Bulls n Bears Daily Market Commentary : 23 March 2022

Wed Mar 23 16:54:53 CAT 2022

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Bulls n Bears Daily Market Commentary : 23 March 2022

ZSE commentary

The ZSE shares firmed in the positive as heavyweight counters continue
lifting the bourse. Activity levels were higher at 615 trades. Econet was
the most active stock at 69 trades followed by Delta and Simbisa at 51 and
39 trades respectively. Investor sentiment was flat after the session
yielded 19 risers against 19 fallers while six (6) of the active stocks
remained unchanged. Econet anchored volume aggregate trading 2,093,000
shares and Delta anchored value aggregate with a value of ZW$299.02 million.
The All-Share Index added 2.51% to close at 15,854.72 points. The Top 10
Index added 3.32%. The Top 15 Index added 2.93%. The Medium Cap Index was up
by 0.13% to 25,104.79 points whilst the Small Cap Index shaded 2.23% to
383,004.29 points. Leading the risers pack of the day was Art Corporation
closed 18.75% higher

and National Foods was up by 15.60%. Proplastics added 8.85% and NMB
Holdings added 8.36% to 1,273.21c. Mitigating the gains were losses in
Ariston Holdings and Star Africa which shaded 9.00% and 8.63% respectively.
Zimpapers was down by 7.42%. African Distillers and General Beltings
Holdings  shaded 5.77% and 5.54% respectively. The ETFs traded 2,982,475
units worth ZW$5,436,784.61 in 140 trades. The Old Mutual Top 10 ETF added
16.42% to close at 921.32c while the Morgan and Co Multi Sector ETF shaded
1.75% to close at 1370.66c. The Datvest MCSI ETF added 0.05% to close at

168.92c.wealthaccesssecurities

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Egypt

Egyptian pound drops almost 17% against dollar

On Monday, the Egyptian pound dropped nearly 17 percent in value against the
US dollar, following a rise in inflation and amid mounting economic
hardships. The local currency in the country already saw a sharp devaluation
in 2016 when it lost nearly half its value against the dollar overnight.

The pound was floated at the time as part of a package of reforms in
exchange for a $12-billion bailout from the International Monetary Fund. The
pound was trading at 18.20 to the dollar by closing time at banks on Monday,
from 15.70 the previous day, according to the central bank.

The Finance Ministry announced it will maintain the customs exchange rate at
16 pounds to the dollar, as the local currency continued its freefall. It
also announced a package of measures worth about $7 billion to shield
society's most vulnerable.

Egypt is bogged down by a sizeable foreign debt bill, that constitutes
almost 90 percent of GDP. Although the nation has embarked on fiscal reforms
and sought to overhaul the taxation regime, it has struggled to control the
informal sector, which constitutes a large portion of the economy.

Source: france24.com

South Africa

South Africa's rand firms to five-month high on expected rate hikes

(Reuters) - The South African rand strengthened to a five-month high on
Tuesday, as expectations that the central bank will raise interest rates
later this week and portfolio inflows helped it to recover from a dip
earlier in the day.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar flat as Biden carries new sanction plans to Europe

The dollar was flat against major peers on Wednesday as the boost from the
U.S. Federal Reserve's aggressive stance early this week faded and investors
waited for President Joe Biden to unveil new sanctions against Russia during
his trip to Europe.

Biden, who heads to Brussels on Wednesday for talks with NATO and European
leaders, will push Europe to reduce reliance on Russian oil and gas, and
could announce new sanctions on members of the Russian parliament over
Moscow's invasion of Ukraine.

Oil prices dipped on Tuesday as the European Union seems unlikely to agree
to a ban on Russian oil which would also likely weigh on the euro.

"An embargo on Russian oil would increase the likelihood of Russia turning
off the gas tap to Europe in return," Commerzbank head of FX research Ulrich
Leuchtmann wrote, saying such a scenario could throw Europe into recession.

Leuchtmann said the euro, with the European Central Bank trailing peers in
the global monetary cycle, was bound to suffer as "the Fed is likely to be
far more aggressive in addressing the inflationary consequences than the
ECB."

At 4:42 a.m. ET, the dollar index, which measures the greenback against six
major peers, was unchanged at 98.540.

