Bulls n Bears Daily Market Commentary : 27 January 2025

Tue Jan 28 08:06:03 CAT 2025

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Bulls n Bears Daily Market Commentary : 27 January 2025

ZSE commentary 

ZSE slips into the red...

The market commenced the new week in red as the primary All Share Index lost 1.40% to 203.13pts while, the Blue-Chip Index fell 1.94% to 202 .37pts. The Agriculture  Index eased 0.08% to 177.24pts while, the Mid Cap Index rose 0.50% to 229.52pt. Star Africa led the laggards of the day on a 17.01% retreat to $0.0200, followed by Mashonaland Holdings that dropped 5.56% to $1.7000 . Banking group FBC slipped 5.06% to close at $9 .0000 while, newly owned fintech group Ecocash parred off 3.16% to  $0.2900. Sugar processors Hippo completed the top five laggards of the day on a 2.60% slid to end pegged at $7 .5000. Trading in the positive was ART that jumped 14.98% to $0.2415 while, tea producer Tanganda firmed up 7.01% to $1.9188. Retailer Ok Zimbabwe charged 2.19% to settle at $0.3078 as telecoms giant Econet firmed up 0.79% to end the day pegged at $2.9365. The market closed with a negative breadth of three as seven counters recorded losses against four that faltered.

Activity aggregates declined in the session as volume traded fell 76.24% to 6.32m shares while, turnover dropped 74.45% to  $5.93m.  Top  volume  drivers  of  the  day  were  OKZIM {52.26%), Zimre Holdings {31.51%) and Econet {13.40%) . The trio of Econet, Delta and OKZIM highlighted the total value traded of the day after contributing 41.91%, 34.07% and 17.13% respectively. Morgan &Co Multi Sector ETF was stable at $1.9000 as 300 units exchanged hands while, 100 units traded in Datvest ETF at $0.0300. Tigere REIT trimmed 0.01% to end the day pegged at $$1.1925 after a total of 5,201 units exchanged hands in the name.

.- efesecrities

 <mailto:info at bulls.co.zw> 

South South Africa

South African rand weakens ahead of data-filled week

(Reuters) - South Africa's rand slipped on Monday ahead of a week packed with domestic and international data releases, with eyes set on interest rate decisions from the Federal Reserve and the South African Reserve Bank (SARB).

At 1424 GMT, the rand traded at 18.72 against the dollar , about 1.7% weaker than its previous close.

The dollar last traded about 0.5% weaker against a basket of currencies as traders pondered the ramifications of new U.S. President Donald Trump's tariff plans.

Global investor focus will be on the Fed this week, which will conclude its two-day meeting on Wednesday. It is widely expected to hold interest rates steady.

Domestic investors will then shift their attention towards the SARB's first interest rate decision for 2025 on Thursday. Economists polled by Reuters forecast a 25 basis point cut to 7.50%.

"Despite soft inflation, uncertainties around fiscal policy, Eskom tariff hikes, Trump's global economic stance could push the SARB to adopt a cautious approach," said Andre Cilliers, currency strategist at TreasuryONE.

On the stock market, the Top-40 (.JTOPI), opens new tab index was little changed.

South Africa's benchmark 2030 government bond was weaker, with the yield up 14 basis points to 9.145%.

Nigeria

Naira Dips to N1533, Exchange Rates Gap Settle at N112

The naira depreciated against the US dollar in official foreign exchange (FX) market as demand pressures increased after huge rally posted last week. The naira depreciated by 0.02% in the official window, closing at ₦1,533.63 per US dollar as market noticed absence of central bank interventions.

The Nigerian Foreign Exchange Market (NFEM) exhibited enhanced liquidity, with transactions fluctuating between N1,530 and N1,537 per greenback. The naira gained ₦10.00 to close at N1,645.00 in the parallel market as banks continue to offer customers opportunity to purchase foreign currency needed for business, personal travel allowance and well as other miscellaneous FX payment demand.

