Bulls n Bears Daily Market Commentary : 09 February 2022

Thu Feb 10 06:13:05 CAT 2022

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Bulls n Bears Daily Market Commentary : 09 February 2022

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE shares closed this mid-week session with significant gains across
all indices headlined by heavyweight counters. Activity levels were at 539
trades. Simbisa was the most active stock at 67 trades followed by Star
Africa and OK Zimbabwe at 41 and 37 trades respectively. Investor sentiment
was positive after the session yielded 20 risers against 10 decliners while
seven of the active stocks remained unchanged. OK Zimbabwe anchored volume
aggregate trading 1 859 000 shares and Simbisa anchored value aggregate with
a value of ZW$140.35 million.

The All-Share Index added 1.86% to close at 13 077.11 points. The Top 10
Index added 2.03%. The Top 15 Index also added 2.13%. The Medium Cap Index
was up by 0.93% to 21 857.56 points whilst the Small Cap Index added 3.04%
to 400 179.36 points. Leading the risers pack of the day was Truworths
closed at 235c and Zimpapers was up by 16.19%. Axia added 11.72% and
Tanganda added 9.39% to 7658.57c. Econet was up by 3.88%. Mitigating the
gains were losses in Mashonaland Holdings and Edgars which shaded 6.88% and
5.12%. General Beltings was down by 5.07%. African Sun  and Star Africa
shaded 2.49% and 1.33% respectively. The ETFs traded 33 921 units worth
ZW$409 486.50 in 53 trades. The Old Mutual Top 10 ETF added 6.50% to close
at 749.34c while the Morgan and Co Multi Sector ETF added 0.05% to close at
1370.60c. .-wealthaccesssecurities

Global Currencies & Equity Markets

South Africa

Rand flat ahead of key economic dataLocal currency at 15.34 to the dollar in
early trade.

The rand was flat on Wednesday, as investors maintained a cautious stance
ahead of economic data releases including a local business confidence index
expected later in the day and a presidential address to the parliament this
week.

At 0625 GMT, the rand traded at 15.34 against the dollar, not far from its
previous close of 15.35.

The South African Chamber of Commerce and Industry is due to release
business confidence figures for December and January around 0930 GMT. Last
year, power cuts by state utility Eskom, a longstanding problem, and riots
in July rattled investor confidence in the country.

December manufacturing and mining figures will be released on Thursday, and
President Cyril Ramaphosa is expected to give his annual State of the Nation
Address (SONA) in which he typically announces reforms.

Analysts said the rand was likely to drift around its current levels before
the SONA speech, as well as US inflation data on Thursday that could
influence the pace of Federal Reserve policy tightening, since both were
seen as "risk events".

The government's benchmark 2030 bond was slightly stronger in early deals,
with the yield falling 2.5 basis points to 9.315%.

Nigeria: Naira Loses Further At Official Market

Naira slipped further against the U.S. dollar at the official market on
Tuesday, extending its depreciation at the spot market segment to a second
day.

The local currency closed at N416.67 to a dollar at the close of trade on
Tuesday, data posted by <a target="_blank"
href="https://twitter.com/FMDQGroup">FMDQ</a> where forex is officially
traded, showed.

This implies a N0.17 or 0.04 per cent devaluation from N416.50 it exchanged
in the previous session on Monday.

The currency hovered within an intraday high of N410.00 and a low of N444.00
before closing at N416.67 on Tuesday.

Foreign exchange supply dipped by 40.40 per cent, with $74.56 million
recorded at the close of business on Tuesday as against $125.10 million
published in the previous session on Monday.

At the Uyo black market, exchangers traded the naira with the greenback
currency at N570.00 per $1 and sold at N575.00 on Tuesday.

In a similar manner, Abuja parallel market dealers said they exchanged the
naira with the U.S. dollar at N570.00 per $1 and sold N571.00 on
Tuesday.-Premium Times.

 <mailto:info at bulls.co.zw> 

Global Markets

Rupee fell by 5 paise to close at 74.79 against US dollar

The rupee declined by 5 paise to close at 74.79 (provisional) against the US
dollar on Wednesday amid persistent foreign fund outflows and elevated crude
oil prices.

