Bulls n Bears Daily Market Commentary : 03 June 2025

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Bulls n Bears Daily Market Commentary : 03 June 2025

 

 	



 

 	


ZSE commentary

 

ZSE slips into the red...

 

The market slipped into the red in Tuesday's session to see the All-Share
Index retreating 0.01% to end at 199.55pts while, the Agriculture Index let
go 0.01% to 189.39pts. The Mid Cap Index lost 0.33% to end at 245.93pts. On
the contrary, the ZSE Top Ten Index went up 0.09% to close at 193.36pts.
Star Africa was the top laggard of the day on a 9.17% decline to $0.0501.
Zimre Holdings Limited dropped 7.34% to $0.3243 while, hotelier RTG trimmed
1.10% to $0.6300. SeedCo Limited was 0.15% softer at $2.9500 while, banking
group FBC closed at $7.6100 having trimmed 0.08%. Partially offsetting
losses on the bourse were gains in OK Zimbabwe that jumped 1.65% to $0.3150
as NMB gained 1.00% to $3.7400. Econet Wireless added 0.94% to settle at
$3.3909 as ART improved 0.21% to $0.1705.

 

 

Volume of shares traded plummeted 96.30% to 3.66m as turnover tumbled 92.30%
to $19.74m. Volumes were anchored by RTG (33.41%), Delta (28.03%), NMB
(27.36%) and Econet (10.64%). Delta and Econet claimed a combined 89.26% of
turnover. Morgan and Co MCS was stable at $1.8900 on 100 units. Tigere REIT
slipped 0.41% to $1.2150 while, Revitus Property went up 3.17% to
$0.5700.-EFE

 

 

 <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.

 

The statistics agency will publish the data at 0930 GMT.

 

Nedbank economists said in a research note that they expected sectors
including mining and manufacturing to have performed poorly, "aggravated by
persistent inefficiencies in essential economic infrastructure".

 

The country's coalition government is trying to lift growth through reforms,
but longstanding problems like logistics bottlenecks at the ports and on the
freight rail network continue to hold back Africa's biggest economy.

 

The benchmark 2035 government bond was marginally weaker in early deals,
with the yield up 1 basis point at 10.215%.

 

 

Nigeria

 

Naira strengthens across official, parallel markets

THE naira appreciated against the dollar on Tuesday, extending its positive
momentum from the beginning of the week. At the Nigerian Autonomous Foreign
Exchange Market (NAFEM), the official rate closed at N1,579.28 per dollar,
slightly stronger than the N1,581.58 recorded on Monday. On Monday, the
currency had already gained N4.57 from Friday's N1,586.15, signaling a solid
start to the week.

 

In the parallel market, the naira also firmed up. It closed at N1,595 per
dollar on Tuesday, improving from N1,615 on Monday. This followed a notable
gain on Monday, when the currency strengthened by N13 from Friday's N1,628
per dollar.

 

Analysts attributed the sustained appreciation to increased foreign
portfolio inflows and anticipation of the upcoming Eid el-Kabir holidays
scheduled for June 6 and 9, 2025. The holiday-driven demand for naira may be
pushing the dollar supply higher across different channels.

 

A report from Coronation Merchant Bank's research team noted a drop in total
foreign exchange inflows at NAFEM, falling to $1.04 billion last week from
$4.42 billion the previous week. Despite the decline, foreign portfolio
investors (FPIs) and non-bank corporates were the major contributors. FPIs
accounted for 32.02 percent of the total inflows, followed by non-bank
corporates at 29.49 percent. The Central Bank of Nigeria (CBN) contributed
19.71 percent, exporters 18.33 percent, while other sources made up the
remaining 0.45 percent.

 

The naira's recent gains indicate increased investor confidence and a
relatively improved FX supply environment, although sustainability will
depend on consistent inflows and monetary policy support.

 

 

 

 

 

 

 <mailto:info at bulls.co.zw> 

 

Global Markets

 

Australian Dollar remains subdued as US Dollar holds ground ahead of ISM
Services PMI

The Australian Dollar (AUD) loses ground against the US Dollar (USD) on
Wednesday after offering its daily gains. However, the AUD/USD pair remained
in positive territory following the release of mixed economic data from
Australia.

