Bulls n Bears Daily Market Commentary : 18 March 2022

Fri Mar 18 16:40:13 CAT 2022

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Bulls n Bears Daily Market Commentary : 18 March 2022

ZSE commentary

The ZSE shares closed in the positive as heavyweight counters continue to
lift the bourse in today's trading session. Activity levels were at 458
trades. OK Zimbabwe was the most active stock at 35 trades followed by
Econet and Delta at 28 and 27 trades respectively. Investor sentiment was
strongly positive after the session yielded 27 risers against 8 fallers
while eight (8) of the active stocks remained unchanged. Econet anchored
both volume and value aggregate trading 1,591,700 shares with a value of
ZW$215.02 million. The All-Share Index added 2.52% to close at 14,87.68
points. The Top 10 Index added 2.97%. The Top 15 Index added 2.73%. The
Medium Cap Index was up by 0.69% to 24,220.78 points whilst the Small Cap
Index added 1.70% to 391,221.56 points.

Leading the risers pack of the day was Unifreight closed 20.00% higher and
African Sun was up by 18.17%. Fidelity added 12.15% and Tanganda added 1.80%
to 8,864.24c. Mitigating the gains were losses in Mashonaland Holdings and
First Mutual Holdings which shaded 10.10% and 9.48% respectively. Edgars was
down by 1.11%. Ariston Holdings and Nampak shaded 0.75% and 0.26%
respectively. The ETFs traded 1,766,103 units worth ZW$1,206,604.90 in 209
trades. The Old Mutual Top 10 ETF shaded 6.40% to close at 746.63c while the
Morgan and Co Multi Sector ETF shaded 0.15% to close at 1397.94c. The
Datvest MCSI ETF shaded 3.77% to close at 167.11c. On the VFEX, Bindura
traded 249,537 shares to close down to US 5.49 cents.wealthaccesssecurities

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Nigeria

Nigeria naira at record black market low against dollar: traders

ABUJA- Nigeria's naira hit a record low of 585 naira per dollar on the black
market on Friday, as dollar demand rose following this week's suspension of
individual card withdrawals abroad by commercial banks.

The currency was quoted at 585 naira per dollar on the unofficial market,
weaker than 583 naira in the previous session, traders said. It traded
within a range of 413 to 417 naira on the official market.

South Africa

South Africa's rand weakens as investors digest Fed rate hike

(Reuters) - South Africa's rand lost steam on Thursday afternoon after
holding near a four-month high in early trade as investors digested the U.S.
Federal Reserve's rate hike.

Investors had widely expected a Fed hike would bring a correction in the
rand, though soaring commodity prices due to the Russia-Ukraine war could
help give support.

The rand is considered a riskier asset but with South Africa being a
resource-led country, a rise in commodity prices, especially of gold,
platinum and coal, strengthens the local currency, even though investors
rush to the safe haven dollar during uncertain times.

The local currency had been steadily rising for the last few days, hitting a
four-month high late Wednesday.

At 1525 GMT, the rand traded at 14.9559 against the dollar, 0.33% weaker
than its close on Wednesday when it touched 14.9003.

Despite intermittent weakness, investors expect the rand will continue to
firm up on higher commodity prices.

"I am still very bullish on commodities," Warrick Butler, chief trader at
Standard Bank, wrote in a note.

"With the supply chain issues globally and the way the domestic economy is
set up, the rand should still benefit from the terms of trade."

In fixed income, the yield on the benchmark 2030 government bond was down 4
basis points to 9.59%, reflecting firmer prices.

The local market continued its upward march driven by positive gains in
mining and industrial companies.

The benchmark all-share index (.JALSH) ended up 0.87% at 74,124 points and
the blue-chip index of top 40 companies (.JTOPI) closed up 0.89% to 67,570
points.

