Bulls n Bears Daily Market Commentary : 02 June 2025

Tue Jun 3 10:20:45 CAT 2025

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Bulls n Bears Daily Market Commentary : 02 June 2025

ZSE commentary

ZSE record ZSE kicks off the new month in gains...

The ZSE market commenced the new month of June in gains as the All-Share
Index rose by 1.38% to 199.57pts while, the Blue-Chip Index firmed up 1.78%
to 193.18pts. The Mid Cap Index added 0.23% to settle at 246.73pts.
Telecommunication giant Econet headlined the gainers of the day on 12.94%
jump to end pegged at $3.3595 with Proplastics trailing behind on a 7.93%
gain to $1.3750. AFDIS edged up 2.79% to $7.0000 while, beverages giant
Delta advanced 0.21% to close at $13.5299. Ok Zimbabwe concluded the top
five gainers of the day on a 0.19% lift to settle at $0.3099. Decliners of
the day were led by Ecocash Holdings that fell 5.47% to $0.1300 while,

Star Africa followed on a 4.66% retreat to finish at $0.0551.

Zimpapers capped the losers of the day having lost 2.65% to end pegged at
$0.1100. Activity aggregates were depressed as value traded dipped 97.99% to
$5.16m while, volumes traded plummeted 97.31% to 2.63m shares. Proplastics
highlighted the session as it claimed 87.58% of the total volume traded and
61.92% of the value traded. Other notable value driver was Delta that
claimed 33.88% of the aggregate. The Tigere REIT was stable at $1.2200 as
93,534 units exchanged hands in the session.

 <mailto:info at bulls.co.zw> 

South Africa

South African rand slips before Q1 GDP data, analysts forecast no growth

(Reuters) - The South African rand was slightly weaker in early trade on
Tuesday before the release of first-quarter gross domestic product (GDP)
data, which is widely expected to be lacklustre.

At 0610 GMT the rand traded at 17.8625 against the dollar , down about 0.1%
on Monday's closing level.

Economists polled by Reuters estimate GDP will be unchanged from the fourth
quarter (ZAGDPN=ECI)

Nigeria

Naira Falls Further Against Dollar at Black Market

Nigeria's naira ended the week on a negative note, recording further
depreciation against the U.S. dollar in the parallel foreign exchange
market.

According to Abubakar Alhasan, a Bureau de Change operator in Wuse Zone 4,
Abuja, the naira fell to N1,628 per dollar on Friday, down from N1,623
traded on Thursday.

"We buy at N1,624 per dollar and sell between N1,628 and N1,630 per dollar
due to a surge in demand," he said.

This marks a N5 drop in the naira's value in just one day at the parallel
market, continuing a downward trend that has persisted since Monday, May 26,
2025. It is now the fourth consecutive day of depreciation.

Naira Falls Further Against Dollar at Black Market

At the official exchange window, however, the naira remained stable, closing
Friday at N1,586.15 per dollar, the same rate recorded on Thursday.

Throughout the week, the naira generally performed poorly across both
markets. On a week-on-week basis, it depreciated by N13 in the parallel
market and by N5.17 at the official market.

In its 2025 economic outlook, the African Development Bank projected that
the naira-along with several other African currencies, would weaken by 6
percent this year.

 <mailto:info at bulls.co.zw> 

Global Markets

US dollar dips as tariff worries resurface

(Reuters) - The U.S. dollar fell across the board on Monday, giving up the
previous week's gains, as markets weighed the outlook for President Donald
Trump's tariff policy and its potential to hurt growth and stoke inflation.

The U.S. currency slipped after Trump said on Friday he planned to double
duties on imported steel and aluminum to 50% starting on Wednesday, and as
Beijing hit back against accusations it violated an agreement on critical
minerals shipments.

The Reuters Tariff Watch newsletter is your daily guide to the latest global
trade and tariff news. Sign up here.

China's Commerce Ministry said on Monday the charges were "groundless," and
promised to take unspecified forceful measures to safeguard its interests.
Treasury Secretary Scott Bessent said on Sunday Trump and Chinese President
Xi Jinping were likely to have a call soon, and "this will be ironed out."

Michael Brown, market analyst at online broker Pepperstone in London, noted
the selling pressure on the dollar was broad-based.

"Any time we see a resurgence in tariff concerns, everyone begins to pile
back into the 'sell America' trade once more," Brown said.

