Bulls n Bears Daily Market Commentary : 17 January 2022

Tue Jan 18 05:42:46 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 : 17 January 2022

 <mailto:info at bulls.co.zw> 

ZSE commentary

The All-Share Index opened the week at 12,210.82 points following a 1.23%
increase from Friday's session. RIOZIM and AXIA both rose by $5.0000 and
$4.8356 to close at $45.0000 apiece. CASSAVA SMARTECH advanced by $4.8044 to
$52.8984, ECONET WIRELESS edged $1.8270 up to end at $95.1749 whilst EDGARS
STORES LIMITED was $0.3222 higher at $4.8722. 

Trading in the negative; MASIMBA HOLDINGS LIMITED lost $4.0000 to $50.0000,
FIDELITY LIFE ASSURANCE declined by $0.6500 to $15.0000 and ART CORPORATION
pulled $0.5000 to $10.0000. TURNAL HOLDINGS fell by $0.5000 to $4.0000 along
with DELTA CORPORATION which shed $0.4893 to $195.4582. EXCHANGE TRADED
FUNDS MORGAN & CO MULTI-SECTOR ETF TRUST inched $0.0203 up to $13.1006 while
OLD MUTUAL ZSE TOP 10 strengthened by $0.6172 to $6.0382.-zse

Global Currencies & Equity Markets

South Africa

South African rand slips as dollar edges higher

(Reuters) - The South African rand slipped on Monday, as the dollar edged
higher amid expectations for several U.S. Federal Reserve interest rate
hikes this year.

At 1502 GMT, the rand traded at 15.4150 against the dollar, around 0.3%
weaker than its previous close. The dollar was up less than 0.1% (.DXY)
against a basket of currencies.

The Fed is not expected to move rates at its Jan. 25-26 meeting, but there
is a growing drumbeat of hawkish comments coming from within and outside the
U.S. central bank. read more

The rand has started 2022 on a strong note, gaining more than 3% against the
dollar and making it one of the best-performing emerging market currencies.

Analysts at Investec say the rand typically enjoys a bout of seasonal
strength around December to February, when most northern hemisphere traders
are at work whereas the northern hemisphere summer months usually see less
risk-taking.

But further out there are worries over South Africa's reform momentum, the
long-term health of its public finances and infighting in the governing
African National Congress party in a year in which it will hold a leadership
contest.

This week's economic data releases include November mining numbers
(ZAMNG=ECI) on Tuesday, and December consumer inflation (ZACPIY=ECI) and
November retail sales (ZARET=ECI) on Wednesday.

On Jan. 27, the South African Reserve Bank will announce its first monetary
policy decision of the year, with some traders expecting it to raise rates
for the second meeting in a row after a November hike (ZAREPO=ECI). read
more

Shares on the Johannesburg Stock Exchange (JSE) rose on the back of a
surprise move by China's central bank to ease policy by cutting rates on
medium-term loans.

This triggered a boost to the South African commodities and technology
shares which are index heavyweights and linked to the Chinese economy.

The resources index (.RESI), which represents mining companies especially
gold and platinum group metals, rose 0.35% while technology firm Naspers Ltd
, which holds through a subsidiary up to 29% stake in Chinese internet giant
Tencent Holdings (0700.HK), gained 0.47%.

Overall, the benchmark all-share index (.JALSH) ended up 0.58% and the
blue-chip index of top 40 companies (.JTOPI) closed 0.64% higher.

Government bonds also weakened on Monday, with the yield on the benchmark
2030 instrument rising 4.5 basis points to 9.415%.

The Thomson Reuters Trust Principles.

Kenya

Kenya's Shilling Falls to Record as Dollar Continues to Climb

Kenya's shilling has come under pressure as the dollar strengthens, with
investors anticipating the Federal Reserve increasing interest rates.

The currency of East Africa's largest economy fell to 113.61 against the
dollar on Monday, the weakest on record, before paring the loss to 113.49 by
3:20 p.m. in the capital, Nairobi, according to data compiled by Bloomberg.
The Bloomberg Dollar Spot Index, which tracks the performance of a basket of
10 leading global currencies versus the U.S. dollar, gained. 

Kenya's shilling falls to a record against dollar

The shilling remained weaker as Central Bank of Kenya moved to stabilize the
currency -- it offered 10 billion shillings of seven-day term-auction
deposits on Monday, after staying out of the market for most of the days of
last week. 

The currency will remain under pressure due to bets on the dollar continuing
to gain, reduced inflows from exports, and elevated global oil prices,
Nairobi-based AIB-AXYS Africa said Monday in an emailed note.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar fails to catch a lift from higher yields, Bank of Japan in focus

(Reuters) - The yen edged higher ahead of the outcome of a central bank
policy meeting on Tuesday, while the dollar seemingly ignored U.S. Treasury
yields hitting new near two-year highs on their return from a long weekend
break.

The Bank of Japan will probably slightly revise up its inflation forecast in
a quarterly outlook report after the meeting, due to rising energy costs,
Reuters reported last week citing sources, though the new projection will
still be below the BOJ's 2% target. read more

The meeting is expected to wrap up by late morning in Tokyo.

