Bulls n Bears Daily Market Commentary : 10 March 2022

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Bulls n Bears Daily Market Commentary : 10 March 2022

 

 	



 

 	


ZSE commentary

 

 

The ZSE shares closed in a sea of red as heavyweight counters continue to weigh down the market. Activity levels were lower at 393 trades. Simbisa was the most active stock at 52 trades followed by Innscor and Star Africa at 32 and 30 trades respectively. Investor sentiment was negative after the session yielded 16 decliners against 14 risers while three (3) of the active stocks remained unchanged. Meikles anchored both volume and value aggregate trading 1,480,400 shares with a value of ZW$208.62 million. The All-Share Index shaded 1.79% to close at 14,728.09 points. The Top 10 Index shaded 2.21%. The Top 15 Index shaded 2.15%. The Medium Cap Index was down by 0.48% to 24,541.92 points whilst the Small Cap Index shaded 0.18% to 402,553.06 points. Leading the risers pack of the day was NMB Holdings closed at 1,400c and African Sun was up by 6.61%. Masimba Holdings added 3.90% and Meikles added 1.74% to 14,092.43c. Wildale was up by 1.69%. Mitigating the gains were losses in Hippo and Proplastics which shaded 20.00% and 10.00% respectively. Zimre Holdings was down by 8.70%. Unifreight and Star Africa shaded 5.08% and 4.27% respectively.

 

The ETFs traded 8,902,866 units worth ZW$17,125,208.73 in 451 trades. The Old Mutual Top 10 ETF added 6.41% to close at 946.17c while the Morgan and Co Multi Sector ETF shaded 0.05% to close at 1469.24c. The Datvest MCSI ETF shaded 15.07% to close at 189.40c. On the VFEX, Bindura traded 21,300 shares to close up 9.76% at USc 4.50. wealthaccesssecurities

 <mailto:info at bulls.co.zw> 

 

Global Currencies & Equity Markets

 

 

 

South Africa

 

South Africa's rand weakens as power cuts weigh

(Reuters) - South Africa's rand weakened early on Thursday, as gold prices eased amid a rebound in risk appetite, while investors feared rotational power cuts in the rich commodity-exporting country would derail an economic recovery.

 

At 0630 GMT, the rand ZAR=D3 traded at 15.0450 against the dollar, 0.28% weaker than its previous close.

 

South Africa's higher exposure to safe-haven commodities, including gold, platinum and palladium, has helped limit losses in the rand after Russia's invasion of Ukraine rocked global markets.

 

Gold prices fell on Thursday as risk appetite rebounded following a retreat in oil prices.

 

 

In South Africa, where frequent electricity outages have already limited economic growth, Eskom continued with more than six hours of daily scheduled power cuts after it suffered breakdowns at generation units earlier in the week.

 

Eskom has said the controlled cuts are necessary to prevent a "catastrophic" collapse of the power grid.

 

The yield on the benchmark 2030 government bond ZAR2030= was down 3 basis points to 9.845%.

 

 

 

Nigeria

 

Naira Weakens to N416.50/$ at I&E Market

The Naira weakened against the US Dollar at the Investors and Exporters (I&E) window of the foreign exchange (FX) market on Wednesday, March 9 by 0.12 per cent or 50 kobo to trade at N416.50/$1 compared with N416.00/$1 it was traded on Tuesday.

 

 

However, at the Peer-to-Peer (P2P) segment of the market, the value of the local currency closed flat against the United States Dollar at the midweek session at N575/$1.

 

At the official forex window, the domestic currency depreciated against the Pound Sterling yesterday by N1.12 to trade at N547.61/£1 compared to the previously traded rate of N546.49/£1 and against the Euro, the Nigerian currency further depreciated by N3 to close at N457.02/€1 in contrast to N454.02/€1 it was sold a day earlier.

 

As for the digital currency, six of the 10 tokens tracked by Business Post across several trading platforms were in bearish territory yesterday.

 

Binance Coin (BNB) recorded a 4.2 per cent depreciation to close at N160,748.22, Solana (SOL) retreated by 3.1 per cent to trade at N57,285.40, Bitcoin (BTC) posted a 1.7 per cent loss as it sold for N24,873,755, Ethereum (ETH) saw its value slide by 1.6 per cent to sell at N1,662,260.89, Litecoin (LTC) recorded a 1.4 per cent depreciation to trade at N65,325, while the United States Dollar Tether moved down 0.1 per cent as it traded at N587.93.

