Bulls n Bears Daily Market Commentary : 28 May 2025

Thu May 29 08:52:27 CAT 2025

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:bulls at bulls.co.zw> Views & Comments
<http://www.bullszimbabwe.com> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:%20bulls at bullszimbabwe.com?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 28 May 2025

ZSE commentary

ZSE maintains positive momentum...

ZSE maintained a positive momentum in mid-week session as the All-Share
Index gained 0.48% to 196.54pts while, the BlueChip Index added 0.57% to
189.50pts. The Agriculture Index ticked up 0.39% to 185.76pts while, the Mid
Cap Index rose 0.21% to 245.78pts. Ecocash Holdings led the gainers of the
day after a 14.96% surge that took it to $0.1440 while, banking giant CBZ
followed on a 8.64% increase to finish at $7.8000. Proplastics Limited edged
up 7.64% to $1.1303 while, banking group ZB advanced 5.26% to $4.0000.
SeedCo Limited capped the top 5 risers of the day on a 3.91% uplift to end
at $2.9100. Trading in the negative was Zimre Holdings that dropped 7.99% to
end pegged at $0.3800. Telecoms giant Econet trailed behind on a 1.70%
decline to settle at $2.8699 while, NMB Holdings parred off 1.59% to close
at $3.7000. Beverages manufacturer Delta retreated 0.35% to $13.4998 while,
retailer OK Zimbabwe capped the top five worst performers of the day on
0.17% decline to $0.3598.

Activity aggregates were mixed in the session as turnover soared 109.49% to
$10.47m whereas, volume plummeted by 52.29% to 2.25m shares. The top volume
drivers of the day were Econet, Delta, Dairibord and NMB that claimed a
combined 95.27% of the aggregate. Delta, Econet and NMB claimed 49.95%,
29.51% and 11.89% of the total value traded. Price movement was recorded in
Cass Saddle that added 14.93% to $0.1518 on 10,000 units. Datvest MCS was
stable at $0.0300 on 3,230 units while, Morgan and Co MCS was unchanged at
$1.8900 on 118 units. In the REIT category, Revitus lost 0.14% to close at
$0.5525 as 1,000 units traded in the neame, the Tigere Reit inched up 2.33%
to $1.2282 as 4,300 units exchanged hand.

 <mailto:info at bulls.co.zw> 

South African

South African rand stable as traders wait for interest rate decision

The South African rand was steady on Wednesday, a day ahead of the central
bank's interest rate decision.

At 1329 GMT, the rand traded at 17.9375 against the dollar, little changed
from Tuesday's closing level.

The US dollar last traded about 0.3% firmer against a basket of currencies
as markets waited for minutes of the Federal Reserve's latest policy meeting
and economic data for insights on the US interest rate outlook.

The South African Reserve Bank (SARB) will announce its monetary policy
decision at around 1300 GMT on Thursday.

The majority of economists polled by Reuters expect the bank to trim its
main lending rate by 25 basis points, though a significant minority think
the rate could be left unchanged.

Inflation is currently below the central bank's target range, though
policymakers have stressed risks from US President Donald Trump's trade war
and domestic politics.

On the stock market, the Top-40 index was up 0.2%.

South Africa's benchmark 2030 government bond was stronger, with the yield
down 3.5 basis points to 8.805%. 

Nigeria

Naira Depreciates to N1590 as Gross External Reserves Decline

The naira depreciated against the US dollar across foreign exchange (FX)
markets as data showed that the gross balance in Nigeria's external reserves
declined in sequence in the last three days.

The currency market anticipates additional support from the Central Bank of
Nigeria (CBN) intervention after a $50 million injection the previous day.
During the session, the USD/NGN pair traded within a range of N1,589.50 to
N1,595.00.

At the end of the trading activities in the forex market, the naira weakened
by 44 bps, closing at N1,590.7471. Analysts at AIICO expect the naira to
maintain its present trading band unless significant disruptions occur.

In the parallel market, the exchange rate declined to N1620 due to increased
demand. External reserves declined twice this week after a series of inflows
in recent past weeks, settling at $38.518 billion after three records of
dollar outflows from $38.561 billion last week.

Analysts said the reduced gross balance in foreign reserves was a result of
FX interventions.

