Bulls n Bears Daily Market Commentary : 16 April 2025

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Bulls n Bears Daily Market Commentary : 16 April 2025

 

 	



 

 	


ZSE commentary

 

ZSE extends losses in penultimate session of the trading week ...

The ZSE market extended losses in the penultimate session of the trading
week as the primary All Share Index fell 0.07% to 198.24pts while, the
Agriculture Index lost 0.69% to 173.99pts. The Mid Cap Index eased 1.79% to
end at 246.26pts. Contrastingly,  the  Blue-Chip  Index  rose  0.52% to
191.58pts.

 

of the day after dropping 15.00% to trade at $0.4250 and $0.7905
respectively. Zimre Holdings tumbled 14.88% to close at $0.2302 while, ART
slipped 13.48% to $0.2600. Retailer

 

11.76% dip to $0.3000. Partially mitigating today's losses was banking group
CBZ that ticked up 4.03% to $5.7840, followed by telecoms giant Econet that
surged 2.01% to $2.7591. Ecocash added 0.72% to settle at $0.1505 while,
Nampak ticked up 0.04% to end the day pegged at $1.1500. The market closed
on a negative breadth of six as ten counters recorded gains against six that
faltered.

 

Activity aggregates faltered in the session as volume of shares traded
plunged 23.13% to 538,700 shares while, turnover shed 77.04% to $1.23m. Top
volume drivers of the day were Fidelity {37.13%), SeedCo {31.56%) and Zimre
{9.34%). Delta and SeedCo were the top value drivers of the day as they
contributed 44.44% and 33.77% respectively. Tigere  REIT trimmed 2.73% to
close at $1.1405 after a total of 89,671 units exchanged hands in the name.
No trades were recorded in the ETF category.

.efesecurities

 

 <mailto:info at bulls.co.zw> 

 

South Africa

 

South African rand gains as dollar slumps on tariff uncertainty

(Reuters) - South Africa's rand gained on Wednesday as the dollar was shaken
by market uncertainty around U.S. tariffs and local investors awaited news
on the future of the coalition government.

 

At 0757 GMT, the rand traded at 18.9425 against the U.S. dollar, about 0.4%
stronger than its previous close.

 

The dollar last traded about 0.7% weaker against a basket of currencies.

 

U.S. President Donald Trump's tariffs have escalated tensions between the
U.S. and China, South Africa's biggest trading partner, driving uncertainty
and hurting the greenback over recent weeks.

 

"There has been little change on the tariff front overnight, but the trade
war between the US and China continues to escalate," said Andre Cilliers,
currency strategist at TreasuryONE.

 

Domestic-focused investors will look to South Africa's business confidence
index for March at 0930 GMT and retail sales data for February at 1100 GMT,
in addition to developments over the country's budget impasse.

 

The two biggest parties in South Africa's government of national unity (GNU)
have been at odds over a proposed value-added tax hike on May 1.

 

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"The ZAR's near-term recovery has largely played out, but it could extend to
any more positive news from the GNU regarding a budget most parties can
support," said ETM Analytics in a research note.

 

On the Johannesburg Stock Exchange, the blue-chip Top-40 index was little
changed in early deals.

 

South Africa's benchmark 2030 government bond was slightly firmer, with the
yield down 1 basis points to 9.21%.

 

 

 

 

 

Nigeria

 

Naira records first deprecation against dollar across black, official
markets 

 

The naira depreciated against the dollar at both parallel and official
foreign exchange markets on Wednesday, for the first time since last week.

 

This comes as Bureau De Change Operators in Wuse Zone 2 confirmed to DAILY
POST that the naira weakened to N1,620 per dollar on Wednesday from N1,610
traded on Tuesday.

 

This means that the naira depreciated by N10 on a day-to-day basis when
compared to the N1,610 per dollar exchanged the previous day.

 

 

Similarly, the Nigeria's currency dropped slightly to N 1,599.79 per dollar
on Wednesday from N 1,598.95 traded on Tuesday, according to Central Bank of
Nigeria official exchange rate data.

 

This showed that it weakened marginally by 0.80 on a day-to-day basis.

 

This comes as the naira, in two different scenarios on Monday and Tuesday,
recorded appreciations against the dollar.

 

The last time it depreciated at both FX markets was seven days ago when
United States of America President Donald Trump announced a 90-day tariff
pause.

 

 

 

 <mailto:info at bulls.co.zw> 

 

Global Markets 

 

Dollar resumes fall as investors wait on trade talks

 

(Reuters) - The dollar resumed its fall on Wednesday with both safe-havens
and risk-sensitive currencies outperforming the greenback as traders waited
to see if U.S. President Donald Trump's administration reaches new trading
agreements with partners.

The dollar tumbled last week on concerns over the economic impact of new
tariffs and as investors shifted allocations overseas due to uncertainty on
the erratic implementation of the trade levies.

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

 

The United States is in discussions with countries including Japan, while
tensions between China and the U.S. are intensifying.

"We're in a little bit of an information vacuum now with this stalemate
between China and the U.S, and we're waiting to see what deals get struck
with other countries," said Brad Bechtel, global head of FX at Jefferies in
New York.

"There's some big countries that could potentially be announcing deals,
which then puts a framework around what the U.S. administration at least is
trying to do with tariffs," Bechtel said.

Trump said he will personally attend a meeting of Japanese and U.S. trade
officials on Wednesday. South Korean Finance Minister Choi Sang-mok will
hold a meeting with U.S. Treasury Secretary Scott Bessent next week to
discuss trade issues.