 

Australian Bureau of Statistics (ABS) showed that Gross Domestic Product
(GDP) grew by 0.2% quarter-over-quarter in Q1, declining from the previous
0.6% growth. Australia's economy fell short of the expected 0.4% rise.
Meanwhile, the annual GDP growth rate remained consistent at 1.3%, below the
expected 1.5%.

 

Moreover, the S&P Global Australia Composite Purchasing Managers' Index
(PMI) fell to 50.5 in May from April's 51.0 reading, expanding for the
eighth successive month. However, the pace indicates marginal growth in
business activity, albeit the slowest so far in 2025.

 

The S&P Global Australia Services PMI came at 50.6 in May, marking a 16th
straight month of expansion but at the slowest pace in six months. The Ai
Group Manufacturing PMI posted a -23.5 reading, improved slightly from the
previous -26.5. Manufacturers experience delays in major projects and rising
market hesitation due to global and domestic uncertainty.

 

Reserve Bank of Australia (RBA) Assistant Governor Sarah Hunter expressed
caution on Tuesday that "higher US tariffs will put a drag on the global
economy." Hunter noted that higher uncertainty could dampen investment,
output, and employment in Australia. However, she also added that
Australia's exporters are relatively well-placed to weather the storm and
assumes that Chinese authorities will support their economy through fiscal
stimulus.

 

Australian Dollar declines as US Dollar edges higher on technical correction

The US Dollar Index (DXY), which measures the value of the US Dollar against
six major currencies, is trading lower at around 99.10 at the time of
writing. The Greenback struggles as traders adopt caution amid rising tariff
uncertainty and its potential to hurt growth in the US economy.

US ISM Services Purchasing Managers Index (PMI) survey results are due on
Wednesday, and a slight recovery is expected in aggregate business operator
sentiment. Traders will shift their focus toward the US Nonfarm Payrolls
(NFP) report for May, which is expected to show 130K job additions.

Job Openings and Labor Turnover Survey (JOLTS) showed the number of job
openings on the last business day of April stood at 7.39 million, increasing
from March's 7.2 million openings. This figure surprisingly came in above
the market expectation of 7.1 million.

Institute for Supply Management (ISM) Manufacturing Purchasing Managers'
Index eased to 48.5 in May from 48.7 in April. This figure came in weaker
than the expectation of 49.5.

US President Donald Trump said at a rally in Pennsylvania on Friday that he
planned to double import tariffs on steel and aluminum to build up pressure
on global steel producers and intensify the trade war. "We are going to be
imposing a 25% increase. We're going to bring it from 25% to 50% - the
tariffs on steel into the United States of America, which will even further
secure the steel industry in the United States," he said, per Reuters.

The US Court of Appeals for the Federal Circuit in Washington, on Thursday,
temporarily put a hold on a federal court ruling and allowed President
Trump's tariffs to take effect. On Wednesday, a three-judge panel at the
Court of International Trade in Manhattan halted Trump from imposing
"Liberation Day" tariffs from taking effect. The federal court found that
Trump exceeded his authority in imposing broad import tariffs and declared
the executive orders issued on April 2 unlawful.

House Republicans passed Trump's "Big Beautiful Bill," a
multitrillion-dollar tax and spending package, which could increase the US
fiscal deficit, along with the risk of bond yields staying higher for
longer. This scenario raises concerns over the US economy and prompts
traders to sell American assets under the "Sell America" trend. Policy
experts anticipate Senate changes as GOP lawmakers aim to finalize the "big
bill" by July 4.

On Friday, Trump accused China of breaching a truce on tariffs reached
earlier this month. Washington and Beijing agreed to temporarily lower
reciprocal tariffs in a meeting in Geneva. Trump said that China had
"totally violated its agreement with us." US Trade Representative Jamieson
Greer also said that China had failed to remove non-tariff barriers as
agreed.

In response, a spokesperson from China's Ministry of Commerce said on Monday
that China had complied with the agreement by cancelling or suspending
relevant tariff and non-tariff measures aimed at US "reciprocal tariffs."

