Bulls n Bears Daily Market Commentary : 07 April 2025

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Bulls n Bears Daily Market Commentary : 07 April 2025

 

 	



 

 	


ZSE commentary

 

ZSE falters in week opening session ...

 

 

fell 0.57% to 193.53pts . Contrastingly, the Agr iculture Index rose 0.01%
to 168.80pts while, the Mid Cap Index added 1.15% to 254.73pts. Mashonaland
Holdings led the laggards of the day on a 13.67% dip to $0.9500, followed by
retailer OKZim that  slipped 2.51% to $0.3900. Ecocash dropped  0.63% to
$0.1680 while, Zimre Holdings trimmed 0.17% to close at $0.3000. Beverage
giant Delta capped the worst performers of

 

Partially mitigating today's losses was FMP that charged 14.89% to $1.3040,
trailed by Ariston that ticked up 0.33% to $0.0568 . Telecoms  giant Econet
surged 0.25% to close at $3.0000 while, Zimre Holdings firmed  up 0.19% to
$0.2705. Tea producer Tanganda completed the top five risers of the day on a
0.04% uplift to $1.0509.

 

Activity aggregates were depressed in the session as volume traded declined
84.67% to 937,500 shares while,  turnover shed 82.86% to $3 .92m. Top volume
drivers of the day were Star Africa (30.71%), Delta (20.89%) and Econet
(18.78%). Delta and Econet anchored the value aggregate as they claimed
74.37% and 13.47% apiece. Cass Saddle ETF stepped up 11.11% to settle at
$0.1000 while, Morgan & Co Multi Sector ETF tumbled 0.37% to $1.3370.
Revitus REIT dropped 11.05% to end the day pegged at $0.4500. Tigere REIT
trimmed 0.04% to settle at $1.3370 after 323,628 exchanged hands in the
name..- efesecurities

 

 <mailto:info at bulls.co.zw> 

South  Africa

 

Rand collapses to new depths against pound

This has dealt a double blow to the rand, with persistent concerns over the
potential collapse of the Government of National Unity (GNU), adding
additional pressure on the currency.

 

South African assets have experienced a sharp decline over the past week,
with the JSE marking its biggest drop in a single day in five years on
Thursday, 3 April 2025.

 

On 2 April 2025, the National Assembly passed South Africa's contentious
Budget, including Finance Minister Godongwana's VAT increase proposal,
approved by 194 votes to 182. This move, alongside fears of the GNU's
collapse, has unsettled investors, signalling potential instability in South
Africa's investment climate.

 

On this day, the rand weakened against emerging market currencies, driven by
the Budget issues. Its decline intensified later as Trump imposed a 31%
tariff on South African imports, straining relations with the US, South
Africa's second-largest trading partner.

 

As a result, the rand continued to weaken against the pound on the morning
of 7 April, reaching R25.04 at 10:15 am, surpassing the previous peak of
R24.94 observed last week.

 

TreasuryONE's Andre Botha explained that the rand's particular weakness
against the pound was due to the combined impact of the Budget issues and
Trump's tariffs.

 

These events affected both the USD/ZAR and GBP/USD rates, with the US dollar
weakening, boosting the pound and exaggerating the rand's decline against
the pound, he said.

 

Trump's tariff plan continues to fuel market volatility, with investors
seeking stability in safe-haven currencies like the yen and franc.

 

 

 

 

Nigeria

 

Naira falls by 2.8% despite CBN's intervention in FX market

The naira on Monday fell by 2.8% against the dollar in the official foreign
exchange (FX) market, despite the intervention of the Central Bank of
Nigeria (CBN).

 

 

After trading yesterday, the naira depreciated by N45.21 as the dollar was
quoted at N1,612.23 compared to N1,567.02 quoted on Friday at the Nigeria
Foreign Exchange Market (NFEM), data from the CBN indicated.

 

The authorised currency dealers quoted the dollar at the highest rate of
N1,655 per dollar and the lowest rate of N1,590/$ on Monday.

 

Read also: Nigeria's debt jumps 48.6% in 2024 on naira devaluation

 

However, at the parallel market, also known as black market, the local
currency closed steadily at N1,565 on Monday.

