Bulls n Bears Daily Market Commentary : 13 December 2022

Wed Dec 14 07:15:54 CAT 2022

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Bulls n Bears Daily Market Commentary : 13 December 2022

 <mailto:info at bulls.co.zw> 

ZSE commentary

ZSE in measly gains.

The Agriculture Index was the top performer among the indices as it extended
1.98% to 71.89pts spurred by gains in Natfoods and Tanganda. The Mid Cap
Index added 0.24% to 33440.10pts as the primary All Share Index improved
0.09%  to 14842.51pts. The ZSE Top Ten Index fell 0.01% to 8637.87pts.
National Foods headlined the positive movers of the day after jumping 6.66%
to $1,200.0000 trailed by, Star Africa that ticked up 5.99% to $1.5000. Tea
company Tanganda rose 5.10% to end pegged at $85.0091 while, Axia put on
4.43% to $70.0204. Banking group First Capital went up 1.78% to close at
$11.0029. Ariston was the worst  performer of the day after dropping a
further 9.04% to $3.0926 followed by, Zimre holdings that slipped 4.45% to
$4.0500. Econet slid 3.96% to settle at $75.2721 while, African Sun trimmed
1.92% to $23.9259. Completing the top five losers of the day was Mashonaland
Holdings that fell 1.45% to $17.0000.

Activity aggregates improved in the session as turnover jumped 32.23% to
$164.79m while, volumes traded inched up 9.27% to 1.68m. Volume leaders of
the day were Econet, First Capital and Delta that claimed a combined 85.87%
of the aggregate. Anchoring the value outturn of the day was Delta, Econet
and Innscor with respective contributions of 36.46%, 33.50% and 14.94%. On
the VFEX, nickel miner Bindura dipped 20.14% to USD$0.0230 while, SeedCo
International tripped 5.22% to USD$0.3123. Padenga shed 3.81% to settle at
USD$0.2300 while, fast foods group Simbisa retreated 0.89% to USD$0.3071. A
cumulative of 204,308 shares worth USD$5,872.6799. Two ETFs traded sideways
with MIZ sliding 3.80% to $1.1868 while, the Old Mutual ETF grew 2.64% to
$6.0011. The Tigere REIT went down 2.29% to $33.7355 on 5,100 units worth
$172,051.25. Elsewhere, Innscor has issued a cautionary statement advising
shareholders of the approval of the company's delisting on ZSE and immediate
listing on VFEX.-efesecurities

Global Currencies & Equity Markets

South Africa

South African rand jumps as dollar weakens on U.S. CPI data

(Reuters) - The South African rand and stocks rose on Tuesday as the dollar
weakened after data showed a further decline in U.S. inflation, raising the
prospect that the pace of Federal Reserve interest rate hikes will ease.

At 1548 GMT, the rand traded at 17.2400 against the dollar, 2.2% stronger
than its Monday close.

At home, South Africa's ruling African National Congress stopped an
impeachment process from being launched against President Cyril Ramaphosa,
as most of its lawmakers followed party instructions to vote against a probe
report on him.

Register for free to Reuters and know the full story

Advertisement . Scroll to continue

The dollar index, measuring the U.S. unit's value versus six major
currencies, fell around 1% to 103.99 .

ETM Analytics said in a note the rand had pared back its earlier losses due
to a wholesale sell-off in the dollar.

Statistics South Africa data showed on Tuesday total mining output
(ZAMNG=ECI) fell 10.4% year on year in October compared to a revised 5.1%
decrease in September.

Other data showed business confidence (ZABCI=ECI) rose in November, helped
by an increase in new vehicle sales, share prices on the Johannesburg Stock
Exchange (JSE) and manufacturing output.

On the JSE, the Top-40 (.JTOPI) index ended 2.05% higher at 69,675 points,
while the broader all-share (.JALSH) rose 1.9% to 75,835 points.

The government's benchmark 2030 bond was slightly stronger, with the yield
down 1 basis points to 10.360%.

-The Thomson Reuters Trust Principles.

Nigeria

CBN warns against abuse of naira notes

The Central Bank of Nigeria warned in Abuja on Tuesday that those abusing
the naira notes were liable to go to jail.

It warned that the law banning the "spraying'' and the stepping on the naira
notes, especially at social gatherings was still in force and offenders were
liable to six months imprisonment or a fine of N50,000.

The News Agency of Nigeria reports that Section 21 (3) of the CBN Act 2007
provides that the mishandling of the naira is a punishable offence.

The Principal Manager, Currency Operations Department at the CBN, Ms Ngozi
Etim, gave the warning when she spoke with NAN.

She said the CBN was working with the police, the Federal Inland Revenue
Service, the Economic and Financial Crimes Commission and the Nigerian
Financial Intelligence Unit to curb the abuse.

She condemned the "spraying'' of money in public, adding that the envelope
remained the best and acceptable means of extending goodwill at events.

"Money should not be squeezed but be put in envelopes. Oil should not be
allowed to touch money; keep it neat like you keep your clothes.

"You do not dirty your clothes and you do not keep your clothes on the
ground, so, there is need to keep our naira well,'' she said.

She added that the CBN Act empowered it to arrest those who abused the
naira.

Etim stressed that the naira remained the pride of the nation and must be
kept clean at all times.

