Bulls n Bears Daily Market Commentary : 11 February 2025

Wed Feb 12 09:54:28 CAT 2025

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Bulls n Bears Daily Market Commentary : 11 February 2025

ZSE commentary 

Heavies weigh down the market  in Tuesday's trades...

Heavy cap counters weighed down the market in Tuesday's

The Blue-chip Index faltered 0.19% to 188.36pts mainly weighed down by
Ecocash and CBZ. The Agriculture Index advanced 0.60% to close at 171.21pts
while, the Mid Cap Index. negative category was Zimre Holdings that
retreated 2.28% to $0.2699  trailed  by  bankers  Ecocash  that  shed  2.04%
to $0.2645 . Banking giant CBZ trimmed 2.01% to end pegged $7.7900 while,
construction group Masimba dropped 0.63% to settle at a VWAP of $3.1795 .
Dairy processor Dairibord tumbled 0.59% to $1.6490  as it capped the top
five worst performers list of the day. Partially offsetting today's losses
was  sugar  processor  Star  Africa  that  ticked  up  8.61% to

$0.0273 while, SeedCo Limited advanced 7.67% to end at a VWAP of $2.5357.
Telecommunications giant Econet eked out 0.35% to close at $2.5104. Bankers
NMB added 0.33% to close the day pegged at $3 .7000 while, General Beltings
eked out 0.14% to $0.0705 . 

Activity aggregates improved in the session as volumes traded ballooned 699
.84% to 5.03m shares while, turnover ballooned 1,629.58% to see 19.58m
shares exchange hands. The trio of Econet, SeedCo Limited and Delta drove
the activity aggregates of the day as they contributed a combined 90.30% of
the volume traded and 91.11% of the value traded. The Cass Saddle ETF was
14.78% higher at $0.0660 as 5,000 units traded. Inthe REIT category, the
Tigere REIT was 1.81% weaker at $1.0233.

 <mailto:info at bulls.co.zw> 

South Africa

South African rand stable after Powell's cautious comments; US inflation in
focus

(Reuters) - South Africa's rand was steady in early trade on Wednesday, as
markets processed U.S. Federal Reserve Chair Jerome Powell's comments on
interest rate cuts and braced for an inflation reading from the world's
biggest economy later in the day.

At 0653 GMT, the rand traded at 18.5125 against the U.S. dollar , near its
Tuesday closing level of 18.5075.

Powell told the U.S. Congress on Tuesday that the Fed was not in a hurry to
cut interest rates and a reduction would be considered only if inflation
eases or the job market weakens.

Markets will now look to January's U.S. consumer price index print at 1330
GMT.

Like other risk-sensitive currencies, the rand often takes cues from global
drivers such as U.S. monetary policy in the absence of major local drivers.

South Africa's benchmark 2030 government bond was weaker in early deals,
with the yield up 1 basis points at 9.16%.

Zambia

Bank of Zambia to Introduce New Kwacha Banknotes and Coins

The Bank of Zambia (BoZ) will on March 31, 2025, introduce new banknotes for
the local currency.

The new currency will see the introduction of 500 and 200 kwacha notes.

The coins will include 5 kwacha, 2 kwacha, and 1 kwacha, as well as 50
ngwee, 10 ngwee, and 5 ngwee.

BoZ Governor Denny Kalyalya says the alpha code for ZMW, the numeric code
967, and the currency symbol K, as well as the value, will remain unchanged.

Dr. Kalyalya has explained that the design of the new currency draws
inspiration from the country's rich heritage, featuring elements that
celebrate the unique flora and fauna, and breathtaking waterfalls.

This is according to a statement issued by the Bank of Zambia on their
website, monitored by ZNBC News in Lusaka today.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar falls as tariff concerns ease, Fed's Powell stays patient on rate
cuts

(Reuters) - The U.S. dollar fell on Tuesday as Federal Reserve Chair Jerome
Powell said the U.S. central bank was in no rush to cut its short-term
interest rate again and as traders waited on more concrete information
regarding potential trade tariffs by U.S. President Donald Trump.

Powell said in testimony before the Senate Banking, Housing and Urban
Affairs Committee that the view on rates reflected the U.S. economy being
"strong overall," with low unemployment and inflation that remains above the
Fed's 2% target. The comments were largely expected by traders.

He also told lawmakers the argument for free trade still makes sense but
added that it was not the role of the Fed to comment on tariff or trade
policy but to react to how it impacts the economy.

"He's trying to be very, very, very conservative in his commentary and not
spook anybody," said Helen Given, FX trader at Monex USA in Washington.

Traders are becoming more immune to news around potential tariffs, which
have unnerved investors on concerns about how they may impact inflation and
growth.

"We've seen a lot of volatility come off of tariff headlines in the last two
weeks," said Given. "What we're seeing now is that those headlines and those
announcements are not necessarily an indication that these tariffs are
actually going to be levied, at least not at the time that we think that
they might be. So, everyone is just in a wait and see mode."

Futures priced in 36 basis points worth of Fed rate cuts by the year-end ,
little changed from before Powell's comments, which implies one 25-bp cut
and only a partial chance of a second.

Powell will also testify before the House Financial Services Committee on
Wednesday.

Consumer price data for January due on Wednesday is this week's main U.S.
economic release and is expected to show inflation remained sticky during
the month.

The U.S. dollar index was last down 0.37% on the day at 107.96.

Tariffs are likely to remain a key focus for traders on any signs that trade
tensions are intensifying.

