Bulls n Bears Daily Market Commentary : 22 September 2021

Wed Sep 22 16:11:09 CAT 2021

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Bulls n Bears Daily Market Commentary : 22 September 2021

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE extended gains for the 6th session in a row as all of the major
indices advanced except for small caps in a session that saw a decline in
turnover and activity levels. Activity levels declined to 297 trades and
market bias firmed in the positive as 18 stocks registered gains against 15
losers while 7 of the active stocks remained unchanged. Star Africa was the
most active stock at 40 trades followed by Delta and Medtech at 29 and 26
trades respectively. Star Africa anchored volume aggregate trading 1 364 500
shares and Delta anchored value aggregate with a value of ZW$26.3 million.

The benchmark All Share Index added 1.90% to 7 151.79 points. The Top 10
Index added 2.72%. The Top 15 Index gained 2.39%. The Medium Cap Index
traded higher to 17 541.40 points appreciating by 0.75% whilst the Small Cap
Index shaded 0.24% to close at 223 215.22 points. Leading the risers pack of
the day was NMB Holdings  which was up by 16.07%. Innscor added 12.20% to
12100c. Seed Co added 7.17% and Econet was up by 6.60%. Bindura added 5.94%.
Leading in the shakers' pack were Rio Zimbabwe and Medtech which slipped
15.15% and 3.91% respectively. Mashonaland Holdings and First Mutual
Properties were down 3.30% and 3.01% respectively. The Old Mutual Top Ten
ETF closed at 250c after trading 15 100 units with a value of ZW$37 750 in 8
trades exchanged hands. Elsewhere on the VFEX, Seed Co International  traded
1 000 shares worth US$240 to close 7.69% lower at US 24 cents per
share.-wealthaccess

Global Currencies & Equity Markets

South Africa

South Africa's rand strengthens as Evergrande deal lifts risk appetite

(Reuters) - South Africa's rand strengthened on Wednesday as risk appetite
improved after China Evergrande Group (3333.HK) pledged it would make an
upcoming bond coupon, offering relief to jittery markets that were on the
edge on concerns of a potential debt crisis.

At 0640 GMT, the rand traded at 14.7500 against the dollar, 0.5% firmer than
its previous close.

The currency had slipped to its weakest in more three weeks as risk appetite
was dented on Tuesday after ratings agency Fitch said Africa's most
industrialised economy will continue to face challenges as it seeks to
stabilise debt. read more

Evergrande said on Wednesday it would make a coupon payment on its domestic
bonds on Sept. 23, allaying fears that a default of China's No. 2 developer
could ripple through the global financial system. read more

Investor focus has now shifted to local consumer inflation data due at 0800
GMT and on the U.S. Federal Reserve, which is expected to drop more hints on
interest rates and its future policy path.

Riskier currencies, such as the rand, thrive on U.S. interest rates
remaining low because they benefit from the interest rate differential that
increases their appeal for so-called carry trade.

The Thomson Reuters Trust Principles.

Nigeria

Naira gains at official market

Naira clinched a meager gain against the U.S. dollar at the official market
on Tuesday as foreign exchange supply increased.

Data recorded by the FMDQ securities exchange where forex is officially
traded showed that the naira closed at N413.28 per $1. This represents a
N0.40 or 0.10 per cent appreciation from N413.68 it exchanged on Monday.

The forex turnover increased 60.30 per cent with $200.65 million posted at
the official Nafex window against the $91.23 million recorded in the
previous session on Monday.

Naira hit an intraday high of N404.00 and a low of N414.50 at the trading
session before closing at N413.28 on Tuesday.

Meanwhile, forex dealers in Uyo and Abuja who spoke to PREMIUM TIMES on
Tuesday said the currency closed at N 565.00 and N571.00 per $1 at the black
market.

Dealers said some have struggled to trade after abokiFX.com, a website that
collates parallel market rates in Lagos, stopped publishing parallel market
rates on Friday, after the Central Bank of Nigeria threatened its owner..

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar near one-month high as Evergrande risks, Fed loom

(Reuters) - The dollar held below a near one-month high on Wednesday as
investors focused on two key risks -- a default by Chinese property
developer Evergrande and the expected pace of U.S. monetary policy
tightening.

The dollar index stood at 93.226 in early Asian trade, staying not far off
Monday's one-month high of 93.455.

The euro changed hands at $1.1725 , having stabilised at a one-month low of
$1.1700 on Monday.

The common currency dropped to a seven-month low of 127.93 yen, as the
safe-haven Japanese currency was supported by the cautious mood.

The dollar traded at 109.165 yen , near the low end of its trading range
since mid-August.

The Bank of Japan is expected to keep its policy on hold later in the day.

