Bulls n Bears Daily Market Commentary : 07 November 2023

Wed Nov 8 07:22:44 CAT 2023

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Bulls n Bears Daily Market Commentary : 07 November 2023

 <https://www.dulys.co.zw/> ZSE commentary

The ZSE All Share Index added 2,490.23 points to close the session at
170,207.41 points. Trading in the positive: CAFCA LIMITED added $200.0000 to
$2,200.0000 CBZ HOLDINGS LIMITED gained $122.7273 to close at $2,072.7273,
and TSL LIMITED increased by $102.7000 to $787.5500. DELTA CORPORATION
LIMITED  was $99.1039 up at

$3,477.7268 and ZIMRE HOLDINGS LIMITED added $3.1623 to $127.1123.

Trading in the negative: SEED CO LIMITED shed $149.8136 to close at
$860.1864, ECOCASH HOLDINGS ZIMBABWE LIMITED lost $2.3000 to close at
$134.7000, ECONET WIRELESS ZIMBABWE LIMITED eased $0.7358 to $499.4260 and
NAMPAK ZIMBABWE LIMITED lost $0.2284 to $335.0000.

EXCHANGE TRADED FUNDS 

MORGAN & CO MULTISECTOR EXCHANGE TRADED FUND was $16.3162 up at $286.0000,
CASS SADDLE AGRICULTURE EXCHANGE TRADED FUND , DATVEST MODIFIED CONSUMER
STAPLES EXCHANGE TRADED FUNDS and MORGAN & CO MADE IN ZIMBABWE remained
unchanged at $7.2507, $7.3000 and $6.7900 respectively. OLD MUTUAL TOP 10
ETF shed $0.3269 to $34.6731.

REAL ESTATE INVESTMENT TRUST 

TIGERE REAL ESTATE INVESTMENT 4RUST traded $4.9342 lower at $240.0658.-zse

Global Currencies & Equity Markets

South Africa

South African rand slips on weaker Chinese data

(Reuters) - The South African rand was weaker in early trade on Tuesday as
global growth concerns rose on weaker Chinese trade data and local worries
of meeting fiscal targets.

At 0701 GMT, the rand traded at 18.3550 against the dollar ZAR=D3, about
0.36% weaker than its previous close.

The dollar =USD last traded around 0.2% stronger against a basket of global
currencies.

The rand's rally last week on the back of improved risk sentiment was
"tempered somewhat by weaker Chinese trade data and a bounce in the Dollar,"
Andre Cilliers, currency strategist at TreasuryONE, said.

Ratings agency Fitch on Monday also raised concerns over South Africa's
rolling power cuts, rail freight challenges and ability to meet fiscal
targets announced in the mid-term budget last week.

The risk-sensitive rand, like most emerging market currencies, is
susceptible to changes in global factors such as U.S. monetary policy.

Federal Reserve Chairman Jerome Powell is due to speak on Wednesday and
Thursday, where the focus will be on whether he maintains the more dovish
tone struck after last week's policy meeting.

Locally, South Africa's net foreign reserves rose to $55.510 billion at the
end of October from $54.980 billion in September, central bank data showed
on Tuesday.

South Africa's benchmark 2030 government bond ZAR2030= was weaker in early
deals, with the yield up 3 basis points to 10.430%.

Nigeria

Naira falls to N1,120/$ at parallel market

The naira has commenced a downward spiral, falling to N1,120 per dollar at
the parallel market on Tuesday.

The figure represents a N95 or 9.27 percent depreciation compared to the
N1,025 it traded on Monday.

Parallel market traders put the buying price of the dollar at N1,100 and the
selling price at N1,120 - leaving a profit margin of N20.

Bureau De Change (BDC) operators in Lagos and Ogun states who spoke to
TheCable on Tuesday said there was a surge in demand for the foreign
currency in the parallel market.

"Today, there was high demand for dollars," a BDC operator said.

Meanwhile, at the investors and exporters (I&E) window, the local currency
depreciated by N60.89 or 7.53 percent against the dollar to close at N869.91
on Tuesday - from N809.02 on Monday. 

According to FMDQ Securities Exchange - a platform that oversees foreign
exchange trading in Nigeria - the greenback's highest rate for the day was
N1,100 and its lowest intra-day price was N700.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar bounces after sharp selloff, euro dented by weak data

