Bulls n Bears Daily Market Commentary : 09 June 2025

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Bulls n Bears Daily Market Commentary : 09 June 2025

 

 	



 

 	


ZSE commentary

 

ZSE kicks off the week with marginal gains...

 

The ZSE kicked off the week with marginal gains as the All Share Index
gained 0.63% to 198.80pts while, the Top 10 Index rose 1.25% to 195.95pts.
However, the Agriculture Index dropped 1.01% to close at 172.22pts on the
back of losses in TSL & Ariston. In the same vein, the Mid-Cap Index fell
1.36% to end at 232.47pts. Nampak & TSL headlined the laggards of the day as
they dropped a similar 14.98% to see the duo close at $0.8160 and $1.7200
respectively. Trailing was OK Zimbabwe with 2.91% decline that took it to
$0.3005 while, Mashonaland followed with a 0.85% decrease to $1.2890. To cap
off the top 5 laggards of the day was Ariston which shed

0.21% at $0.0480. On the other hand, at the top of the gainers' list was
First Mutual Holdings with a 15% surge to $4.3740. Trailing was Willdale
that gained 10.82% to settle at $0.0559. RTG followed closely behind with a
10.32% increase to $0.6950 as Star-Africa advanced 9.56% to $0.0550. Hippo
Valley concluded the top 5 winners of the day after a 2.50% improvement
which took it to $8.2000.

 

 

Volume traded for the day tumbled 99.94% to see 109,500 shares trade.
Turnover for the day decreased by 99.09% to $816,967. Delta and
telecommunications giant Econet drove the volume aggregate with a combined
claim of 68.49%. Notably First Mutual Holdings accounted for 9.13% of the
total volumes traded. Delta claimed 82.20% of the value traded while, Econet
secured 11.42% of the same. Tigere REIT traded 4.71m units in today's
session as the price declined by 0.01% to close at $1.2115 while, the
Revitus rose 1.75% to end at $0.5800 on 300 units.EFESEC

 

 <mailto:info at bulls.co.zw> 

 

South Africa

 

South African rand gains with attention on US-China trade talks

(Reuters) - The South African rand strengthened on Monday as markets awaited
the outcome of U.S.-China trade talks.

At 1515 GMT, the rand traded at 17.7125 against the dollar , about 0.2%
stronger than Friday's close and extending last week's gains.

 

Officials from the U.S. and China were in London for a meeting to address
disagreements around a preliminary trade deal struck last month that briefly
cooled tensions between the world's two largest economies.

 

The rand was also supported by strong prices for precious metals like
platinum and gold , analysts said.

Domestic economic data to be released this week include April manufacturing
output (ZAMAN=ECI), opens new tab on Tuesday and April mining production
(ZAMNG=ECI), opens new tab on Thursday.

 

On Wednesday, the lower house of parliament will vote on the fiscal
framework and revenue proposals, the first pieces of budget legislation
delayed by months of political wrangling.

 

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

The benchmark 2035 government bond was weaker, as the yield rose 9.5 basis
points to 10.155%.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

Nigeria

 

Naira holds below N1,600/$ in the holidays

The Nigerian currency traded below the key resistance (N1600/$) against the
greenback at the unofficial market.

 

Recent fundamentals showed the recently concluded holidays plummeted
transactional volumes across Nigeria's business capital as the naira traded
at N1587-1590/$ bandwidth early Tuesday

 

The CBN's recent data showed Naira's prospects sparkled as Nigerian
businesses expressed an unexpectedly positive attitude toward West Africa's
largest economy.

 

 

Agriculture notched the highest confidence score during the month, and that
sturdy faith in farming seems hard to shake. Out in the quarry holes and
power plants,

 

Business chiefs made bold plans to scale up in the first half of the year.
Respondents pointedly wagered that the Naira would gain ground across almost
every horizon they discussed. Factory bosses, traders, and service owners
expect to hire more people. That consistent upbeat tone ran through the
commentary almost without interruption.

 

Bismarck Rewane, a Nigerian economist who runs Financial Derivatives
Limited, says the naira is likely to hover around N1,600 to N1,650 per
dollar in the coming weeks.

 

He offered that forecast at the June Lagos Business School breakfast, a
gathering where traders and boardroom types usually spar over numbers before
the coffee cools.

 

Rewane pointed out that the naira is still about 26.82 per cent undervalued
by most traditional yardsticks. He added that the dollar's own 8.7 percent
dip this year could cushion any push-back the local unit feels.

 

The economist also noted a quieter, if not welcome, sign: official and
parallel quotes are now fused within a 1-3 percent band. That beats the 50
to 70 per cent gulf that used to howl before the last round of policy
tweaks. The margin sits inside N50, which, in his book, means the currency
is priced.

 

The U.S dollar is stable in the global market, but its outlook is weighty

The dollar is barely budging against major currencies at the London trading
session as traders weigh an inflation surprise in the world's largest
economy later in the week.