 

On Friday, the apex bank injected a total of $197.71 million into the market
through authorised dealers, to enhance liquidity in the market.

 

 

The move was in line with its commitment to ensuring adequate liquidity and
supporting orderly market functioning.

 

 

This was disclosed in a statement signed by Omolara Omotunde Duke, director,
financial markets department. "This measured step aligns with the Bank's
broader objective of fostering a stable, transparent, and efficient foreign
exchange market."

 

The CBN said it noted recent movements in the foreign exchange market
between April 3 and 4, 2025, reflecting broader global macroeconomic shifts
currently affecting several emerging markets and developing economies.

 

These developments were as a result of the recent announcement of new import
tariffs by the United States government on imports from several economies,
which has triggered a period of adjustment across global markets. Crude oil
prices have also weakened, declining by over 12% to approximately US$65.50
per barrel, presenting new dynamics for oil-exporting countries such as
Nigeria.

 

 

"The CBN continues to monitor global and domestic market conditions and
remains confident in the resilience of Nigeria's foreign exchange framework,
which is designed to adjust appropriately to evolving fundamentals.

 

Read also: CBN opens dollar tap as Trump tariffs test naira

 

"All Authorised Dealers are reminded to adhere strictly to the principles
outlined in the Nigeria FX Market Code and to uphold the highest standards
in their dealings with clients and market counterparties," the statement
read.

 

 <mailto:info at bulls.co.zw> 

 

Global Markets

 

US dollar weakens against safe-haven Swiss franc as tariff worries ripple
through markets

(Reuters) - The U.S. dollar weakened against the safe-haven Swiss franc in
mixed trading on Monday as concerns about a global recession heightened
following U.S. President Donald Trump's sweeping tariffs on trading
partners.

 

Global stock markets were hit again on Monday, although the benchmark S&P
500 (.SPX), opens new tab was well off its lows in volatile trade, and
investors wagered the mounting risk of a deep economic downturn could lead
to a cut in U.S. interest rates as early as May that would erode the
dollar's yield advantage.

 

The dollar hit its lowest in six months against the Swiss franc and was last
down 0.44% at 0.85720 franc in choppy trading. .

The dollar reversed early losses against other safe-haven currencies,
standing 0.53% firmer against the yen in afternoon trade at 147.660, after
tumbling more than 1.4% earlier.

"Because tariffs are thought to be hurting world growth, those currencies
that seem to be more like risk-on currencies - the dollar bloc and the
Scandies - they are underperforming," said Marc Chandler, chief market
strategist at Bannockburn Global Forex in New York.

 

"On the other hand, the currencies that are typically safe-haven currencies
- like the Swiss franc and yen - are performing better."

The European Commission proposed counter-tariffs of 25% on a range of U.S.
goods on Monday in response to Trump's tariffs on steel and aluminium, a
document seen by Reuters showed.

The euro , which gained as much as 0.7% to $1.1050 earlier in the session,
was down 0.35% at $1.092800.

Sterling hit a one-month low at $1.27125 and was last down 1.3% against the
greenback.

The dollar index turned 0.6% higher after weakening in early trade.

While the dollar is typically known as a safe-haven asset, that status seems
to be eroding as uncertainty over tariffs and concern over their impact on
U.S. growth intensify.

"Although we're getting erratic weakness in foreign currencies like the
euro, sterling and even Canadian dollar, the underlying trend here is the
potential for loss of faith in the U.S. dollar as a reserve currency," said
Thierry Albert Wizman, global FX and rates strategist at Macquarie in New
York.

"If one has to consider the view one year out as opposed to one week out, it
still seems like it's tilted towards a weak U.S. dollar."

The risk-sensitive Australian and New Zealand dollars, as well as the
Swedish and Norwegian crowns, all dropped against the dollar.

The Aussie currency, often used as a proxy for risk appetite, tumbled to a
five-year low earlier in the session, but was last down 1.025% to $0.59835.7

The New Zealand dollar eased 1.08% to $0.55355, having slid more than 1%
earlier in the session.

