Bulls n Bears Daily Market Commentary : 05 January 2022

Thu Jan 6 06:59:32 CAT 2022

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Bulls n Bears Daily Market Commentary : 05 January 2022

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE shares closed today in the positive with marginal gains across the
board. The Morgan & Co Multi Sector ETF continued on its rally on its second
day of trading. Activity levels were at 420 trades. Delta was the most
active stock at 60 trades followed by Star Africa and Econet at 41 and 26
trades respectively. Investor sentiment was strongly positive after the
session yielded 26 risers against 12 fallers while one of the active stocks
remained unchanged. Econet anchored both volume and value aggregate trading
612 100 shares with a value of ZW$52.03 million.

The All-Share Index added 0.52% to close at 10 901.94 points. The Top 10
Index gained 0.63%. The Top 15 Index also gained 0.67%. The Medium Cap Index
was up by 0.56% to 20 710.59 points whilst the Small Cap Index added 0.66%
to 410 821.79 points. Leading the risers pack of the day was First Mutual
Properties adding 11.52%. Wildale Holdings was up by 9.37%. Edgars added
5.98% and Axia Corporation added 4.94% to 3700.89c. Mitigating the gains
were losses in Zimre Holdings and Nampak  which shaded 7.86% and 7.75% to
336.33c and 1100c respectively. Mashonaland Holdings was down by 6.91% to
299.56c. Unifreight and Get Bucks shaded 4.24% and 4.17% respectively. The
Old Mutual Top Ten ETF closed at 450.53c up by 1.50% and the Morgan & Co
Multi Sector ETF closed at 1235.66c up by 12.56%. Total units traded were 1
173 384 worth ZW$13 611 123.80 in 197 trades. On the VFEX, Padenga gained a
paltry 0.05% to close at 21.01c after 2200 shares traded worth US$462 in 3
trades..-wealthaccess

Global Currencies & Equity Markets

South Africa

South African rand rallies before Fed minutes

(Reuters) - The South African rand rallied on Wednesday, recovering from the
previous day's losses, as the dollar dipped and safe-haven gold gained
before the release of minutes from the Federal Reserve's latest policy
meeting.

At 1603 GMT, the rand traded at 15.7300 against the dollar, roughly 1.8%
stronger than its previous close.

The dollar (.DXY) was down around 0.3% against a basket of currencies, with
traders reluctant to add to bullish dollar positions, while gold - an
important South African export - advanced 0.5%.

The Fed minutes, due at 1900 GMT, could provide clues on the U.S. central
bank's plan on interest rate hikes and the tapering of its pandemic-induced
stimulus.

Higher rates in developed markets tend to drain capital from higher-yielding
but riskier emerging markets such as South Africa, weighing on their
currencies. read more

Earlier on Wednesday, a purchasing managers' index (PMI) survey showed South
African private sector activity contracted in December (ZAPMIM=ECI).

Firms, however, were largely optimistic that the economy would recover from
the latest COVID-19 wave, contributing to a strong 12-month outlook.

The Johannesburg Stock Exchange (JSE) was largely unchanged on Wednesday, as
a drop in the shares of heavyweights Naspers and Prosus checked momentum.

Global equities showed signs that the enthusiasm of the early trading
sessions of the year was starting to fade, as investors braced for Fed rate
hikes. read more

Naspers and its subsidiary Prosus fell by more than 3% after Chinese tech
giant Tencent Holdings (0700.HK) - in which Naspers holds a 29% stake - sold
14.5 million shares worth $3 billion in Singapore-based gaming and
e-commerce group Sea, triggering a wider Asian technology sell-off. read
more

Tencent owns China's biggest messaging app WeChat and a wide stable of
gaming and consumer internet applications.

The JSE's All-share index (.JALSH) closed up 0.01% at 75,061 points while
the top 40 companies index (.JTOPI) ended down 0.05% at 68,367 points.

In fixed income, the yield on the 2030 government bond fell 4.5 basis points
to 9.385%.

The Thomson Reuters Trust Principles.

Nigeria

Naira bounces back after record fall

Naira gained Tuesday against the U.S. dollar on Tuesday, after falling to an
all-time low at the official market on the last business day of 2021.

The currency plunged to N435 on Thursday and Friday as the Central Bank of
Nigeria (CBN) adjusted the exchange rate on its website to N413.49 to a
dollar. Before the fall, naira for months had traded at between N410 and
N415 to a dollar.

The currency closed at N422.67 to the dollar Tuesday, which implies a N12.33
or 3.0 per cent appreciation, according to data published by FMDQ, where
forex is officially traded.

