Bulls n Bears Daily Market Commentary : 27 April 2022

Thu Apr 28 07:33:32 CAT 2022

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Bulls n Bears Daily Market Commentary : 27 April 2022

 <mailto:info at bulls.co.zw> 

ZSE commentary

The All-Share Index gained by a further 2.17% (624.20 points) to close
today's session at 29,440.85. RIOZIM was $27.2000 firmer to lead the gainers
at $169.6000, BRITISH AMERICAN TOBACCO rose by $25.2414 to end at
$3,685.2414 along with INNSCOR AFRICA which jumped $17.6387 up to $613.9641.
CBZ HOLDINGS moved up to $164.0000 following a $13.3200 rise while SEEDCO
LIMITED went up by $9.1927 to $234.9914. Trading in the negative: MEDTECH
CLASS B SHARES weakened by $6.5000 to finish at $27.5000, TANGANDA TEA
COMPANY eased $4.8477 to $336.1719, AFRICAN SUN was $0.0909 lower at
$13.3600 and WILLDALE lost ;by a further $0.0541 to settle at $3.8394.

EXCHANGE TRADED FUNDS (ETF)

OLD MUTUAL ZSE TOP 10 edged $0.3674 up to $11.9677, MORGAN & CO MULTI-SECTOR
ETF rose by $0.3195 to $20.0774 together with DATVEST MODIFIED CONSUMER
STAPLES ETF  which added $0.2714 to $1.9849.-zse

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Nigeria

Naira loses at official market

Naira fell against the U.S. dollar at the official market on Wednesday,
extending its decline to two consecutive days.

At the close of business on Wednesday, the naira closed at N419.33 to a
dollar, implying a N0.83 or 0.2 per cent loss from N418.50 it exchanged
hands with the hard currency in the previous session on Tuesday, data
published by FMDQ, where forex is officially traded showed.

The domestic unit which opened trading at 418.38 to a dollar, oscillated to
an intraday high of N410.00 and a low of N444.00 before closing at N419.33
per $1 on Wednesday.

This is the weakest rate the naira has recorded at the Over-the-counter
segment this week.

Meanwhile, foreign exchange supply dipped by 24.6 per cent with $82.56
million recorded at the close of business on Wednesday, against the $109.43
million posted in the previous session on Tuesday.

Abuja and Uyo street market dealers exchanged the naira at N586.00 to a
dollar and sold at N588 and N593.00 to a dollar on Wednesday respectively.

Zambia

Kwacha to trade steady, copper price rises

THE Kwacha is anticipated to trade steady in the near term supported by
improved supply from corporates converting for their month-end tax
obligations while copper prices on the London Metal exchange (LME) rose to
US$9,903 a tonne. 

On Monday, the local unit traded in a tight band as United States (US)
dollar demand from corporate importers and other market players gradually
built up outweighing foreign currency inflows. According to Absa Bank Zambia
Plc market update, the local unit was quoted at K16.95 and K17.00 and traded
at these levels for most of the morning. 

"By mid-day the local unit took a turn and was down five Ngwee at K17.00 and
K17.05 on the bid and offer, respectively, where it closed off," Absa Bank
stated. 

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar hits five-year high, growth concerns dent euro

(Reuters) - The dollar hit a five-year high on Wednesday before the Federal
Reserve next week is expected to hike rates, while the euro weakened on
growth concerns after Russia cut off gas supplies to two eastern European
nations.

The dollar has gained on expectations that the U.S. central bank will be
more hawkish than peers. The Fed is expected to increase rates by 50 basis
points at its May 3-4 meeting, as well as in June and July.

The greenback has also benefited from global growth concerns as Europe
struggles with the fallout from Russia's invasion of Ukraine and China
imposes lockdowns in a bid to stem the spread of COVID-19.

Russia halted gas supplies to Bulgaria and Poland on Wednesday for rejecting
its demand for payment in roubles, taking direct aim at European economies
in a move that also exposed confusion in the European Union on how to
respond to Moscow's invasion of Ukraine.  