 

On the flip side, Cardano (ADA) made a 4.2 per cent rise to sell at N890, Dogecoin (DOGE) posted a 2.2 per cent gain to sell at N180.9, Dash (DASH) increased its value by 2.1 per cent to trade at N59,344.32, while Ripple (XRP) appreciated by 1.8 per cent to trade N589.

 

 

 

 

 

 

 <mailto:info at bulls.co.zw> 

 

 

 

Global Markets

 

Rupee gains 20 paise to close at 76.42 against US dollar

At the interbank forex market, the local unit opened at 76.27 against the greenback and witnessed an intra-day high of 76.07 and a low of 76.46

 

The rupee appreciated by 20 paise to close at 76.42 (provisional) against the US dollar on Thursday, supported by positive domestic equities and trends in state election results.

 

At the interbank forex market, the local unit opened at 76.27 against the greenback and witnessed an intra-day high of 76.07 and a low of 76.46.

 

 

The rupee finally finished at 76.42, registering a rise of 20 paise over its previous close.

 

On Wednesday, the rupee had appreciated 38 paise to close at 76.62 against the US dollar following a retreat in crude oil prices and rebound in domestic equities.

 

Counting of votes was underway on Thursday in five states where assembly polls were held recently -- Uttarakhand, Uttar Pradesh, Punjab, Goa and Manipur.

 

The BJP is headed for a second straight win in politically crucial Uttar Pradesh and dominated the trends chart in three other states, while the Aam Aadmi Party readied for a landslide win in Punjab.

 

The rupee gained as risk appetite rebounded, while haven currencies slumped, said Dilip Parmar, Research Analyst, HDFC Securities.

 

Geopolitical risks have also begun to reverse course and commodities cooled off, and emerging market currencies and equities advanced.

 

In the near-term, the rupee is expected to consolidate in the range of 76 to 76.70, Parmar added.

 

Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, rose 0.13 per cent to 98.09.

 

Brent crude futures, the global oil benchmark, spurted 4.76 per cent to USD 116.43 per barrel.

 

On the domestic equity market front, the BSE Sensex ended 817.06 points or 1.50 per cent higher at 55,464.39, while the broader NSE Nifty surged 249.55 points or 1.53 per cent to 16,594.90.

 

Foreign institutional investors remained net sellers in the capital market on Wednesday as they offloaded shares worth Rs 4,818.71 crore, as per stock exchange data.

 

 

 

 

 <mailto:info at bulls.co.zw> 

 

 

 

 

Commodities Markets



 

Gold makes run for record high as Ukraine concerns, inflation risks mount

(Reuters) - Gold extended its rally towards a record high on Tuesday, after investors made a beeline for the traditional safe-haven metal on mounting fears around the Russia-Ukraine crisis, with the U.S. and Britain saying they would ban oil from Moscow.

 

Meanwhile, worries over a palladium supply shortfall due to sanctions on Russia, the top producer of the auto-catalyst metal, kept its price near all-time highs.

 

Spot gold was up 2.4% to $2,046.49 per ounce as of 01:36 p.m. ET (1836 GMT), after rising to $2,069.89 earlier in the session, a whisker away from a peak of $2,072.50 touched in August 2020.

 

U.S. gold futures settled 2.4% higher to $2,043.30.

 

"The combination of roaring energy prices, grain prices, base metal prices is culminated in dramatic inflationary pressures that continue to be the major underlying support behind gold moves higher," said David Meger, director of metals trading at High Ridge Futures.

 

"In addition, we're seeing significant amount of safe-haven bids in the gold market as equity markets have come under pressure due to major concerns on the geopolitical front."

 

Soaring oil prices and the Ukraine war have slammed appetite for riskier assets in recent weeks.

 

U.S. President Joe Biden announced a ban on Russian oil and other energy imports on Tuesday, while Britain said it will phase out the import of Russian oil and oil products by 2022. read more

 

Bullion, which has risen more than 12% this year, is considered a safe store of value during times of geopolitical uncertainty and rising inflation.

 

Palladium rose 6.7% to $3,199.18 per ounce, after hitting an all-time high of $3,440.76 on Monday. It has risen more than 60% this year.

 

In the event of shortages, car manufacturers would be willing to pay almost any price for the metal to keep up production, Saxo Bank analyst Ole Hansen said. read more

 

Spot silver rose 3.1% to $26.45 per ounce after hitting its highest since mid-June 2021. Platinum jumped 2.9% to $1,155.52.

 

Our Standards: The Thomson Reuters Trust Principles.

