Bulls n Bears Daily Market Commentary : 16 February 2022

Thu Feb 17 07:38:58 CAT 2022

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Bulls n Bears Daily Market Commentary : 16 February 2022

 <http://www.firstcapitalbank.co.zw/> 

ZSE commentary

The ZSE market capitalization touched a record level of ZW$1.85 billion as consumer staples continue to push equities higher. Gains were supported by mid-cap stocks and blue-chip stocks with moderate gains across the board. Activity levels were at 494 trades. OK Zimbabwe was the most active stock at 56 trades followed by Delta and Star Africa at 32 and 30 trades respectively. Investor sentiment was positive after the session yielded 26 risers against 9 decliners while 6 (six) of the active stocks remained unchanged. OK Zimbabwe anchored volume aggregate trading 2,180,600 shares and Delta anchored value aggregate with a value of ZW$100.49 million. The All-Share Index added 2.60% to close at 14,928.88 points. The Top 10 Index added 2.81%. The Top 15 Index also added 2.83%. The Medium Cap Index was up by 2.19% to 24,487.69 points whilst the Small Cap Index shaded 0.31% to 395,228.74 points.

Leading the risers pack of the day was National Foods closed at 168,000c and Seed Co. was up by 19.83%. NMB Holdings added 15.12% and African Distillers  added 8.92% to 13,834.89c. Mashonaland Holdings was up by 6.00%. Mitigating the gains were losses in Unifreight and Masimba which shaded 20.00% and 9.91% respectively. Medtech Holdings was down by 8.00%. CBZ Holdings and Innscor shaded 6.62% and 3.53% respectively. The ETFs traded 46,600 units worth ZW$494,434 in 41 trades. The Old Mutual Top 10 ETF added 0.34% to close at 800c while the Morgan and Co Multi Sector ETF shaded 0.14% to close at 1,357.19c. On the VFEX, Padenga remained unchanged at US 21c after 970 shares were traded.wealthaccesssecurities

Global Currencies & Equity Markets

South Africa

Rand continues to defy logic

Currency’s strength could be the result of relative domestic calm compared with other emerging markets, analysts say.

The rand maintained its recent strength against the dollar on Wednesday, buoyed by the latest consumer inflation data that could reduce the likelihood of aggressive domestic interest rate hikes.

The currency reached an intraday high of R15.03/$, a far cry from just eight days earlier when it was trading at R15.58, though analysts differ in their assessment of the situation...

Nigeria

Naira Appreciates Against Dollar at Spot, P2P Markets

The Naira appreciated against the Dollar on Tuesday by 0.16 per cent or 67 kobo at the Investors and Exporters (I&E) segment of the foreign exchange market.

At the spot market yesterday, the domestic currency went for N416.00/$1 as against N416.67/$1 it was transacted at the previous trading day.

Business Post reports that the local currency regained strength during the session despite a 24 per cent or $18.39 million increase in the value of FX transactions.

Data from the FMDQ Group showed that the turnover for Tuesday was $95.17 million compared with the $76.78 million printed on Monday.

However, the Nigerian currency could not replicate its good performance against the Pound Sterling yesterday as it depreciated by N1.29 to close at N563.85/£1 in contrast to N562.56/£1 it was exchanged a day earlier.

Equally, the Naira lost N1.54 against the Euro on Tuesday to sell for N472.39/€1 compared with N470.85/€1 it was traded on Monday.

At the Peer-2-Peer (P2P) forex segment, the Naira appreciated against the United States Dollar yesterday by N2 to trade at N573/$1 in contrast to N575/$1 it was exchanged at the last session.

Meanwhile, the digital currency market witnessed a positive movement yesterday as a result of the demand for the asset class, causing prices to rise.

Binance Coin (BNB) jumped by 4.7 per cent to trade at N178,340.34, Ethereum (ETH) scaled up by 4.6 per cent to sell at N1,831,662.46, Solana (SOL) recorded a 2.1 per cent increase to sell at N61,837.05, Cardano (ADA) made a 2.0 per cent appreciation to trade at N653.52, Ripple (XRP) gained 1.7 per cent to trade at N498.03, while Litecoin (LTC) also appreciated 1.7 per cent to trade at N75,665.20.

In addition, Bitcoin (BTC) saw its value rise by 1.3 per cent to trade at N25,576,245.00, Dogecoin (DOGE) appreciated 1.3 per cent to sell at N88.21, Dash (DASH) gained 1.1 per cent to trade at N44,659.44, while the US Dollar Tether (USDT) added 0.1 per cent to sell for N581.39.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar falls as investors see Fed minutes as less hawkish than feared

(Reuters) - The U.S. dollar index was down on Wednesday, hitting its lowest level since Friday after minutes from the last U.S. Federal Reserve meeting suggested policymakers are not set on a particular pace of interest rate hikes.

According to the January meeting minutes released on Wednesday, Fed officials last month agreed that, with inflation widening its grip on the economy and employment strong, it was time to tighten monetary policy, but also that decisions would depend on a meeting-by-meeting analysis of data. read more

Strategists said the minutes suggested policymakers may not be as hawkish as investors feared.