The gap between official and parallel market rates reached N112 on each dollar, enhancing desire for speculative currency trade amidst ongoing FX reforms. The naira had gained N16 last week, supported by the Apex Bank FX intervention sales which bolstered US dollar liquidity in the official window.

The CBN intervention however cracked the country’s foreign reserves which fell below $40 billion amidst concerns in the oil market.Oil prices declined by about 3%, reaching a two-week low, primarily due to losses in technology and energy sectors on Wall Street.  This downturn followed news of Tariff contest between the United States and Colombia.

Brent crude traded around $76.50 per barrel, while WTI was priced around $72.60. Similarly, gold prices experienced a drop of over 1%, pulling back from near-record highs observed in the previous session.

This decline is attributed to investors liquidating their bullion positions amid a broader market sell-off triggered by heightened interest in DeepSeek’s AI innovations. Gold traded around $2,736.75 per ounce. #Naira Dips to N1533, Exchange Rates Gap Settle at N112 Nigerian Exchange Rises by N795bn as Banking, Consumer Stock Rally

 <mailto:info at bulls.co.zw> 

Global Markets

US Dollar lost further ground with Fed around the corner

The Dollar Index remains under heavy pressure, slipping below 108.00 and testing the critical 107.00 level.

New Home Sales in December beat estimates, rising to 698,000 units versus expectations of 670,000.

President Trump’s tariff threats on Colombia imports and Wednesday’s Federal Reserve decision add uncertainty to the Dollar’s trajectory.

The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against a basket of currencies, continues to slide on Monday, breaking below the psychological 108.00 mark. Concerns over AI-related market valuation, combined with geopolitical tensions from President Donald Trump’s tariff threats against Colombia, contribute to bearish sentiment. Economic data highlights some resilience in the United States (US) economy, but the Dollar remains under pressure ahead of the Federal Reserve’s (Fed) Wednesday decision on interest rates.

Daily digest market movers: US Dollar under pressure amid Fed anticipation and geopolitical tensions

The Chicago Fed National Activity Index for December rebounded to 0.15 from -0.01 in November, reflecting stronger economic activity.

December New Home Sales surged to 698,000 units, surpassing the forecast of 670,000 and November's 674,000 figure.

President Trump’s proposal to impose 50% tariffs on Colombian imports over deportation disputes rattles trade markets and global sentiment.

Markets will look for further clues on the incoming president’s plans on tariffs on its North American neighbors.

Federal Reserve’s Wednesday meeting looms large; markets are watching closely for updates on rate decisions and economic outlook with a hold priced in.

Both the statement and Chair Jerome Powell’s tone will be closely looked upon by the markets.

DXY technical outlook: Bearish momentum builds further

The US Dollar Index remains below 108.00, showing persistent downward momentum. The Relative Strength Index (RSI) continues to linger under the neutral 50 mark, indicating weak relative strength. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram deepens in the red, signaling intensifying bearish pressure. Although the index is testing oversold conditions, the downside risks remain, with the potential to breach 107.00. A corrective bounce could occur if the movement becomes overstretched, but recovery beyond 108.50 appears challenging unless sentiment shifts significantly. For now, the path of least resistance points further downward.

 <mailto:info at bulls.co.zw> 

Philippines Gold price today: Gold steadies, according to FXStreet data

Gold prices remained broadly unchanged in Philippines on Tuesday, according to data compiled by FXStreet.

The price for Gold stood at 5,157.83 Philippine Pesos (PHP) per gram, broadly stable compared with the PHP 5,158.40 it cost on Monday.

The price for Gold was broadly steady at PHP 60,159.48 per tola from PHP 60,166.50 per tola a day earlier.

Unit measure         Gold Price in PHP

1 Gram        5,157.83

10 Grams     51,577.93

Tola   60,159.48

Troy Ounce  160,425.40

FXStreet calculates Gold prices in Philippines by adapting international prices (USD/PHP) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.

INVESTORS DIARY 2025

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 Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from sources believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and sourced from third parties.

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