Bulls n Bears Daily Market Commentary : 08 May 2025

Fri May 9 08:35:05 CAT 2025

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Bulls n Bears Daily Market Commentary : 08 May 2025

ZSE commentary

Losses ZSE rebounds in Thursday session... 

The ZSE market rebounded in Thursday's session as the AllHippo Valley
Estates Limited 7.9900 0.12 Econet Wireless Zimbabwe 2.7568 0.06 Limited
Nmbz Holdings Limited 3.7000 0.00  Share Index rose 0.63% to 192.94pts
while, the Top ten Index edged up 0.82% to 187.47pts. The Agriculture Index
improved 0.09% to 194.78pts while, the Mid Cap Index added 0.07% to
235.86pts. Star Africa headlined the gainers' list on a 18.24% jump to close
at $0.0227 while, Zimre Holdings Limited trailed behind after gaining 14.64%
to $0.2140. Ariston Holdings grew 11.72% to $0.0503 while, banking group CBZ
Holdings soared 6.53% to end at $7.5000. Beverages manufacturer Delta

capped the top five winners of the day as it rose 0.68% to $13.4908. Trading
in the negative was Ecocash that dropped 1.17% to $0.1336 while, Hippo
Valley followed on a 0.12% descend to $7.9900. Telecoms giant Econet
retreated 0.06% to close at $2.7568. NMB capped the fallers of the day
having retreated a negligible 0.0012% to $3.7000.

Activity aggregates enhanced in the session as turnover ballooned 138.87% to
$3.88m while, volume rose 27.98% to see 599,200 shares exchanging hands.
Delta, Econet and NMB anchored the volume aggregate with respective
contributions of 34.40%, 27.85% and 21.03%. Delta claimed a lion's share of
71.57% of the total value traded. NMB and Econet were the other notable
value drivers of the day on a combined contribution of 23.84%. The Tigere
REIT fell 5.02% to end at $1.1662 as 9,679 units traded. The Revitus REIT
declined 1.45% to $0.5100.

VFEX slips into the red...

The VFEX market slipped into the red to see the All-Share Index falling
1.22% to 113.31pts. Seed Co headlined the losers of the day on a 4.76%
decrease to $0.2000 as Padenga lost 3.54% to close at $0.3000. Fast foods
group Simbisa shed 3.23% to $0.3201 while, Innscor slipped 0.09% to $0.4701.
Partially mitigating today's losses was Axia that climbed 2.15% to $0.0950
while, First Capital Bank firmed up 0.38% to end at $0.0525. Activity
aggregates enhanced in the session as turnover charged 675.27% to $82.28m
while, volume surged 511.58% to 246,224 shares. Padenga, Simbisa and Innscor
were the top traded stocks by volume and value as they claimed a shared

98.70% of the former and 99.82% of the latter.efesecurities

 <mailto:info at bulls.co.zw> 

South South Africa

South African rand lifted by optimism about US trade deals

The South African rand strengthened on Thursday, boosted by optimism that
U.S. President Donald Trump would seal trade deals with major partners after
he announced a first agreement with Britain.

U.S. and Chinese officials are set for trade talks on Saturday in a meeting
that investors hope will start to dial down the trade war between the
world's two largest economies.

"As Trump looks to make a deal with the UK, and U.S.-China trade discussions
are set for the weekend, we have seen an improvement in risk sentiment,"
said Shaun Murison, senior market analyst at IG.

After a strong run recently, Murison noted that on Thursday the rand had
reached its best levels against the dollar since late March.

Domestic economic data on Thursday was mixed.

Net foreign reserves rose to $64.318 billion at the end of April from
$63.167 billion in March. But manufacturing output fell 0.8% year on year in
March, contrary to expectations for growth.

The Johannesburg Stock Exchange's Top-40 index (.JTOPI) closed down 0.6%.

Source: Reuters

African Currencies: Cedi On The Rise, Kwacha Sees Challenges

Africa's currency markets are buzzing. Ghana's cedi is climbing, propelled
by central bank efforts and foreign inflows, while Zambia's kwacha
encounters potential dips due to returning demand.

What does this mean?

Ghana's cedi is gaining ground, trading at 13.20 to the dollar, up from
14.00 last week. A senior trader at Absa Bank Ghana credits robust foreign
exchange support from the central bank for this increase. Meanwhile,
Nigeria's naira should maintain stability around 1,607 to the dollar, with
consistent central bank interventions locking it into target ranges. In
Uganda, low hard-currency demand from importers is set to keep the shilling
steady within its current band. Conversely, Zambia's kwacha might see slight
weakening, reversing recent gains amid rekindled demand, now trading at
26.50 to the dollar.

Why should I care?

For markets: Dynamic shifts in African currency markets.

Ghana's proactive central bank strategy has bolstered the cedi, indicating a
positive outlook for investments in the region. On the other hand, Zambia's
kwacha may waver, posing potential risks or opportunities for investors
tracking the currency's fluctuations. As African economies tackle varying
demand and intervention levels, these currency changes offer insights into
broader economic health and policy impact.

The bigger picture: Africa's diverse economic strategies.

