Bulls n Bears Daily Market Commentary : 09 Jul 2025

Thu Jul 10 09:57:41 CAT 2025

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Bulls n Bears Daily Market Commentary : 09 Jul 2025

ZSE commentary

ZSE declines for the sixth consecutive session... 

The ZSE market declined for the sixth consecutive session as the All Share slid 0.02% to 196.34pts. The ZSE Top 10 Index shed 0.13% to 190.39pts while, the Agriculture Index retreated 2.23% to 153.66pts. Contrastingly, the Mid-Cap rose 0.29% to 241.51pts. ART headlined the fallers of the day as it succumbed 14.91% to $0.1455. Hippo plummeted 14.74% to $4.0030. Ariston dropped 12.50% to $0.0350 while, beverages giant Delta slipped 0.21% to settle at $13.1721. Dairiboard completed the shakers of the day on a 0.20% fall to $1.5100.

The risers of the day were led by Zimre Holdings that garnered 12.39% to $0.2484. Hospitality group RTG jumped 7.88% to $0.6500 while, General Beltings ticked up 0.50% to $0.1005. Star Africa went up 0.05% to $0.0502 as telecommunications giant Econet added 0.01% to $3.8002.

Econet, Hippo and Star Africa claimed a combined 92.16% of the volume aggregate. Value drivers of the day were Econet, Hippo and Delta that claimed a shared 99.48% of the aggregate. Activity aggregates were depressed as volume plunged 58.50% to 1.35m shares while, turnover dropped 56.50% to $4.90m. The Tigere REIT ticked up 0.92% to $1.3478 with 10,753 units exchanging hands. Morgan & Co ETF fell 0.47% to $2.1400 on 305 units while, Datvest ETF remained stable at $0.0310 on 9,500 units.

 <mailto:info at bulls.co.zw> 

South Africa

South Africa’s rand and stocks slip as lower commodity prices weigh

(Reuters) – South Africa’s commodity-backed currency and stocks weakened on Wednesday, with investor focus on precious metal prices that have been on the back foot after U.S. President Donald Trump’s latest tariff threats.

On Tuesday, Trump said he would impose a 50% tariff on copper imports, hoping to boost U.S. production of a metal critical to electric vehicles, military hardware, power grids and many consumer goods.

At 1218 GMT, the rand traded at 17.8250 against the dollar, down roughly 0.2% on Tuesday’s close.

South Africa is a major producer of minerals and precious metals and investors in its rand, like those in other commodity-linked currencies, will be closely tracking developments from Washington.

Prices of spot gold, platinum, palladium and copper outside the U.S. fell sharply on Wednesday.

“Although South Africa produces relatively little copper and therefore has minimal direct exposure, a potential U.S. copper tariff would weigh on commodity-exporting emerging economies more broadly,” said Roy Topol, portfolio manager at Cratos Asset Management.

The Johannesburg Stock Exchange’s Top-40 index was last down 0.2%, hurt partly by falls in shares of mining companies.

Shares of heavyweights Anglo American and Glencore were both down 2%, which Topol attributed to their significant exposure to copper.

Shares of gold miners Harmony Gold and Gold Fields dropped 1%.

Compounding pressure on the already risk-sensitive rand is the country’s attempts to negotiate a trade deal with the United States before an extended deadline of August 1, after which it faces a 30% trade tariff on its exports to the U.S.

Trump also reiterated on Tuesday his threat of 10% tariffs on the BRICS bloc, which includes South Africa.

South Africa’s benchmark 2035 government bond was flat, with the yield up half a basis point at 9.9%.

Nigeria

Naira Strengthens in Official Market, Closes at N1,522/$1

The naira strengthened in the official market on Wednesday, closing at N1,521/$1, a 0.46% improvement from its last close of N1,539/$1 on Tuesday.

According to data from the Nigerian Foreign Exchange Market (NFEM), the naira fluctuated between N1,520/$1 and N1,530/$1 during the official trading hours on Wednesday.

Its movement in the market showed a significant improvement from the official rate of N1,529/$1 it has held since the beginning of the week.

The currency strengthened against major foreign currencies in the parallel market, building on its trajectory in the official market.