"The threat of more U.S. tariffs remains, also against the European Union.
Retaliation could even lead to a tail risk scenario of a global trade war,"
said Athanasios Vamvakidis, global head of forex research at BofA.

"Even if the worst is avoided, we are concerned that prolonged uncertainty
will have negative implications for the global economy," he added.

Trump on Monday said he would announce plans to impose reciprocal tariffs on
other countries over the next two days, doubling down on comments he made on
Sunday.

On Sunday Trump said he would introduce new 25% tariffs on all steel and
aluminum imports into the U.S., on top of existing metals duties.

The European Union said it would respond with "firm and proportionate
countermeasures".

The euro was last up 0.49% at $1.0357.

The Canadian dollar strengthened 0.14% versus the greenback to C$1.43 per
dollar, bouncing back from earlier losses.

Canada, Brazil, Mexico, South Korea and Vietnam are the biggest sellers of
steel into the U.S., according to American Iron and Steel Institute data,
while Canada is the dominant supplier of imported aluminum.

The Japanese yen weakened 0.3% against the greenback to 152.45 per dollar.
It hit 150.93 on Friday, its highest since December 10.

The Australian dollar rose 0.29% versus the U.S. currency to $0.6293.

Australian Prime Minister Anthony Albanese said on Tuesday Trump has agreed
to consider exempting Australia from his steel and aluminum tariffs, in what
Albanese called a constructive phone call with the U.S. president.

In cryptocurrencies, bitcoin fell 2.26% to $95,204.76.

 <mailto:info at bulls.co.zw> 

Gold deliveries jump 32pc in January

ZIMBABWE'S gold deliveries surged by 32 percent to 3 134 tonnes in January
2025, compared to the same period last year,  with artisanal small-scale
miners accounting for 70 percent of total deliveries.

Latest data from Fidelity Printers and Refiners, the country's sole licenced
buyer of the yellow metal, indicates that in the same period last year, gold
deliveries were 2,375 tonnes.

Artisanal and small-scale miners continued to lead in deliveries at 2 265
tonnes while large-scale miners accounted for 868,8 kilogrammes compared to
1 108 tonnes in January last year.

In the corresponding period last year, artisanal and small-scale miners
delivered 1 333 tonnes.

Zimbabwe Miners Federation (ZMF) chief executive officer (CEO) Mr Wellington
Takavarasha, whose organisation represents the interest of artisanal and
small-scale miners said: "Gold deliveries by artisanal and small-scale
miners have gone up by 70 percent in January this year compared to the same
period last year.

"That surge actually points to the economic potential and the significance
of the small-scale mining sector - how important the sector is becoming in
the mainstream economy.

"And this trend then calls for the Government to continue implementing the
formalisation and regularisation of the artisanal miners which will unlock
the potential value of the gold production by the small-scale miners."

Mr Takavarasha said despite the incessant rains that the country received
last month compared to the previous years, the surge in gold output by
artisanal and small-scale miners was on account of continued support by the
Government as well as its sustained gold mobilisation efforts.

"Authorities have been going out on awareness campaigns rather than
criminalising the miners and so that's what actually can be attributed to
continued (growth of) deliveries to FGR," he said.

The Ministry of Mines and Mining Development has been working hand in glove
with ZMF and its members to encourage deliveries to FGR.

This also comes as three more gold-buying centres have been established by
FGR in major gold-producing areas namely Mberengwa, Ngundu and Shurugwi.

At a strategic meeting organised by ZMF in Harare recently, FGR general
manager Mr Peter Magaramombe said his organisation would this year continue
implementing various strategies to boost deliveries.

These include the establishment of one-stop shop custom elution services
centres across the country to boost output by artisanal and small-scale
miners.

"As FGR, we have come up with some strategies in order to continue to
support the artisanal and small-scale mining sector.

"In the year 2025, we are going to support more and more of our artisanal
and small-scale miners so that they increase gold production and ultimately
increase gold deliveries to FGR.

"We are talking in terms of support through things like compressors,
generators, hammer mills, headgears, and consumables.

"Another strategy is to come up with custom elution service centres -
Fidelity is going to establish one-stop custom elution service centres and
for starters, we are going to start with Mberengwa, Kadoma and Makaha in
Mutoko.

"The number of these custom elution service centres will be increased as the
year progresses," he said at the strategic meeting.

Some of the services to be offered at the custom elution facilities include
assaying, chemical supply, elution as well as gold-buying.

This year, FGR plans to increase the number of gold-buying centres in the
country to 25 from 20 in 2024. In 2024, the country's gold output improved
by 21,2 percent to a record 36,4 tonnes from which artisanal and small-scale
miners delivered 23,7 tonnes to FGR - the exclusive buyer of the gold
produced in Zimbabwe.

Zimbabwe is targeting 40 tonnes of the yellow metal this year. Gold is a key
mineral which, alongside other precious minerals and the United States
dollar, has been used to back Zimbabwe Gold (ZiG), which is the country's
new medium of exchange introduced by monetary authorities in April last
year.

The Reserve Bank of Zimbabwe introduced the ZiG as part of a broader scope
to address exchange rate volatility, curtail inflation, and restore
macro-economic stability.

Reserves supporting the ZiG, including foreign currency and gold have
increased to US$533 million since President Mnangagwa gave a directive
requiring 50 percent of mineral royalties to be paid in kind.

The reserves, which include 2,67 tonnes of gold valued at US$228 million
held in the RBZ's vaults, represent more than three times the amount of
local currency in circulation, a development expected to anchor currency and
price stability.

When ZiG was launched, the central bank held about 1,5 tonnes of the
bullion.

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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