by 5.19%. Bindura added 4.89%. Leading in the shakers' pack were
Wildale and Nampak which slipped 7.95% and 7.86% respectively. Proplastics
and General Beltings were down 7.41% and 1.62% respectively. The Old Mutual
Top Ten ETF closed at 247.28c after trading 41 742 units with a value of
ZW$103 220 in 15 trades exchanged. Elsewhere on the VFEX, Padenga traded 5
590 shares worth US$1 677 to close 3.45% higher at US 30 cents per
share.wealthaccess

Global Currencies & Equity Markets

South Africa

South African rand weakens on risk aversion

(Reuters) - South Africa's rand weakened on Monday, tracking other risk and
commodity currencies, as concerns about property group China Evergrande's
solvency stoked risk aversion, while traders awaited the outcome of this
week's U.S. Federal Reserve policy meeting.

At 1500 GMT, the rand was trading at 14.7900, down 0.73% from Friday's
close, and having lost more than 4% since Sept. 10.

The dollar climbed as investors turned risk averse amid concerns around
debt-laden Chinese developer Evergrande's (3333.HK) inability to pay part of
its huge debt due on Thursday.

The Chinese developer's woes come in the midst of several regulatory
crackdowns by Chinese authorities on digital companies, eroding investors'
confidence in the world's second biggest economy and instilling fears around
its prospects.

Investors will also be closely watching the South African Reserve Bank's
monetary policy meeting news conference on Sept. 23 to get a steer on where
interest rates are headed in the continent's most advanced economy.

The market will also track local Consumer Price Index (CPI) numbers on Sept.
22 and the U.S. Federal Reserve's policy meeting, due to end on Wednesday,
for indications on when it will start tapering its bond purchase programme.

South African government bonds also weakened, and the yield on the
instrument due in 2030 up 7.5 basis points to 9.060%.

Stocks too were down, with the Johannesburg Stock Exchange's Top-40 Index
(.JTOPI) slipping 2.4% to 55,246 points and the broader All-Share Index
(.JALSH) losing 2.2% to 61,453 points.

Insurer Discovery (DSYJ.J), which has exposure to the Chinese market via a
partnership with fellow insurer Ping An (601318.SS), was the biggest loser
on the blue-chip index, shedding 6%.

The Thomson Reuters Trust Principles.

Nigeria

Domestic Currency Depreciates at I&E, Cryptos Plunge

The Naira depreciated against the US Dollar at the Investors and Exporters
(I&E) segment of the foreign exchange (forex) market on Monday, September
20.

The domestic currency lost 80 kobo or 0.2 per cent at the market window
yesterday to trade at N413.68/$1 compared with the preceding session's
N412.88/$1.

It was the first trading session after the Central Bank of Nigeria (CBN)
said it was making efforts to eliminate illegal FX dealers from the market.

The Governor of the CBN, Mr Godwin Emefiele, had also asked all genuine
forex end-users to source foreign currencies from authorised channels as
trading at the black market was illegal.

Yesterday, the I&E segment witnessed a 60.3 per cent or $138.56 million drop
in turnover as transactions worth $91.23 million were carried in contrast to
the $229.79 million recorded last Friday, according to data obtained by
Business Post from FMDQ Securities Exchange.

However, things changed at the interbank window of the forex market, as the
Nigerian currency appreciated against the Dollar by 98 kobo or 0.24 per cent
to close at N410.59/$1 versus N411.57/$1 of the previous session.

Meanwhile, the crypto market turned bearish on Monday as traders showed
concerns over the spillover risk to the global economy from Chinese property
group Evergrande's troubles spread across financial markets.

China is battling a highly contagious property market crisis and this is
posing a serious risk with many people quickly taking profit with massive
dump occurring across the digital assets.

Bitcoin (BTC) plunged by 8.7 per cent to trade at N24,639,691.09, Ethereum
(ETH) slipped by 4.8 per cent to trade at N1,819, Ripple (XRP) slid by 13.7
per cent to trade at N528.01, Dash (DASH) lost 9.6 per cent to sell at
N100,501.01, while Litecoin (LTC) went down by 8.3 per cent to N91,001.00.

Also, Tron (TRX) declined by 7.3 per cent to sell for N55.71, Cardano (ADA)
decreased by 2.6 per cent to trade at N1,287.48, the US Dollar Tether (USDT)
fell by 0.8 per cent to N574.89, Binance Coin (BNB) dropped 0.8 per cent to
trade at N150,730.20, while Dogecoin (DOGE) fell by 0.7 per cent to sell at
N129.27.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar slips from 1-month highs as "buy the dip" trades bloom

(Reuters) - The U.S. dollar held below a one-month high tested overnight as
global markets stabilised on Tuesday, while investors, bracing for a
potential default by property developer China Evergrande, sought safety in
the yen and the Swiss franc.

With Monday's selloff in global markets largely blamed on option-driven
flows in an environment of poor market liquidity, some investors perceived
it as an opportunity to engage in "buy the dip" trades.

With equity market positioning remaining near historical highs according to
recent surveys, Tuesday's price action restored some calm to currency
markets, with cyclically oriented currencies such as the Norwegian crown and
the Aussie dollar rebounding sharply.

