Bulls n Bears Daily Market Commentary : 29 March 2022

Wed Mar 30 08:13:20 CAT 2022

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Bulls n Bears Daily Market Commentary : 29 March 2022

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ZSE commentary

The ZSE shares closed today’s session with gains from blue-chip counters lifting the bourse in a mixed trading session. Activity levels were at 481 trades. Star Africa was the most active stock at 45 trades followed by FCA and Econet at 28 and 26 trades respectively. Investor sentiment was positive after the session yielded 21 gainers against 16 fallers while three (3) of the active stocks remained unchanged. Nampak anchored both volume and value aggregate trading 4,082,300 shares a value of ZW$51.05 million. The All-Share Index added 0.95% to close at 15,722.82 points. The Top 10 Index added 1.40%. The Top 15 Index added 1.23%. 

The Medium Cap Index was down by 0.36% to 25,801.90 points whilst the Small Cap Index also shaded 1.86% to 400,098.64 points. Leading the risers pack of the day was Unifreight and Simbisa closed 17.86% and 10.74% higher respectively. Hippo was up by 5.58%. Art Corporation added 5.26% and Ecocash added 4.83%. Mitigating the gains were losses in Nampak  and ZB Holdings which shaded 14.06% and 8.33% respectively. Turnall Holdings was down by 7.99%. Zimplow and African Distillers shaded 7.84% and 4.61% respectively. The ETFs traded 348,130 units worth ZW$1,175,468.40 in 153 trades. The Old Mutual Top 10 ETF shaded 1.60% to close at 872.35c while the Morgan and Co Multi Sector ETF shaded 2.00% to close at 1402.20c. The Datvest MCSI ETF added 0.52% to close at 180.14c. On the VFEX, Bindura traded 910,827 shares to close at US 6.09 cents up 1.57% and Padenga traded 1,760 shares to close unchanged at US 21 cents.wealthaccesssecurities

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Global Currencies & Equity Markets

South Africa

South African assets rise on progress in Russia-Ukraine talks

(Reuters) - South Africa's rand, stocks and bonds firmed on Tuesday on positive noises coming from Turkey where Russia and Ukraine made some progress in peace talks.

During talks between negotiators in Istanbul, Russia promised to scale down military operations around Kyiv and northern Ukraine as a confidence-building step.

Ukraine for its part proposed adopting neutral status in the most detailed formula yet for a potential settlement to the five-week conflict. read more

South African assets firmed alongside global stocks and emerging market currencies, with the rand trading at 14.5535 to the dollar, 1.15% stronger at 1545 GMT.

The Johannesburg All-share index (.JALSH) rose 0.78% to 74,776 points, while the Top-40 index (.JTOPI) climbed 0.7% to 67,911 points.

Government bonds also rose, with the yield on the instrument due in 2030 down 1.5 basis points to 9.505%.

"The next couple of days could be crucial but the signs are promising which we're seeing reflected in the markets today," Craig Erlam, senior market analyst at OANDA said.

"There has been no shortage of optimism in the markets since the talks began, which has looked premature at times but may now be paying off."

The Thomson Reuters Trust Principles.

Nigeria

Naira Depreciates 0.04% at I&E Amid FX Crisis

The foreign exchange (FX) crisis in Nigeria affected the performance of the Naira against the United States Dollar at the market on Monday.

At the Investors and Exporters (I&E) segment of the forex market yesterday, the domestic currency suffered a decline of 0.04 per cent or 17 kobo to trade at N416.50/$1 compared with the preceding session’s value of N416.33/$1.

However, at the spot market, the local currency appreciated by N3.38 against the British Pound Sterling to trade at N545.91/£1 compared to the previously traded rate of N549.29/£1 and against the Euro, the Nigerian Naira gained N1.98 to sell for N456.54/€1 in contrast to last Friday’s exchange rate of N458.52/€1.

Meanwhile, at the Peer-2-Peer (P2P) end, the Naira showed no movement against the American currency on Monday as it remained static at N584/$1.

At the cryptocurrency market, six of the 10 benchmarked tokens tracked by Business Post appreciated in value with Ethereum (ETH) rising by 2.4 per cent to sell at N2,008,098 and Cardano (ADA) growing by 2.3 per cent to sell at N728.29.

Bitcoin (BTC) improved by 0.9 per cent to N28,336,980, Ripple (XRP) also went up by 0.9 per cent to trade at N524.37, Solana (SOL) appreciated by 0.8 per cent to quote at N63,616.50, while the US Dollar Tether (USDT) moved upwards by 0.3 per cent to N590.79.

On the bearish wing, Dogecoin (DOGE) saw a 2.2 per cent drop to trade at N87.03, Litecoin (LTC) depreciated by 1.3 per cent to trade at N77,341.31, Dash (DASH) went down by 0.4 per cent to sell for N76,733.72, while Binance Coin (BNB) recorded a 0.1 per cent loss to trade at N180,949.22.

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Global Markets

U.S. dollar skids amid progress in Russia-Ukraine peace talks

(Xinhua) -- The U.S. dollar dropped in late trading on Tuesday as the euro advanced amid positive signs from Russia-Ukraine peace talks.

The dollar index, which measures the greenback against six major peers, decreased 0.69 percent at 98.4060.