Appreciating to N1,540/$1 from its prior close of N1,555/$1, naira maintained its ground against the British pound, closing at N2,135/£1, same as its previous close.

Similarly, against the euro, it appreciated N1,785/€1 from its prior rate of N1,790/€1.

The naira’s improvement in the foreign exchange market after holding steady for three consecutive days reflects the impact of sustained Central Bank interventions and improved forex liquidity. While the gain may seem modest, it signals growing market confidence in ongoing monetary reforms.

 <mailto:info at bulls.co.zw> 

Markets

US Stock Futures, Dollar Retreat on Trade Jitters: Markets Wrap

(Bloomberg) — US equity-index futures edged down along with the dollar after President Donald Trump dialed-up trade tensions once again with a 50% tariff on copper and issued a new round of letters imposing higher levies on countries.

Contracts for the S&P 500 index fell 0.3% and a gauge of the dollar dipped by 0.1% Thursday. European stock futures added 0.2% while Asian shares were flat. Bitcoin held near a record high it hit on Wednesday. Earlier, Brazilian assets plunged after Trump announced new tariff letters, including imposing 50% levy on goods from the country. US Treasuries steadied while a Japanese bond auction went off without a spectacle.

Copper prices moved higher after Trump said the US would begin levying a 50% tariff on copper imports from Aug. 1, confirming a move, which will hurt producers who rely on the industrial material. Copper futures on the London Metal Exchange — the global benchmark — gained 0.7% to $9,696 a ton, while contracts on Comex rose around 2.5%.

“Latest tariff news continues to look like further inflationary acts of self-harm to the US economy, which lends themselves to a continuation of the ‘sell American’ theme,” said Ray Attrill, head of FX strategy at National Australia Bank in Sydney. 

Trump has signaled a renewed determination to push ahead with his plans to heavily tax foreign imports after pausing his so-called ‘reciprocal’ tariffs until July 9. Even so, investors have been piling back into stocks – the S&P 500 hit a record last week – as traders brush off fears that the levies would lead to a meaningful slowdown for the global economy or company earnings. 

Global producers have raced to get ahead of Trump’s planned copper levies, including in recent days shifting deliveries to Hawaii and Puerto Rico to cut shipment times. 

Investors bearish on US assets had sold the dollar as part of the ‘Sell America’ trade. A gauge of the currency has declined 8.7% this year.

“The selloff in the dollar in response to the copper tariff announcement suggests the sell America narrative is still intact, at least in the currency markets,” said Carol Kong, currency strategist at Commonwealth Bank of Australia. “Unless the Trump administration returns to more conventional policy and policy delivery, the sell America narrative can continue to weigh on the dollar for longer.”

Trump also said Wednesday he would levy a 30% rate on Algeria, Libya, Iraq and Sri Lanka, with 25% duties on products from Brunei and Moldova and a 20% rate on goods from the Philippines. The levies were largely in line with rates Trump had initially announced in April against those countries, though Iraq’s duties are down from 39% and Sri Lanka’s reduced from 44%.

Brazil’s 50% rate marked one of the highest levies announced so far, and is set to hit in August. Trump cited the treatment of former President Jair Bolsonaro in his letter to the nation, calling on authorities to drop charges against him over an alleged coup attempt. Brazil will respond to the US using its reciprocity law, President Luiz Inacio Lula da Silva said in response.

To be sure, even with the recent increase in tariff angst, stocks have run up. The MSCI All Country World Index hit a record last week and the S&P 500 closed Wednesday near the record achieved last week.

“At the moment the market is not roiled because it’s looking through and it’s not believing that the tariffs are final,” said Nadia Grant, head of global equity at BNP Paribas Asset Management.

In China, a gauge of property shares posted its biggest gain in nearly nine months, fueled by speculation a high-level meeting will be held next week to help revive the struggling sector. 

Demand at a Japanese bond auction was lower as an upcoming election highlights the likelihood that the nation’s sovereign debt will keep rising. 

