Bulls n Bears Daily Market Commentary : 12 January 2022

Thu Jan 13 06:48:44 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 : 12 January 2022

 <mailto:info at bulls.co.zw> 

ZSE commentary

The All-Share Index jumped 255.92 points in today's session to close at
11,217.51 points. Major gains were spurred by TSL LIMITED which soared
$15.0000 to $90.0000, DELTA CORPORATION gained $13.1936 to settle at
$172.4413 together with INNSCOR AFRICA which advanced to $185.9649 by
$9.8626. SEEDCO LIMITED rose by $1.8779 to $112.1000 and CASSAVA SMARTECH
was $1.5199 higher at $45.5219. Gains were offset by; MEDTECH HOLDINGS which
plunged $5.7500 to end at $23.1500, CBZ HOLDINGS  dropped by $4.1364 to
$70.9477 and FIRST MUTUAL HOLDINGS lost $2.0000 to $17.0000. DAIRIBORD
ZIMBABWE eased $1.0093 to $31.0000 along with HIPPO VALLEY ESTATES (HIPO.zw)
which inched $0.8389 down to $260.0000.

EXCHANGE TRADED FUNDS (ETF)

MORGAN & CO MULTI-SECTOR ETF TRUST  went up by a further $0.0936 to $12.7222
and OLD MUTUAL ZSE TOP 10 shed $0.0621 to $4.5580. zse

Global Currencies & Equity Markets

South Africa

South African rand pauses after overnight gains on Powell comments

South Africa's rand was flat early on Wednesday, pausing after overnight
gains on comments by Federal Reserve Chair Jerome Powell, which allayed
market fears of a sudden withdrawal of U.S. monetary support that had
weighed on riskier assets.

At 0707 GMT, the rand traded at 15.5150 against the dollar, not far from its
previous close of 15.5100.

In testimony at his re-nomination hearing on Tuesday, Powell said
policymakers were still debating approaches to reducing the Fed's balance
sheet, and that it could sometimes take two, three or four meetings for them
to make such decisions.

Those comments - which were less hawkish than expected - buoyed appetite for
risk and supported currencies, such as the rand, which are highly sensitive
to shifts in sentiment on global markets.

The rand has tended to track global drivers in recent sessions.

The South African government's benchmark 2030 bondwas slightly firmer in
early deals, with the yield falling 3.5 basis points to 9.495%. The Top 40
index on the Johannesburg Stock Exchange was 1.1% higher in early trade,
boosted by Powell's remarks which came after the market close on Tuesday.

Nigeria

Nigerian stocks climb towards 4-year high, Dangote Cement rises

The all-share index gained 1.16% to 44 367 points, a level last reached in
February 2018.

Nigerian stocks climbed towards a four-year high on Wednesday, after Dangote
Cement, Nigeria's biggest listed company, announced plans to buy back shares
next week.

The all-share index gained 1.16% to 44 367 points, a level last reached in
February 2018.

Dangote Cement rose 6.18% to 275 naira, valuing the cement group at 4.675
trillion naira ($11.29 billion).

The cement maker has said it aims to buy back up to 10% of its share capital
in a number of tranches.

Dangote is majority-owned by Africa's richest man Aliko Dangote and the
company accounts for a third of the local stock market's value.

Dangote Cement said on Wednesday it will buy back up to 170 million shares,
or 1% of its issued shares, over two-days from January 19.

It had bought 40.2 million shares in December 2020 at 243.02 naira, the
first tranche of its buyback programme to return cash to shareholders.

The company said it will monitor market conditions in deciding on further
tranches of the buyback programme.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar breaks key support, rates outlook seen unchanged by inflation data

(Reuters) - The dollar was below key support levels on Thursday, having hit
new lows overnight, after data showing U.S. consumer prices rose at their
fastest rate in nearly 40 years was not deemed worrying enough to change an
already hawkish rates outlook.

After a couple of months in a tight range, the dollar dropped 0.6% on the
euro overnight to $1.1453, its lowest since mid-November. There isn't major
chart resistance to further losses until $1.1525. It held at $1.1443 in
Asia.