(Reuters) - The U.S. dollar gained on Tuesday as a sharp selloff last week
was seen as overdone in the short-term, while the euro was dented by weak
German data and the Australian dollar slid after that country's central bank
raised interest rates but hinted the hike was the last of the current
tightening cycle. The greenback dropped last week after Federal Reserve
Chair Jerome Powell took a more dovish tone than expected at the conclusion
of the U.S. central bank's two-day policy meeting on Wednesday, when it left
interest rates unchanged. A softer-than-expected U.S. jobs report on Friday
added to the dollar's weakness. "This dollar bounce we're having yesterday
and today is really a correction to what happened last week, which I would
say was a one-two punch between the Fed and the jobs data," said Marc
Chandler, chief market strategist at Bannockburn Global Forex in New York.
The dollar index which tracks the U.S. unit against six main peers, was up
0.37% at 105.64. It fell 1.4% last week, its steepest weekly decline since
mid-July. "If you look at the percentage of currencies that have been down
versus the dollar over the last 26 weeks, it was approaching 100%, and data
also showed very long dollar positioning ... so we got a reversal of some of
those positions triggered by the jobs report," said Chester Ntonifor,
foreign exchange strategist at BCA Research. Traders are now pricing in only
a slim chance of a further interest rate increase by the Fed and see three
25-basis-point rate cuts by next November. As the U.S. economy slows, the
dollar may also see further weakness. Data next week is expected to show
softening consumer price inflation and a decline in retail sales, which
"feeds into the headwinds that people are talking about - the resumption of
student loans, higher interest rates biting the consumer," Chandler said,
"The dollar's rally, especially since July, was fueled by a divergence and
now we're going to get convergence - but not because of good news from
overseas, but more because we're getting worse news from the U.S.," he
added. This week investors will also focus on comments from Fed officials
including Powell, who is due to speak on Wednesday and Thursday. The U.S.
central bank may have to do more to bring inflation back down to its 2%
target given the recent run of resilient economic data, Minneapolis Fed
President Neel Kashkari said on Tuesday. Chicago Fed President Austan
Goolsbee also said the U.S. central bank has made significant inroads in its
battle to bring inflation back down to its 2% target. If that continues, he
added, attention will turn to how long to keep interest rates at current
levels. The euro fell 0.37% to $1.0677 after data showed a
larger-than-expected fall in German industrial production in September. "The
data comes after the German manufacturing PMI showed a deep contraction in
October and suggests that the sector remains under pressure, acting as a
drag on the German economy," said Fiona Cincotta, senior financial market
analyst at City Index. The Australian dollar fell sharply after the Reserve
Bank of Australia (RBA) raised interest rates by 25 basis points to combat
stubborn inflation, as expected, but indicated that further tightening was
unlikely. RBA's forward guidance was slightly watered down, which was
perceived as dovish, resulting in the Australian dollar quickly giving back
its gains after an initial knee-jerk rally, said Carol Kong, currency
strategist at Commonwealth Bank of Australia. The Australian currency was
last down 1.18% at $0.6415, and is on course for its biggest one-day
percentage decline in a month. The U.S. dollar gained 0.36% on the Japanese
yen to 150.59 yen, putting it back above the 150-level that has kept traders
on edge in recent weeks as they look for signs of intervention from Tokyo.
The yen softened to 151.74 per dollar last week, edging closer to October
2022 lows that spurred several rounds of dollar-selling intervention. 

======================================================== Currency bid prices
at 10:00AM (1500 GMT) Description RIC Last U.S. Close Pct Change YTD Pct
High Bid Low Bid Previous Change Session Dollar index 105.6400 105.2700
+0.37% 2.077% +105.7700 +105.2500 Euro/Dollar $1.0677 $1.0717 -0.37% -0.35%
+$1.0720 +$1.0665 Dollar/Yen 150.5850 150.0700 +0.36% +14.88% +150.6850
+149.9500 Euro/Yen 160.77 160.82 -0.03% +14.59% +161.0300 +160.4400
Dollar/Swiss 0.9008 0.8994 +0.23% -2.51% +0.9017 +0.8990 Sterling/Dollar
$1.2298 $1.2339 -0.33% +1.69% +$1.2346 +$1.2276 Dollar/Canadian 1.3754
1.3700 +0.40% +1.52% +1.3768 +1.3695 Aussie/Dollar $0.6415 $0.6489 -1.18%
-5.93% +$0.6501 +$0.6405 Euro/Swiss 0.9617 0.9638 -0.22% -2.81% +0.9647
+0.9612 Euro/Sterling 0.8680 0.8677 +0.03% -1.85% +0.8691 +0.8678 NZ $0.5924
$0.5964 -0.66% -6.70% +$0.5965 +$0.5913 Dollar/Dollar Dollar/Norway 11.1870
11.0600 +1.08% +13.91% +11.1970 +11.0720 Euro/Norway 11.9478 11.8429 +0.89%
+13.86% +11.9494 +11.8360 Dollar/Sweden 10.9429 10.9127 -0.04% +5.14%
+10.9633 +10.8796 Euro/Sweden 11.6845 11.6889 -0.04% +4.80% +11.7124
+11.6564 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold retreats as safe-haven rally fizzles, palladium hits 5-year low

Gold hit a two-week low on Tuesday as a safe-haven rally triggered by Middle
East tensions lost steam with the market focus turning to interest rate cues
from Federal Reserve officials, while palladium slid to a five-year low.

Spot gold  last fell 0.48% to $1,968.0988 per ounce. U.S. gold futures
settled down 0.8% at $1,973.50. Silver  fell 1.85% to $22.59.

The dollar gained 0.3%, also driving the retreat across metals.

Gold is holding at these levels on expectations the Fed is done raising
rates and "the sooner the first rate cut gets pushed in the forecast, the
better it is for gold", said Everett Millman, chief market analyst at
Gainesville Coins.

Lower interest rates boost the appeal of zero-yield bullion and the focus
will be on Chair Jerome Powell's speech on Wednesday and Thursday, and other
Fed officials due to speak this week.

"Everything would have to go right economically in order for gold to sell
off (in 2024)," Millman added.

Bullion hit a five-month high in October as a result of the Israel-Hamas
conflict. But recent declines suggest investors are becoming less concerned
about geopolitics, Marios Hadjikyriacos, investment analyst at forex broker
XM, wrote in a note.

Palladium fell 4.5% to $1,056.6919, after dropping as much as 5.1% to a
five-year low earlier. Platinum eased 1.72% to $889.58.

Both are used in car engine exhausts to reduce emissions.

"Substitution from palladium to platinum and more electric vehicles being
sold will likely push the metal into a structural surplus next year," UBS
said in a note, forecasting palladium prices at $1,050 in the second half of
2024.

Impala Platinum said it was offering voluntary job cuts at some South
African mines to cut costs amid falling platinum prices.

Traders also took stock of mixed economic data from key market China.

.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Counters trading under cautionary

CBZH

GetBucks

EcoCash

Padenga

Econet

RTG

Fidelity

TSL

FMHL

ZBFH

Invest Wisely!

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