 

Headlines out of London spoke of senior U.S. and Chinese envoys sitting
across a table, their second day already hedged in jargon and waiting-room
optimism meant to calm a choppy news cycle. Listeners recalled last week's
call between Trump and Xi and noted that both presidents now need something
before voters start tallying up the pain.

 

The Geneva-adopted temporary truce, which momentarily reduced trade tensions
and stabilized markets, is being sought after by Beijing and Washington.

 

The London talks featured export limits on microchips, rare earths, and
student visas. These are long-term strategic concerns that cannot be settled
in a few days, in contrast to the Geneva talks, when tariff relief produced
easy wins. Therefore, creating a positive surprise is more challenging.

 

The Dollar Index, which compares the US dollar's strength to six major
global currencies, held steady at 98.99, not far off the six-week low set
last week.

 

The dollar index has lost 9% so far this year amid market concerns about how
trade tensions and tariffs may negatively impact the US economy.

 

When the May consumer price index is revealed on Wednesday, investors will
be paying close attention. This study could provide insight into the impact
of tariffs at a time when investors are wary of any increase in inflation.

 

The global FX market has been unstable ever since Donald Trump began his
final term, as traders take a cautious look at the greenback

Wobbly headlines about growth, inflation, and Fed timing explain part of the
twitch, but cramped by earlier swings also deserves blame, UBS insists.

 

Dean Turner, the firm's London-based economist, puts it plainly: Money
managers are trimming dollar weight when they stare at the new risk map.

 

The flip side shows in faltering currency values, rising Treasury yields,
and a pocket of European stocks that suddenly look lively. Sterling mirrors
the scene, splaying from 1.25 down to 1.20 before straggling back near 1.35.

 

Turner's report, circulated Monday, warns that the dollar cockpit no longer
feels like the safest seat in turbulent skies. Washington itself is feeling
more like the epicenter of uncertainty, he argues.

 

Still, the strategist stops short of telling investors to bail completely.
The U.S. market dwarfs its rivals in heft and liquidity, and that single
fact keeps the dollar from being tossed overboard entirely.

 

Nonetheless, many Wall Street pros hear warning bells. Turner, for instance,
just told a small crowd that shaky politics, volatile trade, and budget red
ink project more slippage in the next few months.

 

 

 

 

 <mailto:info at bulls.co.zw> 

 

Global Market

 

Dollar softens as US-China talks take spotlight

(Reuters) - The U.S. dollar weakened against most major currencies on
Monday, moving in narrow ranges, as market participants consolidated gains
racked up following Friday's better-than-expected U.S. employment report and
shifted their focus to pivotal U.S.-China trade talks in London.

 

The meeting of top officials from both countries intends to address
disagreements around a preliminary pact struck last month in Geneva, briefly
cooling tensions between the world's two largest economies. Negotiations
could last up to two days.

 

 

The talks come at a crucial time for both sides, with China grappling with
deflation and trade uncertainty dampening sentiment among U.S. businesses
and consumers, prompting investors to reassess the dollar's safe-haven
status.

 

Customs data showed China's export growth slowed to a three-month low in May
as U.S. tariffs slammed shipments, while factory-gate deflation saw its
worst level in two years. China's exports to the U.S. plunged 34.5%
year-on-year in May value terms, the sharpest drop since February 2020, when
the outbreak of the COVID-19 pandemic upended global trade.

 

In afternoon trading, the dollar was down about 0.2% against the Japanese
currency at 144.55 yen after two consecutive weeks of gains.

Japan is considering buying back some super-long government bonds issued in
the past at low interest rates, two sources with direct knowledge of the
plan said on Monday, underscoring its focus on reining in any abrupt rises
in bond yields.

 

"The dollar is retreating and momentum is fading...putting downward pressure
on trading ranges and measures of implied volatility," said Karl Schamotta,
chief market strategist, at Corpay in Toronto.

 

"Investors believe that positive headlines emanating from the U.S.-China
trade talks are largely priced in across the major currency pairs,
Wednesday's inflation numbers are expected to come in soft, and even
Thursday's 30-year Treasury auction is seen meeting with solid investor
demand."

The euro , meanwhile, rose 0.3% versus the greenback to $1.1427, as markets
continued to price in the European Central Bank's monetary policy outlook
issued last week, which indicated it may be close to ending its easing
cycle.

 

Sterling also gained versus the greenback, adding 0.3% to $1.362.

"The situation is looking more like (in) the second half of the year, the
Fed will need to get dovish and help the financial environment," said Juan
Perez, director of trading at Monex USA in Washington.

 

"Ultimately, if the U.S. is going to be struggling, there is no clear reason
to have any long-term faith in the dollar."

The dollar index, a gauge of the greenback's value against six major
currencies, dipped 0.2% to 98.942 .

Elsewhere, China's offshore yuan was last at 7.18 per dollar, little changed
on the day.

 

New Zealand's dollar rose 0.6% to US$0.6054, while the Australian dollar was
last up 0.4% at US$0.6522 in light volumes.

Also on the trade front was a report that said Japan's chief trade
negotiator Ryosei Akazawa is planning a sixth round of talks in Washington.

