Bulls n Bears Daily Market Commentary : 09 May 2022

Tue May 10 06:52:29 CAT 2022

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Bulls n Bears Daily Market Commentary : 09 May 2022

 <mailto:info at bulls.co.zw> 

ZSE commentary

ZSE starts week lower.

The market retreated further into the red in the week opener, post the
announcement of macroeconomic measures by the President. The measures
include the suspension of lending by banks with immediate effect and the
increase in capital gains tax to 40% for shares held for less than 270 days
and 20% for shares held more than 270 days. The Ministry of Finance is still
to advise the capital market on how the capital gains tax will be calculated
and implemented. The primary All Share Index trimmed 1.85% to 26693.75pts
while, the Industrial Index retreated an almost similar 1.86% to
88051.69pts. The ZSE Top Ten Index slipped 2.56% to 17582.30pts while, the
Mid Cap Index was the only riser with a marginal 0.27% gain to 44666.56pts.
Apparel retailer Truworths led the laggards of the day after succumbing to
14.94% to close at $1.7125, trailed by African Sun that shed 13.46% to
$11.6941. Mashonaland Holdings came off 13.41% to end pegged at $4.2714, as
hotelier RTG tripped 12.50% to settle at $7.0000. Capping the top five
decliners of the day was CBZ that let go 3.65% to $157.0500.

The positive movers of the day were headlined by Tanganda that jumped 13.55%
to close at vwap of $272.5314. Following was National Tyre Services which
added 7.50% to trade at $16.1250. Banking group FBC put on 6.88% to
$75.0500, having touched a YTD high of $80.0000. Brick manufacturers
Willdale rose 5.55% to $4.0000 as Unifreight improved 4.41% to end at
$35.5066. Activity aggregates were depressed in the session as volumes
dipped 87.09% to 0.84m shares while, turnover dropped 62.69% to $160.77m.
The top traded stocks by volume were Tanganda, Delta, Econet and Innscor
that claimed a combined 89.75% of the outturn. Tanganda and Delta anchored
the value aggregate with respective contributions of 33.21% and 10.47%
apiece. All the three ETFs closed the day in the red as the Datvest ETF
emerged the major casualty with a 12.46% slump to $2.2995, followed by
Morgan ETF that lost 8.76% to $20.5310. The Old Mutual ETF was down 6.57% at
$10.2031.-EFE Securities

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South African rand falls as strong dollar, power cuts weigh

(Reuters) - The South African rand fell on Monday, as the U.S. dollar
climbed to a two-decade high and as struggling utility Eskom resumed
scheduled power cuts.

At 1520 GMT, the rand traded at 16.2350 against the dollar, 1.4% weaker than
its previous close.

The latest leg of the dollar's rise began after the Federal Reserve raised
interest rates by 50 basis points last week, hitting currencies worldwide.
read more

A stronger dollar makes high-yielding but riskier assets like the rand less
attractive to investors.

State-owned Eskom said it would implement "Stage 2" scheduled power outages
from 1700 local time to 2200 (1500 GMT to 2000 GMT) on Monday, after
generation units at several coal plants tripped, adding to constraints
caused by delays in returning units to service.

The outages are a major brake on economic growth.

Domestic data releases this week include March mining numbers, which are due
on Thursday and will give added insights into the state of the economy in
the first quarter.

On the Johannesburg Stock Exchange, the Top-40 index (.JTOPI) closed down
1.84% and the All-share index (.JALSH) down 1.78%.

Government bonds also weakened, with the yield on the instrument due in 2030
rising 11.5 basis points to 10.205%.

Register now for FREE unlimited access to Reuters.com

Reporting by Olivia Kumwenda-Mtambo and Alexander Winning; Editing by
Bernadette Baum

Our Standards: The Thomson Reuters Trust Principles.

Nigeria

Naira loses to dollar, closes at 419

The Naira on Monday depreciated at the Investors and Exporters window,
exchanging at N419 to the dollar, a 0.48 per cent depreciation, weaker than
N417 it traded on Friday.

The open indicative rate closed at N419 to the dollar on Monday.

An exchange rate of N423.00 to the dollar was the highest rate recorded
within the day's trading before it settled at N419.00.

The Naira sold for as low as 410.84 to the dollar within the day's trading.

A total of 53.15 million dollars was traded in foreign exchange at the
official Investors and Exporters window on Monday.

Meanwhile, Prof. Hassan Oaikhenan of the Department of Economics, University
of Benin, has attributed the currency's loss to the limited supply of the
green back.

He said, "the depreciation is normal and not unexpected, given the demand
pressures for the dollar in relation to the limited supply of the green
back.

" So, we need not dwell on this, which has become the new normal in the
trend behaviour of the exchange of the naira to such key currencies as the
Euro, the Dollar, the British Pound sterling, among others''.punch

 <mailto:info at bulls.co.zw> 

Global Markets

Bitcoin falls 9.58% to $30,736.94

(Reuters) - Bitcoin dropped 9.58% to $30,736.94 at 22:02 GMT on Monday,
losing $3,261.03 from its previous close.

Bitcoin, the world's biggest and best-known cryptocurrency, is down 36.3%
from the year's high of $48,234 on March 28.

Ether , the coin linked to the ethereum blockchain network, dipped 10.04% to
$2,269.48 on Monday, losing $253.19 from its previous close.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold price extends decline as dollar rallies to 20-year high

Gold prices extended losses on Monday as the dollar rallied to two-decade
highs while US Treasury yields also advanced, curbing investors' enthusiasm
for the safe haven metal.

Coming off a run of three straight weekly losses, spot gold declined another
1.0% to $1,863.96 per ounce by 12:25 p.m. ET Monday. US gold futures, too,
dropped 1.0% in New York, trading at $1,862.60 per ounce.

Bullion has been sliding since mid-April as the Federal Reserve and other
central banks tighten policy to fight rising consumer prices. The monetary
squeeze has sent yields on US government bonds past 3% and fueled five weeks
of gains for the dollar, making non-interest-bearing gold less attractive.

Still, there could be more bond market swings to come as a swathe of
inflation data feeds the debate on price pressures and monetary policy. US
consumer prices are set to be released on Wednesday, with China, India,
Mexico and Brazil also reporting during the week.

Investors also digested trade data from China Monday that showed the damage
caused by covid-19 lockdowns in the world's second-biggest economy. The
nation's exports and imports struggled in April as worsening virus outbreaks
cut demand, undermined production and disrupted logistics.

"Persistent strength in the US dollar and higher bond yields amid
expectations that the Fed may continue with aggressive rate hikes to get
inflation under control is weighing on gold," Ravindra Rao, the head of
commodity research at Kotak Securities Ltd., wrote in a Bloomberg note.

The downside is limited on increasing concerns relating to China,
inflationary worries and tensions over Russia's invasion of Ukraine, he
said.

Investors are beginning to cut back their exposure to gold after a long
period of expansion, with exchange-traded fund holdings falling for a second
straight week. Hedge funds trading on the Comex also cut their net bullish
bets to a three-month low as of last Tuesday, Bloomberg data shows.

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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