It also fell 0.6% on the yen , dropping through support around 115 to hit
114.38 yen per dollar, a more than two-week low. It last bought 114.63 yen
early on Thursday.

Risk-sensitive currencies benefited. The Australian dollar rose more than
1%, its best percentage gain since October, and zoomed through its 50-day
moving average to an almost two-month top of $0.7292.

Monthly U.S. inflation figures were a fraction higher than forecast and at
7%, the increase in year-on-year CPI was the biggest since June 1982. read
more

But the Federal Reserve has already flagged higher rates this year and a
shrinking balance sheet to curb it. Fed funds futures have already priced
three hikes in 2022 and some dollar longs started bailing out since so much
is already priced in.

The New Zealand dollar jumped 0.9% and out of a two-month range after the
U.S. inflation print and was testing its 50-day moving average at $0.6853 in
the Asia session.

Sterling, which has been rallying as traders reckon Britain's economy can
survive a surge in COVID-19 cases and that the Bank of England is going to
get started on rate hikes as soon as next month, is testing its 200-day
moving average at $1.3708.

It is up 4% from December lows and traders have so far shrugged off a
political crisis enveloping Prime Minister Boris Johnson who apologised for
attending a party in the Downing Street garden during Britain's first
coronavirus lockdown. read more

The Canadian dollar has also rallied more than 3.5% in three weeks, gaining
with oil prices as investors look past the potential economic fallout of the
Omicron variant. The U.S. dollar index is hovering near a two-month low at
94.991.

Later on Thursday, Fed Governor Lael Brainard appears at Congress for a
hearing into her nomination as deputy chair and in two weeks the Fed holds
its first meeting of the year.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold logs highest price of 2022 so far because its 'a rocket ship and
inflation is its fuel'

Gold futures climbed on Wednesday for a fourth straight session, settling at
their highest level of the year so far, as the U.S. dollar and Treasury
yields declined in the wake of stronger-than-expected U.S. consumer
inflation data.

Consumer prices rose 0.5% in December to push the increase in the cost of
living last year to a nearly 40-year high of 7%, indicating high U.S.
inflation is likely to persist well into 2022.

The gain in the consumer-price index exceeded the 0.4% forecast of
economists polled by The Wall Street Journal. The data also reinforce the
view that inflation is running well above the Federal Reserve's annual
target of 2%.

In Wednesday dealings, February gold GCG22, -0.07% GC00, -0.07% rose $8.80,
or 0.5%, to settle at $1,827.30 an ounce, following a 1.1% gain on Tuesday.
Prices for the most-active contract ended at their highest since Dec. 31 and
notched a fourth straight session gain, the longest string of gains since a
seven-session stretch ended Nov. 12, FactSet data show.

Meanwhile, March silver SIH22, +0.06% SI00, +0.06% climbed 39 cents, or
1.7%, to settle at $23.207 an ounce, after rising 1.6% in the previous
session.

Following the CPI data, the U.S. dollar fell against most currencies and
U.S. benchmark stock indexes traded higher. "It looks like the market had
prepared for even hotter inflation, which obviously didn't materialise,"
said Fawad Razaqzada, market analyst at ThinkMarkets, in a market update "So
the reaction can best be described as relief."

In Wednesday dealings, the U.S. dollar, based on the ICE U.S. Dollar index
DXY, +0.06%, traded 0.7% lower at 94.991, boosting prices for
dollar-denominated gold. The 10-year Treasury note TMUBMUSD10Y, 1.747%
traded at 1.724%, down from 1.745% at 3 p.m. Eastern time Tuesday, raising
investment appeal for gold, which offers no yield.

The dollar had weakened on Tuesday, as the market factored in comments from
Federal Reserve Chairman Jerome Powell during his confirmation hearing for a
second four-year term.

However, Wright said he sees the possibility of an acceleration in the
tapering of asset purchases and quantitative tightening on the horizon,
"which both would halt any gold rally."