 

Gold resumes advance as Ukraine worries return

(Reuters) - Gold bounced above the $2,000 an ounce level on Thursday following a sharp correction in the last session as a lack of progress with the Russia-Ukraine talks re-ignited a shift into safe-haven assets.

 

Spot gold rose 0.7% to $2,004.89 per ounce by 1203 GMT after tumbling as much as 3% on Wednesday. U.S. gold futures were up 1.2% to $2,011.00.

 

"Gold bulls have shown little qualm in catapulting prices higher on signs the Ukraine crisis could drastically worsen the global economic outlook," Han Tan, chief market analyst at Exinity said.

 

A rush to safe-haven assets earlier this week due to the Ukraine crisis powered gold prices to near record levels hit in August 2020.

 

"The safe-haven allure for gold is maintained despite the markets assimilation with commodity supply shocks and will be a driving force for bullion as the war in Ukraine persists," DailyFX analyst Warren Venketas wrote in a note.

 

A rebound in equities wilted as analysts warned of further pain for stocks with no immediate end in sight to the war in Ukraine. read more

 

Investors are also keeping an eye on February U.S. consumer price index data which is due later in the day, against the backdrop of surging oil prices and ahead of the Federal Reserve's next policy statement on March 16.

 

Palladium , used by automakers in catalytic converters to curb emissions, was up 0.2% to $2,944.25 per ounce. The metal hit a record high of $3,440.76 on Monday, driven by fears of supply disruptions from top producer Russia. read more

 

The palladium market "should continue to price-in a supply risk premium in the short-term," ANZ analysts wrote in a note.

 

Spot silver rose 0.7% to $25.92 per ounce, while platinum added 1.7% to $1,094.31.

 

The Thomson Reuters Trust Principles.

 

 

 

 

Oil bounces as tight supply gives high floor to prices

(Reuters) - Oil prices bounced on Thursday from a sharp drop in the previous session after the United Arab Emirates backtracked on statements saying that OPEC and its allies might increase output to help to plug the gap in exports from Russia.

 

In a volatile market, Brent crude futures were up $5.43, or 4.9%, at $116.57 a barrel by 1042 GMT after trading in an $8 range. The benchmark contract slumped 13% in the previous session in its biggest daily drop in percentage terms for about two years.

 

U.S. West Texas Intermediate (WTI) crude futures were up $4.49, or 4.1%, at $113.19 after trading in a $7 range. The contract had tumbled 12% in the previous session in the biggest daily decline since November.

 

PVM oil market analyst Tamas Varga called Wednesday's slump a "temporary correction".

 

Uncertainty over where and when supply will come from to replace crude from Russia has led to wide-ranging forecasts for oil prices up to $200 a barrel.

 

While oil from the world's second-largest exporter is being shunned over its invasion of Ukraine, comments from the United Arab Emirates energy minister and the its ambassador to Washington sent conflicting signals.

 

UAE Energy Minister Suhail al-Mazrouei said on Twitter that his country was commited to the agreement by the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia to ramp up oil supply by only 400,000 barrels per day (bpd) monthly after sharp cuts in 2020. read more

 

Only hours earlier prices slumped on comments from UAE's ambassador to Washington, saying his country will be encouraging OPEC to consider higher output to fill the supply gap created by sanctions on Russia over its invasion of Ukraine. Russia calls its incursion a "special operation". read more

 

While the UAE and Saudi Arabia have spare capacity, some other OPEC+ producers are struggling to meet their output targets because of infrastructure underinvestment over the past few years.

 

Talks set for Thursday between Russia and Ukraine's foreign ministers in Turkey also gave the market reason for pause.

 

The comments from UAE officials came as the market also took into account moves by the United States to ease sanctions on Venezuelan oil and efforts to seal a nuclear deal with Tehran, which could lead to increased oil supply. read more

 

Further supply could also come from stockpile releases coordinated by the International Energy Agency and growing U.S. output. read more

 

"With some goodwill, co-ordination and luck, the supply shock can greatly be mitigated but probably not neutralised," Varga said.

 

Meanwhile, U.S. crude oil and fuel stockpiles fell last week, adding to worries over already tight global supplies.

 

Crude inventories fell by 1.9 million barrels in the week to March 4 to 411.6 million barrels. U.S. crude stocks in the Strategic Petroleum Reserve fell to 577.5 million barrels, the lowest since July 2002.

 

The Thomson Reuters Trust Principles.

 

 

 

 


 

INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 

 	

 

 

 

 

 

 	

 

 

 

 

 

 	

 

 

 

 

 

 	

 

 

 

 

 

 	

 

 

 

 

 

 	

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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