The dollar slipped as much as 0.15% against the yen in early trading to
114.43 yen per dollar, and was also slightly softer versus the pound and
euro.

The weakness in the dollar came even as U.S. Treasury yields continued to
gain, with the short end of the curve hitting new pandemic highs, which
would normally be supportive for the greenback.

Two-year yields rose above 1% for the first time since February 2020 at the
open in Asia, as trading returned after a U.S. holiday, and five-year yields
rose 3.6 bps to 1.5960%, the highest since January 2020.

Yields have been rising this year, with traders expecting the Federal
Reserve to begin hiking interest rates as soon as March, but the dollar
index, which measures the greenback against six peers has lost 0.52% year to
date.

He said theories for the anomaly included investors reacting early to the
fact the dollar has historically peaked around the time the Fed has raised
rates, or they were trading in anticipation of a surge in global economic
growth. But he said he was not convinced by either argument.

The euro was on the front foot at $1.1416, while sterling was steady at
$1.3657, after an early rally in both currencies at the start of the year
petered out late last week.

As the pound has been boosted by aggressive Bank of England tightening
expectations, analysts at ING said they thought any weakness due to
political uncertainty in Britain where Prime Minister Boris Johnson is
facing calls to resign, would be contained.

There is no major economic data for the euro zone on the calendar this week,
but investors will focus on speeches from European Central Bank President
Christine Lagarde, other ECB members and on the minutes of the central
bank's December policy meeting on Thursday.

The Aussie dollar (AUD=D3> was steady at $0.722.

Bitcoin was in the doldrums at $42,353, having been trending downwards since
hitting its record high of $69,000 in November.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Oil climbs as supplies expected to remain tight

(Reuters) - Oil prices rose on Monday with investors betting that global
supply will remain tight, although restraint by major producers was
partially offset by a rise in Libyan output.

Brent crude settled up 42 cents, or 0.5%, to $86.48 a barrel. Earlier in the
session, the contract touched its highest price since Oct. 3, 2018, at
$86.71.

U.S. West Texas Intermediate crude was up 53 cents, or 0.6%, at $84.35 after
touching its highest price since Nov. 10 at $84.78. Trade was subdued due to
the U.S. holiday honoring slain civil rights leader Martin Luther King Jr.

Frantic oil buying, driven by supply outages and signs the Omicron
coronavirus variant will not be as disruptive to fuel demand as previously
feared, has pushed some crude grades to multi-year highs, suggesting the
rally in Brent futures could be sustained for a while longer, traders said.
read more

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

But many smaller producers cannot increase supply and others have been wary
of pumping too much oil in case of renewed COVID-19 setbacks. read more

Meanwhile, Libya's total oil output is back to 1.2 million barrels per day
(bpd), according to National Oil Corp. Libyan output was about 900,000 bpd
last week owing to a blockade of western oilfields. read more

Concerns over supply constraints outweighed the news of China's possible oil
release from reserves, said Fujitomi's Tazawa.

Sources told Reuters that China plans to release oil reserves around the
Lunar New Year holidays between Jan. 31 and Feb. 6 as part of a plan
coordinated by the United States to reduce global prices. read more

Saudi Energy Minister Prince Abdulaziz bin Salman said on Monday it is the
prerogative of the U.S. government whether to release supply from strategic
petroleum reserves. read more

Festering geopolitical threats to supply are also supporting bullish
sentiment, analysts said.

U.S. officials voiced fears on Friday that Russia was preparing to attack
Ukraine if diplomacy failed. Russia, which has amassed 100,000 troops on
Ukraine's border, released pictures of its forces on the move. read more

The Thomson Reuters Trust Principles.

Gold holds ground despite Fed's rate rise signals

(Reuters) - Gold prices held their ground on Monday, with gains capped by
expectations of monetary policy tightening in the United States.

Spot gold rose 0.1% to $1,819.41 an ounce by 1526 GMT while U.S. gold
futures also edged up by 0.1% to $1,818.80. U.S. markets were closed for a
public holiday.

While considered an inflationary hedge, gold is highly sensitive to rising
U.S. interest rates, which increase the opportunity cost of holding
non-yielding bullion.

U.S. 10-year Treasury yields hit two-year highs last week on expectations
for higher interest rates.

The focus is now on the U.S. Federal Reserve's Jan. 25-26 meeting after
policymakers signalled that they would start raising interest rates in March
to tame inflation. read more

Reflecting wider sentiment, speculators cut their net long COMEX gold
position in the week to Jan. 11, data showed on Friday.

Elsewhere, spot silver was up 0.1% at $22.97 an ounce, platinum rose 0.4% to
$974.32 and palladium gained 0.5% to $1,887.19.

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 

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/20220118/e2991dd3/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/20220118/e2991dd3/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/20220118/e2991dd3/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/20220118/e2991dd3/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/20220118/e2991dd3/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/20220118/e2991dd3/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65550 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220118/e2991dd3/attachment-0001.obj>