Bulls n Bears Daily Market Commentary : 15 September 2022

Fri Sep 16 08:02:49 CAT 2022

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Bulls n Bears Daily Market Commentary : 15 September 2022

 <mailto:info at bulls.co.zw> 

ZSE commentary

All-Share tumbles to record year-to-date losses.

The ZSE tumbled a further 1.74% to 10727.53pts as the market cancelled out
gains recorded during year, closing the day with a YTD loss of 0.876%. The
Blue-Chip Index was 2.15% weaker at 5897.80pts weighed down by Ecocash,
Delta and Innscor while, the Mid-Cap Index succumbed 1.06% to 26760.09pts.
The Agriculture Index lost 0.30% to close at 68.00pts. Headlining the worst
performers of the day was Axia that eased 12.29% to trade at $29.7768,
trailed by African Sun that declined 11.25% to trade at $13.3131.

Fintech group Ecocash closed at $25.2040 after a 9.38% loss, to see the
counter trade at September 2021 prices. Zimre Holdings was 5.00% down at
$4.2568 as banker FBC capped the top five losers of the day on a 3.67% fall
to $41.6500. Leading the loss mitigation pack was Mashonaland Holdings that
jumped 8.15% to $5.5000, followed by Bridgefort Capital that advanced 3.45%
to $9.0000 on scrappy 200 shares. Dairy Processor Dairibord rose 2.53% to
settle at $18.4545 while, packaging group Nampak advanced 2.37% to $9.5000.
Banking group NMB Holdings completed the top five best performers of the day
as it went up 1.85% to $16.0012. Activity aggregates improved in the session
as volumes traded ballooned 917.38% to see 18.26m shares exchange hands
while, turnover increased by 76.61% to $246.05m. The duo of Mashonaland
Holdings and Turnall contributed a combined 91.20% of the volumes traded.
Delta claimed 44.65% of the turnover trailed by Mashonaland Holding which
had a 26.98% contribution. Elsewhere, on the VFEX, Padenga was down 1.43% to
end pegged at US$0.3450 while, nickel miner Bindura was stable at US$0.0307.
A total of 327,302 shares worth US$10,128 exchanged hands on the
aforementioned market. The ETF Index was up 1.24% to 348.0794pts, buoyed by
gains in Cass Saddle and Morgan & Co MIZ and MSC ETFs.-efesecurities

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South African rand weakens against strong dollar

South Africa's rand weakened in early trade on Thursday, as the U.S. dollar
held near recent peaks after traders increased bets that the U.S. Federal
Reserve will become even more aggressive next week in its battle to curb
inflation.

At 0712 GMT, the rand traded at 17.5000 against the dollar, 0.11% weaker
than its previous close.

The U.S. dollar index, which measures the greenback against a basket of
currencies, was up 0.255% at 109.88, not far off its two-decade peak of
110.79.

Economists at ETM Analytics said in a research note that the Fed will likely
remain extremely aggressive until data shows a few consecutive months of
falling core inflation and signs of a loosening labour market.

Therefore, they added, emerging-market currencies will struggle for
traction, with the rand's value against the dollar poised to test recent
highs around 17.5500 in the sessions ahead.

On the stock market, the Top-40 index was up 0.47% while the broader
all-share rose 0.37% in early trade.

The government's benchmark 2030 bond was almost unchanged in early deals,
with the yield at 10.330%.

Nigeria

Naira gains slightly, exchanges at 436.33 to dollar

The Naira on Thursday appreciated against the dollar at the Investors and
Exporters window exchanging at N436.33.

An exchange rate of N438.45 to the dollar was the highest rate recorded
within the day's trading before it settled at N436.33.

The Naira sold for as low as N420.50 to the dollar within the day's trading.

A total of 118.20 million dollars was traded at the official Investors and
Exporters window on Thursday.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar inches up vs yen as investors expect Fed will stay aggressive

(Reuters) - The dollar was slightly higher against the yen on Thursday
following data showing U.S. retail sales unexpectedly rebounded in August,
while the Swiss franc hit its strongest against the euro since 2015.

The dollar pared some gains following the data, which showed retail sales
increased 0.3% last month, but demand for goods is cooling as the U.S.
Federal Reserve raises interest rates. Economists polled by Reuters had
forecast sales would be unchanged. read more

The dollar has been supported by the view that the Fed will keep tightening
policy aggressively.

Many market participants believe that recent data including this week's
surprise increase in consumer prices in August is likely to give the U.S.
central bank enough reason to announce a third consecutive 75-basis-point
rate hike next Wednesday.

"The details of the retail sales report weren't nearly as strong as the
headline. If you break down the retail sales report, it was generally a bit
softer," said Adam Button, ForexLive chief currency analyst.

