Bulls n Bears Daily Market Commentary : 07 Jul 2025

Tue Jul 8 09:52:23 CAT 2025

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Bulls n Bears Daily Market Commentary : 07 Jul 2025

ZSE commentary

The ZSE market stretched losses into the new week to see the primary All
Share Index falling 0.32% to 196.46pts, while the Top 10 Index dropped 0.89%
to 190.62%. The Agriculture Index rose 0.05% to 158.79pts, as the Mid-Cap
climbed 1.43% to 241.16pts. He.adlining the laggards of the day was banking
group CBZ that shed 7.45% to $6.5000, followed by sugar refiner Star-Afric.a
that eased 6.70% to $0.0502. General Beltings lost 4.76% to $0.1000 while,
First Mutual Holdings slid 3.74% to $3.8500. Capping the top five losers for
the day was retailer OK Zimbabwe that trimmed 1.58% to close at $0.2805 on
waning demand. On the other hand, leading winriers of the day was property
concern First Mutual Properties that went up 13.53% to $1.5866. Ecocash
Holdings rebounded 2.98% to $0.1396 while, SeedCo Limited completed the
gainers of the day on a 0.52% uplift to settle at $2.4025 .

Overall, three counters traded in the positive against n.ine that lost
ground, to leave the market with a negative breadth of six..Activities
aggregates were depressed in the session as the volume traded retreated
86.20%  011  1.0lm  shares  traded while, turnover plunged 89.65% to $2.32m.
Zimre Holdings Limited and Delta drove the volume aggregates as the duo
accounted for a combined 93.98% of the outturn.  Delta emerged as the top
value driver claiming 85.72% of the total. Tigere REIT slumped 0.08% to
$1.3364 as 2,801 units exchanged. Datvest ETiF went up 1.13% to $0.0310 on
12,740 units. There was no foreign participation recorded in today's
session.

 <mailto:info at bulls.co.zw> 

South Africa

South African rand slumps after Trump's tariff threat on BRICS-aligned
countries

(Reuters) - South Africa's rand fell on Monday as markets reacted to U.S.
President Donald Trump's threat to impose additional tariffs on
BRICS-aligned countries, while also awaiting updates on country-specific
levies ahead of Washington's looming July 9 deadline.

Trump said on Sunday in a post on Truth Social that countries aligning
themselves with what he called the "anti-American policies" of BRICS will be
charged an extra 10% tariff, adding that there will be no exceptions to this
policy.

At 1144 GMT, the rand traded at 17.7450 against the dollar , down about 1%
from Friday's close and paring some of its recent gains.

South Africa, which is part of the BRICS group, said on Monday that it is
not anti-american and that the group of developing countries should be seen
as a push for "reformed multilateralism, nothing more".

"The additional 10% BRICS tariffs would add further drag to South Africa's
export competitiveness," said Annabel Bishop, Investec's chief economist. As
a result, she said, the rand is expected to remain volatile for the rest of
the month and early August.

Trump said the U.S. is close to finalising several trade pacts in the coming
days and will notify other countries of higher tariff rates by July 9, set
to take effect on August 1.

Trump imposed a 31% tax on U.S. imports from South Africa in April as part
of his global tariff policy and Pretoria has been trying to negotiate a
trade deal since May, when the U.S. leader hosted President Cyril Ramaphosa
for talks in the White House.

South Africa aims for a deal that would exempt some of its key exports from
the tariffs, including autos, auto parts, steel, and aluminium in exchange
for buying liquefied natural gas from the United States over a 10-year
period.

"SA still has a significant bargaining position if one focuses on the mining
industry and some of the rare earth minerals that the country can provide
over and above its position as the world's largest platinum producer," ETM
Analytics said in a research note.

The Johannesburg Stock Exchange's Top-40 index (.JTOPI), opens new tab was
last down 0.1%.

South Africa's benchmark 2035 government bond was weaker, with the yield up
9.5 basis points at 9.835%.

Nigeria

Naira appreciates on official, black markets 

The naira recorded an appreciation against the United States dollar across
both the official and parallel foreign exchange markets on Monday.

According to official data from the Central Bank of Nigeria, the naira
strengthened slightly to N1,528.33 on Monday, compared to N1,528.56 recorded
on Friday last week.

This reflects a marginal gain of N0.23 at the official market, signalling a
modest but positive movement in the currency's value.

Similarly, in the parallel market, commonly referred to as the black market,
the naira appreciated significantly, rising by N20 to exchange at N1,550 per
dollar on Monday, from N1,570 on Friday.

DAILY POST reports that this upward movement in the naira's exchange rate on
Monday follows its decline across both markets at the close of trading last
week.

