Bulls n Bears Daily Market Commentary : 05 April 2022

Tue Apr 5 17:54:35 CAT 2022

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Bulls n Bears Daily Market Commentary : 05 April 2022

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ZSE commentary

The ZSE shares closed today’s session with gains across the board headlined by small cap stocks. Activity levels were at 482 trades. Delta was the most active stock at 57 trades followed by Econet and FCA at 42 and 24 trades respectively. Investor sentiment was positive after the session yielded 20 risers against 12 decliners while eight (8) of the active stocks remained unchanged. Zimplow anchored volume aggregate trading 4,002,700 shares and Delta anchored value aggregate with a value of ZW$171.51million. The All-Share Index added 0.73% to close at 16,304.19 points. The Top 10 Index added 0.35%. The Top 15 Index added 0.49%. The Medium Cap Index was up by 1.86% to 27,169.29 points whilst the Small Cap Index added 3.21% to 415,977.92 points. Leading the risers pack of the day was NMB Holdings and Truworths

closed 15.80% and 15.15% higher respectively. FBC Holdings was up by 14.58%. First Capital Bank added 14.10% and Tanganda  added 11.13%. Mitigating the gains were losses in Zimplow and Star Africa and which shaded 13.28% and 4.17% respectively. Meikles was down by 3.50%. OK Zimbabwe and Econet shaded 1.03% and 0.84% respectively.

The ETFs traded 508,598 units worth ZW$1,517,887.68 in 141 trades. The Old Mutual Top 10 ETF added 1.05% to close at 846c while the Morgan and Co Multi Sector ETF shaded 0.28% to close at 1479.21c. The Datvest MCSI ETF shaded 0.73% to close at 188.42c. On the VFEX, Bindura traded 252,139 shares to close at US$ 5.00 cents down 6.54%.

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Global Currencies & Equity Markets

South Africa

South Africa's rand gains against stronger dollar

(Reuters) - South Africa's rand gained on Monday, having initially struggled for momentum against a stronger dollar, as the price of gold, of which the country is an exporter, rose on the prospect of further sanctions on Russia.

At 1700 GMT, the rand traded at around 14.5814 against the dollar, 0.45% stronger than Friday's close.

The dollar made a firm start to the week, as the monthly U.S. jobs report indicated a strong labour market that is likely to keep the Federal Reserve on track to maintain its hawkish policy stance. read more

Higher rates in developed markets tend to drain capital from higher-yielding but riskier emerging markets such as South Africa.

Gold, however, supported the rand, with spot gold rising 0.47% to $1933.28 per ton, as investors also focused on talk of more sanctions against Russia over its invasion of Ukraine.

"As we head into the new week, Russia is, yet again, in the headlines, as bans on Russian gas imports to Europe come under discussion by European leadership," said Bianca Botes, director at Citadel Global.

While Russia-Ukraine peace talks dragged on, reports of Russian atrocities led Germany to say the West would agree to impose more sanctions in the coming days. read more

On Friday, ratings agency Moody's had revised South Africa's outlook to "stable", saying the country's improved fiscal outlook would help the government to stabilise its debt burden over the medium term. read more

In fixed income, the yield on the benchmark 2030 bond fell 4.5 basis points

Stocks were flat, with the Johannesburg Stock Exchange's Top-40 Index (.JTOPI) up 0.01% to 68,941 points and the broader All-Share Index (.JALSH) down 0.1% to 75,835 points.

The Thomson Reuters Trust Principles.

Nigeria

Naira maintains exchange rate against US  

Nigerian currency started the new trading week the way it ended the last trading at the official exchange market.

FMDQ reports that on Monday at the Investors and Exporters (I&E) window of the forex market, the value of the domestic currency stayed at N416.63 to a dollar, the same rate as Friday last week.

This happened as participants exchanged a total of $73.31 million on Monday.

However, it was a different performance for the Nigerian currency against the British Pound Sterling.

CBN data shows Naira increased in value on Monday by N1.13 to close at N545.41/£1 in contrast to the N546.54/£1 it traded in the previous trading session.

