Bulls n Bears Daily Market Commentary : 14 March 2022

Mon Mar 14 23:03:57 CAT 2022

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Bulls n Bears Daily Market Commentary : 14 March 2022

ZSE commentary

The ZSE shares closed in the negative opening the week with losses in all
the major indices in our review. Activity levels were at 369 trades. Econet
was the most active stock at 32 trades followed by Delta and OK Zimbabwe at
31 and 22 trades respectively. Investor sentiment was negative after the
session yielded 15 decliners against 14 risers while seven (7) of the active
stocks remained unchanged. ZB Holdings anchored volume aggregate trading
1,002,100 shares and Delta anchored value aggregate with a value of
ZW$179.63 million.

The All-Share Index shaded 1.31% to close at 14,534.51 points. The Top 10
Index shaded 1.58%. The Top 15 Index shaded 1.45%. The Medium Cap Index was
down by 0.56% to 24,404.38 points whilst the Small Cap Index shaded 1.11% to
398,089.96 points. Leading the risers pack of the day was BAT  closed at
366,699.92c and First Mutual Properties was up by 7.22%. Wildale added 2.54%
and Masimba Holdings added 2.35% to 5,322.09c. Edgars was up by 1.88%.
Mitigating the gains were losses in African Sun and Hippo which shaded
14.96% and 9.62% respectively. Delta was down by 5.02%. First Mutual
Holdings and Mashonaland Holdings shaded 3.08% and 0.75% respectively.

The ETFs traded 194,381 units worth ZW$559,549.88 in 85 trades. The Old
Mutual Top 10 ETF shaded 0.55% to close at 800.47c while the Morgan and Co
Multi Sector ETF shaded 0.55% to close at 1458.33c. The Datvest MCSI ETF
added 7.07% to close at 187.94c.wealthaccesssecurities

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

Rand weakens against the US dollar as commodity prices ease

The rand weakened on Monday as the rally in commodity prices eased, with
markets also bracing for rate hikes in the United States and the UK.

Even though the South African currency is considered a riskier asset, it has
gained favour in recent days as higher prices of gold, palladium and coal
boosted prospects of stronger export income for the commodity-rich country.

At 0610 GMT, the rand traded at 15.0800 against the dollar, 0.43 percent
weaker than its previous close.

Gold prices fell on Monday as US rate-hike expectations lifted Treasury
yields to their highest in a month, while hopes of progress in
Russia-Ukraine peace talks further assuaged bullion's safe-haven appeal.
Palladium and platinum also dropped.

Nedbank analysts said the foreign exchange markets remained at the mercy of
developments in Ukraine, but the focus this week was also on Federal Open
Market Committee (FOMC) meeting.

The US central bank's FOMC meeting is all but certain to begin hiking
interest rates from their pandemic lows, with investors also watching
projections for the frequency and size of future rate increases.

The Bank of England is expected to lift its rates to 0.75 percent on
Thursday, the third rise in a row, and to signal more with the market
pricing an aggressive 2 percent by the year-end.

Higher rates in developed markets often drain capital away from riskier
emerging markets such as South Africa, affecting their currencies.

Story continues below Advertisment

In fixed income, the yield on the benchmark 2030 government bond added 2
basis points to 9.76 percent in early deals, reflecting weaker prices.

REUTERS

Ghana

Here's the Cedi's performance against major foreign currencies

The Cedi traded against the dollar at a mid-rate of 7.0250

Its trade value against the Pounds Sterling was at a mid-rate of 9.1814 The
Euro's mid-rate stands at 7.6934

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 14, 2022, the
Ghana Cedi is trading against the dollar at a buying price of 7.0215 and a
selling price of 7.0285.

As compared to Friday's trading of a buying price of 7.0215 and a selling
price of 7.0285. At a forex bureau in Accra, the dollar is being bought at a
rate of 7.70 and sold at a rate of 7.87.

Against the Pound Sterling, the Cedi is trading at a buying price of 9.1764
and a selling price of 9.1863 as compared to Friday'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
9.85 and sold at a rate of 10.01.

The Euro is trading at a buying price of 7.6899 and a selling price of
7.6969 as compared to Friday'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 8.15 and sold at a rate of 8.31.

The South African Rand is trading at a buying price of 0.4673 and a selling
price of 0.4678 as compared to Friday'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
0.33 and sold at a rate of 0.56.