Economies such as Ghana and Nigeria are showcasing how differing currency
management tactics yield distinct outcomes. Ghana's success contrasted with
Zambia's kwacha challenges highlights the intricate interplay of internal
policies and external demand pressures, emphasizing the need for adaptable
strategies that respond to global financial trends and localized demands. 

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar rises against safe-haven currencies buoyed by US-UK trade deal

(Reuters) - The U.S. dollar gained against the safe-haven yen and Swiss
franc on Thursday with market nerves soothed by a bilateral trade deal
between the United States and the United Kingdom, while sterling reversed
gains made after an interest rate cut from the Bank of England.

U.S. President Donald Trumpannounced a "breakthrough" trade agreement with
Britain on Thursday, which leaves in place a baseline 10% tariff on British
imports including vehicles.

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

The market sees the trade deal as positive because it means Trump is
envisioning a 10% baseline for friendly countries with anything beyond that
subject to negotiation, said Axel Merk, president and chief investment
officer at Merk Hard Currency Fund in California.

"The market for whatever reason today takes that as good news. In my view, a
10% baseline tariff is still very high for goods coming into the U.S. and
does change in my assessment how global trade operates," Merk said.

The dollar rose to a four-week high of 146.175 against the yen following the
announcement of the trade deal. It was last up 1.55% at 146 yen.

Against the Swiss franc , it was 1.07% stronger at 0.8323 franc, matching
its highest level since May 1.

The deal could serve as a template for other countries looking to sign trade
agreements with the U.S., said Steve Englander, head of global G10 FX
Research at Standard Chartered in New York.

"Getting a deal that looks like it's going to work is going to be risk
positive. I think the market will look at what's disclosed and ask how much
of this will be applicable to other countries or if it's going to be the
template for other deals," Englander said.

Wall Street's main indexes, including the benchmark S&P 500 (.SPX), opens
new tab, buoyed by market optimism on the trade deal. Gold prices fell with
the dollar advancing. Spot gold fell 1.74% to $3,305.76 an ounce.

Trump said he expects substantive negotiations between the United States and
China when Treasury Secretary Scott Bessent and chief trade negotiator
Jamieson Greer meet China's economic tsar, He Lifeng, in Switzerland on
Saturday.

The BoE's Monetary Policy Committee voted 5-4 to cut rates by a quarter
point, in line with expectations. But there was an unexpected divergence
among voting members: two, Swati Dhingra and Alan Taylor, voted for a bigger
half-point cut while Chief Economist Huw Pill and external member Catherine
Mann wanted to hold interest rates.

The BoE's decision came a day after the U.S. Federal Reserve held interest
rates but said the risks of higher inflation and unemployment had risen.

Sterling gave up earlier gains and was down 0.37% at $1.32410.

The dollar index , which measures the greenback against a basket of
currencies including the yen and the euro, rose 0.41% to 100.31, hitting its
highest since April 10. The euro was down 0.71% at $1.122175.

The dollar also gained against both the Swedish and Norwegian currencies
after Sweden's Riksbank and Norway's Norges Bank held rates, as expected.
The Swedish crown was up 0.94% at 9.7471 per dollar, while the Norwegian
crown was last at 10.4313 per dollar, up 0.99%.

In cryptocurrencies, bitcoin gained 4.68% to $101,293.99. Ethereum rose
16.29% to $2,091.29.

Reporting by Chibuike Oguh in New York; Editing by Kirsten Donovan and Diane
Craft

Our Standards: The Thomson Reuters Trust Principles. 

 <mailto:info at bulls.co.zw> 

Gold Prices Drop As US-China Trade Talks Continue

What's going on here?

Gold prices slipped by $84.10 to $3,307.80 per ounce, as the appeal of this
safe-haven asset fades amid hopeful US-China trade talks.

What does this mean?

Hopeful signs of easing US-China trade tensions are reducing the demand for
gold, typically seen as a haven during global uncertainties. As US Treasury
officials meet with Chinese counterparts in Switzerland, they aim to resolve
tariff disputes clouding international trade. Meanwhile, new trade
agreements with the UK bring additional optimism, suggesting smoother trade
waters ahead. This, along with the Federal Reserve's steadfast interest rate
policy, dims gold's allure. Fed caution over tariffs' economic impact
supports a pause in rate changes, affecting gold's current value.

Why should I care?

For markets: Steady rates and a strong dollar shape market moves.

The Federal Reserve's decision to keep interest rates steady has investors
focused on a stronger dollar, which rose 1.08 points to 100.69 on the ICE
index. Rising Treasury yields, especially with the two-year note at 3.911%
and the 10-year note at 4.385%, reflect an economic setting that might steer
investors away from safe-haven assets like gold towards more growth-focused
investments.

The bigger picture: Changes in global trade dynamics rework economic scenes.

US-China negotiations could redefine global economic interactions by
dismantling tariff barriers, potentially reviving international trade flows,
influencing currency strength, and shaping investor strategies worldwide.
This scenario underscores the complex interplay between diplomatic talks and
market confidence, with significant implications for future trade policies
and economic robustness.

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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