China's Caixin Manufacturing Purchasing Managers' Index (PMI) unexpectedly
fell to 48.3 in May from 50.4 in April, falling short of the market
expectations of a 50.6 expansion. However, the weekend data showed that the
National Bureau of Statistics (NBS) Manufacturing PMI rose to 49.5 in May,
from April's 49.0 reading. Meanwhile, the Non-Manufacturing PMI declined to
50.3 from the previous 50.4 figure, falling short of the expected reading of
50.6. The Aussie Dollar could be impacted by Chinese economic data as both
countries are close trading partners.

RBA Minutes of its May monetary policy meeting suggested that the board
viewed the case for a 25 basis point cut as stronger, preferring a policy to
be cautious and predictable. The policymakers highlighted that US trade
policy posed a significant and adverse impact on the global outlook, but had
not yet affected the Australian economy, however, they did not persuade that
a 50 bps was needed.

The Reserve Bank of Australia (RBA) is expected to deliver more rate cuts in
the upcoming policy meetings. The central bank acknowledged progress in
curbing inflation and warned that US-China trade barriers pose downside
risks to economic growth. Governor Michele Bullock stated that the RBA is
prepared to take additional action if the economic outlook deteriorates
sharply, raising the prospect of future rate cuts.

Australian Dollar finds immediate support at nine-day EMA near 0.6450

AUD/USD is trading around 0.6470 on Wednesday, indicating a prevailing
bullish bias. The daily chart's technical analysis suggests that the pair
remains within the ascending channel pattern. The short-term price momentum
remains stronger as the pair stays above the nine-day Exponential Moving
Average (EMA). Additionally, the 14-day Relative Strength Index (RSI) is
positioned above the 50 mark, indicating a persistent bullish outlook.

 

On the upside, the AUD/USD pair could approach 0.6537, a seven-month high
recorded on May 26. A break above this initial barrier could support the
pair to explore the region around the upper boundary of the ascending
channel around 0.6670.

 

The immediate support appears at the nine-day EMA of 0.6456, aligned with
the ascending channel's lower boundary around 0.6450. A successful breach
below this crucial support zone could dampen the bullish bias and lead the
AUD/USD pair to test the 50-day EMA at 0.6395.

 

 

 <mailto:info at bulls.co.zw> 

 

Gold steadies as modest US jobs data offsets trade uncertainty

 

(Reuters) - Gold prices steadied on Wednesday as a somewhat strong U.S. jobs
data for April offset the lingering uncertainty over U.S.-China trade
relations and global economic concerns.

Spot gold was stable at $3,351.49 an ounce as of 0609 GMT. U.S. gold futures
also held steady at $3,375.

 

"We potentially see dip-buyers coming back into the picture and... things
are still uncertain, especially surrounding the trade relationship between
China and U.S. and even in EU and U.S. as well," said Kelvin Wong, a senior
market analyst, Asia Pacific at OANDA.

However, "the JOLTS job data helped sooth some concerns about the potential
economic hit on the U.S. economy from tariffs, which is keeping demand for
safety assets for gold in check," said Tim Waterer, chief market analyst at
KCM Trade.

The White House signaled that President Donald Trump and Chinese President
Xi Jinping might engage in talks later this week to address the trade
disagreements.

The U.S. should create the necessary conditions for bilateral relations to
get back onto "the right track," China's Foreign Minister Wang Yi told the
U.S. ambassador to Beijing.

Job openings in the United States rose in April, though layoffs surged to
their highest level in nine months, economic data showed, hinting at
softening labor market conditions.

Global economic concerns deepened after the Organisation for Economic
Cooperation and Development (OECD) warned of sharper-than-expected economic
slowdown, as the Trump administration's trade policies weigh heavily on the
U.S. economy.

"(The OECD report) for sure will be another supporting factor to see safe
demand being heated up as well from a medium-term perspective," Wong said.

Federal Reserve officials reiterated their cautious policy stance, citing
risks from trade tensions and economic uncertainty.

Gold tends to perform well during economic uncertainty.

Elsewhere, spot silver fell 0.3% at $34.40 an ounce, platinum rose 0.3% to
$1,076.86 and palladium lost 0.9% to $1,001.42.

 

 

 

 

 

 


 

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
Faith Capital (Pvt) Ltd for general information purposes only and does not
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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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79 993 5557 | +263 71 944 1674

 

 	

 

 

 	
							

 

 

 

 

 

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