The Ministry of Finance has adjusted its issuance to reduce the amount of longer-maturity bonds it sells, which has shown some signs of curbing bond-market volatility. Yet investors are concerned about the market impact of rising debt levels, which are in the spotlight as politicians seek to woo voters with more government spending or tax cuts ahead of an election of the Upper House later this month.

Meanwhile, Federal Reserve policymakers are increasingly divided over the outlook for interest rates because of differing expectations for how tariffs might affect inflation. That keeps alive the potential for rate cuts this year, a factor that helped enhance the overnight rally in Treasuries which kicked off after a strong 10-year auction.

Corporate Highlights:

NTT Inc. sold $17.7 billion of dollar and euro bonds on Wednesday, marking the biggest-ever offering by an Asian corporate in the global debt market.

Japan’s automakers slashed the price of products exported to the US at a record pace.

Meta Platforms Inc. has made unusually high compensation offers to new members of its “superintelligence” team.

Some of the main moves in markets:

Stocks

S&P 500 futures fell 0.3% as of 7:33 a.m. London time

Nasdaq 100 futures fell 0.3%

Futures on the Dow Jones Industrial Average fell 0.3%

The MSCI Asia Pacific Index rose 0.2%

The MSCI Emerging Markets Index rose 0.3%

Currencies

The Bloomberg Dollar Spot Index fell 0.1%

The euro rose 0.2% to $1.1739

The Japanese yen was little changed at 146.26 per dollar

The offshore yuan was little changed at 7.1789 per dollar

The British pound rose 0.2% to $1.3614

Cryptocurrencies

Bitcoin rose 0.5% to $111,316.53

Ether rose 2% to $2,794.14

Bonds

The yield on 10-year Treasuries was little changed at 4.34%

Germany’s 10-year yield declined one basis point to 2.66%

Britain’s 10-year yield declined two basis points to 4.61%

Commodities

Brent crude rose 0.2% to $70.36 a barrel

Spot gold rose 0.4% to $3,325.35 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Jake Lloyd-Smith, Joanne Wong, Aya Wagatsuma and Andre Janse van Vuuren.

©2025 Bloomberg L.P.

 <mailto:info at bulls.co.zw> 

Metals

Gold edges higher on softer dollar, trade war intensifies

Gold prices edged higher on Thursday, helped by a slight retreat in the dollar and bond yields, while investors kept a close tab on trade negotiations as U.S. President Donald Trump broadened his tariff war.

Spot gold rose 0.3% to $3,322.46 per ounce by 0157 GMT. U.S. gold futures

were up 0.3% at $3,331.

Trump launched his global tariff assault into overdrive on Wednesday, announcing a new 50% tariff on U.S. copper imports and a 50% duty on goods from Brazil, both to start on August 1.

Trump also issued tariff notices for seven minor trading partners on Thursday, adding to 14 others issued earlier in the week, including South Korea and Japan, with 25% levies set to take effect on August 1 unless agreements are reached.

Meanwhile, Trump said trade talks have been going well with China and the European Union, which is the biggest bilateral trading partner of the U.S.

“The market impact of tariffs seems to lessen with each new headline. Tariff fatigue is here, and traders need a new catalyst to awaken volatility from its lull,” said Matt Simpson, a senior analyst at City Index.

The U.S. dollar index edged down 0.3%, while the yield on benchmark 10-year U.S. Treasury

notes retreated from a three-week high.

Lower yields reduce the opportunity cost of holding non-yielding bullion, while a weaker dollar makes gold cheaper for holders of other currencies.

Minutes of the Federal Reserve’s June 17-18 meeting showed that only “a couple” of Fed officials believed interest rate cuts could happen as early as this month, with most favoring reductions later this year due to inflation concerns tied to Trump’s tariff policies.

The Federal Open Market Committee unanimously voted to hold rates steady at its June meeting, with the next policy meeting scheduled for July 29-30.

Spot silver

edged up 0.2% to $36.41 per ounce, platinum

fell 0.3% to $1,343.22 and palladium

inched up 0.1% to $1,106.25.

INVESTORS DIARY 2025

Company

Event

Venue

Date & Time

Counters trading under cautionary

CBZH

GetBucks

EcoCash

Padenga

Econet

RTG

Fidelity

TSL

FMHL

ZBFH

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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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