Bulls n Bears Daily Market Commentary : 08 March 2022

Tue Mar 8 15:57:18 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 : 08 March 2022

ZSE commentary

The ZSE shares closed today's session with losses across the board in a
session characterized by sell offs. Activity levels were at 527 trades. OK
Zimbabwe was the most active stock at 49 trades followed by Star Africa and
Delta at 31 and 27 trades respectively. Investor sentiment was flat after
the session yielded 19 risers against 19 decliners while six (6) of the
active stocks remained unchanged. Econet anchored both volume and value
aggregate trading 510,700 shares with a value of ZW$70.72 million. The
All-Share Index shaded 0.89% to close at 14,996.76 points. The Top 10 Index
shaded 1.07%. The Top 15 Index also shaded 1.10%. The Medium Cap Index was
down by 0.50% to 24,660.53 points whilst the Small Cap Index added 0.51% to
403,280.75 points.

Leading the risers pack of the day was Medtech Holdings closed at 2,250c and
Art Corporation was up by 11.54%. Mashonaland Holdings  added 11.10% and
First Mutual Properties added 7.82% to 700c. ZIMRE was up by 7.03%.
Mitigating the gains were losses in CFI Holdings and ZB Holdings which
shaded 16.67% and 8.05%. General Beltings Holdings was down by 4.94%. Star
Africa and Ecocash Holdings shaded 3.95% and 3.35% respectively. The ETFs
traded 320,966 units worth ZW$841,236.19 in 69 trades. The Old Mutual Top 10
ETF added 6.75% to close at 888.92c while the Morgan and Co Multi Sector ETF
added 4.23% to close at 1454.70c. Datvest MCSI ETF added 19.87% to close at
230c. On the VFEX, Bindura traded 33,600 shares to close down 8.89% at
US$0.041. wealthaccesssecurities

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

Rand trades weaker against the dollar ahead of GDP data

The rand dipped in early trade on Tuesday as concerns over the
Russia-Ukraine conflict lingered, while traders also awaited the release of
domestic economic growth numbers later in the day.

At 0637 GMT, the rand traded at 15.3700 against the dollar, 0.15 percent
weaker than its previous close.

Story continues below Advertisment

Russia-Ukraine peace talks made scant progress on Monday. The military
conflict in Ukraine, which Russia calls a "special operation", has triggered
sweeping sanctions on Russia that have rattled global markets.

South Africa's higher exposure to commodities such as gold and palladium has
helped limit losses in the currency as the conflict saps investors' appetite
for riskier assets.

"(The rand) has been 15.20-15.50 for a little while now, weathering the
storm that has affected a lot of other currencies and markets," Warrick
Butler, the chief trader at Standard Bank, wrote in a note.

"Most commodity currencies are in a similar position to the rand as are a
couple of EM countries far away from the conflict. Money needs to find a
home."

On the local front, the focus was on gross domestic product data for the
October-December 2021 period due at 0930 GMT. It was expected to show that
the economy grew 1.3 percent in the quarter after contracting 1.5 percent in
the previous three months.

In fixed income, the yield on the benchmark 2030 government bond was up 3.5
basis points to 10.030 percent, reflecting weaker prices.

REUTERS

Ghana

Cedi depreciates 14.21% to dollar since January 1st ; E-Levy impasse an
indirect effect

The rate of depreciation of the Ghana cedi almost doubled within just a week
or only the first week of March to 14.21%, since the beginning of the year.

This was against 7.6% recorded at the end of February 2021.

The decline in value of the cedi still ranked it as the worst performing
among Africa's top performing currencies.

Several factors including perceived risks in the Ghanaian economy, as a
result of high interest payments on borrowed funds and financial challenges
within the economy, have been attributed to the rapid depreciation of the
cedi.

This has fueled the selling of the country's international bonds by some
international investors and consequently reduction in foreign inflows.

