Bulls n Bears Daily Market Commentary : 23 February 2022

Thu Feb 24 05:59:17 CAT 2022

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:bulls at bulls.co.zw> Views & Comments
<http://www.bullszimbabwe.com> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 23 February 2022

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

ZSE commentary

The ZSE stocks was in the red as profit taking continued on select stocks.
Activity levels were at 525 trades. Star Africa was the most active stock at
46 trades followed by Delta and Econet at 39 and 27 trades respectively.
Investor sentiment was negative after the session yielded 19 decliners
against 17 risers while five (5) of the active stocks remained unchanged.
Star Africa anchored volume aggregate trading 544,100 shares and Delta
anchored value aggregate with a value of ZW$44.38 million.

The All-Share Index shaded 1.05% to close at 15,001.60 points. The Top 10
Index shaded 1.00%. The Top 15 Index shaded 1.27%. The Medium Cap Index was
down by 1.34% to 23,637.70 points whilst the Small Cap Index shaded 1.26% to
394,735.70 points. Leading the risers pack of the day was the wine maker
African Distillers closed at 17,000c and General Beltings was up by 16.85%.
Proplastics added 10.60% and Star Africa added 5.35% to 172.45c. The cement
maker Lafarge was up by 3.65%. Mitigating the gains were losses in First
Mutual Properties and Axia Corporation which shaded 20.00% and 7.90%
respectively. OK Zimbabwe was down by 7.50%. African Sun and Dairibord
Holdings shaded 7.35% and 5.03% respectively. The ETFs traded 127,843 units
worth ZW$1,236,755.90 in 90 trades. The Old Mutual Top 10 ETF shaded 2.88%
to close at 889.28c while the Morgan and Co. Multi Sector ETF added 0.26% to
close at 1,459.87c. on the VFEX, Seed Co Int traded 5,709 shares to close
1.75% down to US0.28 cents. Padenga traded 797,895 shares to close unchanged
at US0.21 cents.wealthaccesssecurities

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

Rand firms as focus shifts to Enoch Godongwana's maiden Budget speech

The rand strengthened in early trade on Wednesday as fears of an all-out war
over Ukraine receded and investors' focus shifted back on the national
Budget to be presented later in the day.

At 0635 GMT, the rand traded at 15.0272 against the dollar, 0.2 percent
stronger than its previous close.

Riskier currencies across the world had seen investors fleeing to haven
currencies in the Far East and the dollar late Monday and early Tuesday.

But, after a slew of sanctions imposed by several countries on Tuesday, it
looked like a full-scale war could be averted, boosting riskier currencies.

All eyes are now on the annual Budget to be presented by the Finance
Minister Enoch Godongwana.

Godongwana, in his maiden Budget speech, is expected to walk a tightrope
between allocating funds for social spending and sovereign debt repayments.

Investors will be keenly looking out for how the Budget plans to most
prudently allocate bumper tax receipts due to high commodity prices.

REUTERS

Malawi

Malawians to start using K5000 banknote today

The 5000 Malawi Kwacha banknote will go into circulation today.

Reserve Bank of Malawi has told the local media that the bank is ready for
the release as it has been conducting sensitization campaigns over the past
three months.

According to RBM Spokesperson Ralph Tseka, the bank has reached out to
people in rural areas and has also raised awareness about the new bank note
through jingles on radios and TVs as well as adverts in the local
newspapers.

Introduction of the 5000 Malawi Kwacha Banknote was announced in November
last year when the bank also announced introduction of an upgraded 2000
Kwacha Banknote.

RBM Governor Dr. Wilson Banda said the bank was following its currency
management policy that provides guidance which states that the high banknote
in the economy should not account for more than 60 percent of the total
value of currency in circulation.

But former Finance Minister Joseph Mwanamvekha argued last year that higher
currency denominations are associated with economies in hyperinflation and
that are near collapse.

He further said that introduction of K5000 Malawi Kwacha banknote has a
potential of fueling tax evasion as well as money laundering in the country.

 <mailto:info at bulls.co.zw> 

Global Markets

Canadian dollar pares gains as Ukraine tensions climb

(Reuters) - The Canadian dollar strengthened against its U.S. counterpart on
Wednesday but gave up much of its advance as rising Russia-Ukraine tensions
weighed on investor sentiment.

The loonie was up 0.2% at 1.2740 to the greenback, or 78.49 U.S. cents,
after earlier touching its strongest level since last Friday at 1.2683.

U.S. stocks were sharply lower and the safe-haven U.S. dollar gained ground
against a basket of major currencies as Ukraine declared a state of
emergency and the West unveiled more sanctions against Russia over its move
into eastern Ukraine. read more

Sanctions were not yet expected to disrupt oil supplies, helping to cap the
price of oil, one of Canada's major exports, after it notched a seven-year
high on Tuesday. U.S. crude prices settled 0.2% lower at $92.10 a barrel.
read more

Other commodity-linked currencies also gained ground, including a 5-week
high for the New Zealand dollar as the country's central bank hiked interest
rates as expected and signaled a more aggressive path forward than even the
most hawkish investor had wagered. read more

The Bank of Canada is expected to hike next Wednesday for the first time
since October 2018.