Despite huge US dollars from the exporters, the CBN flooded the foreign
exchange market with $190 million last week. The authority also added $50
million on Tuesday to keep the naira stable by driving FX inflows in the
absence of significant FX receipts from oil exports.

The CBN has continued to intervene daily to the tune of $50 million-$100
million, but the general consensus is that this is intended to simply keep
supply trickling into the FX market rather than materially holding the rate
stable, Verto FX said in a macro update.

Today, oil prices climbed over 1% on Wednesday due to supply concerns,
following OPEC+'s decision to maintain current output levels and the U.S.
ban on Chevron exporting Venezuelan crude.

This came despite earlier expectations that OPEC+ might raise production
later in the week. Brent crude increased by 91 cents, or 1.42%, reaching $65
per barrel, while U.S. West Texas Intermediate (WTI) rose $1.08, or 1.77%,
to $61.97.

Gold prices remained mostly unchanged, with investors awaiting the release
of the Federal Reserve's latest meeting minutes. Spot gold hovered at
$3,295.43 an ounce.

The upcoming summer driving season is expected to drive significant crude
demand growth. With non-OPEC+ production stagnant in H1 2024 and potential
Canadian wildfire disruptions threatening supply, market reliance on OPEC+
output is intensifying

 <mailto:info at bulls.co.zw> 

Global Markets

Australian Dollar holds losses as US Dollar remains stronger ahead of GDP
Annualized

The Australian Dollar (AUD) remains subdued for the fourth successive
session on Thursday, following disappointing Private Capital Expenditure
data for the first quarter. The AUD/USD pair extends its losses as the US
Dollar (USD) is trading higher after a US federal court blocked US President
Donald Trump's "Liberation Day" tariffs from taking effect. A Reuters report
showed that a federal trade court ruled Trump didn't have the authority to
impose sweeping tariffs on imports from countries that sell more to the US.

The Trump administration has halted some sales of jet engines,
semiconductors, and certain chemicals to China. The New York Times cited two
familiar sources saying that this action is a response to China's recent
export restrictions on exports of critical minerals to the US. Any change in
Chinese markets could impact the Australian Dollar as Australia and China
are close trade partners.

The AUD could face challenges as 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 declines as US Dollar continues to advance ahead of Q1 GDP
data release

The US Dollar Index (DXY), which measures the value of the Greenback against
six major currencies, is trading more than 0.50% higher at 100.40 at the
time of writing. Traders likely await the preliminary US Q1 Gross Domestic
Product (GDP) data, Personal Consumption Expenditures Prices QoQ, and
Initial Jobless Claims, scheduled to be released on Thursday.

Federal Open Market Committee's (FOMC) Minutes for the latest policy
meeting, released on Wednesday, indicated that Federal Reserve (Fed)
officials broadly agreed that heightened economic uncertainty justified
their patient approach to interest-rate adjustments. Fed officials
emphasized the need to keep interest rates unchanged for some time, as
recent policy shifts cloud the US economic outlook.

The US fiscal deficit could increase further when Trump's "One Big Beautiful
Bill" goes through the Senate floor, increasing the risk of bond yields
staying higher for longer. Higher bond yields can keep borrowing costs
higher for consumers, businesses, and governments. Trump's bill is expected
to increase the deficit by $3.8 billion, as it would deliver tax breaks on
tip income and US-manufactured car loans, according to the Congressional
Budget Office (CBO).

US Senator Ron Johnson told CNN on Sunday that "I think we have enough votes
to stop the process until the president gets serious about spending
reduction and reducing the deficit." Johnson added, "My primary focus now is
spending. This is completely unacceptable. Current projections are a $2.2
trillion per year deficit."

Moody's downgraded the US credit rating from Aaa to Aa1, following similar
downgrades by Fitch Ratings in 2023 and Standard & Poor's in 2011. Moody's
now projects US federal debt to climb to around 134% of GDP by 2035, up from
98% in 2023, with the budget deficit expected to widen to nearly 9% of GDP.
This deterioration is attributed to rising debt-servicing costs, expanding
entitlement programs, and falling tax revenues.

The US Dollar faced challenges due to improved risk-on sentiment following
the alleviation of trade tensions between the United States and the European
Union (EU). President Trump extended the tariff deadline on imports from the
EU from June 1 to July 9.

