Bulls n Bears Daily Market Commentary : 25 January 2022

Wed Jan 26 06:27:22 CAT 2022

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Bulls n Bears Daily Market Commentary : 25 January 2022

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ZSE commentary

The All-Share Index rebounded from previous day's loss by 1.60% to finish
higher at 11,473.09. INNSCOR AFRICA was $9.5255 up leading the gainers at
$195.5423, SIMBISA BRANDS advanced by $4.0141 to $129.0252 and SEEDCO
LIMITED jumped $3.6364 to settle at $113.6364. CASSAVA SMARTECH surged by
$2.4289 to close at  $52.0063 along with DAIRIBORD ZIMBABWE which climbed
$1.9933 to $38.0000. Gains were offset by BRITISH AMERICAN TOBACCO which
slipped $5.0000 to end at $3,085.0000, GETBUCKS MICROFINANCE  lost $1.2056
to $4.8500 while FBC HOLDINGS slid to $0.3018 to $30.6982. TRUWORTHS trimmed
$0.1473 to $2.0000 together with ZIMPLOW which fell by $0.1200 to $22.0000. 

EXCHANGE TRADED FUNDS (ETF)

OLD MUTUAL ZSE TOP 10 pulled $0.2775 back to $6.9663 while MORGAN & CO
MULTI-SECTOR ETF TRUST recovered by $0.0178 to $12.8000.-zse

Global Currencies & Equity Markets

South Africa

South African rand weaker as Ukraine tension, Fed boost dollar

JOHANNESBURG (Reuters) -The South African rand weakened on Tuesday, as
worries about a potential military conflict in Ukraine and policy tightening
by the U.S. Federal Reserve boosted the dollar and dented appetite for
riskier assets.

At 1500 GMT, the rand traded at 15.3200 against the dollar, down around 0.4%
from its previous close. The dollar was up 0.3% against a basket of
currencies.

Markets had until recently mostly shrugged off a build-up of Russian troops
near Ukraine's borders, but tensions have ratcheted up lately. NATO said on
Monday it was putting forces on standby and reinforcing eastern Europe with
more ships and fighter jets, while Russia denounced Western "hysteria".

The U.S. Federal Reserve begins a two-day policy meeting later on Tuesday,
and investors will study its statement for hints about the timing and pace
of interest rate hikes.

Limiting rand losses, on Thursday South Africa's central bank is expected to
raise rates by 25 basis points to 4.00% in response to rising inflation,
according to a Reuters poll published last week.

The currency reacted little to data showing a leading business cycle
indicator rose 0.6% month-on-month in November.

Shares on the Johannesburg Stock Exchange (JSE) edged up on the day as
investors moved away from fears around the potential Ukraine conflict and
focused on the expected Fed meeting and local interest rate decision.

The benchmark all-share index closed up 0.21% at 72,315 points while the
blue-chip index of top 40 companies ended up 0.33% at 65,870 points.

The government's benchmark 2030 bond fell, with the yield rising 6.5 basis
points to 9.365%.

Nigeria

Naira Slips Further At Official Market

The currency has not moved significantly in the last few weeks.

Naira fell slightly against the U.S. dollar at the official market on
Monday, extending its depreciation at the spot market segment to a second
day.

Data posted by the Central Bank of Nigeria's showed that the currency closed
at N415.64 to a dollar on Monday, which implies a N0.11 or 0.03 devaluation
from N415.53 it exchanged hands with the hard currency on Friday last week.

It reached an intraday range of N415.64 (low) and high of N415.14 before
closing at N415.64 at the close of business on Monday.

At the black market in Abuja, dealers said the naira exchanged hands with
the greenback currency at N565.00 per $1 on Monday and was sold at N570.00.

However, currency dealers in Uyo, Akwa Ibom State, said the naira exchanged
hands with the greenback currency at N568.00 and was sold at N572.00 per $1
on Monday.-Premium Times.

 <mailto:info at bulls.co.zw> 

Global Markets

Euro falls to one-month low as Ukraine tensions simmer

(Reuters) - The euro fell to a one-month low on Tuesday as tensions between
Russia and the West over Ukraine drew investors to the dollar, a day before
the Federal Reserve is expected to reveal details on its plans to tighten
monetary policy.

Western leaders stepped up preparations for any Russian military action in
Ukraine while Moscow said it was watching with great concern after 8,500
U.S. troops were put on alert to deploy to Europe in the event of an
escalation. read more

Tensions remained high after NATO said on Monday it was putting forces on
standby and reinforcing eastern Europe with more ships and fighter jets in
response to Russia's troop build-up near its border with Ukraine.

The rouble rebounded to strengthen 0.54% to 78.62 per dollar after earlier
weakening toward a more than 14-month low.

Ukraine tensions have exposed the euro and Europe, especially regarding
energy, but the dollar's strength has more to do with Fed policy tightening,
said Alvise Marino, director of FX strategy at Credit Suisse.