 

Vice President JD Vance said on Tuesday there is a good chance that the
United States and Britain will strike a "great agreement" on trade.

Any trade agreements with China and the European Union are expected to take
longer to reach.

Trump on Tuesday ordered a probe into potential new tariffs on all U.S.
critical mineral imports in an attempt to pressure industry leader China.

Federal Reserve Chair Jerome Powell said on Wednesday that U.S. economic
growth appears to be slowing, with consumer spending growing modestly, a
rush of imports to avoid tariffs likely to weigh on estimates of gross
domestic product, and sentiment souring.

"The Fed is waiting to see where things go before they make any type of
movement on rates, to see if inflation is going to be temporary or if it's
going to be a one-time thing, to see how long these tariffs last and whether
or not there's any kind of change to it," said Robert Pavlik, senior
portfolio manager at Dakota Wealth.

Powell also suggested that hopes the U.S. central bank will step in to tamp
down on market volatility are likely misplaced.

U.S. data on Wednesday showed U.S. retail sales surged in March as
households boosted purchases of motor vehicles ahead of tariffs.

The euro was last up 0.84% on the day at $1.1376, holding below a three-year
high of $1.1473 reached on Friday.

The dollar weakened 0.71% to 142.22 Japanese yen after earlier reaching
142.03, slipping slightly below Friday's low to hit the lowest exchange rate
since September 30.

Bechtel noted that volumes were declining ahead of the Good Friday holiday,
when most U.S. markets will be closed though foreign exchange will remain
open.

The dollar was last down 1% against the Swiss franc at 0.815 , just slightly
above Friday's 10-year low.

The franc has appreciated the most among G10 currencies since the April 2
tariff announcement, and the resulting disinflationary effect could push the
Swiss National Bank to bring rates back into negative territory.

 

The SNB often intervenes directly in markets to limit the franc's moves,
though given Washington's concern over such action, there would be risk of
blowback.

Market speculation that the SNB may not intervene could make traders feel
more confident about buying the franc, said Chris Turner, global head of
markets at ING.

"I'm sure the SNB would say that their hands aren't tied, but I think
investors might be second guessing that," he said.

The British pound was last down 0.07% at $1.3221 , after hitting a six-month
high of $1.3292 earlier.

The Canadian dollar gained 0.5% to C$1.39 per dollar after the Bank of
Canada held its key policy rate at 2.75%, its first pause after seven
consecutive cuts, and said it would be ready to act decisively if needed to
keep inflation under control.

The Australian dollar rose 0.35% at $0.6365 and earlier reached $0.6391, the
highest since February 24.

In cryptocurrencies, bitcoin was flat on the day at $83,989.

 

 

 <mailto:info at bulls.co.zw> 

 

Gold price soars to fresh record high as trade tensions sink US Dollar

Gold price extended its record streak for the third time in the week as the
Greenback weakened due to tensions between China and the US related to trade
policies. These tensions are increasing the appeal of safe-haven assets like
precious metals. At the time of writing, XAU/USD trades at $3,342, up more
than 3.50%.

 

The trade-war escalation turned sentiment sour as the US President Donald
Trump ordered an investigation to apply tariffs on rare earth imports,
escalating the dispute with China.

 

Bullion hit record highs on Monday and Wednesday, with the all-time high
(ATH) reaching $3,343. Meanwhile, the US Dollar Index (DXY), which tracks
the buck's performance against a basket of six currencies, dropped 0.83% to
99.17.

 

In the meantime, Fed Chair Powell shattered rate cut expectations by
stressing that the central bank must ensure tariffs don't trigger a more
persistent rise in inflation.

 

"Our obligation is to keep longer-term inflation expectations well anchored
and to make certain that a one-time increase in the price level does not
become an ongoing inflation problem," Powell said at the Economic Club of
Chicago.

 

Data-wise, US Retail Sales exceeded projections, compared to the previous
reading. US Industrial Production hinted that manufacturing activity
continued to slow down,

 

This week, Gold traders await housing data and Initial Jobless Claims.

 

Daily digest market movers: Gold price capitalizes gains on falling US
yields

The US 10-year Treasury yield tumbled almost six basis points to 4.281%. US
real yields fell three and a half bps to 2.111%, as shown by the US 10-year
Treasury Inflation-Protected Securities yields failing to cap Gold prices.

Fed Chair Powell revealed that a weakening economy and high inflation could
conflict with the central bank's two goals, making a stagflationary scenario
possible.

"We may find ourselves in the challenging scenario in which our dual-mandate
goals are in tension," he said. "If that were to occur, we would consider
how far the economy is from each goal, and the potentially different time
horizons over which those respective gaps would be anticipated to close."

Money market players had priced in 91 bps of easing by the Fed toward the
end of 2025. The first cut is expected in July.

Data-wise, US Retail Sales rose 1.4% MoM in March, beating the 1.3% forecast
and surging from February's 0.2%, boosted by strong auto sales. However, the
control group-used for GDP calculations-rose just 0.4%, down from 1.3% and
missing the 0.6% estimate.

The Federal Reserve announced that Industrial Production fell 0.3% in March,
following a 0.8% increase in February.

XAU/USD technical outlook: Gold price poised to test new record highs at
$3,400

Gold price uptrend remains in place with buyers eyeing the $3,350 figure. A
breach of the latter will expose the $3,400 figure, followed by key
psychological levels like $3,450 and $3,500.

 

Conversely if XAU/USD falls below $3,300, the first support would be the
April 16 low of $3,229, followed by the $3,200 figure.

 

 

 

 

 

 

 

 


 

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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