Bulls n Bears Daily Market Commentary : 13 February 2025

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Bulls n Bears Daily Market Commentary : 13 February 2025

 

 	



 

 	


ZSE commentary 

 

Mid cap counters lift the market...

 

Mid cap counters anchored the market in mid-week trades, as the All-Share
Index gained 0.01% to 190.00pts while, Mid Cap Index was 0.12% firmer at
224.53pts. On the Contrary the Blue-Chip Index was 0.02% weaker at 186.07pts
while, the Agriculture Index lost a negligible 0.001% to 158.80pts. Leading
the gainers of the day was conglomerate Art that charged 14.79% to $0.3570
trailed by sugar processor Star Africa edged up 5.42% to $0.0285. Brick
processor Willdale added 0.84% to  close at $0.0214 while, Ariston edged up
0.23% to close pegged at $0.0594. Banking group FBC gained 0.13% to end at a
VWAP of $7.4895. Trading in the negative 20,892,300         330.72
category was retailer Ok Zimbabwe that parred off 3.18% to $0.3195 while,
Ecocash continued its negative path as it retreated 2.09% to $0.2550. Dairy
processor Dairibord shed 0.03% to $1.4990 while, seed technology group
SeedCo limited lost a similar 0.03% to $2.3350. TSL capped the top five
fallers list of the day as it slipped 0.03% to $1.9980.

         

Activity aggregates improved in the session as volumes traded surged  by
330.72%  to  20.89m  shares  while,  turnover         ballooned 566.88% to
$89.Slm. The duo of Econet and Delta drove the activity aggregates of the
day as it contributed a         combined 97.78% of the volume traded and
claimed 99.14%  of the turnover traded. In the ETF category, the Cass Saddle
ETF was 6.06% higher at 0.0700 while, Datvest MCS added a negligible 0.02%
to $0.0305. On the contrary the Morgan & Co       Multi Sector ETF dropped
0.03% to $1.995 on scrappy 4 shares.       In the REIT category, the Tigere
REIT was 0.26% up at $1.1500 as 19,153 units traded in the name.

 

 

VFEX retreats...

 

The VFEX market retreated in the penultimate session of the week as it
slipped 0.74% to 102.73pts. Zimplow led the worst performers list of the day
as it plummeted 13.04% to $0.0200 while, hotelier African plunged  11.14% to
$0.0391. Banking group First Capital gave up 0.20% to $0.0494 while,
conglomerate lnnscor eased 0.13% to $0.4534 . On the contrary,  fast  foods
producer  Simbisa  eked  out  0.16% to $0.3155 .

 

Volume of shares traded ballooned 788.66% to see 1.07m shares exchanged
mainly distributed into Zimplow that contributed 88.38% of the total traded.
Turnover traded increased by 379.35% to see $42,716.01 exchange hands, as
activity was mainly confined in lnnscor and Zimplow that claimed 46.72% and
44.25% respectively.

         

 <mailto:info at bulls.co.zw> 

 

South African

 

South African rand gains against weaker dollar on Ukraine peace talks

(Reuters) - South Africa's rand recouped some losses against a weaker dollar
early on Thursday, after news of Washington's aim to begin talks on ending
the Russia-Ukraine war.

At 0714 GMT, the rand traded at 18.455 against the dollar , about 0.4%
stronger than its previous close.

U.S. President Donald Trump said late on Wednesday that both Russian
President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy
expressed a desire for peace in separate phone calls with him.

The announcement overshadowed higher than expected U.S. consumer prices in
January, and pushed the dollar lower.

"While the USD is back on the defensive, the ZAR enjoys some respite and
will trade in a rangebound fashion until investors decide what clear
direction they have to work with," said ETM Analytics in a research note.

Some support for the rand also came from stronger gold prices, analysts
said, as South Africa is a major producer of the precious metal.

On Thursday, domestic investors will turn their attention towards December
mining production data and South African President Cyril Ramaphosa's address
to parliament.

South Africa's benchmark 2030 government bond was stronger, with the yield
down 2 basis points at 9.185%.

 

 

 

Nigeria

 

 

Naira continues appreciation against dollar at black market

 

The Naira continued its appreciation against the dollar at the parallel
foreign exchange market on Thursday.

 

According to a Bureau De Change operator in Wuse Zone 4, Abuja, Abubakar
Alhasan, the Naira gained N1,570 per dollar on Thursday from N1,575 on
Wednesday.

 

This showed that the Naira strengthened marginally by N5 against the dollar
compared to the N1,575 exchange rate on the previous day.

 

 

DAILY POST reports that this is the second consecutive time the Naira has
appreciated against the dollar at the black market this week.

 

In the last 48 hours, the Naira has gained N10 against the dollar.

 

Meanwhile, at the official market, the Central Bank of Nigeria has yet to
update FX data for Thursday, February 13, 2025, on their website as of the
time of filing this report. However, on Wednesday, the Naira closed at
N1,504.30 per dollar at the official window.

