Bulls n Bears Daily Market Commentary : 20 January 2022

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Bulls n Bears Daily Market Commentary : 20 January 2022

 

 	

 <mailto:info at bulls.co.zw> 

 

 	


ZSE commentary

 

 

The All-Share Index lost by a further 2.16%  to finish the day at 11,435.14 points. Trading in the negative was DELTA CORPORATION which retreated by $6.5488 to $178.2684, MEIKLES LIMITED eased $5.3806 to $121.9500 while ECONET WIRELESS shed $5.3001 to $82.0807. CASSAVA SMARTECH weakened by $3.8644 to $51.0400 and TSL LIMITED pulled $3.1482 back to $72.1000.

 

Trading in the positive: SEEDCO LIMITED advanced by $3.3240 to close at $115.0000, UNIFREIGHT gained $1.9130 to end at $28.0000 whilst CBZ HOLDINGS added $1.8582 back to settle at $66.8600. AFRICAN SUN rose by $1.1100 to $6.9100 together with EDGARS STORES LIMITED which was $0.7347 up at $5.0000.

 

EXCHANGE TRADED FUNDS (ETF)

MORGAN & CO MULTI-SECTOR ETF TRUST and OLD MUTUAL ZSE TOP 10 both inched $0.0728 and $0.0102 down to close the day at $13.2057 and $6.8011 respectively.-zse

 



 

Global Currencies & Equity Markets

 

 

Zambian, Kenyan currencies seen softer, Uganda's firmer

(Reuters) - Zambia and Kenya's currencies are likely to weaken against the U.S. dollar in the coming week as Uganda's shilling strengthens. Nigeria's naira and Tanzania's shilling are expected to hold steady.

 

ZAMBIA

 

The kwacha ZMW= is expected to continue trading on the back foot against the dollar next week as demand for hard currency remains higher than actual inflows.

 

On Thursday, commercial banks quoted the currency of Africa's second-largest copper producer at 17.4000 per dollar from 17.0445 at the close of business a week ago.

 

 

KENYA

 

The Kenyan shilling KES= is seen facing downward pressure on robust end-month dollar demand, especially from fuel importers.

 

Commercial banks quoted the shilling at 113.45/65, an all-time low, compared with last Thursday's close of 113.30/50.

 

 

UGANDA

 

The Ugandan shilling UGX= is seen strengthening in the coming days as weak consumer demand continues to stifle appetite for hard currency, traders said.

 

At 1250 GMT commercial banks quoted the shilling at 3,515/3,525, compared to last Thursday's close of 3,520/3,530.

 

 

NIGERIA

 

The Nigerian naira is seen range-bound in the coming week, as central bank maintains a managed float regime on the currency, despite rising dollar demand, traders said.

 

The currency was steady on the week at 572 naira per dollar on the parallel market NGNP= on Thursday. On the official market NGN=, it traded at a range of 411-417 naira, weaker than a range of 409-412 it had been at since last year.

 

Nigeria is preparing for a presidential election next year with political spending set to rise as parties select candidates.

 

TANZANIA

 

Tanzania's shilling TZS= is expected to hold steady next week, underpinned by dollar inflows from the tourism sector.

 

Commercial banks quoted the shilling at 2,303/2,313 against the dollar on Thursday, compared with last Thursday's close of 2,295/2,305.

 

 

 

 

 

 

 

 

 

 

 <mailto:info at bulls.co.zw> 

 

 

 

Global Markets

 

Rupee slips 7 paise to close at 74.51 against U.S. dollar

The rupee on Thursday slipped 7 paise to close at 74.51 (provisional) against the U.S. dollar, tracking a lacklustre trend in the domestic equity market.

 

Forex traders said sustained foreign fund outflows and firm crude oil prices weighed on the local unit. Moreover, investors remained cautious ahead of the U.S. Federal Reserve's meeting due next week.

 

At the interbank foreign exchange market, the local currency opened at 74.43 against the greenback and witnessed an intra-day high of 74.29 and a low of 74.53 during the session.

 

The rupee finally settled at 74.51, down 7 paise over its previous close of 74.44.

 

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.02% up at 95.53.

 

Meanwhile, Brent crude futures, the global oil benchmark, fell 0.63% to $87.88 per barrel.

 

Foreign institutional investors were net sellers in the capital market on Wednesday, as they offloaded shares worth ₹2,704.77 crore, as per stock exchange data.

 

 

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Commodities Markets



 

Gold falls on stronger U.S. dollar

(Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell on Thursday as U.S. dollar strengthened.

 

The most active gold contract for February delivery fell 0.6 U.S. dollar, or 0.03 percent, to close at 1,842.6 dollars per ounce.

 

Gold was under additional pressure as the Philadelphia Federal Reserve's index of manufacturing conditions rose by 8 points in January to 23.2.

 

The U.S. Department of Labor reported on Thursday that U.S. initial jobless claims rose by 55,000 to 286,000 in the week ending Jan. 15, giving gold certain support.

 

Silver for March delivery rose 48.5 cents, or two percent, to close at 24.716 dollars per ounce. Platinum for April delivery rose 22.4 dollars, or 2.18 percent, to close at 1,050.8 dollars per ounce. ■

 

 

 

Oil’s rally falters as stockpiles rise, Biden pledges support

United States President Joe Biden this week has said that he would take action to lower surging prices.

 

Oil’s rally faltered after U.S. crude stockpiles rose modestly amid renewed pledges from President Joe Biden to try to curb prices.

 

Futures in New York edged lower, closing below $87 a barrel. Domestic crude stockpiles rose last week for the first time in eight weeks, according to an Energy Information Administration report. Despite the mixed picture on overall inventory figures, U.S. demand shows signs of still running hot. The total volume of oil products supplied to the market was the highest for the time of year in at least 30 years.

 

In the meantime, the U.S. will work to accelerate the release of strategic reserves, White House National Economic Council Director Brian Deese told Bloomberg TV. However, Biden’s options to address the rally are limited and likely short-lived. Crude’s recent surge poses a challenge for consuming nations and central banks as they try to stave off inflation while supporting economic growth.

 

Oil graphOil has surged since the end of November as stronger-than-expected demand and supply outages tightened the market. Goldman Sachs Group Inc. is forecasting a return to $100 crude in the third quarter, while the International Energy Agency said consumption is on track to hit pre-pandemic levels.

 

The report from the U.S. Energy Information Administration also showed gasoline stockpiles rose 5.87 million barrels, and the the four-week rolling average for demand fell to the lowest level since March. This is consistent with the seasonal demand lull, along with cold weather and ongoing movement restrictions curbing driving.

 

In the U.S., a blast of cold air across southern Texas is set to pass near one of the country’s major oil-producing regions. The front will raise concerns for power-grid operators and natural-gas drillers, though the Railroad Commission of Texas said top producers and pipeline operators don’t anticipate anything other than normal output fluctuations.

 

SOURCE: BLOOMBERG

 

 

 


 

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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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.

 

 	

 

 

 	

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