Bulls n Bears Daily Market Commentary : 18 February 2022

Sat Feb 19 07:03:47 CAT 2022

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Bulls n Bears Daily Market Commentary : 18 February 2022

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

ZSE commentary

The ZSE stocks maintained its bullish trend in today's session with Econet
boosting turnover as stocks firm past key level reached yesterday. Activity
levels were lower at 345 trades. Econet was the most active stock at 29
trades followed by Star Africa and Delta at 17 and 13 trades respectively.
Investor sentiment was positive after the session yielded 17 risers against
13 decliners while two (2) of the active stocks remained unchanged. Nampak
anchored volume aggregate trading 6,493,800 shares and Econet anchored value
aggregate with a value of ZW$380.60 million.

The All-Share Index added 1.42% to close at 15,228.52 points. The Top 10
Index added 2.10%. The Top 15 Index also added 1.57%. The Medium Cap Index
was down by 0.65% to 24,222.31 points whilst the Small Cap Index shaded
0.89% to 390,522.26 points. Leading the risers pack of the day was Star
Africa closed at 176.93c and Art Corporation was up by 6.39%. National Foods
added 5.98% and Edgars added 5.09% to 546.47c. Econet was up by 4.72%.
Mitigating the gains were losses in Truworths  and Seed Co which shaded
9.09% and 7.48% respectively. First Mutual Holdings was down by 5.41%.
Wildale and Ariston Holdings shaded 5.38% and 3.29% respectively. The ETFs
traded 7,374 units worth ZW$68,928.70 in 30 trades. The Old Mutual Top 10
ETF added 3.49% to close at 859.16c while the Morgan and Co. Multi Sector
ETF added 0.61% to close at 1,400.47c.- wealthaccesssecurities

Global Currencies & Equity Markets

Nigeria

Naira slips further at official market

In Abuja, currency dealers said they exchanged at N573.00 and sold at
N575.00 per $1 on Thursday.

Naira extended its fall against the U.S. dollar marginally at the official
market on Thursday.

According to data posted on the FMDQ website where forex is officially
traded, the domestic unit closed at N416.67 per $1 at the close of trade on
Thursday, which represents a N0.17 or 0.04 per cent devaluation from N416.50
it closed in the previous session on Wednesday.

In the past fortnight, the currency has been hovering within the price
benchmark of N416.00 -N416.67 to a dollar at the spot market.

At the official market on Thursday, the domestic unit hit an intraday high
of N410.00 and a low of N444.00 before closing at N416.67 at the close of
trade.

Parallel market exchangers at Uyo traded the naira with the hard currency at
N573.00 and sold at N580.00 to a dollar on Thursday.

Similarly in Abuja Street market, currency dealers said they exchanged at
N573.00 and sold at N575.00 per $1 on Thursday.

South Africa

Rand set for weekly gain As Ukraine crisis lifts gold.

The rand strengthened on Friday and was headed for a weekly gain of more
than 1% against the U.S. dollar, as the standoff between the West and Russia
over Ukraine boosted appetite for key export gold.

At 09:10, the rand traded at 14.9650 against the dollar, around 0.4%
stronger than its previous close and up 1.7% on its closing level last week.

Rand vs US dollar

Gold prices were set for a third straight weekly gain, with spot gold rising
1.6% since the end of last week as investors rushed to the safety of bullion
after Ukraine tensions heightened.

They added there was tentative optimism over next week's 2022 budget, due on
Feb. 23, which was contributing to the country's appeal as an investable
emerging market.

Also supporting rand assets, the South African Reserve Bank is expected to
hike its main lending rate by another 25 basis points next month, extending
a tightening cycle, a Reuters poll showed.

The government's benchmark 2030 bond was slightly firmer, with the yield
falling 2.5 basis point to 9.045%.

The government will sell inflation-linked bonds and Treasury bills later on
Friday.

 <mailto:info at bulls.co.zw> 

Global Markets

Yen, Swiss franc advance on safe-haven bids as Russia-Ukraine tension rises

(Reuters) - The safe-haven Japanese yen and Swiss franc climbed to two-week
peaks against the U.S. dollar on Thursday, on worries about escalating
Russia-Ukraine tensions that could have economic repercussions worldwide.

In afternoon trading, the dollar slid to 114.845 yen , the lowest since
early February. It was last down 0.4% at 114.93 yen.

Against the Swiss currency, the greenback fell to 0.9189 francs , the
weakest since Feb. 3. The dollar last changed hands at 0.9202 francs, down
0.2%.

U.S. President Joe Biden said on Thursday there was now every indication
Russia was planning to invade Ukraine in the next few days and preparing a
pretext to justify it, after Ukrainian forces and pro-Moscow rebels traded
fire in eastern Ukraine. read more

Russia also accused Biden of fueling tension and released a strongly worded
letter that said Washington was ignoring its security demands and threatened
unspecified "military-technical measures."

Fears of a Russia invasion pushed U.S. stocks sharply lower and spurred bids
for safe-haven Treasuries.