The dollar's strength indicates its role as the ultimate safe-haven
currency, said Marshall Gittler, head of Investment Research at BDSwiss
Holding Ltd.

Currencies usually gain when rates are expected to go higher and fall when
expectations of future rate hikes increase,Gittler said. "It's not just that
(the dollar) rose during a risk-off period but also that it rose even as
expectations for Fed tightening were pared back."

With other central banks poised to raise rates too, dollar volatility has
abated as the Cboe volatility index (.VIX) for the S&P 500 stocks has
doubled so far in 2022, Marino said.

The dollar index pared some gains to rise 0.097%, with the euro down 0.23%
to $1.1297. The Japanese yen strengthened 0.01% at 113.92 per dollar.

The Fed could firm up plans to raise interest rates and shrink its holdings
of U.S. Treasury bonds and mortgage-backed securities, which have swollen
its balance sheet to about $9 trillion. The Fed's two-day meeting ends
Wednesday. read more

Analyst views of the meeting are mixed, with Deutsche Bank flagging a
potentially hawkish surprise over the coming months, with as many as six or
seven increases this year.

But ING analysts say that if the Fed's balance sheet reduction does the
heavy lifting of policy normalization, that could scale back forecasts for
the number of rate hikes.

Fed funds futures have fully priced in a quarter-point tightening for the
Fed's March meeting, plus three more for 2022.

The Swiss Franc fell 0.29% against the euro at 1.0379, just off the 1.0298
it hit recently for its strongest since 2015.

Bitcoin, which has almost halved in value since touching a record high of
$69,000 in November, rebounded about 0.78% to trade at $37,010 as the S&P
500 and Nasdaq pared steep looses.

Ether , the world's second-largest cryptocurrency, rose 0.47% at $2,454.91.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold scales over 2-month peak as Ukraine worries dent risk appetite

Spot gold rose 0.5% to $1,852.03 per ounce by 2:03 p.m. ET, after hitting
its highest since Nov. 19 at $1,852.65. U.S. gold futures settled up 0.6% at
$1,852.50.

Gold hit a more than two-month high on Tuesday as geopolitical concerns over
Ukraine pushed investors toward safe havens including bullion, ahead of the
U.S. Federal Reserve's meet that could offer cues on its monetary policy
tightening plan.

Spot gold rose 0.5% to $1,852.03 per ounce by 2:03 p.m. ET, after hitting
its highest since Nov. 19 at $1,852.65. U.S. gold futures settled up 0.6% at
$1,852.50.

Russia said it was watching with great concern after the United States put
8,500 troops on alert to be ready to deploy in case of an escalation, while
Britain urged its European allies to have sanctions ready to go if Russia
invades Ukraine.

Gold is acting like a "flight to safety trade" in a wait-and-watch scenario
until after the Fed announcement tomorrow, said Bob Haberkorn, senior market
strategist at RJO Futures.

Investors await cues on how aggressive the Fed would be for the rest of the
year and if it would signal more hikes to tackle inflation, Haberkorn added.

The Fed is expected to indicate it plans to raise rates in March and offer
insights into how hawkish it intends to be.

Although gold is considered a hedge against inflation and geopolitical
risks, interest rate hikes would raise the opportunity cost of holding
non-yielding bullion.

Gold also seemed to shake off pressure from inflows into rival safe-haven
dollar which had touched a two-week peak.

Spot silver fell 0.1% to $23.92 an ounce, platinum was up 0.1% at $1,028.00
while palladium rose 2.3% to $2,198.37. 

Copper ticks down after closing higher, market eyes Fed move

(Reuters) - London copper prices edged lower on Wednesday after closing
higher in the last session, ahead of U.S. Federal Open Market Committee's
decision on interest rates.

Investors are awaiting the Fed's update to its policy plan, likely fleshing
out timing on expected rate hikes and dwindling of its massive balance
sheet.

* Three-month copper on the London Metal Exchange slid 0.1 to $9,791.5 a
tonne by 0119 GMT and the most-traded copper contract on the Shanghai
Futures Exchange rose 0.4% to 70,130 yuan a tonne.

* Aluminium ticked lower although losses were curbed by worries over supply
from major producer Russia because of the Ukraine crisis.

* Russia's Rusal is one of the world's biggest producers of aluminium and
prices rocketed in 2018 to seven-year highs when the United States imposed
sanctions on the company.

* Russia said on Tuesday that it was watching with great concern after the
United States put 8,500 troops on alert to be ready to deploy to Europe in
case of an escalation in the Ukraine crisis.

* Three-month aluminium on the London Metal Exchange CMAL3 (LME) eased 0.2%
to $3,085 a tonne.

* For the top stories in metals and other news, click

or

* Wall Street ended the day lower on Tuesday after another tumultuous day of
trading, while oil jumped more than 2% as geopolitical tensions and
Wednesday's Federal Reserve update occupied investor focus.

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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