Chief Finance Officer at the Valley View University, Dr. Williams Peprah,
told Joy Business the Bank of Ghana should step up its regulatory activities
to prevent people from hoarding the US dollar.

"Though Ghana operates an open market economy, but if we are able to use
regulation to strengthen the regulatory activities to prevent people from
hoarding dollars, it will help the country to also stop devaluation of the
cedi".

Furthermore, he said "one of the areas we can use as a country to make sure
that our currency does not devalue is boost in exports. Normally in periods
that a country experience currency devaluation, the positive side is that it
makes our exports very cheaper. If Ghana as a country can take advantage of
our currency devaluation to make sure we are able to do more exports, then
it will turn the fortunes, so Ghana's currency will be strengthen."

Dr. Peprah also urged the Majority and Minority in Parliament to resolve
their differences, particularly over the Electronic Transaction Levy
[E-Levy] to send positive signals to investors that the country's democracy
is stronger.

"Another important things is that the current political instability,
especially what is happening in parliament over this disagreement [E-Levy]
also has indirect effect on the way our currency is behaving, because
investors are not certain about the kind of decision and which will trickle
down to the monetary policy."

"So Political instability, especially as we are seeing in our Parliament
house, if we are able to have amicable solution it will have an indirect
effect to improve our currency devaluation. Not a matter of just E-Levy, but
a total understanding of what is really happen in our law marking area will
also help", he added.

 <mailto:info at bulls.co.zw> 

Global Markets

Sterling edges higher versus dollar, flat versus euro

(Reuters) - The British pound edged higher against the U.S. dollar on
Tuesday but was little changed against the euro after an earlier bounce in
the single currency proved short-lived.

Sterling has been at the mercy of dollar strength in recent days, which led
to the currency pair dropping to its lowest level since Nov. 2020 during
Asia-Pacific trading hours on Tuesday.

The pound dropped as low $1.3079 before moving into positive territory at
$1.3120 by 1026 GMT.

Against the euro, sterling was little changed at 82.83 pence after reaching
its strongest level since June 2016 on Monday, in part due to diverging
policy expectations from the Bank of England and European Central Bank.

The primary focus right now is the sharp rise in energy prices, according to
analysts at Lloyds Bank.

"The big question is whether central banks will primarily see this as a
further indication of inflationary pressures that needs to be responded to
with tighter monetary policy or as an escalation of the downside risks for
economic growth," Lloyds said.

Markets are still pricing in an interest rate hike from the Bank of England
this month and a total of 145 basis points of tightening this year compared
to just 25 basis points of interest rate hikes from the ECB in 2022.

Policymakers at the ECB are currently in their blackout period before
Thursday's policy announcement.

The BoE is set to enter its blackout period after Tuesday, ahead of the
policy announcement on March 17, however, there are no scheduled speeches
scheduled from BoE rate setters on Tuesday.

Meanwhile, two surveys showed people in Britain spent heavily in February
after COVID-19 restrictions were eased.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold Prices Today: Yellow metal still has some rally left, correction should
be used to add more

"It seems that the rally is still left in the gold and any correction till
$1950 or deep correction till $1920 should be used to add the metal in the
portfolio for targets of $2040 before the financial year ends," says Vidit
Garg, Director, MyGoldKart.

Gold prices slid from the key $2,000-per-ounce mark on March 8 in
international markets as the US dollar held firm near a multi-month peak,
while palladium eased from record highs after investors took a breather as
Russia-Ukraine talks hardly advanced.

At 9.35 am, gold contracts were marginally down 0.04 percent at Rs 53,498
for 10 grams on the Multi-Commodity Exchange (MCX) and silver added 0.1
percent at Rs 70,039 a kilogram.

Gold prices are soaring high on account of increasing tensions between
Ukraine and Russia and fear of stagflation due to massive increase in
commodities prices. Gold may continue its bull run and if the situation
worsens then it may touch the levels of Rs 55000 in near term.