At the interbank foreign exchange, the rupee opened at 74.70 against the
American dollar, and later witnessed an intra-day high of 74.68 and a low of
74.87 against the greenback.

The local unit finally ended the day at 74.79, down 5 paise from the
previous close of 74.74.

On the overseas front, dollar bulls remained in control with the greenback
rallying from its 100-days moving average while equities managing to recover
some lost ground.

Meanwhile, the dollar index, which gauges the greenback's strength against a
basket of six currencies, was trading 0.14 per cent lower at 95.51.

On the domestic equity market front, the 30-share Sensex ended 657.39 points
or 1.14 per cent higher at 58,465.97, while the broader NSE Nifty settled up
197.05 points or 1.14 per cent at 17,463.80.

Global oil benchmark Brent crude futures fell 0.36 per cent to USD 90.45 per
barrel.

Foreign institutional investors were net sellers in the capital market on
Tuesday as they offloaded shares worth Rs 1,967.89 crore, according to stock
exchange data.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold rises on softer dollar, yields; U.S. inflation data in focus

(Reuters) - Gold eked out gains on Wednesday, helped by a weaker dollar and
a retreat in U.S. Treasury yields, although prices moved in a tight range as
investors refrained from making large bets ahead of U.S. inflation data.

Spot gold rose 0.5% to $1,834.25 per ounce by 13:42 EST (1842 GMT). U.S.
gold futures settled up 0.5% at $1,836.60.

Benchmark 10-year U.S. Treasury yields were off their November 2019 highs,
while the dollar eased, making greenback-priced bullion cheaper for other
currency-holders.

All eyes are on U.S. consumer price data for January due on Thursday that
could provide more clarity on the Federal Reserve's rate hike trajectory.

A robust inflation reading is expected to burnish gold's mettle as an
inflation hedge, but U.S. interest rate increases would raise the
opportunity cost of holding non-yielding bullion.

U.S. central bank officials have signalled they will start raising interest
rates next month to fight high inflation.

Atlanta Fed president Raphael Bostic said on Wednesday U.S. may be nearing a
turn lower in inflation, but added he is still leaning towards a slightly
faster pace of rate increases this year. read more

Among other precious metals, silver rose 0.5% to $23.28 per ounce, platinum
was up 0.4% at $1,036.02 and palladium climbed 1.7% to $2,286.01.

The Thomson Reuters Trust Principles.

Copper price: Global stocks are down to three days' consumption

After a 26% rise in 2021, copper prices have struggled for direction this
year.  On Wednesday, March futures made another attempt to find a new
trading band, rising to $4.58 a pound ($10,095 a tonne), a level the
bellwether metal has bounced off twice before this year. 

New York copper shot up to an intra-day price of $10,770 a tonne in May last
year and attempted to scale record-levels again in mid-October. 

The second spike was blamed on a scramble for prompt delivery metal after
copper warehouses were emptied out and available LME inventories fell to
their lowest since 1974. 

Cash premiums on the LME hit an unprecedented  $1,103.50 a tonne vs this
week's level of $29.25 (read Andy Home's latest for more on the LME copper
squeeze).

Copper stocks are once again approaching historically low levels, with only
200,402 tonnes of available inventory officially held by the LME, Comex and
SHFE, with New York responsible for more than half the total. 

Drip release 

That does not even cover three days of global consumption, which, according
to Goldman Sachs estimates surpassed 30 million tonnes for the first time
last year. 

It compares to commercial stocks of oil which consistently average 60-days
or more. Copper markets are not as liquid as crude, but the oil market is
not unfamiliar with inventory shocks either. 

That's why countries like the US have strategic stockpiles of more than 700
million barrels that can keep the entire world well-oiled for months.  

The copper equivalent held by the Chinese National Food and Strategic
Reserves Administration is estimated to be around 2 million tonnes of
copper. 

In reaction to the May record setting copper price, China auctioned off for
the first time since 2005  metal from its reserves. It came to fewer than
100,000 tonnes, which to no-one's surprise did not cool markets inside or
outside the domestic market.     

INVESTORS DIARY 2022

Company

Event

Venue

Date & Time

Cafca

AGM

Feb 24, 12PM  

Ariston

AGM

Royal Harare Golf Club

Feb 24, 3PM

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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