Bulls n Bears Daily Market Commentary : 03 February 2022

Fri Feb 4 06:19:31 CAT 2022

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Bulls n Bears Daily Market Commentary : 03 February 2022

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ZSE commentary

The ZSE shares closed today's session registering marginal gains in a mixed
trading session with Tanganda re-listing at a price of ZW$75 a share.
Activity levels were at 548 trades. Tanganda was the most active stock at
109 trades followed by Delta and Econet at 48 and 35 trades respectively.
Investor sentiment was positive after the session yielded 17 decliners
against 14 advancers while three of the active stocks remained unchanged.
Tanganda anchored volume aggregate trading 1 011 600 shares and Delta
anchored value aggregate with a value of ZW$98.69 million.

The All-Share Index added 0.38% to close at 12 304.52 points. The Top 10
Index added 0.71%. The Top 15 Index also added 0.46%. The Medium Cap Index
was down by 0.66% to 20 975.49 points whilst the Small Cap Index added 2.35%
to 388 954.09 points. Leading the risers pack of the day was Tanganda closed
at 6706.01c after listing at a price of 7500c. National Tyre Services was up
by 20.00%. Zimre Holdings added 6.90% and NMB Holdings added 5.88% to 1300c.
First Capital Bank was up by 4.62%. Mitigating the gains were losses in
First Mutual Properties and OK Zimbabwe which shaded 8.15% and 7.32%.
General Beltings was down by 4.03%. African Sun  and National Foods shaded
3.95% and 3.33% respectively. The ETFs traded 88 068 units worth ZW$735
503.80 in 95 trades. The Old Mutual Top 10 ETF shaded 2.11% to close at
679.02c while the Morgan and Co Multi Sector ETF added 0.71% to close at
1373.35c.- wealthaccesssecurities

Global Currencies & Equity Markets

South Africa

South Africa's rand falls as power cuts continue

(Reuters) - South Africa's rand weakened early on Thursday, with the market
soured by continued scheduled power cuts locally and as global risk appetite
faltered.

At 0620 GMT, the rand ZAR=D3 traded at 15.3650 against the dollar, 0.2%
weaker than its previous close.

Power utility Eskom said on Wednesday it would implement power cuts until
Monday because of breakdowns at some of its generating units, the latest in
a series of outages that have constrained economic growth in South Africa.

Investors were also awaiting signals from central banks in Britain and
Europe on interest rates, with the U.S. jobs report on Friday in focus too.

Policy decisions from the Bank of England (BoE) and the European Central
Bank (ECB) are due at 1200 GMT and 1245 GMT, respectively.

In fixed income, the yield on the benchmark 2030 government bond ZAR2030=
was down 0.5 basis points to 9.255%.

Nigeria

Naira slips at official market

This occurred as foreign exchange turnover declined marginally.

Naira fell against the U.S. dollar at the official market on Wednesday, the
second straight day of its fall this week.

This occurred as foreign exchange turnover declined marginally.

The naira closed at N416.25 to a dollar at the close of trade on Wednesday,
representing a N0.5 or 0.12 per cent devaluation from the N415.75 rate it
exchanged with the hard currency in the previous session on Tuesday, data
published by FMDQ where forex is officially traded, showed.

The domestic unit reached an intraday high of N408.00 and a low of N444.00
before closing at N416.25 on Wednesday.

Forex turnover decreased by 38.25 per cent, with $102.07 million recorded at
the close of trade on Wednesday, against the $165.30 million published in
the previous session on Tuesday.

Currency dealers at the Abuja black market exchanged the naira with the
greenback currency at N567.00 per $1 on Wednesday and was sold at N568.00
per $1.

At the Uyo parallel market, dealers exchanged the naira with the U.S dollar
at N 565.00 per $1 and sold at N570.00 on Wednesday.

 <mailto:info at bulls.co.zw> 

Global Markets

Euro rises to three-week high vs dollar after ECB's Lagarde turns hawkish

(Reuters) - The euro surged to a three-week high against the U.S. dollar on
Thursday after comments from European Central Bank President Christine
Lagarde fuelled expectations of faster policy tightening, as she focused on
the prospect of euro zone inflation overshooting.