China Industrial Profits rose 3% year-over-year in April, following a
previous growth of 2.6%. Additionally, the profits increased 1.4% YoY in the
first four months of 2025, advancing from 0.8% growth in the January-March
period. The Global Times, a Chinese state media outlet, reported that
positive developments contributed to a rise in industrial profits in April.

The Australian Bureau of Statistics reported that monthly inflation, in the
price of a fixed basket of goods and services acquired by household
consumers, steadied at 2.4% year-over-year in April, surpassing the expected
2.3% increase.

Australian Dollar falls below ascending channel toward 0.6400, 50-day EMA

The AUD/USD pair is trading around 0.6410 on Thursday, with a weakening
bullish bias. The technical analysis of the daily chart indicates that the
pair has broken below the ascending channel's lower boundary. The short-term
price momentum also weakens as the pair remains below the nine-day
Exponential Moving Average (EMA). The 14-day Relative Strength Index (RSI)
holds at the 50 mark, suggesting neutral bias is in play.

The AUD/USD pair could attempt to regain ground to stay within the ascending
channel and test the immediate barrier at the nine-day EMA of 0.6437,
followed by a six-month high at 0.6537, which was recorded on May 26. A
breach above this level could reinforce the bullish bias and support the
pair to approach the upper boundary of the ascending channel around 0.6640.

On the downside, the 50-day EMA at 0.6382 appears as the initial support. A
break below this level could weaken the medium-term price momentum and put
downward pressure on the pair to navigate the region around 0.5914, the
lowest since March 2020.

 <mailto:info at bulls.co.zw> 

Gold hits over one-week low as US tariff ruling dents safe-haven appeal

(Reuters) - Gold prices slipped on Thursday to their lowest levels in more
than a week after a U.S. federal court blocked President Donald Trump's
"reciprocal tariffs", dampening the metal's safe-haven allure, while a
robust dollar put further pressure on bullion.

Spot gold was down 0.6% at $3,271.17 an ounce, as of 0618 GMT, after hitting
its lowest since May 20.

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

U.S. gold futures dropped 0.8% to $3,268.20.

A U.S. trade court on Wednesday halted the enforcement of Trump's tariffs,
ruling the president exceeded his authority by imposing universal duties on
imports from nations with a trade surplus with the United States.

The U.S. court's decision is the key news driver leading to a rally in the
dollar, which subsequently pushed gold prices lower, said Nicholas Frappell,
global head of institutional markets at ABC Refinery.

On April 2, Trump had levied "reciprocal tariffs" on multiple countries,
stoking fears of a global recession. However, many of those country-specific
tariffs were paused a week later.

Following the trade court's ruling, the U.S. dollar index (.DXY), opens new
tab rallied, making greenback-priced gold more expensive, with Wall Street
futures and Asian equities also climbing.

Meanwhile, the Trump administration filed a notice of appeal, challenging
the court's authority and signalling a potential escalation to the Supreme
Court if necessary.

But the gold market is still bullish as "longer-term outlook suggests a
weaker dollar and there's still likely to be some inflationary pressures
near term," Frappell said.

The minutes from the U.S. Federal Reserve's May 6-7 session showed that
officials are concerned about the potential for concurrent rises in
inflation and unemployment, a scenario that would necessitate a choice
between implementing tighter monetary policy to combat inflation or lowering
interest rates to support economic growth and employment.

The market now awaits U.S. GDP data due later in the day, with core U.S.
Personal Consumption Expenditures data for further cues on rate outlook.

Elsewhere, spot silver rose 0.7% to $33.21 an ounce, platinum was down 0.2%
at $1,073.15 and palladium edged 0.9% higher to $971.57.

Reporting by Anmol Choubey and Brijesh Patel in Bengaluru; Editing by Rashmi
Aich and Sherry Jacob-Phillips

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

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 

Email:               bulls at bullszimbabwe.com

Website:            www.bullszimbabwe.com 

Blog:                 www.bullszimbabwe.com/blog

Twitter (X):        @bullsbears2010

LinkedIn:           Bulls n Bears Zimbabwe

Facebook:          www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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.

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

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20250529/5a59a328/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20250529/5a59a328/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 29359 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20250529/5a59a328/attachment-0002.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20250529/5a59a328/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130914 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20250529/5a59a328/attachment-0001.obj>