The dollar dropped 0.8% to 142.85 yen , nearly wiping out its gain against
the Japanese currency last week.

The euro rose 0.8% to $1.14355 - its highest since late April. Later in the
week, the focus will be on the European Central Bank's interest rate
decision and subsequent outlook.

The dollar extended its losses after data showed U.S. manufacturing
contracted for a third straight month in May and suppliers took longer to
deliver inputs amid tariffs, potentially signalling shortages of some goods.

Earlier in the session, data showed European manufacturing took another step
towards stabilisation in May, but Asian factory activity declined.

The dollar index, which measures its performance against six other major
currencies , eased 0.6% and at 98.75 was just shy of the three-year low of
97.923 touched in late April.

The U.S. currency has been whipsawed for weeks by Trump's on-again-off-again
trade war, and investors have been questioning the currency's safe-haven
status as a flare-up in tensions stokes worries of a potential U.S.
recession.

"We expect USD to continue to weaken (over the next 12 months) thanks to a
convergence in both U.S. rates and growth to peers," Morgan Stanley
strategists said in a note on Sunday.

Last week, the dollar got some respite, rising 0.3% after trade talks with
the European Union got back on track and a U.S. trade court blocked the bulk
of Trump's tariffs on the grounds that he overstepped his authority.

An appeals court reinstated the duties a day later, and Trump's
administration said it had other avenues to implement them if it loses in
court, but many analysts said it showed there were still checks in place on
the president's power.

Fiscal worries have also given rise to a broad "sell America" theme that has
seen dollar assets from stocks to Treasury bonds dropping in recent months.

Those concerns come into sharp focus this week as the Senate starts
considering the administration's tax cut and spending bill, estimated to add
$3.8 trillion to the federal government's $36.2 trillion in debt over the
next decade.

The fate of section 899 of the bill could be crucial, according to Barclays
analysts.

"S899 would give the U.S. free rein to tax companies and investors from
countries deemed to have 'unfair foreign taxes' (and) could be seen as a tax
on the U.S. capital account at a time when investor nervousness towards U.S.
assets has grown," they said in a research report.

Elsewhere, the Polish zloty touched a two-week low against the euro after
eurosceptic politician Karol Nawrocki won the second round of the
presidential election, spurring uncertainty for markets.

Bitcoin, the world's largest cryptocurrency by market capitalisation, was
0.7% lower on the day at $104,315.

Our Standards: The Thomson Reuters Trust Principles., opens new tab

 <mailto:info at bulls.co.zw> 

Gold price surges near one-month peak as geopolitical risks mount

Gold prices rallied to a near one-month high on Monday, as a combination of
geopolitical risks and economic uncertainty fuelled investor demand for
safe-haven assets.

Spot gold surged 2.6% to about $3,377 an ounce by 11:00 a.m. ET, its highest
since the first week of May. US gold futures also gained 2.6%, trading at
just above $3,400 an ounce in New York.

Live Gold Price Chart and Real-Time Updates

Meanwhile, the US dollar fell about 0.6% against other currencies, making
bullion less expensive to buyers.

Stocks also fell as renewed Sino-American trade conflicts bubbled and
investors braced for a packed week of economic and political cross-currents,
including a critical US jobs report.

"The latest tariff threats on Friday, including plans to double steel and
aluminum tariffs to 50% along with Ukraine's weekend attacks deep into
Russia, have heightened geopolitical risks and are fuelling risk-off
sentiment," said Peter Grant, vice president and senior metals strategist at
Zanier Metals.

Tensions between Washington and Beijing returned to the fore after US
President Donald Trump accused China of violating their trade truce. China,
however, denied those claims and hit back with accusations of its own.

US Treasury Secretary Scott Bessent on Sunday signalled a possible call soon
between Trump and China's President Xi Jinping to sort out the trade issues.

Investors are also closely watching for comments from Fed Chair Jerome
Powell and other policymakers this week for clues on the US rate path.

Between fresh trade war fears, fiscal uncertainty and US debt ceiling
concerns, the backdrop is ripe for volatility, Fawad Razaqzada, market
analyst at City Index and FOREX.com, said in a note.

"For the gold forecast, this backdrop of risk aversion and fiscal
uncertainty couldn't be more favourable," he said.

Elsewhere, silver - gold's sister metal - rallied by more than 4% on rising
investor demand for safe havens.

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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