Bulls n Bears Daily Market Commentary : 01 February 2022

Tue Feb 1 16:14:59 CAT 2022

 <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 : 01 February 2022

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE shares closed today’s session registering gains in most indices. Activity levels were at 416 trades. Star Africa was the most active stock at 48 trades followed by Econet and Cassava at 34 and 32 trades respectively. Investor sentiment was negative after the session yielded 17 advancers against 18 fallers while three of the active stocks remained unchanged. First Capital Bank anchored volume aggregate trading 546 800 shares and Delta anchored value aggregate with a value of ZW$31.17 million. The All-Share Index added 0.97% to close at 12 97.04 points. The Top 10 Index added 1.38%. 

The Top 15 Index also added 1.19%. The Medium Cap Index was down by 0.25% to 21 181.14 points whilst the Small Cap Index added 2.01% to 389 356.20 points. Leading the risers pack of the day was Masimba Holdings adding 10.93%. Turnall Holdings was up by 10.37%. Medtech A added 8.23% and Mashonaland Holdings added 7.78% to 297.47c. Meikles was up by 4.22%. Mitigating the gains were losses Unifreight and NMB Holdings which shaded 10.00% and 7.71%. First Mutual Properties was down by 7.14%. Edgars and Fidelity shaded 6.89% and 5.56% respectively. The ETFs traded 822 644 units worth ZW$7 191 132.24 in 102 trades. The Old Mutual Top 10 ETF added 11.20% to close at 842.53c while the Morgan and Co Multi Sector ETF shaded 3.10% to close at 1351.62c..- wealthaccesssecurities

Global Currencies & Equity Markets

South Africa

South Africa's rand recovers, central banks in focus

(Reuters) - South Africa's rand firmed on Monday, regaining some ground after weakening last week when the country's central bank signalled a gradual pace of policy tightening and expectations grew for aggressive U.S. rate hikes.

At 1529 GMT, the rand ZAR=D3 traded at 15.4700 against the dollar, 0.83% firmer than its previous close.

Last week, the South African Reserve Bank (SARB) raised its main lending rate by 25 basis points in a "measured" move, but its forward guidance was less hawkish than the market had positioned for.

In contrast, bets for U.S. rate hikes increased on a hawkish shift by the Federal Reserve.

Focus in the week remained on central banks, with key Australian, UK and European central bank meetings taking place in the days ahead.

Locally, the trade surplus narrowed to 30.14 billion rand ($1.94 billion) in December from a surplus of 35.83 billion rand in November.

In the equity market, stocks were buoyed by mobile operator MTN Group MTNJ.J, tech stocks and a rise in commodity prices, with the Johannesburg All-Share index .JALSH up 1.16% to 74,304 points, while the Top-40 index .JTOPI climbed 1.19% to 67,820 points.

MTN topped the blue-chip index, surging 10.11% to 191.97 rand, a just over six-year high. Its biggest operation, MTN Nigeria Communications MTNN.LG, reported a strong set of full-year financial results on Friday, with margin improvement across the board and a spike in profits.

Oil rose on Monday as a supply shortage and political tensions in Eastern Europe and the Middle East put prices on track for their biggest monthly gain in almost a year.

Meanwhile spot palladium XPD= rose 0.6% to $2,390.30 by 1523 GMT, with the auto-catalyst metal set for a monthly gain of nearly 26%, its best since February 2008. Platinum and Silver prices were also up. GOL/

Higher prices pushed the mining index .JMINI up 3.79%, with Impala Platinum IMPJ.J topping that index as it closed 5.46% stronger.

In fixed income, the yield on the benchmark 2030 government bond ZAR2030= was down 2.5 basis points to 9.400%.

Nigeria

Naira Trades N415.33$1 Amid Fall in FX Turnover

The Naira appreciated against the US Dollar at the Investors and Exporters (I&E) window of the foreign exchange market by 0.16 per cent or 67 kobo on Monday, January 31, indicating a strong month for the local currency.

The domestic currency was sold for N415.33/$1 at theI&E yesterday compared with N416.00/$1 it was traded at the preceding trading session, which was last Friday.

The strengthening of the Nigerian currency was bolstered by a decline in FX turnover at the market window yesterday as the value of trades weakened 16.9 per cent or $13.78 million.

Business Post reports that at the opening trading session of the week, a turnover worth $95.07 million was recorded as against the $81.29 million worth of transactions published at the preceding session.

Also, the domestic currency recorded a good performance against the greenback at the interbank segment of the market on Monday as it gained 7 kobo to close at N416.26/$1 versus N416.33/$1 it was quoted last Friday at the same market segment.

However, the local currency depreciated by 61 kobo against the Pound Sterling to sell for N557.99/£1 compared with the previous N557.38/£1 and Naira traded weaker by 67 kobo against the Euro at N464.25/€1 compared to N463.58/€1 of the preceding trading day.

At the cryptocurrency market, nine of the 10 digital coins were in the positive territory, with Dash (DASH) recording the biggest gain of 2.7 per cent to trade at N54,345.29.

Ripple (XRP) appreciated by 2.4 per cent to sell for N354.86, Tron (TRX) recorded a 1.3 per cent gain to sell at N34.02, Litecoin (LTC) moved up by 1.3 per cent to trade at N63,233.74, Cardano (ADA) improved by 1.2 per cent to N607.70, while Dogecoin (DOGE) added 1.1 per cent to quote at N81.85.