Evergrande (3333.HK), once China's top-selling property developer, is
inching closer to a key deadline on Thursday when the firm is due to pay
$83.5 million in interest relating to its March 2022 bond . read more

The bonds would be deemed in default if Evergrande fails to settle the
interest within 30 days of the scheduled payment dates.

Investors also look to how mainland Chinese markets will react when they
will reopen on Wednesday after a four-day weekend.

Ahead of the onshore trading, the Chinese yuan was on the defensive at
6.4845 per dollar in the offshore trade , near one-month low of 6.4878 set
on Monday.

FED LIFTOFF

Another major focus for the day is the U.S. Federal Reserve, which is
expected to drop more hints on its future policy path, including when to
start tapering its bond buying and when to start raising interest rates.
read more

There are rising expectations the central bank will signal it plans to start
reducing its massive bond purchases in November if incoming data holds up.

The so-called "dot plot", which charts policymakers economic and rates
projections, will attract attention for clues on when the Fed will hike its
interest rates from the current near zero level.

"Perhaps tapering is already baked in. What will matter the most for the
currency market is how dot-plots or comments from Powell will affect U.S.
rate expectations," said JP Morgan's Sasaki.

Elsewhere, the Canadian dollar stood little changed, having pared the gains
made on Tuesday after Prime Minister Justin Trudeau's Liberals won a
tightly-contested election. read more

Cryptocurrencies were fragile, with bitcoin hitting a 1-1/2-month low of
$39,573, having fallen more than 25% from its four-month peak hit just two
weeks ago.

The digital currency last stood at $40,450 while ether dropped to $2,732 ,
down more than 30% from a four-month peak hit earlier this month.

The United States on Tuesday unveiled sanctions against a cryptocurrency
exchange over its alleged role in enabling illegal payments from ransomware
attacks. read more

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold steadies as Fed policy verdict looms

Gold prices were steady on Wednesday as investors braced for the outcome of
a U.S. Federal Reserve meeting and chief Jerome Powell's remarks on reducing
its massive support for the pandemic-hit economy.

Spot gold rose 0.1% to $1,775.36 per ounce by 0840 GMT, while U.S. gold
futures fell 0.2% to $1,775.00.

The Fed decision remains the focus and could determine gold's fate in the
near-term, as an eventual interest rate hike would raise the opportunity
cost of holding non-interest-bearing gold.

Fed's policy statement after a two-day meet is due at 1800 GMT, which will
also offer Fed's interest rate projections for 2024 for the first time.

Investors are also following developments at debt-ridden China Evergrande
Group after it said it would pay some bond interest due on Thursday,
providing some relief for stocks.

However, concerns surrounding possible contagion from Evergrande, along with
the elevated VIX, have helped bolster sentiment for gold as a safe haven, he
added.

Silver climbed 1.2% to $22.73 per ounce, while palladium gained 2.8% to
$1,959.79.

Platinum rose 1.2% to $965.42 per ounce. 

Copper jumps 3% as markets cheer Evergrande deal

(Reuters) - Copper prices shot up 3% on Wednesday on relief that China's
debt-burdened Evergrande would pay interest on a domestic bond, easing fears
that the property giant's troubles might hit the global economy.

Three-month copper on the London Metal Exchange climbed 3% to $9,245 a tonne
in official trading, reversing losses from the previous session when the
contract went as low as $8,810 a tonne, its weakest since Aug. 19.

An Evergrande unit said it would make a bond interest payment on Sept. 23
after private negotiations with bondholders.

Risk sentiment was also supported by the People's Bank of China injecting
more liquidity into the market to replace certain expiring loans.

The most-traded October copper contract on the Shanghai Futures Exchange
closed down 0.9% at 68,780 yuan ($10,636.19) a tonne, catching up with
losses in London during the previous two sessions when Chinese markets were
closed for a public holiday.

* LME aluminium climbed 2.1% in official activity to $2,905.50 a tonne,
nickel rose 1.1% to $19,045, zinc advanced 1.9% to $3,035, tin jumped 3.3%
to $34,950, but lead fell 0.6% to $2,122.

* A Chilean court handed a reprieve to BHP's Cerro Colorado copper mine,
agreeing to suspend a ban on it pumping water from an aquifer for 90 days.

* Peru wants to revise the framework for the country's mining industry,
redrafting the umbrella law that regulates the sector, as well as the
legislation that sets royalty payments.

* Jiaozuo Wanfang Aluminum Manufacturing Co Ltd in central China's Henan
province said primary aluminium output affected by floods would resume by
the middle of November.

* For the top stories in metals and other news, click or ($1 = 6.4666 yuan) 

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 

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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
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subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
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opinions expressed and recommendations made are subject to change without
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