A JP Morgan weekly investor survey found that 61% of survey respondents
planned to increase equity market exposure. A BOfa survey last week found
investor positioning in equities among its private clients was near record
highs.

However, default fears continued to stalk China Evergrande Group despite
efforts by its chairman to lift confidence in the embattled property
company. Financial markets looked for possible intervention by Beijing to
stem any domino effects across the global economy.

Against a basket of its rivals, the dollar edged lower at 93.12 after
reaching its highest since Aug. 23 at 93.45 in the previous session. U.S.
equity futures were up 1%.

The bounce in markets along with higher commodity prices benefited the
Norwegian crown which rose nearly 1%, erasing most of its overnight losses.
The Australian dollar <AUD=D3 and the kiwi dollar rose 0.1% each.

As markets stabilised after Monday's selloff, investors remained broadly
cautious. A currency market volatility gauge climbed to its highest levels
since end-July.

Before Evergrande's debt crisis unnerved markets, the dollar has been
supported ahead of a Federal Reserve meeting this week, when economists
surveyed in a Reuters poll expect policymakers to signal expectations of a
tapering plan to be pushed back to November.

The Swiss franc edged higher to 1.0869 per euro, but was still near Monday's
peak of 1.08750.

Cryptocurrencies continued to struggle amid the souring in risk sentiment,
with bitcoin broadly steady around $43,000 on Tuesday after earlier touching
$40,192.90 for the first time since Aug. 6.

Smaller rival ether rebounded more than 3% to $3,076, after dipping to
$2,803.20, also a first since Aug. 6.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper prices hover near 1-month low on Evergrande debt crisis

(Reuters) - Prices of copper, used widely in the power and construction
industries, were trading near a one-month low on Tuesday as a debt crisis at
China developer Evergrande Group spurred a sell-off across markets and
stoked worries over global demand.

Three-month copper on the London Metal Exchange edged up 0.3% to $9,063 a
tonne by 0337 GMT, but was hovering near its lowest level since Aug. 20 hit
in the previous session of $8,975 a tonne. The contract lost 4.8% so far
this month.

Global stock markets grappled with contagion fears, sparked by troubles at
China Evergrande as growing risks the property giant could default on its
massive debt pile prompted investors to flee riskier assets.

Chinese markets are closed for a holiday and will reopen on Wednesday.

FUNDAMENTALS

* The global world refined copper market showed a deficit of 90,000 tonnes
in June, compared with a surplus of 4,000 tonnes in the prior month, the
International Copper Study Group said in its latest monthly bulletin.

* Aurubis AG, Europe's largest copper producer, said on Monday its Stolberg
copper products plant in Germany will start resuming some production on Nov.
1.

* Two trains operated by Russian aluminium giant Rusal collided in Guinea's
capital Conakry on Monday, killing at least one person and injuring several
others, according to witness accounts and footage on social media.

* LME aluminium was almost flat at $2,864 a tonne, nickel eased 0.1% to
$19,035 a tonne, zinc advanced 0.3% to $3,024 a tonne and lead increased
0.2% to $2,161 a tonne.

* For the top stories in metals and other news, click or

The Thomson Reuters Trust Principles.

Oil rises as U.S. storm aftermath squeezes supply

(Reuters) - Oil prices rose on Tuesday, after sharp losses the previous
session, amid tighter U.S. supplies, ending days of losses as global markets
remain haunted by the potential impact on China's economy of a crisis at
heavily indebted property group China Evergrande.

Brent crude gained $1.01, or 1.4%, to $74.93 a barrel by 0941 GMT, having
fallen by almost 2% on Monday. The October West Texas Intermediate (WTI)
contract , which expires later on Tuesday, was up 99 cents, or 1.4%, at
$71.28, after dropping 2.3% in the previous session. The more active
November contract gained $1.01 a barrel to $71.15.

Growing concerns over U.S. production "seem to be outpacing other factors
... such as the uncertainty over the outcome of the Federal Reserve monetary
policy committee meeting and fears that the Evergrande issue may trigger a
wider crisis," ActivTrades analyst Ricardo Evangelista said.

Royal Dutch Shell (RDSa.L), the largest U.S. Gulf of Mexico oil producer,
said on Monday that damage to offshore transfer facilities from Hurricane
Ida will cut production into early next year. read more

About 18% of the U.S. Gulf's oil and 27% of its natural gas production
remained offline on Monday, more than three weeks after Hurricane Ida,
regulator Bureau of Safety and Environmental Enforcement (BSEE) said.

Still, investors across financial assets have been rocked by the fallout
from heavily indebted Evergrande (3333.HK) and the threat of a wider market
shakeout in the longer term. read more

While that view of the state of China's economy is weighing on markets, the
U.S. Federal Reserve is also expected to start tightening monetary policy -
likely to make investors warier of riskier assets such as oil.

The Thomson Reuters Trust Principles.

INVESTORS DIARY 2021

Company

Event

Venue

Date & Time

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

Invest Wisely!

Bulls n Bears 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com  

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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/20210921/fadbdfcd/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/20210921/fadbdfcd/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/20210921/fadbdfcd/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/20210921/fadbdfcd/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/20210921/fadbdfcd/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130913 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20210921/fadbdfcd/attachment-0001.obj>