Buy zone near Rs 53200 for target of Rs 53800

Sell zone below Rs 53000 for target of Rs 52700

Amit Khare, AVP- Research Commodities, Ganganagar Commodity

Market is very volatile nowadays due to the Russia Ukraine crisis, so small
traders should avoid trade for some more days. As per technical charts, gold
and silver are showing some profit booking and making temporary top,
momentum indicator RSI is also indicating the same on the hourly and daily
charts, so only risky traders are advised to create fresh short positions
near given resistance levels -- traders should focus on important technical
levels.

April Gold closing price Rs 53517, Support 1 - Rs 53100, Support 2 - Rs
52800, Resistance 1 - Rs 53850, Resistance 2 - Rs 54200.

May Silver closing price Rs 69969, Support 1 - Rs 69400, Support 2 - Rs
68700, Resistance 1 - Rs 70500, Resistance 2 - Rs 71100.

In the morning gold touched the magical figure of $2000. Bears expect that
the rally will be over while bulls are anticipating $2200 kind of levels.
Going by the technicals, it seems that the rally is still left in the gold
and any correction till $1950 or deep correction till $1920 should be used
to add the metal in the portfolio for targets of $2040 before the financial
year ends. Our view will negate if it manages to close below $1900.

In the domestic market, any correction till Rs 51500 and Rs 50500 should be
used to add gold in the portfolio for target of Rs 56000 while the view
negates below Rs 49500.

Manoj Kumar Jain of Prithvi Finmart Commodity Research

Gold and silver showed very high volatility on Monday amid record gains in
the dollar index and Russia-Ukraine war. Both precious metals settled on a
mixed note in international markets. Due to weakness in the rupee, both
precious metals settled on a positive note in domestic markets. Gold is
expected to test $2055 per troy ounce and silver could test $26.80 per troy
ounce in the upcoming sessions. The yellow metal has support at $1984-1978
per troy ounce and resistance at $2010-2022 per troy ounce while silver has
support at $25.55-25.20 per troy ounce and resistance at $26.00-26.35 per
troy ounce.

At MCX, gold has support at Rs 53100-52770 and resistance at Rs 53850-54200
and silver has support at Rs 69200-68500 and resistance at Rs 70700-71800
levels. We suggest buying gold around Rs 53300 with a stop loss below Rs
52900 on a closing basis for target of Rs 54000 and silver around Rs 69600
with a stop loss below Rs 69000 on a closing basis for target of Rs 71200.

Oil Prices Climb 10% as Sanctions on Russian Oil Progress  

A possible ban of Russian crude by the US and European Union (EU) caused oil
prices to soar to $139.13 per barrel at the start of trading on Monday.

The import ban by the US and EU has been proposed and is currently being
discussed by US and European officials as part of the sanctions imposed on
Russia following the invasion of Ukraine. This has led to a 10% increase in
the global benchmark of brent crude early Monday from Friday's $118.03
close.

"We are now in very active discussions with our European partners about
banning the import of Russian oil to our countries, while of course at the
same time maintaining a steady global supply of oil," stated US Secretary of
State, Antony Blinken.

Following the $20 increase from Friday, the price has already dropped to
$130. Fears remain, however, of continued price escalation in household
energy and petrol as the conflict between Russia and Ukraine continues.

Heightened tensions between Russia and western countries over the Ukraine
crisis risks crude oil prices surpassing all-time highs of $147.50 -
recorded in July 2008. Europe heavily relies on Russian crude oil imports
whilst the US secures 8% of its total crude oil - approximately 20.4 million
barrels in 2021 - from Russia. The US and EU join Canada, who banned imports
in the beginning of March, and Japan, who is reportedly at an advanced stage
in its decision to follow suit.

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 

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  

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bullszimbabwe.com/blog

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/20220308/7d153347/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/20220308/7d153347/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 36899 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220308/7d153347/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 22328 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220308/7d153347/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/20220308/7d153347/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130919 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20220308/7d153347/attachment-0001.obj>