The Nigerian Naira is trading at a buying price of 59.2313 and a selling
price of 59.2641 as compared to Friday'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
12.00 Naira for every 1 cedi and sold at a rate of around 1 cedi to 40
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

Dollar steadies, yen holds near five-year low

The dollar slipped as European markets opened on Monday, but was still near
a five-year high versus Japan's yen as investors braced for a busy week of
major central bank meetings.

After uncertainty about the war in Ukraine prompted a market sell-off on
Friday, stock markets rebounded on Monday and commodity prices edged back
down.

Analysts attributed the revival of risk appetite to the fact that Russian
and Ukrainian negotiators hinted at progress in peace talks.

Currency markets were also driven by expectation that the U.S. Federal
Reserve will raise rates at its meeting this week, which ends on Wednesday.

Investors were pricing in a 93% chance of a 25 basis point hike.

Federal Reserve Chairman Jerome Powell last week flagged multiple interest
rate increases this year.

The dollar index rose during Asian trading, coming close to a 22-month high
as the rate-sensitive short term U.S. Treasury yields rose, but it then
edged lower as European markets opened.

On Monday, the dollar index was down 0.05% to 99.07.

"We know at this point the Fed is hyper focused on inflation so we expect
Powell will continue to weigh that challenge over the conflict in the
Ukraine," said Adam Cole, chief currency strategist at RBC, in a note to
clients.

The U.S. dollar hit a five-year high against the Japanese yen overnight, at
117.88, as investors bet that the Bank of Japan, which meets on Friday,
would maintain its dovish stance despite rising inflationary pressures.

"USD/JPY continues to press higher driven by both higher US yields and the
fallout of the fossil fuel surge on Japan's trade balance," wrote ING FX
strategists in a note to clients.

It has since ticked even higher to 118.13.

The British pound was still near a 16-month low, at $1.3005, ahead of the
Bank of England meeting on Thursday.

The euro was up 0.6% at $1.0947.

The Australian dollar was down 0.7%, hurt by the easing of commodity prices,
while the New Zealand dollar was down 0.8%.

Lockdown measures to limit the spread of COVID-19 in China saw the yuan
weaken.

The dollar hit 6.361 versus the offshore yuan, the yuan's weakest in more
than a month.

China has reported more local symptomatic COVID-19 cases so far this year
than it recorded in all of 2021, as the highly transmissible Omicron variant
triggers outbreaks from Shanghai to Shenzhen.

"The Chinese yuan has started to feel the weakening pressure due to
continuous bad news for the economy," wrote Commerzbank senior economist Hao
Zhou in a client note.

"China is also facing intensifying pressure from the West to clarify its
stance on the Ukraine war."

 <mailto:info at bulls.co.zw> 

Commodities Markets

Copper price falls on demand concerns in China

Prices of industrial metals fell on Monday as diplomatic efforts to resolve
the Russia-Ukraine conflict calmed supply-disruption fears, while demand
concerns in top consumer China also weighed on the market.

Copper for delivery in May fell on the Comex market in New York to $4.5405
per pound ($9,989 per tonne), down 1.8% compared to Friday's closing.

"Copper market sentiment is bearish as supplies are starting to ramp up. It
shows some rational thinking," said Dan Smith, managing director at
Commodity Market Analytics.

Ukraine will seek to discuss a ceasefire, immediate withdrawal of troops and
security guarantees with Russia after both sides reported rare progress on
the weekend, despite fierce Russian bombardments.

A new report by Capital Economics argues there is weakness ahead amid a
gloomier demand backdrop, particularly in China, responsible for more than
half the world's copper consumption. 

The London-headquartered independent researcher has cut its 2022 growth
forecasts for China as the country copes with the highest covid numbers
since the start of the pandemic (and no indications the country is dropping
its zero-covid policy), higher import bills as oil trades above $100 a
barrel, damaged exports as Europe and Japan consume less, and higher
inflation brought on by a spike in the cost of agricultural commodities. 

While Beijing has set a floor of 5.3% GDP growth this year, Capital
Economics says it appears to be "bracing for weaker growth in practice" and
expects a policy response by officials:

"The NPC [National People's Congress] pointed to modest easing and suggested
that officials would offer more support if unemployment rises much above its
current level. But that is unlikely to provide a complete offset.

Given copper's widespread use in industry, construction and transport, the
metal's price correlates with overall economic growth and manufacturing
activity and in the world's largest economy based on purchasing price
parity. 

A yawning gap has now opened up between the Capital Economics Copper Demand
Proxy and the ruling price.  

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
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