Earlier this week, St. Louis Fed President James Bullard reiterated calls for a faster pace of Fed rate hikes, and stronger-than-expected U.S. economic data including Wednesday's U.S. retail sales data have helped to underscore that view. read more

Those expectations have helped to give support to the dollar in recent sessions.

At the Fed's Jan. 25-26 meeting, policymakers agreed that it would "soon be appropriate" to raise the Fed's benchmark overnight interest rate from its near-zero level.

The dollar index was last down 0.3%, while the euro was up 0.2% at $1.1383 . The U.S. dollar was down 0.4% against the Swiss franc and down 0.2% against the Japanese yen .

On the geopolitical front, the United States and NATO said Russia was still building up troops around Ukraine on Wednesday despite Moscow's insistence it was pulling back.

The Russian defense ministry said its forces were pulling back after exercises in southern and western military districts near Ukraine. The Russian rouble strengthened 0.73% versus the greenback to 75.14 per dollar. read more

Oil prices rallied earlier, and the Canadian dollar rose 0.33% versus the greenback to 1.27 per dollar.

Sterling was last trading at $1.3593, up 0.44% on the day. Data earlier showed UK inflation hit a nearly 30-year high of 5.5%. read more

The Bank of England has already raised interest rates twice since December, and financial markets expect a further rate rise on March 17 after the BoE's next meeting.

In cryptocurrencies, bitcoin was down 0.7% at $44,271.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold rises as concerns over Ukraine resurface; Fed minutes in focus

(Reuters) - Gold prices rose on Wednesday after the United States said Russia was still building up troops around Ukraine and as markets looked ahead to the release of minutes from the Federal Reserve's last policy meeting.

Spot gold was up 0.9% at $1,869.41 per ounce by 01:39 p.m. EST (1839 GMT). U.S. gold futures settled down 0.8% at $1,871.50.

U.S. Secretary of State Antony Blinken said on Wednesday that Russia has been moving critical units closer to Ukraine's border, despite Moscow's insistence it was pulling back. read more

Rising geopolitical tensions and U.S. rate hike expectations weighed on sentiment in financial markets, driving investors to seek safe-havens like gold.

Investors now await the 2 p.m. EST (1900 GMT) release of the minutes from the U.S. central bank's Jan. 25-26 policy meeting. They are expected to shed more light on policymakers' plans to hike interest rates.

The Fed will kick off its tightening cycle in March with a 25-basis-point hike to its benchmark overnight interest rate, a Reuters poll found. read more

Rising interest rates increase the opportunity cost of holding non-yielding bullion.

Data released on Wednesday showed U.S. retail sales rebounded sharply in January, but higher prices could blunt the impact on economic growth this quarter. read more

Elsewhere, silver rose 0.9% to $23.56 per ounce, platinum climbed 3.3% to $1,059.60 and palladium gained 1.4% to $2,279.71.

The Thomson Reuters Trust Principles.

Copper slips on caution over Russia-Ukraine tension

(Reuters) - London copper inched down on Thursday, amid uncertainty over the Russian invasion threat at the Ukranian border, although a softer dollar limited losses.

Three-month copper on the London Metal Exchange (LME) dipped 0.1% to $9,983 a tonne, as of 0311 GMT, while the most-traded March copper contract on the Shanghai Futures Exchange rose 0.1% to 71,410 yuan ($11,277.28) a tonne.

There is a growing Russian military presence at Ukraine's borders, Western countries warned on Wednesday, contradicting Moscow's insistence of a pullback. Earlier this week, financial markets saw a relief rally on signs of easing tension. read more

The dollar index was down about 0.1% after minutes from the U.S. Federal Reserve's January meeting were viewed as less hawkish than previously expected.

FUNDAMENTALS

* LME aluminium fell 0.5% to $3,241.5 a tonne, nickel edged 0.3% higher to $23,465, lead eased 0.3% to $2,331.5, zinc was up 0.3% at $3593.5 and tin was steady at $43,730.

* ShFE aluminium rose 0.7% to 22,675 yuan a tonne, nickel was up 0.4% at 173,470 yuan, zinc fell 0.3% to 25,025 yuan, lead gained 0.8% to 15,460 yuan and tin was 0.5% higher at 334,660 yuan.

* Fed officials last month agreed that it was time to raise interest rates, but also that any decisions would depend on a meeting-by-meeting analysis of inflation and other data, according to the minutes of the Jan. 25-26 policy meeting.

* Aurubis AG (NAFG.DE), Europe's largest copper producer, said on Wednesday it plans to build a 70 million euro ($79.5 million) recycling plant in Belgium to expand production of recycled nickel along with copper. read more

* For the top stories in metals and other news, click or

MARKETS NEWS

* Asian stock markets were mostly higher, while bond yields extended their decline as investors weighed risks of a Ukraine invasion against signs that the U.S. Federal Reserve won't be as aggressive as feared in tightening policy.

* The euro was weighed down, after a U.S. official said Russia was increasing troop numbers near its border with Ukraine rather than withdrawing, offsetting a boost it had caught overnight from a modest retreat in U.S. rate hike expectations.

($1 = 6.3322 Chinese yuan)

The Thomson Reuters Trust Principles.

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 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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