Bulls n Bears Daily Market Commentary : 22 February 2022

Wed Feb 23 06:33:22 CAT 2022

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Bulls n Bears Daily Market Commentary : 22 February 2022

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

ZSE commentary

The ZSE stocks was in the red in today's session resuming after a long
weekend. Investors have been taking positions since the beginning of the
year. Activity levels were higher at 554 trades. Star Africa was the most
active stock at 43 trades followed by Econet and OK Zimbabwe at 29 trades
each and Delta recorded 24 trades. Investor sentiment was negative after the
session yielded 19 decliners against 11 risers while nine (9) of the active
stocks remained unchanged. Star Africa anchored volume aggregate trading
1,168,100 shares and Tanganda anchored value aggregate with a value of
ZW$49.18 million.

The All-Share Index shaded 0.45% to close at 15,160.05points. The Top 10
Index shaded 0.26%. The Top 15 Index also shaded 0.50%. The Medium Cap Index
was down by 1.09% to 23,959.15 points whilst the Small Cap Index shaded
0.18% to 389,815.48 points. Leading the risers pack of the day was National
Tyre Services closed at 700c and First Capital Bank was up by 2.76%. Zimplow
added 1.85% and First Mutual Properties added 1.76% to 546.47c. Econet was
up by 1.58%. Mitigating the gains were losses in Star Africa and TSL which
shaded 7.48% and 6.25% respectively. Zimpapers was down by 5.26%. Art
Corporation and FBC Holdings shaded 3.30% each. The ETFs traded 18,343 units
worth ZW$207,027.20 in 49 trades. The Old Mutual Top 10 ETF added 6.58% to
close at 915.66c while the Morgan and Co. Multi Sector ETF added 3.97% to
close at 1456.10c.wealthaccesssecurities

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South africa

Rand falls as risk appetite wanesIn early trade the rand was at R15.18
against the dollar.

South Africa's rand fell early on Tuesday, as appetite for riskier assets
faltered after Russia ordered troops into two breakaway regions in eastern
Ukraine in a dramatic escalation of a crisis that the West fears could
unleash a major war.

At 0655 GMT, the rand traded at R15.18 against the dollar, 0.41% weaker than
its previous close.

Russian President Vladimir Putin recognised two breakaway regions in eastern
Ukraine as independent on Monday and ordered the Russian Army to launch what
Moscow called a peacekeeping operation into the area.

But traders said a rise in commodity prices such as gold, which benefits the
resource-rich South Africa, could limit sentiment-driven selling in the
rand.

The yield on the benchmark 2030 government bond added 5.5 basis points to
9.175%, reflecting weaker prices.

Nigeria

Naira extends gain at official market

Abuja black market dealers exchanged the naira at N573.00 to a dollar and
sold at N575.00 on Tuesday.

Naira clinched a meagre gain against the U.S. dollar at the official market
on Tuesday, extending its appreciation at the spot market segment to a
second day.

The local unit closed at N416.00 on the dot per $1 on Tuesday, a N0.67 or
0.16 per cent appreciation from N416.67 it exchanged on Monday, data posted
on the FMDQ website where forex is officially traded showed.

This became significant as foreign exchange turnover declined slightly from
what was recorded in the previous session on Monday.

Forex turnover plummeted by 1.70 per cent at the close of business on
Tuesday with $138.95 million posted against the $141.31 million recorded on
Monday.

Naira reached an intraday high of N406.00 and a low of N444.00 before
closing at N416.00 at the close of business on Monday.

Abuja black market dealers exchanged the naira at N573.00 to a dollar and
sold at N575.00 on Tuesday.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar dips in choppy trade as investors weigh Ukraine scenarios

(Reuters) - The U.S. dollar dipped slightly against a basket of major
currencies on Tuesday amid choppy trade spurred by developments in Ukraine
after Russian President Vladimir Putin recognized two breakaway regions in
the country and ordered troops to the area.

The Kremlin said it remained open to diplomacy with the United States and
other countries as it faced actions from a slew of countries. Britain
published a list of sanctions and Germany froze the Nord Stream 2 Baltic Sea
gas pipeline project, which would have significantly increased the flow of
Russian gas. 

The dollar weakened somewhat as U.S. President Joe Biden announced the first
wave of sanctions against Russia while saying he hoped diplomacy was still
available. 

The euro rose versus the greenback after earlier touching its lowest level
since Feb. 14, buoyed in part by the hope for talks and economic data that
showed business morale in Germany improved in February across all sectors to
its highest since August. 

The dollar index fell 0.1%, with the euro up 0.2% to $1.1333. The greenback
swung between gains of as much as 0.1% and a decline of 0.35% on the day.

Russia's rouble strengthened 2.07% versus the dollar at 78.76 after
weakening to 80.9275 per greenback, a level last seen in November 2020.
Sterling was last trading at $1.359, down 0.06% on the day.