 <mailto:info at bulls.co.zw> 

Global Market

Dollar rises after Trump announces Japan, South Korea tariffs

(Reuters) - The dollar rose sharply against other major currencies on
Monday, after U.S. President Donald Trump announced new tariffs set to go
into effect August 1 for a spate of countries including Japan and South
Korea.

Trump posted letters to the leaders of several countries on his social media
platform, saying that he would impose tariffs of 25% on Japan and South
Korea. He also sent letters to the leaders of Malaysia, Kazakhstan, Myanmar,
South Africa and Laos, all of which outlined tariffs close to the levels
previously announced for each country in April.

The dollar's rise was most pronounced against the yen, and was last up 1.09%
at 146.130.

The dollar was up 0.38% to 0.798 against the Swiss franc on Monday.

"There were some country-specific things that were already putting some of
these currencies on the back foot," said Brad Bechtel, global head of FX at
Jefferies. "But clearly, the news this morning out of the U.S. with Trump
and the tariffs is definitely hitting currencies other than the dollar, for
a change."

The euro slipped 0.57% to $1.172 having rallied over 13% so far this year.

Investors are concerned that Brussels might not be able to secure deals with
Washington ahead of the deadline as progress on agreements with the European
Union has been slow, despite multiple rounds of negotiations.

Most U.S. trade partners face the prospect of steeper duties at the end of
the 90-day moratorium on U.S. President Donald Trump's "Liberation Day"
reciprocal tariffs on Wednesday.

Trump has also threatened an additional 10% tariff on nations aligning with
what he deemed to be the "anti-American" policies of the BRICS emerging
economies.

The dollar index , which measures the currency against six major
counterparts, rose 0.517% to 97.467, reaching a one-week high.

The index extended gains from last week when data reflecting labour market
resilience pushed back expectations for imminent monetary policy easing by
the Federal Reserve.

Still, the index is close to a 3-1/2-year trough and has declined 10% so far
this year as investors questioned the safe-haven status of the U.S. currency
and reassessed earlier expectations that the U.S. could be spared in the
event of a global economic slowdown.

Sterling weakened 0.26% to $1.362, but stayed near its strongest level since
October 2021.

Currencies positively correlated to risk appetite, such as the Aussie dollar
and the New Zealand dollar lost 0.79% and 0.74%, respectively ahead of
monetary policy decisions in both countries in the coming two days.

The Reserve Bank of Australia is widely expected to cut the cash rate by
another quarter point on Tuesday, while New Zealand's central bank is
predicted to hold rates steady on Wednesday.

U.S. policy uncertainty weighing on the dollar "may not be as potent as in
early April, but we think this correlation still matters," Paul Mackel,
global head of FX research at HSBC said.

 <mailto:info at bulls.co.zw> 

Gold holds ground as investors assess new US tariff proposals

(Reuters) - Gold prices were little changed on Tuesday, caught between
safe-haven demand following U.S. President Donald Trump's new tariff
proposals for trading partners, including Japan and South Korea, and rising
Treasury yields that capped any upside momentum.

Spot gold eased 0.1% to $3,331.85 per ounce, as of 0612 GMT. U.S. gold
futures was steady at $3,341.80.

On Monday, Trump began telling trade partners that sharply higher U.S.
tariffs would start on August 1, marking a new phase in the trade war he
launched earlier this year, with tariffs on goods from Japan and South Korea
set at 25%.

The August 1 deadline for implementing the tariffs was firm, Trump said,
adding that he would consider extensions if countries made proposals.

"Reciprocal tariffs" were capped at 10% until July 9 to allow for
negotiations, but only agreements with Britain and Vietnam have been reached
so far.

"Traders seem relatively unfazed by Trump's tariff letters, and with
safe-haven demand largely contained at this point, gold is still just biding
its time, waiting for a topside breakout to potentially occur," KCM Trade
Chief Market Analyst Tim Waterer said.

The higher bond yields and resilience in Asian markets to tariff
developments are curbing gold's immediate upside potential, Waterer added.

The yield on benchmark U.S. 10-year notes hovered near a two-week high.
Higher yields increase the opportunity cost of holding non-yielding bullion.

Meanwhile, China warned the Trump administration against reigniting trade
tensions by restoring tariffs on its goods next month, and threatened to
retaliate against nations that strike deals with the U.S. to cut China out
of supply chains.

Trump's tariffs have stoked inflation fears, further complicating the
Federal Reserve's path to lower interest rates.

The minutes of the Fed's June meeting, due on Wednesday, should offer more
clues into the central bank's policy outlook.

Spot silver held steady at $36.75 per ounce, platinum fell 0.1% to $1,368.93
and palladium rose 0.2% to $1,112.88.

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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