It opened trading at N426.25 per $1, reached an intraday high of N405.00 and
a low of N443.50 before closing at N422.67 on Tuesday, first business day of
the year.

Foreign exchange supply, however, fell by 27.41 per cent, with $109.07
million recorded at the close of trade on Tuesday against the $150.26
million posted in the previous session on Friday last week.

At the black market in Uyo, dealers exchanged naira with the greenback at
N561.00 and sold at N565.00, while dealers in Abuja exchanged naira at
N566.00 and sold at N570.00.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar near five-year high to yen as U.S. yields surge on hawkish Fed

(Reuters) - The dollar hovered near a five-year high to the yen on Thursday,
supported by a surge in U.S. Treasury yields on rising bets for a Federal
Reserve rate hike by March.

The greenback stood at 116.115 yen , little changed from Wednesday, when it
rallied back toward Tuesday's high of 116.355, lifted by more hawkish
rhetoric from Fed official and a strong U.S. jobs report.

Anticipation of faster policy tightening dented riskier assets, with the
British pound retreating from a near two-month high and cryptocurrencies
tumbling toward multi-month lows.

Fed officials said the "very tight" U.S. labour market might warrant raising
rates sooner, and indicated they could also reduce the central bank's
overall asset holdings to tame high inflation - a process dubbed
quantitative tightening (QT) -minutes of their Dec. 14-15 policy meeting
showed. read more

In the wake of that, futures on the federal funds rate priced in a roughly
80% chance of a quarter-percentage-point Fed hike by its March meeting. read
more

Earlier in the day, the ADP National Employment report showed private U.S.
payrolls surged last month by more than double what economists polled by
Reuters had forecast, potentially raising expectations for the non-farm
payrolls numbers due Friday. read more

The U.S. dollar index , which measures the currency against the yen and five
other major peers, was about flat at 96.209 from Wednesday, when it
rebounded from intraday losses as steep as 0.44% following release of the
minutes.

Five-year Treasury yields , which are keenly sensitive to interest rate
expectations, climbed to an almost two-year high.

Despite an ever-more-hawkish Fed over recent months, which signalled three
quarter-point rate increases for this year at its December policy meeting,
gains for the dollar index have stagnated since hitting a 16-month high at
96.938 in late November.

The euro stood at $1.1310 as it continued to consolidate in the middle of
its trading range since mid-November. It dipped as low as $1.1186 on Nov. 24
for the first time since July 2020.

Sterling traded at $1.3550, after retreating overnight from a nearly
two-month high of $1.3599 following the Fed minutes.

The Aussie slipped to $0.7215, down from an intraday high of $0.7273 on
Wednesday.

In cryptocurrencies, bitcoin stabilized at around $43,600 after dipping to a
one-month low of $42.413.59 in the previous session.

Ether recovered some composure to trade around $3,500, after slumping to
$3,410.22 overnight for the first time since mid-October.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold dips as yields rise after hawkish Fed minutes

(Reuters) - Gold prices slipped on Wednesday erasing earlier gains, as U.S.
bond yields jumped after minutes from the last Federal Reserve meeting
showed that the U.S. central bank may need to raise interest rates sooner
than expected to curb inflation.

Spot gold was last down 0.2% at $1,810.56 per ounce by 15:21 ET (2021 GMT).
U.S. gold futures settled 0.6% higher at $1,825.10.

According to minutes from the Fed's Dec. 14-15 policy meeting, Fed officials
said last month that the U.S. labor market was "very tight" and it might
need not just to raise interest rates sooner than expected, but also reduce
asset holdings quickly. read more

Fed funds futures have priced in a 80% chance of a rate hike in March
following the release of the Fed minutes. read more

In the wake of Fed minutes, the benchmark 10-year U.S. Treasury yields rose
to their highest level since April 2021, while the dollar (.DXY) pared
losses.

Some investors view gold as a hedge against higher inflation, but bullion is
highly sensitive to rising U.S. interest rates, as these increase the
opportunity cost of holding non-yielding bullion.

Meanwhile, Goldman Sachs said in a note that cryptocurrency bitcoin will
take market share away from gold in 2022 as digital assets become more
widely adopted.  

Elsewhere, spot silver fell 1.1% to $22.78 an ounce, platinum was up 0.9% at
$980.53, and palladium fell 0.6% to $1,859.30.

The Thomson Reuters Trust Principles.

INVESTORS DIARY 2022

Company

Event

Venue

Date & Time

Counters trading under cautionary

ART

Seed co Int.

Starafrica

Medtech

Turnall

Seed co

Invest Wisely!

Bulls n Bears 

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