Bulls n Bears Daily Market Commentary : 04 March 2022

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Bulls n Bears Daily Market Commentary : 04 March 2022

 

 	



 

 	


ZSE commentary

 

 

The ZSE stocks closed with marginal losses in an unimpressive trading session. Activity levels was at 411 trades. Econet was the most active stock at 30 trades followed by Star Africa and OK Zimbabwe at 29 and 26 trades respectively. Investor sentiment was negative after the session yielded 18 decliners against 14 risers while six (6) of the active stocks remained unchanged. Axia anchored volume aggregate trading 539,000 shares and Innscor anchored value aggregate with a value of ZW$32.18 million.

 

The All-Share Index shaded 0.11% to close at 15,087.00 points. The Top 10 Index shaded 0.13%. The Top 15 Index shaded 0.12%. The Medium Cap Index was up by 0.05% to 24,339.78 points whilst the Small Cap Index added 0.10% to 402,764.46 points. Leading the risers pack of the day was African Sun closed at 900c and First Mutual Properties was up by 7.81%. African Distillers added 7.32% and Mashonaland Holdings added 6.15% to 318.46c. FBC Holdings was up by 3.33%. Mitigating the gains were losses in RTG and ZB Holdings which shaded 15.36% and 6.35% respectively. Zimre Holdings was down by 4.01%. Proplastics and Nampak shaded 3.57% and 2.60% respectively. The ETFs traded 229,131 units worth ZW$2,058,292.10 in 84 trades. The Old Mutual Top 10 ETF shaded 4.46% to close at 851.99c while the Morgan and Co. Multi Sector ETF shaded 3.92% to close at 1,393.35c. wealthaccesssecurities

 <mailto:info at bulls.co.zw> 

 

Global Currencies & Equity Markets

 

 

 

South Africa

 

South Africa's rand weakens as Ukraine crisis saps risk appetite

(Reuters) - South Africa's rand weakened on Friday, struggling to gain traction with appetite for risky assets sapped as the Ukraine crisis kept investors on edge.

 

At 0625 GMT, the rand ZAR=D3 traded at 15.2450 against the dollar, 0.31% weaker than its previous close, amid heightened investor anxiety after reports that Russian forces had attacked a nuclear plant in Ukraine — the largest of its kind in Europe.

 

The rand has managed to recover from three-week lows hit on Wednesday as strong commodity prices offered support, but the escalation of Russian's offensive in Ukraine has limited gains. South Africa is a rich commodity-exporting country.

 

In fixed income, the yield on the benchmark 2030 government bond ZAR2030= was up a single basis point to 9.59%, reflecting slightly weaker prices.

 

 

 

 

Ghana

 

Here's the Cedi's performance against major foreign currencies as at March 4

 

The Cedi traded against the dollar at a mid-rate of 7.0009

Its trade value against the Pounds Sterling was at a mid-rate of 9.3494

The Euro's mid-rate stands at 7.7447

 

Note that these rates may be different at a forex bureau near you

On the Interbank forex rates from the Bank of Ghana today, March 4, 2022, the Ghana Cedi is trading against the dollar at a buying price of 6.9974 and a selling price of 7.0044.

 

As compared to yesterday’s trading of a buying price of 6.9974 and a selling price of 7.0044. At a forex bureau in Accra, the dollar is being bought at a rate of 7.45 and sold at a rate of 7.65.

 

Against the Pound Sterling, the Cedi is trading at a buying price of 9.3443 and a selling price of 9.3544 as compared to yesterday's trading of a buying price of 9.3169 and a selling price of 9.3269.

 

At a forex bureau in Accra, the pound sterling is being bought at a rate of 9.55 and sold at a rate of 9.75

 

The Euro is trading at a buying price of 7.7411 and a selling price of 7.7482 as compared to yesterday's trading of a buying price of 7.7411 and a selling price of 7.7482. At a forex bureau in Accra, Euro is being bought at a rate of 7.95 and sold at a rate of 8.15.

 

The South African Rand is trading at a buying price of 0.4607 and a selling price of 0.4612 as compared to yesterday’s trading of a buying price of 0.4330 and a selling price of 0.4334.

 

At a forex bureau in Accra, South African Rand is being bought at a rate of 0.30 and sold at a rate of 0.46.

The Nigerian Naira is trading at a buying price of 59.3838 and a selling price of 59.4709 as compared to yesterday’s trading of a buying price of 63.0416 and a selling price of 63.0613.

