Bulls n Bears Daily Market Commentary : 24 March 2022

Thu Mar 24 18:13:50 CAT 2022

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Bulls n Bears Daily Market Commentary : 24 March 2022

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ZSE commentary

The ZSE shares were down marginally in a mixed trading session with lower volume and turnover. Activity levels were at 382 trades. Econet was the most active stock at 38 trades followed by Delta and Innscor at 31 and 30 trades respectively. Investor sentiment was positive after the session yielded 16 gainers against 13 fallers while six (6) of the active stocks remained unchanged. First Mutual Holdings anchored volume aggregate trading 2,273,900 shares and National Foods anchored value aggregate with a value of ZW$63.86 million.

The All-Share Index shaded 0.25% to close at 15,494.05 points. The Top 10 Index shaded 0.70%. The Top 15 Index shaded 0.61%. The Medium Cap Index was up by 1.27% to 25,199.13 points whilst the Small Cap Index shaded 2.58% to 389,990.11 points. Leading the risers pack of the day was Get Bucks closed 20.00% higher and NMB Holdings was up by 16.25%. African Sun added 10.30% and Star Africa added 9.31% to 142.52c. Mitigating the gains were losses in NTS and General Beltings which shaded 16.67% and 6.17% respectively. Mashonaland Holdings was down by 3.00%. Zimplow and Ecocash Holdings shaded 2.86% and 2.28% respectively. The ETFs traded 1,696,298 units worth ZW$2,943,330.39 in 127 trades. The Old Mutual Top 10 ETF added 10.90% to close at 996.12c while the Morgan and Co Multi Sector ETF shaded 0.71% to close at 1390.49c. The Datvest MCSI ETF added 0.75% to close at 167.74c. On the VFEX, Padenga traded 33,302 shares to close unchanged and Bindura traded 471,851 shares to close at US 5.06 cents up 2.07%.wealthaccesssecurities

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Global Currencies & Equity Markets

South Africa

Rand steady ahead of rates decision

In early trade the rand was largely unchanged at R14.75 against the dollar, compared to its previous close.

The rand was steady early on Thursday, as traders exercised caution ahead of the central bank’s decision later in the day where it is expected to raise the repo rate.

At 0635 GMT, the rand was largely unchanged at R14.75 against the dollar, compared to its previous close.

The South African Reserve Bank is seen hiking its repo rate to 4.25% to try to slow inflation, according to a Reuters poll of economists who said prices could rise faster than they had expected before Russia’s invasion of Ukraine.

Data showed on Wednesday domestic inflation held steady in February at 5.7% – close to the upper end of the central bank’s inflation target range of 3%-6%.

The rates decision will come as investors continue to assess the outlook for US interest rates and await key US weekly jobless claims data, a measure of the country’s economic health, due at 1230 GMT.

In fixed income, the yield on the benchmark 2030 government bond was down 5.5 basis points to 9.685%.

Nigeria

Naira stable at official market

The domestic unit hovered within the range of N577- N585.00 per $1 at the parallel markets.

Naira recorded no significant movement against the U.S. dollar at the official market on Wednesday, extending the spot market stability run to two business days this week.

The naira closed at N416.25 to a dollar at the close of business Wednesday, the same rate it traded with the greenback in the previous session on Tuesday, data published by the Central Bank of Nigeria showed.

The weakest rate naira has traded since the opening of trade this week was when it closed at N416.32 per $1 on Monday. the CBN data showed.

However, the domestic unit inched towards N590.00 to a dollar at the black market.

Currency exchangers in Uyo said the naira was exchanged within the range of N583.00-N585.00 to a dollar in the morning, but dropped to N577.00 to a dollar by Wednesday evening.

“The demand for the U.S. dollar reduced in the evening today that’s why the price dropped to N577 to a dollar in the evening today,” a trader who identified himself as Shuaibu told PREMIUM TIMES.

Currency dealers in Abuja said naira exchanged at N585.00 and sold at N586.00 to a dollar on Wednesday.

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Global Markets

Rupee trades in narrow range against U.S. dollar in early session

The rupee was trading in a narrow range in morning trade on Thursday as elevated crude oil prices negated the impact of positive domestic equities.

At the interbank foreign exchange, the rupee opened lower at 76.37 against the American dollar, then inched higher to 76.35. The local unit also touched 76.41 in initial deals.

In the previous session, the rupee had settled at 76.39 against the U.S. dollar.

Global oil benchmark Brent crude futures fell 0.22% to $121.33 per barrel.

The rupee is likely to remain under pressure tracking the strength of the greenback and oil, said Sriram Iyer, senior research analyst at Reliance Securities.

"Moreover, US Fed speakers continued to remain hawkish and pushed yields higher that could weigh on sentiments, but markets are slowly digesting the hawkish stance," he added.

Asian and emerging market peers were weaker this Wednesday morning and could weigh on sentiments, Mr. Iyer noted.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.17% to 98.78.

On the domestic equity market front, the 30-share Sensex was trading 22.03 points or 0.04% higher at 57,706.85, while the broader NSE Nifty inched higher by 6.75 points, or 0.04%, to 17,252.40.

Foreign institutional investors remained net buyers in the capital market on Wednesday as they purchased shares worth ₹481.33 crore, according to stock exchange data.

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Commodities Markets

Gold flat as stronger dollar counters Ukraine worries

Gold prices were unchanged on Thursday as the dollar gained and yields hovered near multi-year peaks, offsetting support from an escalation in the Ukraine crisis.

FUNDAMENTALS

* Spot gold was little changed at $1,943.75 per ounce by 0131 GMT. U.S. gold futures were up 0.4% to $1,944.40.

* The dollar index gained on Wednesday, making gold less attractive for other currency holders, as oil prices shot higher again with U.S. President Joe Biden and other European leaders set to impose fresh sanctions against Russia.

* The benchmark 10-year Treasury yield hovered close to Wednesday's peak since May 2019.

* Gold is sensitive to higher yields, which increase the opportunity cost of holding non-yielding bullion.

* Russian President Vladimir Putin's threat to switch certain gas sales to roubles sent European futures soaring on concerns the move would exacerbate an energy crunch and jam up deals that run to hundreds of millions of dollars every day.

* Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust rose 0.4% to 1,087.66 tonnes on Wednesday - its highest since Feb. 26, 2021.

* Palladium , used by automakers in catalytic converters to curb emissions, added 1.5% to $2,549.34 per ounce.

* Spot silver was up 0.1% to $25.08 per ounce, while platinum shed 0.3% to $1,016.99.

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 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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