 

Later in the week, an inflation report out of the U.S. for May will be the
focus, as investors and Federal Reserve policymakers look for the impact of
trade restrictive policies on the economy.

"With the labor market looking resilient but not overheated, it should help
keep services inflation within a reasonable range," wrote BeiChen Lin,
senior investment strategist at Russell Investments in emailed comments.

 

"For now, medium-term inflation expectations still look well-anchored. So
even if there is a near-term boost to prices from trade policy, as long as
the Fed believes these effects to be non-persistent, we could still see rate
cuts this year."

Fed officials have signalled that they are in no rush to cut interest rates
and signs of economic resilience will likely cement their stance.

Interest rate futures showed that investors are anticipating that the U.S.
central bank may cut borrowing costs by 25 basis points (bps) later this
year, with the earliest likely in October, according to data compiled by
LSEG calculations . Rate futures have priced in just 47 bps of cuts in 2025.

 

Our Standards: The Thomson Reuters Trust Principles.

 

 

 

 

 

 

 

 

 <mailto:info at bulls.co.zw> 

 

Gold 

 

Gold price bounces off $3,300 neighborhood; modest USD strength could cap
the upside

Gold price (XAU/USD) rebounds from the vicinity of the $3,300 mark and
trades with modest intraday losses heading into the European session on
Tuesday. Investors remain on edge as US-China trade talks extend for a
second day in London, which, along with persistent geopolitical risks, act
as a tailwind for the safe-haven bullion. Apart from this, bets that the
Federal Reserve (Fed) will cut interest rates further in 2025 turn out to be
another factor lending support to the non-yielding yellow metal.

 

Meanwhile, the US Dollar (USD) struggles to capitalize on the intraday move
higher and remains confined in a familiar range close to its lowest level
since April 22 amid concerns about the worsening US fiscal situation. This
further benefits the Gold price and contributes to the intraday recovery.
Traders, however, seem reluctant and might opt to wait for US consumer
inflation figures, warranting caution before positioning for an extension of
the XAU/USD pair's overnight bounce from a one-week low.

 

Daily Digest Market Movers: Gold price attracts safe-haven flows amid
nervousness ahead of US-China trade talks

Chinese and US officials extend the new round of trade talks in London to a
second day on Tuesday, fueling hopes for a deal between the world's two
largest economies. This remains supportive of a generally positive risk tone
and prompts fresh selling around the safe-haven Gold price during the Asian
session on Tuesday.

A stronger-than-expected US Nonfarm Payrolls (NFP) report released on Friday
dampened hopes for imminent interest rate cuts by the Federal Reserve this
year. This assists the US Dollar to regain positive traction and turns out
to be another factor that contributes to driving flows away from the
non-yielding yellow metal.

However, the CME Group's FedWatch Tool indicates that traders are still
pricing in a nearly 60% chance that the US central bank will cut interest
rates at its September monetary policy meeting. This, along with concerns
about the US government's financial health, fails to assist the USD to
capitalize on its intraday move higher.

On the geopolitical front, Russia launched a massive airstrike on Ukraine
and fired nearly 500 drones and missiles. This marks a further escalation of
the conflict in the three-year-old war and might hold back the XAU/USD bears
from placing aggressive bets in the absence of any relevant market-moving
economic data from the US.

The US Consumer Price Index (CPI) and the Producer Price Index (PPI) are due
for release on Wednesday and Thursday, respectively. The crucial inflation
figures should provide some cues about the Fed's future rate-cut path,
which, in turn, will drive the USD demand and provide some meaningful
impetus to the commodity.

Gold price is likely to face stiff resistance and remain capped near the
$3,352-3,353 region

 

>From a technical perspective, the overnight failure to find acceptance above
the 200-hour Simple Moving Average (SMA) and the subsequent slide favors the
XAU/USD bears. Moreover, oscillators on hourly charts have been gaining
negative traction and back the case for further intraday losses. Some
follow-through selling below the $3,294-3,293 area, or the overnight swing
low, will reaffirm the bearish outlook and make the Gold price vulnerable to
accelerate the fall towards the $3,246-3,245 area (May 29 swing low) en
route to the $3,200 neighborhood.

 

On the flip side, the 100-hour SMA, currently pegged near the $3,333-3.334
area might continue to act as an immediate hurdle. A sustained strength
beyond could trigger an intraday short-covering move and lift the Gold price
to the $3.352-3,353 hurdle. The momentum could extend further towards the
$3,377-3,378 resistance, which if cleared should allow the XAU/USD to make a
fresh attempt to conquer the $3,400 round figure.

 

 

 

 

 

 

 

 


 

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 

 

 

 Invest Cellphone:            +263 71 944 1674 | +27 79 993 5557 

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DISCLAIMER: This report has been prepared by Bulls 'n Bears, a division of
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for guideline purposes only and sourced from third parties.

 

 	

 

 

 	


 (c) 2025 Web: www.bullszimbabwe.com Email: bulls at bullszimbabwe.com Tel: +27
79 993 5557 | +263 71 944 1674

 

 	

 

 

 	
							

 

 

 

 

 

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