 

At a forex bureau in Accra, Nigerian Naira is being bought at a rate of 10.50 Naira for every 1 cedi and sold at a rate of around 1 cedi to 30 Naira.

 

For the CFA, it is trading at a buying price of 96.2887 and a selling price of 96.3835 as compared to Friday’s trading of a buying price of 96.4316 and a selling price of 96.5253. At a forex bureau in Accra, CFA is being bought at a rate of 10.50 CFA for every 1 cedi and sold at a rate of 12.50 CFA for every 1 cedi.

 

Our forex bureau rates are provided by Afriswap Bureau De Change in Osu, Accra

 

 

 

 

 

 

 

 

 <mailto:info at bulls.co.zw> 

 

 

 

Global Markets

 

Canadian dollar falls by most in 2 months amid Ukraine fears

(Reuters) - The Canadian dollar fell against its U.S. counterpart on Friday and was on track for a weekly decline as the intensifying war in Ukraine triggered a flight to quality, overshadowing encouraging U.S. jobs data.

 

Equity markets globally sank, while commodities and the save-haven U.S. dollar soared as the war in Ukraine escalated, with Russia seizing a big nuclear plant. read more

 

U.S. employers hired far more workers than expected in February, pushing the labor market closer to maximum employment. Canada sends about 75% of its exports to the United States, including oil.

 

U.S. crude prices were up 3.4% at $111.28 a barrel as fears over disruption to Russian oil exports in the face of Western sanctions offset the prospect of more Iranian supplies in the event of a nuclear deal with Tehran. read more

 

Canada's dollar will strengthen over the coming year as soaring commodity prices boost the domestic economic outlook and the Bank of Canada hikes interest further, but gains for the loonie will be less than previously thought, a Reuters poll showed.

 

The loonie was trading 0.7% lower at 1.2773 to the greenback, or 78.29 U.S. cents, its biggest decline since Jan. 3.

 

The currency touched its weakest level since Monday at 1.2790. For the week, it was on track to decline 0.5%.

 

The value of Canadian building permits fell by 8.8% in January from December, Statistics Canada said. Analysts had expected a gain of 2.0%.

 

Canadian government bond yields were lower across the curve, tracking the move in U.S. Treasuries. The 10-year fell 7 basis points to 1.708%.

 

The Thomson Reuters Trust Principles.

 

 

 

 

 

 

 <mailto:info at bulls.co.zw> 

 

 

 

 

Commodities Markets



 

Gold prices extended gains on Friday after the US payrolls report showed sluggish wage growth even as hiring boomed last month

 

Gold price today: On account of Russia-Ukraine war fueling global inflation concerns to an alarming level, Multi Commodity Exchange or MCX gold rate registered best weekly gain since May 2021. MCX gold price today is quoting ₹52,549 per 10 gm and commodity experts are expecting this to go up to ₹54,000 levels in near term. According to commodity market experts, soaring commodity prices, especially crude oil and metal prices may further stoke inflation worries, which may support gold price rally in near term. They said that depreciation in Indian National Rupee (INR) against the US Dollar (USD) would work as domestic trigger for yellow metal price surge.

 

Expecting further rise gold price; Sugandha Sachdeva, VP-Commodity & Currency Research at Religare Broking Ltd said, "Gold has continued to entice investors’ interest as Russia's invasion of Ukraine has soured risk sentiments in the markets and boosted precious metal’s demand amid a flight to safety. Amid the escalating geopolitical turmoil, gold prices have climbed higher this week to clock their best weekly gain since May 2021. The aggravating tensions may continue to keep gold in demand owing to the higher risk premium. Additionally, rising commodity prices and steep surge in crude prices towards multi-year highs have further stoked inflation worries, thereby propelling gold prices on the higher trajectory as an inflation hedge."

 

Rupee vs dollar

 

Speaking on domestic trigger that may further push gold price rally; Anuj Gupta, Vice President at IIFL Securities said, "Indian rupee has depreciated 2.48 per cent in spot market in year-to-date (YTD) time i.e. in 2022 whereas in last one week, it has slipped around 1.10 per cent against dollar in spot market. As soaring crude oil prices are expected to push India's dollar outflow further northward, it is expected to go up to 77 levels in near term, provided there is no ceasefire in Ukraine-Russia war."