For now, the Russia-Ukraine conflict has superseded concerns about the
Federal Reserve's plans to tighten monetary policy, starting at the March
meeting of the Federal Open Market Committee. But the market has been
divided over the size of the expected interest rate increase.

Last week, with the latest U.S. consumer prices data showing the largest
annual gain in 40 years, rate futures market had priced in a roughly 70%
chance of a half-percentage rate rise in March. That has come down to 37% on
Thursday,

The more likely scenario is for a quarter-point tightening by the Fed,
analysts said.

But even with the Fed's hawkish shift, the dollar has remained broadly
unchanged.

The dollar index, a measure of its value against six major currencies, has
gained just 0.2% so far this year. Against the yen, however, the greenback
has been down 0.2% so far in 2022.

U.S. Treasury 2-year yields, which reflect rate expectations and are
correlated with dollar/yen, have surged about 74 basis points .

In afternoon trading, the dollar index was flat at 95.827.

Some commodity currencies, which are sensitive to risk sentiment, fell, with
the Australian dollar falling 0.1% to US$0.7188 . The Norwegian crown
dropped as well against the dollar, which rose 0.5% to 8.917 .

In cryptocurrencies, bitcoin , which moves in tandem with other risk assets,
was last down 7.8% at $40,590.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold edges lower as hopes of U.S.-Russia talks calm markets

(Reuters) - Gold retreated slightly from the key $1,900-per-ounce level on
Friday as hopes for U.S.-Russia talks brought some calm to wider markets,
but lingering concerns over Ukraine kept bullion on track for a third
straight weekly gain.

Spot gold was down 0.1% at $1,895.91 per ounce by 10:12 a.m. ET (1512 GMT),
after earlier touching its highest since June 2021 at $1,902.22, en route to
a weekly gain of about 1.9%.

U.S. gold futures eased 0.2% to $1,898.40.

U.S. President Joe Biden said there was every indication Russia was planning
to invade Ukraine. Russian-backed rebels and Ukrainian forces traded
accusations on Thursday that each had fired across the ceasefire line in
eastern Ukraine. read more

However, U.S. Secretary of State Antony Blinken agreed to meet Russian
Foreign Minister Sergei Lavrov next week, calming investor nerves and
slowing demand for safe-havens.

Finance leaders from the Group of 20 major economies were set on Friday to
agree that rising inflation and geopolitical risks could threaten a fragile
global recovery.  

Gold is considered a hedge against soaring inflation and is often used as a
safe store of value during times of political and financial uncertainty.

Elsewhere, palladium fell 1.8% to $2,324.18 per ounce. Platinum was down
0.5% at $1,084.54. It surged about 5.8% this week, its biggest weekly gain
since mid-January.

Silver rose 0.8% to $24.01, on track for a weekly gain.

Standards: The Thomson Reuters Trust Principles.

Oil heads for weekly fall on Iranian oil hopes

(Reuters) - Oil prices extended losses on Friday and were heading for a
weekly fall as the prospect of increased Iranian oil exports eclipsed fears
of potential supply disruption resulting from the Russia-Ukraine crisis.

Brent crude futures fell $1.83, or 1.9%, to $91.14 a barrel by 1425 GMT,
extending a 1.9% drop from the previous session.

U.S. West Texas Intermediate (WTI) crude futures shed $2.24, or 2.4%, to
$89.52 a barrel after sliding 2% on Thursday.

Fears over possible supply disruptions resulting from the Russian military
presence at Ukraine's borders have limited losses this week.

Both benchmark contracts hit their highest levels since September 2014 on
Monday, but the prospect of an easing of oil sanctions against Iran has set
prices on course for their first weekly fall in nine weeks.

However, a deal taking shape to revive Iran's 2015 nuclear agreement with
world powers lays out phases of mutual steps to bring both sides back into
full compliance, and the first does not include waivers on oil sanctions,
diplomats say. read more

Consequently, there is little chance of Iranian crude returning to the
market in the immediate future to ease current supply tightness, analysts
said.

Tight oil supplies pushed the six-month market structure for Brent crude to
its widest backwardation on record on Wednesday.

Backwardation exists when contracts for near-term delivery are priced higher
than those for later months and is reflective of near-term demand that
encourages traders to release oil from storage to sell it promptly.

OPEC+, which comprises the Organization of the Petroleum Exporting Countries
and allies including Russia, will work to integrate Iran into its oil output
pact should Tehran and world powers reach agreement on reviving their
nuclear deal, sources close to the group said. read more

The Thomson Reuters Trust Principles.

INVESTORS DIARY 2022

Company

Event

Venue

Date & Time

Robert Gabriel Mugabe National Youth Day

Feb 21

Cafca

AGM

Feb 24, 12PM  

Ariston

AGM

Royal Harare Golf Club

Feb 24, 3PM

Nampak

AGM

March 09, 9AM

Art

AGM

March 10, 2.30PM

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
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been compiled from sources believed to be reliable, but no representation or
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opinions expressed and recommendations made are subject to change without
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