With the dollar, "the default mode in the currency market is to buy the
dollar unless there's a good reason to sell it," he said.

The dollar was up 0.2% against the yen at 143.47 , having fallen 1% on
Wednesday on news that the Bank of Japan had checked on exchange rates with
banks - a possible preparation for yen buying. The dollar index was up 0.1%
at 109.69. read more

Investors continued to debate whether Japanese authorities really would
intervene to support their currency, which has fallen sharply this year.

A record Japanese trade deficit for August has also underscored the bearish
trend for the yen. read more

Japanese currency officials "stepped up their rhetoric this week, and the
market is really still calling their bluff. It's very tough to talk a
currency down when the fundamentals are so divergent," Button said.

Earlier in the session, the Swiss franc rose against the euro , to its
strongest level against the single currency since January 2015, when the
Swiss National Bank scrapped its minimum exchange rate of 1.20 francs per
euro.

Meanwhile, the dollar was down 0.1% against the Swiss franc .

The SNB also meets next week and there is some speculation in the market
that it could join the Fed and ECB with outsized rate increases. Money
markets are fully pricing in a 75 basis-point rate rise from the SNB,
according to data from Refinitiv.

The euro was up 0.2% at $0.9996. It hit a 20-year low of $0.9864 last week.

In crypto markets, Vitalik Buterin, Ethereum inventor and co-founder, wrote
on Twitter that a major software upgrade to the Ethereum blockchain aimed at
slashing its energy usage has been completed. read more

The token , which underpins the ethereum network, was last down 8.6%.
Bitcoin was down 2.2%.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold price pounded to 2-plus-year low by economic worries, bearish charts

(Kitco News) - Gold prices are sharply down and hit a nearly 2.5-year low in
midday U.S. trading Thursday. Silver prices are also solidly lower. The
precious metals are being hit by global economic worries that threaten to
dent commercial and consumer demand for raw commodities, including the
metals. October gold was last down $36.00 at $1,662.20 and December silver
was down $0.324 at $19.245.

The marketplace was a bit calmer overnight and early this morning, but it
appears recent hawkish monetary policy comments from central bank officials
and noted market analysts have combined with hot inflation readings to
quickly sap what little risk appetite had been seen earlier today. And
remember, the stock and financial markets are at the time of year (September
and October) where the going can get very tough. Gold and silver bulls
remain frustrated that the risk aversion in the marketplace is not
translating into more safe-haven demand for the two metals.

Traders are focusing on next week's FOMC meeting, which is expected to see
the Fed raise the key U.S. Fed funds rate by 0.75% in its effort to tamp
down problematic price inflation. Precious metals traders are reckoning the
tighter monetary policies of most of the major central banks of the world
will further slow global economic growth that would in turn reduce consumer
and commercial demand for metals.

The key outside markets today see Nymex crude oil prices solidly lower and
trading around $85.50 a barrel. The U.S. dollar index is near steady in
early U.S. trading. The yield on the 10-year U.S. Treasury note is fetching
around 3.44%. 

Technically, October gold futures prices hit a nearly 2.5-year low today.
The gold futures bears have the solid overall near-term technical advantage
and gained more power today. Bulls' next upside price objective is to
produce a close above solid resistance at $1,700.00. Bears' next near-term
downside price objective is pushing futures prices below solid technical
support at $1,600.00. First resistance is seen at $1,675.00 and then at
$1,686.30. First support is seen at $1,650.00 and then at $1,635.00.
Wyckoff's Market Rating: 1.5.

December silver futures bears have the firm overall near-term technical
advantage. Silver bulls' next upside price objective is closing prices above
solid technical resistance at $21.00. The next downside price objective for
the bears is closing prices below solid support at $18.00. First resistance
is seen at today's high of $19.625 and then at $20.00. Next support is seen
at $19.00 and then at this week's low of $18.775. Wyckoff's Market Rating:
2.5.

December N.Y. copper closed down 380 points at 348.20 cents today. Prices
closed nearer the session low today. The copper bears have the overall
near-term technical advantage. Copper bulls' next upside price objective is
pushing and closing prices above solid technical resistance at the August
high of 378.35 cents. The next downside price objective for the bears is
closing prices below solid technical support at the July low of 315.55
cents. First resistance is seen at 355.00 cents and then at this week's high
of 369.25 cents. First support is seen at the September low of 336.10 cents
and then at 330.00 cents. Wyckoff's Market Rating: 3.0.

INVESTORS DIARY 2022

Company

Event

Venue

Date & Time

National Unity Day

December 22

Christmas Day

December 25

Boxing Day

December 26

Counters trading under cautionary

CBZH

Meikles

Fidelity

TSL

FMHL

Turnall

GBH

ZBFH

GetBucks

Zeco

Lafarge

Zimre

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
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for guideline purposes only and sourced from third parties.

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