In the same vein, the Naira strengthened against the Euro at the same market window yesterday by N1.83 as it was exchanged at N458.09/€1 compared with N459.92/€1 it closed last Friday.

Black traders who spoke to Ripples Nigeria revealed that the American dollar was sold at N584.

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Global Markets

Rupee Surges 25 Paise To End At 75.28 Against US Dollar

The rupee continued its winning momentum, rising 25 paise to settle at 75.28 (provisional) against the US dollar, as the American currency and crude oil prices retreated from recent high levels.

The rupee continued its winning momentum on Tuesday, rising 25 paise to settle at 75.28 (provisional) against the US dollar, as the American currency and crude oil prices retreated from recent high levels.

Forex traders said weakness in the US dollar against its key rivals boosted investor sentiment, even as the domestic equities settled on a negative note.

India’s Digital Rupee Will Be Like ‘Dematerialised Bank Notes’, Says SC Garg

At the interbank forex market, the domestic unit opened at 75.54 against the US dollar and touched an intra-day high of 75.28 and finally closed at 75.28, registering a rise of 25 paise over its previous close.

On Monday, the rupee started the financial year 2022-23 on a bullish note, spurting 21 paise to close at a one month-high of 75.53.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.09 per cent down at 98.90.

"Persistent risk-on sentiments, weak dollar index and stronger regional (Asian) currencies have been supporting the local unit in northbound movement," said Dilip Parmar, Research Analyst, HDFC Securities.

"On the global front, investors are assessing measures taken against Russia and the outlook for China's economic growth as Shanghai remained in lockdown. Near-term focus will remain RBI monetary policy decision and stance," Parmar added.

On the domestic equity market front, the 30-share BSE Sensex ended 435.24 points or 0.72 per cent lower at 60,176.50, and the broader NSE Nifty tumbled 96.00 points or 0.53 per cent to 17,957.40.

Brent crude futures, the global oil benchmark, rose 1.04 per cent to USD 108.65 per barrel.

Foreign institutional investors remained net buyers in the capital market on Monday as they purchased shares worth Rs 1,152.21 crore, according to stock exchange data. 

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Commodities Markets

Gold price slips as US dollar holds firm on safe-haven flows

The dollar index was little changed after three straight sessions of gains as talks of further sanctions against Moscow increased.

(Reuters) - Gold eased on Tuesday as the U.S. dollar held firm on rising prospects of more sanctions against Russia and possibly bigger interest rate hikes by the Federal Reserve to rein in inflation.

Spot gold was down 0.2% at $1,928.52 per ounce by 0457 GMT. U.S. gold futures were down 0.1% at $1,931.70.

"The more liquid something is, the less the volatility. And, if markets are running away from risk... the dollar then becomes a natural haven just because it is quite simply the most liquid financial instrument in existence," said Ilya Spivak, a currency strategist at DailyFX.

"Now in real terms, those yields are still negative once we discount break evens. And I think that's why gold hasn't fallen more significantly, but if this sort of repricing for a more hawkish Fed continues and we do get positive real rates, I think gold is going to look quite unattractive."

The dollar index was little changed after three straight sessions of gains as talks of further sanctions against Moscow increased. A stronger dollar makes gold less attractive for other currency holders.[USD/]

The United States and Europe were planning new sanctions to punish Moscow over civilian killings in Ukraine, and President Volodymyr Zelenskiy warned more deaths were likely to be uncovered in areas seized from Russian invaders.

U.S. two-year Treasury yields climbed to their highest level since early-2019 and 10-year yields ticked higher on Monday. Higher yields increase the opportunity cost of holding non-paying bullion. [US/]

"During these uncertain times, gold remains supported as a critical portfolio hedge that will shine during the most challenging juncture when inflationary pressures remain strong but growth slows," Stephen Innes, managing partner at SPI Asset Management, said in a note.

Spot silver shed 0.2% to $24.45 per ounce, platinum fell 0.5% to $981.88 and palladium rose 0.5% to $2,286.63.

INVESTORS DIARY 2022

Company

Event

Venue

Date & Time

Counters trading under cautionary

ART

Seed co Int.

Starafrica

Medtech

Turnall

Seed co

Invest Wisely!

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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 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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