On Tuesday, gold prices retained gains after Powell said the central bank's
plans to raise interest rates shouldn't hurt economic expansion, essentially
painting a picture of a "soft landing" rather than a recession.

In his comments Tuesday, Powell also said it would be a "long road" to
policy normalization, which "offset to a degree the more hawkish tenor of
the recently released FOMC minutes, said Peter Grant, vice president and
senior metals strategist at Zaner Metals.

On Wednesday afternoon, the Fed's latest Beige Book survey showed the
economy grew at a "modest" pace in December and said labor shortages and
wages added to cost pressures. In electronic trading after the release,
February gold slipped from the day's settlement to stand at $1,825.90.

Looking ahead, if Thursday's U.S. producer-price index numbers also come in
higher, then gold prices may try to break past the $1,850 mark, said Chintan
Karnani, director of research at Insignia Consultants.

In other Comex trading, March copper HGH22, -0.66% tacked on 3.3% to $4.577
a pound. April platinum PLJ22, -0.43% added 0.7% to $980.10 an ounce and
March palladium PAH22, -0.72% settled at $1,915.80 an ounce, down
0.3%.-marketwatch

Oil rally to continue in 2022 as demand outstrips supply, analysts say

(Reuters) - Oil prices that rallied 50% in 2021 will power further ahead
this year, some analysts predict, saying a lack of production capacity and
limited investment in the sector could lift crude to $90 or even above $100
a barrel.

Though the Omicron coronavirus variant has pushed COVID-19 cases far above
peaks hit last year, analysts say oil prices will be supported by the
reluctance of many governments to restore the strict restrictions that
hammered the global economy when the pandemic took hold in 2020.

Brent crude futures traded near $85 on Wednesday, hitting two-month highs.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies,
a group known as OPEC+, are gradually relaxing the output cuts implemented
when demand collapsed in 2020.

However, many smaller producers can't raise supply and others have been wary
of pumping too much oil in case of renewed COVID-19 setbacks. read more

Morgan Stanley predicts that Brent crude will hit $90 a barrel in the third
quarter of this year.

With the prospect of depleting crude inventories and low spare capacity by
the second half of 2022, and limited investments in the oil and gas sector,
the market will have little margin of safety, the bank said.

JPMorgan analysts said in a note on Wednesday that they could see oil prices
rising by up to $30 after the Energy Information Administration (EIA) and
Bloomberg lowered OPEC capacity estimates for 2022 by 0.8 million barrels
per day (bpd) and 1.2 million bpd respectively.

However, the bank added that it also expects oil prices to "overshoot" to
$125 a barrel this year, and $150 in 2023.

Rystad Energy's senior vice-president of analysis Claudio Galimberti said if
OPEC was disciplined and wanted to keep the market tight, it could boost
prices to $100.

However, he said he did not consider this a likely scenario and while oil
could "momentarily" reach above $90 this year, downward pressure on prices
would come from production increases in Canada, Norway, Brazil and Guyana.

Omani Oil Minister Mohammed Al Rumhi also said on Tuesday that the group
doesn't want to see $100 barrels of oil.

High oil prices, which also drive up gasoline and diesel prices, could keep
inflation uncomfortably high well into 2022 amid snarled global supply
chains, slowing the economic recovery from the pandemic in many countries.

Standard Chartered, meanwhile, has raised its 2022 Brent forecast by $8 to
$75 a barrel and its 2023 Brent forecast by $17 to $77.

In a Reuters poll in late December, 35 economists and analysts forecast
Brent would average $73.57 a barrel in 2022, about 2% lower than $75.33
consensus in November. The forecast shows the average price for the year,
not the peak. read more

Brent prices have not touched $90 and $100 since 2014, when they were
retreating from a high above $115 to as low as $57 by the end of the year.

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 

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 

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/20220113/59046b52/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/20220113/59046b52/attachment-0002.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 22328 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220113/59046b52/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 107064 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220113/59046b52/attachment-0004.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/20220113/59046b52/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220113/59046b52/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65564 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220113/59046b52/attachment-0001.obj>