The mining index (.JRESI), which represents a range of gold and platinum
group metal companies, rose 1.85% as both the yellow metal and platinum
prices rose.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Global Markets

Rouble stabilises near 104 vs dollar as cenbank holds rates

(Reuters) - The Russian rouble eased slightly in light trading in Moscow on
Friday, stablising near a psychologically important threshold of 100 against
the dollar after the central bank opted to hold rates at 20%.

Russia's central bank kept its key interest rate unchanged on Friday, as
predicted in a Reuters poll of analysts, following an emergency rate hike in
late February designed to support financial stability. 

The central bank warned of higher inflation and an economic contraction this
year but did not give new forecasts. 

Governor Elvira Nabiullina, who was nominated for another term by President
Vladimir Putin earlier on Friday, will present the rate decision and shed
more light on future steps at 1400 GMT, two hours later than originally
scheduled. 

By 1121 GMT, the rouble was 1.2% weaker against the dollar at 104.37 after
earlier firming to 101.70, a level last seen on March 4. Against the euro,
the rouble gained 0.1% to 113.81 , small moves compared to recent wild
swings.

The rouble showed limited reaction to an indication that Russia may have
averted a default on its Eurobonds.

A source familiar with the situation told Reuters that coupon payments on
Russian sovereign bonds due this week were received by correspondent bank
JPMorgan (JPM.N), processed and the bank then made an onwards credit to the
paying agent Citi (C.N). 

The finance ministry said it had met its coupon payment obligations in full.

The rouble has taken a hit in the last few weeks from unprecedented Western
sanctions against Russia, along with increased demand for foreign currency
that prompted the central bank to ban the selling of cash dollars and euros
to individuals at banks' offices.

A month ago, the Russian currency traded at around 76 to the dollar and 85
to the euro.

Trading on the stock market section on the Moscow Exchange has been closed
since Feb. 28.

Russia sent tens of thousands of troops into Ukraine in late February in
what it called a special operation to degrade its southern neighbour's
military capabilities and root out people it called dangerous nationalists.

Ukrainian forces have mounted stiff resistance and the West has imposed
sweeping sanctions on Russia in an effort to force it to withdraw its
forces.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold slips on stronger dollar, set for biggest weekly fall since Nov

(Reuters) - Gold dipped on Friday as the dollar strengthened, with prices on
course for their biggest weekly fall in nearly four months as some of the
safe-haven demand spurred by Russia's invasion of Ukraine cooled.

Spot gold was down 0.3% to $1,937.40 per ounce, as of 1147 GMT. U.S. gold
futures fell 0.2% to $1,938.50.

The dollar rose 0.4% against its rivals, hurting appetite for bullion for
overseas buyers.

"These (gold and the dollar) are very choppy, headline-driven markets so we
could see plenty more action throughout the day in both directions," said
Craig Erlam, senior market analyst at OANDA, adding apparent progress in
Russia-Ukraine talks was largely behind gold's weekly dip. 

Gold has shed about 2.4% so far this week with investors initially pricing
in possibilities of aggressive interest rate hikes by the U.S. Federal
Reserve.

Higher interest rates tend to raise the opportunity cost of holding
non-interest paying gold.

Bullion recovered a bit after the Fed said it was raising borrowing costs
along expected lines, while acknowledging the challenges presented by
soaring inflation. 

"Gold will remain well supported. We could increasingly see dips being
bought into as the demand for safe havens and inflation hedges remains
strong," Erlam said.

Spot palladium rose 2.3% to $2,567.61 per ounce, but was set for a weekly
fall of about 8.8% as fears about supply from top producer Russia eased.

Meanwhile, China's intent to tackle COVID-19 with minimal impact to the
economy and people's lives, and promise of further stimulus, have brought
palladium bulls back to the table, said Matt Simpson, senior market analyst
at City Index.

This follows many sessions of volatile price action that saw platinum,
palladium and key metals drop to technical support levels after sharp
rallies.

Spot silver fell 0.3% to $25.25 per ounce, while platinum rose 1.4% to
$1,034.87.

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!

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