"The threat of a Eurozone recession on a possible suspension of Russian
shipments of natural gas has pulled the EUR to a five-year-low - with a test
of the key psychological level of 1.05 a real possibility," Scotiabank
analysts Shaun Osborne and Juan Manuel Herrera said in a report.

The euro fell to $1.0515, the weakest since March 2017, before rising back
to $1.0561. The single currency has fallen 4.6% so far in April and is
heading for its worst monthly loss in more than seven years.

Germany's economy ministry on Wednesday cut its economic growth forecast for
2022 to 2.2% from its late January prediction of 3.6% growth this year.
French consumer confidence also fell more than expected in April.

Concerns over Chinese growth added to demand for the dollar, and further
dented the outlook for other countries that are more exposed to the world's
second largest economy.

Beijing has ramped up mass testing for COVID-19 while the financial hub of
Shanghai has been under strict lockdown for around a month.  

"Exaggerating the downside risk for euro/dollar have been the COVID lockdown
fears for China," said Jane Foley, head of FX Strategy at Rabobank London.

The dollar index against a basket of currencies reached 103.28, the highest
since January 2017, and was last at 102.93.

The stronger dollar also blunted an attempted bounce by the yen , which had
seen some support from safety flows and positioning for the risk of a policy
shift. The yen last traded at 128.3 per dollar, after hitting a 20-year low
of 129.4 last week.

Investors will be watching to see whether the Bank of Japan makes any
changes to its yield curve control policy in order to stem yen weakness when
it concludes its two-day meeting on Thursday.

Sterling hit a fresh 21-month low of $1.2502 as retail sales slumped, and
was last down 0.24% at $1.2542.  

The Australian dollar touched its lowest level since February, but came off
its lows after Australian consumer prices surged at their fastest annual
pace in two decades, spurring speculation that interest rates could be
lifted from record lows as soon as next week. The Aussie was last down 0.07%
at $0.7120.  

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold falls to two-month low as dollar surge hurts appeal

(Reuters) - Gold slipped to a more than two-month trough on Wednesday as the
dollar rallied on expectations of aggressive monetary policy tightening by
the U.S. Federal Reserve.

Spot gold fell 0.8% to $1,890.29 per ounce by 2:06 p.m. ET (1806 GMT), after
dropping to $1,881.45, its lowest level since Feb. 24.

U.S. gold futures settled down 0.8% at $1,888.7.

"There's a flight to safety right now out of other currencies into U.S.
dollar... Gold is going to struggle to rally between now and the Fed
meeting," said Bob Haberkron, RJO Futures senior market strategist.

The dollar index charged to its highest level since January 2017, fuelled by
expectations that the U.S. central bank will be more hawkish than peers and
safe-haven flows fanned by concerns over slowing growth in China and Europe.

The Fed is expected to increase rates by 50 basis points at its May 3-4
meeting. FEDWATCH

Rising U.S. interest rates increase the opportunity cost of holding
non-yielding gold, while also boosting the dollar, in which it is priced.
The greenback is also seen as a rival safe-haven asset to gold during
economic and political crises.

"We see few participants left with appetite to buy gold," said analysts at
TD Securities in a note.

Spot silver fell 0.4% to $23.40 per ounce, having earlier touched a low
since Feb. 15.

However, "silver demand (due to industrial offtake) this year appears on
track to achieve a new high... This, along with limited supply growth, will
result in a widening deficit in 2022," analysts at Metals Focus said in a
note.

Platinum fell 0.3% to $918.04 per ounce, while palladium rose 1.2% to
$2,211.88.

The Thomson Reuters Trust Principles.

Copper premiums largely stable; transport congestion eases at Shanghai port

Lower copper prices on the London Metal Exchange (LME) cheered up the
Southeast Asia market, while elsewhere premiums remained unchanged despite
the improved logistics at Shanghai port.

Falling prices spur on spot demand in Southeast Asia Shanghai port sees
signs of logistics congestion easing US premiums stable on quiet conditions
Copper price below $10,000/t Transport bottlenecks ease...

INVESTORS DIARY 2022

Company

Event

Venue

Date & Time

Counters trading under cautionary

ART

Seed co Int.

Starafrica

Medtech

Turnall

Seed co

Invest Wisely!

Bulls n Bears 

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