In his remarks, the CBN's Director, Corporate Communication, Mr Osita
Nwanisobi, urged Nigerians to always treat the naira with care.

Nwanisobi condemned the idea of hurling naira notes in the air and stamping
on the currency at social functions.

"There have also been cases where people mishandle the naira, deface it, or
hawk it at parties.

"Contrary to the practice of these unpatriotic persons, it is neither
cultural nor moral for people to disrespect the currency, which citizens
trade in,'' he stressed.

NAN reports that there have been videos of famous Nigerians, including
politicians, subjecting the naira to abuse.

Naira notes have also become items of trade at garages and motor parks in
different parts of the country, especially during festive periods.

The CBN has, however, declared that anybody caught abusing the naira would
be punished.

NAN

 <mailto:info at bulls.co.zw> 

Global markets

U.S. dollar tumbles across the board as inflation rise eases

(Reuters) - The dollar nosedived across the board on Tuesday after data
showed U.S. consumer price inflation rose less than expected last month,
reinforcing expectations the Federal Reserve will slow the pace of rate
increases after its two-day meeting on Wednesday.

The greenback fell to a six-month low against the euro after the data. The
euro hit $1.0673 , the highest since June, and was last up 0.9% at $1.0631.

Against the yen, the dollar dropped to a one-week low of 134.67, and last
changed hands at 135.55 yen, down 1.5% .

Register for free to Reuters and know the full story

The dollar index, measuring the U.S. unit's value versus six major
currencies, fell 0.9% to 104.02 .

Data showed that headline U.S consumer prices rose modestly in November on
an annual basis as gasoline and used cars cost less, leading to the smallest
annual inflation increase in nearly a year. In the 12 months through
November, the CPI climbed 7.1%, the smallest gain since December 2021,
following a 7.7% rise in October.

Excluding volatile food and energy components, the CPI increased 0.2% last
month after rising 0.3% in October. In the 12 months through November, the
so-called core CPI advanced 6.0% after increasing 6.3% in October.

The report supported widely held expectations for a smaller Fed rate hike of
50 basis points when the central bank announces its decision on Wednesday.
Fed funds futures have also priced in a lower terminal rate, where the Fed
stops hiking, of 4.8%, expected to hit in May. That was down from about 5.1%
seen late last month.

Traders are also betting on 25-basis-point increases at each of the Fed's
first two meetings of 2023 and no more, with some chance the last hike could
come in May instead of March.

"This would represent a further deceleration in rate hikes and brings closer
the interest rate difference between the dollar and other currencies because
other countries are hiking too," said Ivan Asensio, head of FX risk advisory
at Silicon Valley Bank in San Francisco.

"There's less of a benefit to the U.S. and less pressure for the dollar to
rise," he added.

The dollar also posted steep losses against commodity currencies.

The Australian dollar rose 1.6% against the greenback to US$0.6850 . The New
Zealand dollar gained 1.3% to US$0.6462 . Against the Canadian dollar, the
U.S. currency fell 0.5% to C$1.3560 .

"We would broadly subscribe to the view that markets are expecting a
relatively quick shift from the Fed from having raised interest rates till
now, to cutting rates over a relatively short time period," said Richard
Flax, chief investment officer at Moneyfarm in London.

"Our perspective is that the market is pricing in the possibility that the
Fed stays at its peak rate for a little bit longer."

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold, silver rates unchanged in early trade; yellow metal at Rs 54,330

Gold and silver prices remained unchanged in Wednesday's early trade with
ten grams of the yellow metal (24-carat) trading at Rs 54,330. Silver, on
the other hand, is trading at Rs 69,000 per kg today.

Ten gram of 22-carat gold was trading at Rs 49,800 today, according to the
GoodReturns website.

In Mumbai, Kolkata, Hyderabad, Kerala, and Pune, 10 grams of gold (24-carat
and 22-carat) was selling at Rs 54,330, and Rs 49,800, respectively.

In Delhi, 24-carat and 22-carat gold was trading at Rs 54,490, and Rs
49,950, respectively. In Chennai, 10 grams of 24-carat and 22-carat gold are
trading at Rs 54,980 and Rs 50,400, respectively.

Gold prices were flat on Wednesday, with investors readying themselves for
the US Federal Reserve's rate-hike decision later in the day. Spot gold was
little changed at $1,809.35 per ounce, as of 0046 GMT. US gold futures were
down 0.2 per cent at $1,821.10.

Bullion prices hit a more than five-month high on Tuesday after a
smaller-than-expected rise in US consumer prices buoyed bets for a slowdown
in rate hikes from the Fed.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said
its holdings rose 0.3 per cent to 912.72 tonnes on Tuesday.

In Mumbai, Delhi, and Kolkata, one kg of silver is trading at Rs 69,000 per
kg today. Meanwhile, in Chennai, Bangalore and Hyderabad, silver is selling
at Rs 73,000 per kg.

Spot silver fell 0.3 per cent to $23.65.

(With Reuters inputs)

INVESTORS DIARY 2022

Company

Event

Venue

Date & Time

National Unity Day

December 22

Christmas Day

December 25

Boxing Day

December 26

Counters trading under cautionary

CBZH

Meikles

Fidelity

TSL

FMHL

Turnall

GBH

ZBFH

GetBucks

Zeco

Lafarge

Zimre

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
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
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for guideline purposes only and sourced from third parties.

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