The yield on U.S. benchmark 10-year yields eased to 2.37% in European
morning trading after jumping on Monday when U.S. Federal Reserve Chair
Jerome Powell opened the door for raising interest rates by more than 25
basis points at upcoming policy meetings in order to combat inflation.

The euro ticked down 0.09% at $1.1022, while sterling eased 0.25% at $1.3230
after touching its highest against the dollar in nearly three weeks.

British inflation shot up faster than expected last month to a new 30-year
high, worsening a historic squeeze on household finances that finance
minister Rishi Sunak is under pressure to ease in a budget update later on
Wednesday.

Britain has the second-highest annual inflation rate among Group of Seven
countries, behind only the United States as global commodity and energy
prices soar, exacerbated by Russia's invasion of Ukraine.

High commodity prices have been a clear negative for the yen, as Japan
imports the bulk of its energy, widening the country's trade deficit.

The yen slipped to a new six-year low of 121.415 per dollar overnight but
later limited its losses to 0.14% at 120.985 per dollar.

Against the Japanese currency, the Australian dollar rose to its highest
level since December 2015.

Sweden's crown ticked up against the dollar and the euro as the Swedish
deputy central bank governor, Anna Breman, said plans to hike the benchmark
rate and shrink its balance sheet might need to be brought forward to tame
inflation.

In cryptocurrency markets, bitcoin and ether were slightly lower at $42,300
and $2,950 respectively.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold slips to near 1-week low on Fed Powell's hawkish stance

(Reuters) - Gold prices fell over 1% to a near one-week low on Tuesday after
U.S. Federal Reserve Chair Jerome Powell hinted at big rate hikes this year
to fight against soaring inflation, sending Treasury yields higher.

Copper deficit narrows slightly to 475,000 tonnes in 2021

The global refined copper market showed a 92,000 tonne deficit in December,
compared with a 123,000 tonne deficit in November, the International Copper
Study Group (ICSG) said in a new data release.

For the full year, the market reported a deficit of 475,000 tonnes compared
with a 484,000 tonne shortfall a year earlier, the ICSG said.

World refined copper output in December was 2.11 million tonnes, while
consumption was 2.2 million tonnes. Production amounted to 24.5 million
tonnes and 25.33 million tonnes of consumption for the year.

The ICSG said mine production grew by around 2.3% in 2021 but noted this
compared to a low 2020 basis when rolling global lockdowns severely impacted
the copper mining industry to stem the spread of covid-19. The average
annual growth over 2019-2020 was only 0.3%.

Because of the lockdowns, production in Chile, the world's largest copper
mine producing country, was down by 1.9% in 2021, with concentrate
production falling by 1.3% and SX-EW output declining by 3.6%, mainly at the
Escondida mine. Chilean 2021 total production was 2.8% below that of 2019.

Output in Peru, the world's second-largest copper producing country,
increased by about 7% primarily since the Peruvian mining industry was one
of the most severely impacted by a covid-19 related lockdown in 2020.
Despite the recovery, 2021 production remained 6.5% below that of 2019.

Indonesian output increased by about 49% because of the continued ramp-up of
underground production at the Grasberg mine. Substantial increases were also
seen in the Democratic Republic of Congo (+12%), Panama (+61%) and China
(+10%) due to additional output from new and expanded operations or improved
operational levels.

The ICSG also commented that the Russian copper industry is mainly centred
on three companies, Norilsk, UMMC and the Russian Copper Company. Russian
copper mine output has increased by around 28% over the last five years,
mainly due to the start-up of two new mines, and reached about 875,000
tonnes of copper in 2021, accounting for about 4% of the total world copper
mine production.

According to the ICSG, there are currently no copper mines operating in
Ukraine, and refined production and usage are estimated at 20,000 tonnes of
metal per year.

This week, the London Metal Exchange said it had no immediate plans to ban
Russian metals, including copper, from trading on its platform, despite
calls from some members to do so.

A ban on Russian metal could lead to shortages and further price surges at a
time of rising inflation worldwide.

The global copper market is already tight, with exchange stocks close to a
16-year low. Prices touched a record high of $10,845 a tonne last week and
traded at $10,320 on March 18. The red metal last traded at $10,173 per
tonne on March 22.

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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DISCLAIMER: This report has been prepared by Bulls 'n Bears, a division of
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