Canadian government bond yields were higher across the curve, tracking the
move in U.S. Treasuries. The 10-year rose 5.1 basis points to 1.977%,
approaching last Wednesday's three-year high at 1.995%.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper price tailwind sees Taseko post best-ever results

Base metals company Taseko Mines has delivered its best financial results
yet, buoyed by strong metal prices which will continue to provide a tailwind
for the Gibraltar mine, in British Columbia, Canada, over the coming year.

The TSX- and NYSE American-listed miner, which also owns Florence Copper in
the US, generated record revenue of C$433.28-million, an increase of about
$90-million on the previous year's revenue.

Net income increased to C$36.47-million, from a loss of C$23.5-million in
2020, with adjusted income rising to C$44.75-million, from a loss of
C$26.54-million.

The group sold 104.9-million pounds of copper in the year from Gibraltar,
which produced 112.3-million pounds of copper and two-million pounds of
molybdenum in 2021.

Fourth-quarter sales were impacted by a major disruption to transport
infrastructure in southern British Columbia in November. The washed-out
highways and rail infrastructure limited the firm's ability to ship copper
concentrate, resulting in a build-up of copper concentrate inventory to
9.9-million pounds at year-end.

In the fourth quarter, Gibraltar sold 23.8-million pounds of copper.

Taseko stated that it had extended its copper price protection and that more
than 90% of its attributable production had been secured for 2022 at $4/lb.

Gibraltar is expected to produce 115-million pounds of copper in 2022, with
production weighted to the back half of the year and the first quarter being
the lowest production quarter, similar to 2021. 

The expected sales of excess copper concentrate inventory carried over from
2021 will bolster earnings in the first quarter of 2022.  

Taseko stated that the copper price outlook for 2022 remained "quite
favourable with limited exchange inventories and ongoing supply constraints
failing to keep up to demand".

At Florence Copper, based on ongoing dialogue with the US Environmental
Protection Agency, Taseko continues to expect the draft Underground
Injection Control (UIC) permit to be publicly issued "very soon". A 45-day
public comment period will then get under way.

The UIC is the final permit needed to construct and operate the commercial
production facility. 

Oil steadies as U.S. seen unlikely to sanction Russian exports

(Reuters) - Oil prices steadied on Wednesday, holding below 2014 highs, as
U.S. officials indicated escalation between Russia and Ukraine was unlikely
to result in sanctions on energy supplies from Russia, one of the world's
top oil producers.

Brent crude remained unchanged, settling at $96.84 a barrel, after hitting
$99.50, its highest since September 2014 on Tuesday.

U.S. West Texas Intermediate (WTI) crude futures ended up 19 cents to $92.10
a barrel. On Tuesday, WTI hit $96.

Oil prices rose on Tuesday on fears that sanctions imposed by Western
nations on Russia, after it sent troops into two breakaway regions in
eastern Ukraine, could hit energy supplies.

Sanctions imposed by the United States, the European Union, Britain,
Australia, Canada and Japan were focused on Russian banks and elites, while
Germany halted certification of a gas pipeline from Russia.

But the United States made it clear that sanctions agreed and those which
may be imposed will not target oil and gas flows. read more

The Biden administration is not expected to target Russia's crude oil and
refined fuel sector with sanctions due to concerns about inflation and the
harm it could do to its European allies, global oil markets and U.S.
consumers, administration officials told Reuters. read more

Moscow denies planning an invasion and has described warnings as
anti-Russian hysteria. But it has taken no steps to withdraw the troops
deployed along Ukraine's frontiers.

Ukraine declared a state of emergency on Wednesday and told its citizens in
Russia to flee, while Moscow began evacuating its Kyiv embassy. read more

Analysts expect oil prices to continue seeing support from the
Russia-Ukraine crisis, with some Western countries promising more sanctions
if Russia launches a full invasion.

The potential return of more Iranian crude to the market weighed on prices,
as Tehran and world powers inch closer to reviving a nuclear agreement.

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

U.S. crude stocks rose 6 million barrels last week while distillate stocks
fell, according to market sources citing American Petroleum Institute
figures late Tuesday.

Ahead of government data on Thursday, analysts forecast a 400,000-barrel
build in crude and a drawdown in fuel stockpiles.

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

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 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com  

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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.

(c) 2022 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220224/d5474c6d/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220224/d5474c6d/attachment-0002.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 345522 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220224/d5474c6d/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 22328 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220224/d5474c6d/attachment-0002.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220224/d5474c6d/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130906 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220224/d5474c6d/attachment-0001.obj>