Further, the US Dollar Tether (USDT) mounted a 0.6 per cent appreciation as it sold for N580.07, Bitcoin (BTC) grew by 0.3 per cent to close at N21,864,647.72, while Ethereum (ETH) rose by 0.3 per cent to close at N1,535,000.00.

The sole price loser for the session was Binance Coin (BNB) as it fell by 0.6 per cent to N156,109.75.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar declines for second day running as FX markets change course

(Reuters) - The dollar fell for a second consecutive session on Tuesday, knocked off the 19-week peak reached at the end of January, while risk-sensitive currencies such as the Australian dollar and British pound gained.

After falling nearly 5% in January, world equities started February slightly firmer and currency markets have also changed course.

After hitting a 19-month high last week, the U.S. dollar index fell on Monday. On Tuesday, it was down 0.4% on the day at 96.281 at 1223 GMT .

Euro-dollar strengthened, up 0.3% on the day at $1.12705 .

The dollar's downward turn could be due to end-of-month flows that left investors needing to sell dollars in the last week.

The improved risk appetite seen in stock markets may also be playing a role, as the dollar is seen as a safe-haven currency.

But there is view among investors and analysts too that, when it comes to the rate hike trajectory in major economies, the euro may be more attractive than previously thought, according to Neil Jones, head of FX sales at Mizuho.

The market is currently pricing in as many as five U.S. Federal Reserve rate hikes this year, with the first hike expected in March, according to Refinitiv data on Eikon .

Meanwhile, the European Central Bank maintains its ultra-loose monetary policy stance and has pushed back against any market expectations for ECB rate hikes this year. read more

Mizuho's Jones said some of the dollar's losses could come from the idea that the difference between the ECB and Fed may narrow.

German inflation data on Monday was well above expectations, with consumer prices rising 5.1% year-on-year in January, compared to 5.7% in December. read more

Elsewhere, the dollar also fell against the Japanese yen, with the pair at 114.635 , and it hit a six-day low against the Swiss franc .

The Australian dollar dropped sharply overnight after the Reserve Bank of Australia (RBA) pushed back against expectations for near-term rate hikes until inflation is higher. read more

But the "risk-on" tone in markets meant that it soon recovered and was up 0.5% on the day at $0.71045 in early European trading .

Britain's pound was up 0.3% at $1.3488 .

In cryptocurrencies, bitcoin was up 0.6% at around $38,714, still far below November's all-time high of $69,000. .

India's finance minister said the central bank will introduce a digital currency in the next financial year, using blockchain technology.  

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Oil dips below $89, eyeing faster OPEC+ hike

(Reuters) - Oil slipped on Tuesday, staying close to a seven-year high, weighed by speculation OPEC+ could go further than expected to add supply at a meeting this week and expectations of a rise in U.S. inventories.

While the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, has been expected to maintain its policy of gradual production hikes at a meeting on Wednesday, Goldman Sachs said there was a chance of further steps.

Brent crude was down 51 cents, or 0.6%, at $88.75 a barrel at 1238 GMT. U.S. West Texas Intermediate crude slipped 63 cents, or 0.7%, to $87.52.

Oil was also pressured by expectations this week's U.S. supply reports will show an increase in crude stockpiles. Analysts expect crude stocks to have risen by 1.8 million barrels.

The first of this week's two supply reports, from the American Petroleum Institute, is out at 2130 GMT.

Brent and U.S. crude hit their highest levels since October 2014 on Friday, at $91.70 and $88.84 respectively. They gained about 17% in January amid a supply shortage and tensions between Russia and the West over Ukraine, and in the Middle East.

OPEC undershot its promised output boost in January, a Reuters survey found, and the rally was still expected by other analysts to persist.

Rising differentials in the physical crude market imply concern about tight supply, Varga said. One of the North Sea crudes that underpins Brent, Ekofisk, was bid on Monday at the highest in over a decade.

The Thomson Reuters Trust Principles.

Gold back above $1 800-mark on firmer investment demand

Gold prices firmed above the key $1 800-level on Tuesday as investment demand strengthened, with a weak US dollar and Treasury yields offering further support.

Spot gold rose 0.6% to $1 806.32 per ounce by 10:38 GMT. US gold futures climbed 0.6% to $1 807.40.

A weaker dollar is helping gold along with "good uptake yesterday on the ETF side that took us through the magic $1 800 level," independent analyst Ross Norman said.

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose to the highest levels since mid-August on Monday.

Helping bullion recover from 1-1/2 month lows hit last week, the dollar index eased off multi-month peaks against its rivals, supporting demand for the greenback-priced bullion among buyers holding other currencies.

Yields on the benchmark US 10-year treasury note eased to a one-week low, buttressing non-interest paying gold.

However, the US non-farm payroll data due later this week is important as any signs of weak hiring and strong wage growth may significantly embolden market expectations of a hawkish US Federal Reserve and, in turn, pressure gold to go lower, DailyFX currency strategist Ilya Spivak said.

Fed policymakers say they'll raise interest rates in March but spoke cautiously on Monday about what might follow, signalling a desire to keep options open in the face of an uncertain outlook for inflation and a pandemic still ongoing.

Spot silver was up 1.5% at $22.76 an ounce, and platinum gained 1.9% to $1 037.00.

Palladium rose 1.3% to $2 381.31, but was trading below its highest levels since early September reached on Monday.  

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 

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%2FBullsBearsZimbabwe&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) 2022 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/20220201/c0fe9bec/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/20220201/c0fe9bec/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/20220201/c0fe9bec/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/20220201/c0fe9bec/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/20220201/c0fe9bec/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/20220201/c0fe9bec/attachment-0001.obj>