She also did not repeat previous comments that interest rates in the region
were not likely to rise this year.

The single European currency rose as high as $1.1452 , the highest since
Jan. 14, and was last up 1.2% at $1.1441. The euro was on track for its
largest daily percentage gain since early December 2020.

Lagarde acknowledged on Thursday that euro zone inflation was running hotter
than expected, with risks tilted to the upside. She also said the ECB, which
left policy rates unchanged at Thursday's meeting, would not rush into new
moves. read more

When asked if the ECB was "very unlikely" to raise rates this year, Lagarde
said it would assess conditions very carefully and be "data-dependent."

Euro zone money markets are currently pricing an 80% chance of a 10
basis-point hike in June and an almost 100% chance of 40 bps of hikes by
year-end, from a 90% chance of 30 bps hikes before Lagarde's press
conference. IRPR

Sterling climbed to a two-year peak versus the euro after the Bank of
England raised interest rates to 0.5% on Thursday, with nearly half of its
policymakers pushing for a bigger increase to contain surging inflation.
read more

The British pound later fell versus the euro after Lagarde's hawkish turn.
The euro was last up 0.1% at 84.09 pence. Against the dollar, sterling rose
0.2% to $1.3598 .

The dollar index, with the euro as the largest component, dropped 0.7% to
95.311 , on course for its biggest daily loss since May 2021.

The Federal Reserve remains on course to lift interest rates by a quarter of
a percentage point in March, with about five hikes seen this year, according
to Refinitiv data .

Fed funds futures have also priced in a roughly 20% chance of 50 basis-point
hike at the March meeting.

The January non-farm payrolls report will be released on Friday, although
the data won't be as crucial for the Fed as in the past, as the focus is
more on inflation rather than full employment.

U.S. nonfarm payrolls are forecast to show a gain of 150,000 jobs for
January, down from 199,000 in December, with the unemployment rate holding
steady at 3.9%, according to a Reuters poll.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold steadies as weaker dollar, stocks offset stronger yields

(Reuters) - Gold prices steadied on Thursday, as a weaker dollar and
risk-off sentiment in the equity markets helped counteract pressure from a
jump in U.S. Treasury yields.

Spot gold was flat at $1,806.07 an ounce, by 14:07 EST (1907 GMT). It had
earlier fallen 1% to a session low of $1,787.70 due to a spike in U.S.
Treasury yields on rising U.S. rate hike bets.

U.S. gold futures settled 0.3% lower at $1,804.10.

The dollar index fell 0.7% to an over two-week low against its rivals,
making gold less expensive for other currency holders. U.S. stock indexes
dropped after Facebook outlook sparked a tech rout.

Benchmark 10-year note yields jumped to 1.838%, its highest in nearly a week
after a hawkish rate hike by the Bank of England boosted investors
expectations towards similar moves by the U.S. central bank. read more

Fed officials have signalled they will start raising interest rates next
month to fight high inflation.

Gold is highly sensitive to rising U.S. interest rates, as these increase
the opportunity cost of holding non-yielding bullion.

Investors are now eyeing Friday's closely watched U.S. non-farm payrolls
report for January.

Gold could see a lift from a subdued U.S. jobs report, forcing markets to
rethink how aggressive the Fed needs to be to tame inflation, said Extinity
analyst Han Tan.

In other metals, silver declined 0.9% to $22.42 an ounce, platinum fell 0.2%
to $1,031.06 and palladium dropped 1.9% to $2,325.62.

The Thomson Reuters Trust Principles.

Copper set for weekly gain on weaker dollar, low inventory

(Reuters) - Copper prices climbed on Friday and were on course for a weekly
gain, as a weaker U.S. dollar and low inventories provided strong support
despite muted trading due to a week-long holiday in top metals consumer
China.

Three-month copper on the London Metal Exchange was up 0.4% at $9,870 a
tonne, as of 0308 GMT, putting it on track for a gain of nearly 4% this
week.

The Thomson Reuters Trust Principles.

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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