In late New York trading, the euro rose to 1.1095 U.S. dollars from 1.0993 dollars in the previous session, and the British pound decreased to 1.3094 dollars from 1.3098 U.S. dollars in the previous session. The Australian dollar increased to 0.7512 U.S. dollar from 0.7501 dollar.

The U.S. dollar bought 122.92 Japanese yen, lower than 123.60 Japanese yen of the previous session. The U.S. dollar fell to 0.9311 Swiss franc from 0.9351 Swiss franc, and it fell to 1.2494 Canadian dollars from 1.2527 Canadian dollars.

Russian and Ukrainian delegations held a fresh round of face-to-face peace talks in Istanbul on Tuesday. Russian chief negotiator said the talks were "constructive." ■

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Commodities Markets

Gold price today edges higher after falling to lowest in one month

Gold and silver edged higher in domestic markets after falling sharply in the previous session. On MCX, gold futures were 0.25% higher at ₹50,947 per 10 gram after falling to one-month lows in the previous session. Silver futures rose 0.23% to ₹67,102 per kg. In the previous session, gold had slumped 1.2% to ₹50,928 after falling to ₹50,354 intraday, the lowest level in a month.

In global markets, gold rates were steady today after plunging nearly 2% in the previous session. Spot gold rose 0.1% to $1920.6 per ounce after falling as much as 1.8% on Tuesday to its lowest since February 28. Signs of progress in Russia-Ukraine peace talks dented the metal's appeal as a safe haven as risk assets like equities gained. and kept gains in check. On the other hand, bullion was supported by a dip in the U.S. dollar and Treasury yields.

Hopes rose for a negotiated end to the Ukraine conflict rose after Kyiv proposed adopting a neutral status in a sign of progress at face-to-face negotiations while Russia promised in negotiations to scale down military operations around Kyiv.

The dollar index slid to a more than one-week low in the previous session, making gold less expensive for other currency holders. US benchmark 10-year yields also slipped from near three-year highs, and lower yields decrease the opportunity cost of holding non-yielding bullion. Meanwhile, also putting pressure on gold, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, slipped 0.2% to 1,091.44 tonnes on Tuesday.

Among other precious metals, spot silver was up 0.1% at $24.78 per ounce and platinum rose 0.9% to $991.49.

“Gold moved lower on Tuesday as Russia-Ukraine peace talks pointing towards progress dimmed bullion's safe-haven demand, though a weaker dollar and a drop in yields limited losses. Gold moved lower on Tuesday but bounced near support. Support is seen near the 50-day moving average at $1,892. Resistance is seen near the 10-day moving average at $1,934. We expect both precious metals to remain volatile in today’s session ahead of the U.S. GDP and ADP non-farm data," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

“Gold has support at $1900-1882, while resistance at $1930-1940. Silver has support at $24.42- 24.00, while resistance is at $25.05-25.24. In rupee terms gold has support at ₹50,720–50,550, while resistance is at ₹51,240–51,520. Silver has support at ₹66,550- 66,120 while resistance is at ₹67,620–68,140," he added.

Copper and nickel fall in slim trade as caution grips market

Copper and nickel prices eased on Tuesday as trading volumes remained anaemic due to investor caution over Russia’s invasion of Ukraine and a large short position in nickel.

Benchmark three-month nickel on the London Metal Exchange (LME) CMNI3was down 2.2% at $32,005 per tonne by 1030 GMT. Three-month copper CMCU3 lost 0.6% to $10,276.

Liquidity on the LME, the world’s largest and oldest venue for metals trading, has been low, especially in nickel, which resumed trading on March 16 after a short squeeze forced a closure, traders and analysts said.

“Many people are taking a ‘wait and see’ stance due to this volatility and the liquidity shortage that started in nickel but has spread to other metals,” said Amelia Fu, Bank of China International’s (BOCI) head of global commodities strategy.

“(Base metals) price movements are still centred around the lack of liquidity and Ukraine situation.”

The large nickel short position held by China’s Tsingshan Holding Group, a major producer, was causing caution among participants, analysts said.

In Shanghai, nickel SNIcv1 dropped 3.8% to 217,290 yuan ($34,111) a tonne.

CRISIS: Air raid sirens sounded across Ukraine before dawn on Tuesday as Ukrainian and Russian negotiators met in Turkey for the first face-to-face talks in nearly three weeks, with Kyiv seeking a ceasefire without compromising on territory or sovereignty.

Sanctions on Moscow have boosted base metals prices on supply concerns as Russia is a major producer of nickel, aluminium and copper.

LOCKDOWN: China’s financial hub of Shanghai launched a planned two-stage lockdown to contain a coronavirus surge, keeping a lid on copper prices in the world’s largest consumer of the metal.

CODELCO: Chile’s Codelco, the world’s largest copper producer, is preparing to offer the market some “non-core” exploration assets, signalling a rare privatisation for the state-owned mining firm, a senior executive said on Monday.

EXCHANGE: The LME board will see what lessons can be learnt from this month’s chaotic nickel trading, the chief executive of its parent company Hong Kong Exchanges and Clearing said on Tuesday.

OTHER PRICES: LME aluminium CMAL3 rose 0.7% to $3,588 a tonne, lead CMPB3 gained 0.1% to $2,372, zinc CMZN3 advanced 0.1% to $4,093 and tin CMSN3 was down 0.2% at $42,455.

Source: Reuters 

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 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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