The dollar earlier gained some ground after data from IHS Markit showed U.S.
business activity in February regained speed as the drag from a surge in
COVID-19 cases during the winter ebbed. 

Other data, however, showed U.S. consumer confidence fell for a second
straight month in February. 

After initially strengthening against the dollar, safe havens such as the
Swiss franc and Japanese yen gave back gains against the greenback. The
dollar was up 0.6% against the Swiss franc while the yen weakened 0.29%.

In cryptocurrencies, Bitcoin last rose 2.76% to $38,089.06. Ethereum last
rose 1.94% to $2,632.62.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Oil settles near 2014 high on Russia-Ukraine escalation

(Reuters) - Oil rose to nearly $100 a barrel on Tuesday, reaching its
highest level since 2014 after Moscow ordered troops into two breakaway
regions in eastern Ukraine.

Benchmark Brent futures pared gains in late trading after Western
governments announced sanctions aimed at stopping what they fear is the
beginning of a full-scale Russian invasion. 

Global benchmark Brent crude traded as high as $99.50 a barrel, its highest
since September 2014, before settling at $96.84 with a $1.52, or 1.5%, gain.

The United States and Britain announced sanctions targeting Russian banks,
while the European Union blacklisted more politicians and Germany put the
brakes on the $11 billion Nord Stream 2 gas pipeline project. 

A senior U.S. State Department official said late on Tuesday that nothing
that is happening on the ground in Ukraine right now risks the flow of oil
and gas to global oil markets. 

U.S. West Texas Intermediate (WTI) crude also hit a seven-year high as it
peaked at $96 a barrel, before ending at $92.35, up $1.28 from Friday. The
U.S. market was closed on Monday for a public holiday.

U.S. President Joe Biden announced the first wave of sanctions against
Russia, targeting Russian banks and sovereign debt, and vowed steeper
punishments ahead if Russia continues its aggression. The sanctions did not
include energy supplies. 

The Ukraine crisis has added further support to an oil market that has
surged on tight supplies as demand recovers from the COVID-19 pandemic.
Supply has lagged demand, so oil companies have drained inventories to meet
demand. 

Brent's six-month calendar spread surged to a backwardation of as much as
$10.15 on Tuesday, the steepest premium for the price of prompt oil versus
the futures price six months later since at least 2004, according to
Refinitiv Eikon data. Higher backwardation indicates tight supplies and
correlates with low stock levels.

The Organization of the Petroleum Exporting Countries (OPEC) and allies,
together known as OPEC+, have resisted calls to boost supply more rapidly.

Nigeria's minister of state for petroleum on Tuesday stuck to the OPEC+ view
that more supply was not needed, citing the prospect of more production from
Iran if its nuclear deal with world powers is revived.

Talks on restoring a deal to curb Iran's nuclear programme and ease
sanctions are near a conclusion, a Russian envoy said, which could
eventually boost Iran's oil exports by more than 1 million barrels per day.
The prospect of a new deal with Iran and an increase in global crude
supplies has capped oil price gains in recent weeks. 

The Thomson Reuters Trust Principles.

Gold eases off 9-month peak as investors eye Ukraine developments

(Reuters) - Gold hit its highest in nearly nine months on Tuesday before
pulling back as investors waiting for developments in the Ukraine crisis
repositioned near the pivotal $1,900 an ounce mark.

Spot gold was down 0.2% at $1,902.71 per ounce by 14:06 ET (1906 GMT),
having hit its highest since June 1 at $1,913.89. U.S. gold futures settled
0.4% higher at $1,907.40.

Wall Street's main indexes slumped as the prospect of harsh Western
sanctions against Russia over its conflict with Ukraine kept investors on
edge, while oil prices hit their highest level since 2014.

The Biden administration could deprive Russia of a vast swath of low- and
high-tech U.S. and foreign-made goods, people familiar with the matter told
Reuters, if it further invades Ukraine. read more

However, inflationary pressures have been a key driver of gold's performance
over the last several weeks in its sideways to higher trend and interest
rate increases may not overshadow this trend, Meger said.

Gold is considered a hedge against inflation and political risks. But
interest rate hikes, especially by the Federal Reserve, tend to dim the
appeal of bullion, which pays no interest.

Analysts attributed gold's slight pullback to some profit-taking. Saxo Bank
analyst Ole Hansen said this was "because there is obviously at this point
quite an elevated risk premium baked into the price of gold".

Meanwhile, spot silver was up 1.1% at $24.19 an ounce after touching its
highest in a month at $24.35. Palladium fell 0.8% to $2,368.84, having
earlier reached its highest since Jan. 31 at $2,433.

Platinum rose 0.1%to $1,075.09.

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
Faith Capital (Pvt) Ltd for general information purposes only and does not
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subscribe for any securities. The information contained in this report has
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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