 

The development comes as Nigeria expects the release of January's 2025
inflation data in mid-February.

 

In December 2024, Nigeria's inflation rose at 34.80 percent.

 

 

 

 <mailto:info at bulls.co.zw> 

Global Markets

 

US Dollar Index holds position above 107.00 ahead of Retail Sales figures

The US Dollar Index (DXY), which tracks the US Dollar's (USD) performance
against six major currencies, remains stable after losses in the previous
session. At the time of writing, the DXY hovers around 107.00, while yields
on 2-year and 10-year US Treasury bonds stand at 4.31% and 4.53%,
respectively.

 

The US Dollar faces pressure following President Donald Trump's decision to
delay the implementation of reciprocal tariffs. Additionally, declining US
Treasury yields weigh on the Greenback, despite ongoing concerns about a
global trade war.

 

Investor attention now shifts to the upcoming US Retail Sales report, the
last key economic release of the week. Markets anticipate a slight monthly
decline of 0.1% in January, following a 0.4% increase in the previous
period.

 

 

Core PPI inflation in the United States (US) rose to 3.6% YoY in January,
exceeding the expected 3.3% but slightly below the revised 3.7% (previously
reported as 3.5%). This has reinforced expectations that the Federal Reserve
(Fed) will delay rate cuts until the second half of the year. Additionally,
persistently strong inflation could further support the outlook for the Fed
to keep interest rates at 4.25%-4.50% for an extended period.

 

In his semi-annual address to Congress, Fed Chair Jerome Powell stated that
policymakers "do not need to be in a hurry" to cut interest rates, citing a
strong labor market and robust economic growth. He also warned that
President Trump's tariff policies could drive prices higher, complicating
the Fed's ability to lower rates.

 

A Reuters poll of economists now suggests the Fed will delay interest rate
cuts until the next quarter due to rising inflation concerns. Many analysts
who had previously anticipated a March rate cut have revised their
forecasts, with the majority of respondents (surveyed between February 4-10)
now expecting at least one rate cut by June, though opinions on the exact
timing remain divided.

 

US Dollar FAQs

What is the US Dollar?

The US Dollar (USD) is the official currency of the United States of
America, and the 'de facto' currency of a significant number of other
countries where it is found in circulation alongside local notes. It is the
most heavily traded currency in the world, accounting for over 88% of all
global foreign exchange turnover, or an average of $6.6 trillion in
transactions per day, according to data from 2022. Following the second
world war, the USD took over from the British Pound as the world's reserve
currency. For most of its history, the US Dollar was backed by Gold, until
the Bretton Woods Agreement in 1971 when the Gold Standard went away.

 

 

 <mailto:info at bulls.co.zw> 

Gold holds gain as 

Philippines Gold Gold price gains momentum amid concerns over Trump's tariff
plans

Gold price (XAU/USD) extends its upside during the early European trading
hours on Friday. The growing concerns about US President Donald Trump's
tariff plans provide some support to the precious metal. Additionally, a
decline in US bond yields across the curve contributes to the yellow metal's
upside. 

 

However, the expectation that the US Federal Reserve (Fed) will stick to its
hawkish stance and hold the interest rate higher for longer could drag the
non-yielding yellow metal lower. Traders will keep an eye on the release of
US Retail Sales for January, which is due later on Friday. 

 

Gold price drifts higher amid fears of a global trade war

Trump unveiled a roadmap on Thursday for charging reciprocal tariffs against
every country that imposes duties on US imports. 

However, commerce and economics officials need to study reciprocal tariffs
against countries that place tariffs on US goods, and it will not be due
until April 1.

The US Producer Price Index (PPI) rose 3.5% YoY in January, followed by the
3.3% increase seen in December, according to the US Bureau of Labor
Statistics on Thursday. This reading came in above the market expectation of
3.2%.

The annual core PPI rose 3.6% YoY in January, compared to 3.7% (revised from
3.5%) prior, beating the estimation of 3.3%. 

The US Initial Jobless Claims for the week ending February 8 fell to 213K,
compared to the previous week of 220K (revised from 219K), below the market
consensus of 215K.  

Gold price's broader trend remains constructive, but overbought RSI warrants
caution for bulls

 

Technically, the gold price maintains a strong uptrend on the daily
timeframe as the price holds above the key 100-day Exponential Moving
Average (EMA). However, the 14-day Relative Strength Index (RSI) remains in
the overbought territory exceeding 70.0 and warrants some caution before
positioning for any further gains. 

 

The first upside barrier for the yellow metal emerges at the $2,942-$2,943
zone, representing the all-time peak touched on Tuesday. Extended gains
could see a rally to $2,955, the upper boundary of the Bollinger Band. A
decisive break above this level could pave the way to the $3,000
psychological level. 

 

 

 

 


 

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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