 

Anuj Gupta of IIFL Securities said that Re 1 change against dollar leads to ₹250 to ₹300 change in gold price per 10 gm. So, this slide in rupee may work as an additional domestic trigger for gold price surge at MCX.

 

US Fed interest rate hike

 

Predicting high volatility on gold price ahead of US Fed meeting; Sugandha Sachdeva of Religare Broking said, "Gold prices are likely to witness some supply pressure at the mentioned levels. Fed's reinforcement of its plan to hike interest rates at its upcoming meeting later in the month to tame soaring inflation, is likely to act as a key headwind for gold and cap recent gains. However, any convincing close above $1970 per ounce or ₹52, 500 per 10 gms would further accentuate upwards momentum in gold prices."

 

MCX Gold price target

 

Speaking on gold price outlook in near term, Anuj Gupta of IIFL Securities said, "As I said earlier, gold prices are expected to ascend further provided there is no ceasefire in Russia-Ukraine conflict. One can buy MCX gold at around ₹51,500 to ₹51,800 per 10 gm range for near term target of ₹53,800 to ₹54,000 levels. However, one must maintain strict stop loss at ₹51,000 while taking fresh buy position." He advised gold buyers to keep an eye on spot gold price as it has now immediate support at $1940 per ounce levels whereas it has strong support at $1880 levels. The IIFL Securities experts said that if the precious bullion metal sustain above $1970 levels, then it may surge up to $2,000 to $2,020 per ounce levels in near term. However, in case of profit-booking at current levels, he advised gold buyers to take fresh buy position at around $1940 levels.

 

Gold prices extended gains on Friday after the US payrolls report showed sluggish wage growth even as hiring boomed last month. The US payroll figures may offer some respite from strong inflationary pressures as the Federal Reserve gets set to raise interest rates.

 

 

Copper price hits all-time high as warehouses empty out

The copper price hit an all-time high on Friday as traders looked to stock up over fears of further supply-chain disruption.

 

 

Concerns about supply disruption, historically low global stockpiles and rocketing energy costs have lit a fire under base metals, trumping concerns over the longer term impact of the Ukraine invasion on global growth, rising interest rates in the developed world and a slowing economy in China.  

 

Copper for delivery in May rose on the Comex market in New York, touching a high $4.9490 per pound ($10,910 per tonne), more than 3% compared to Thursday’s closing. The bellwether metal is up 10% since the Russian invasion of Ukraine little over a week ago.

 

Adding to metal supply fears are falling inventories in LME-registered warehouses. Copper stocks, at 69,825 tonnes, are the lowest since 2005.

 

Base metals rallied across the board with the LMEX Index, which tracks six major contracts, surging to a record high. Nickel briefly trade above $30,000 a tonne for the first time since 2008.

 

“The market is in a panic mode in terms of supply,” said Gianclaudio Torlizzi, a partner at consultants T-Commodity, adding prices would keep rising while conflict raged in the Ukraine.

 

Russia isn’t a major copper player, producing about 3.5% of the world’s copper. Still, commodities extended their massive rally this week as the war fueled fears of supply crunches.

 

Sanctions on Russian individuals and corporates have prompted many banks, shippers and other firms to stop working with Russian companies or goods.

 

“This Russia and Ukraine conflict has only fanned the flames of the already stretched base metals markets,” Reuters quoted ING analyst Wenyu Yao:

 

“All energy prices are through the roof and that will add more risk to production in Europe which will provide the catalyst to a rally.”

 

Lean month in Chile

Chile, responsible for more than a quarter of global copper production, recorded its lowest January output since 2011, government figures showed on Monday.  

 

Chilean copper production is expected to recover to register a similar annual haul as last year, according to the president of the country’s mining society. 

 

The world’s biggest supplier saw output slide 7.5% from January 2021, with lower ore quality and water scarcity among the reasons. In some cases, the factors holding back output are temporary, said Diego Hernandez, a former chief executive of Codelco and Antofagasta Plc, who now heads Sonami. 

 

“This year should be the same as last year or maybe slightly less,” he said on call on Thursday. 

 

 

 


 

INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 

 	

 

 

 

 

 

 	

 

 

 

 

 

 	

 

 

 

 

 

 	

 

 

 

 

 

 	

Nampak

AGM

 

March 09, 9AM

 

 	

Art

AGM

 

March 10, 2.30PM

 

 	

 

 

 

 

 

 	

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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