Trump's tariff announcements wiped out nearly $6 trillion in value from U.S.
stocks last week.

TRADERS HOPE FOR RAPID U.S. RATE CUTS

More than 50 nations have approached the White House to begin trade talks.
China, which has struck back with countermeasures including extra levies of
34% on all U.S. goods, said on Saturday, "The market has spoken."

Traders have ramped up bets of more Federal Reserve rate cuts this year on
the view policymakers would have to ease more aggressively to shore up
growth in the world's largest economy.

Markets swung to imply an approximately 65% chance o77f a Fed cut in May,
and futures now point to about 100 basis points worth of rate cuts by
December this year .

Fed Chair Jerome Powell cautioned on Friday it was still too soon to know
what the right response from the central bank ought to be.

Reporting by Rae Wee in Singapore and Yadarisa Shabong in Bengaluru; Editing
by Himani Sarkar, Edwina Gibbs, Susan Fenton, Mark Heinrich, Rod Nickel and
Cynthia Osterman

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 <mailto:info at bulls.co.zw> 

 

Gold slips as investors opt for dollar amid escalating trade war concerns

(Reuters) - Gold prices fell more than 2% on Monday, with investors turning
to the dollar as a safe haven after sweeping U.S. tariffs raised fears of a
global recession.

 

Analysts, however, remained bullish on bullion given the challenging
economic conditions.

The Reuters Tariff Watch newsletter is your daily guide to the latest global
trade and tariff news. Sign up here.

Spot gold was down 2.4% to $2,963.19 an ounce as of 1:36 p.m. ET (1736 GMT),
after hitting a near four-week low of $2,955.89 earlier in the session. U.S.
gold futures settled 2% lower at $2,973.60.

 

 

A line chart titled "Spot gold price in USD per oz" that tracks the metric
over time.

"Gold retreats as investors turn to cash and other safe havens like the
Swiss Franc and the Japanese Yen amid market turmoil, creating a risk of
deeper corrections," said Nikos Tzabouras, senior market analyst at
Tradu.com.

The dollar rose against its rivals, moving away from a six-month low touched
last week. A stronger greenback makes gold more expensive for other currency
holders.

"We're getting a lot of stress in the gold market because of liquidity
concerns and margin covering by speculators," said Bart Melek, head of
commodity strategies at TD Securities.

 

Major stock indexes fell in volatile trading after U.S. President Donald
Trump warned of a 50% tariff on China if it doesn't drop its retaliatory
tariffs.

Meanwhile, the White House labelled reports of Trump considering a 90-day
pause on tariffs for all countries except China "fake news".

Futures now point to around 120 basis points' worth of interest rate cuts by
the U.S. Federal Reserve by December, with markets pricing in about a 37%
chance of a U.S. rate cut in May.

Lower rates increase the appeal of bullion as it yields no interest.

Gold, used as a safe investment during times of political and financial
uncertainty, scaled an all-time peak of $3,167.57 last Thursday, boosted by
strong safe-haven inflows amid geopolitical uncertainties and strong central
bank demand.

 

 

Spot silver rose 0.5% to $29.71 an ounce, recovering from a near seven-month
low hit earlier in the day.

Spot platinum fell 1% to $907.09, while palladium eased 0.9% to $903.19.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

 

 


 

INVESTORS DIARY 2025

 


Company

Event

Venue

Date & Time

 

 	

 

 

 

 

 

 	

 

 

 

 

 

 	

 

 

 

 

 

 	

Counters trading under cautionary

 

 

 

 	

 

 

 

 

 	

CBZH

GetBucks

EcoCash

 

 	

Padenga

Econet

RTG

 

 	

Fidelity

TSL

FMHL

 

 	

ZBFH

 

 

 

 	

Invest Wisely!

Bulls n Bears 

 

 

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DISCLAIMER: This report has been prepared by Bulls 'n Bears, a division of
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for guideline purposes only and sourced from third parties.

 

 	

 

 

 	


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79 993 5557 | +263 71 944 1674

 

 	

 

 

 	
							

 

 

 

 

 

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