Bulls n Bears Daily Market Commentary : 14 December 2022

Thu Dec 15 06:44:00 CAT 2022

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Bulls n Bears Daily Market Commentary : 14 December 2022

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE All Share Index was up 115.19 points to close at 14,838.12 points. Trading in the positive: BRITISH AMERICAN TOBACCO ZIMBABWE LIMITED which added $179.0250 to $3,175.0000, INNSCOR AFRICA LIMITED went up by $8.4234 to $320.0000 and TANGANDA TEA COMPANY LIMITED gained $4.0000 to $85.0000. MEIKLES LIMITED  increased by $2.6667 to $102.6667 whilst NMBZ HOLDINGS LIMITED traded $2.2000 higher at $24.0000. Trading in the negative: ECOCASH HOLDINGS ZIMBABWE LIMITED  which decreased by $1.6030 to $44.0474, FIRST MUTUAL HOLDINGS LIMITED lost $0.7321 to $25.0000 whilst DAIRIBORD HOLDINGS LIMITED traded $0.1875 lower at $49.7500. FIRST MUTUAL PROPERTIES LIMITED slumped by $0.1400 to $8.9000 whilst ARISTON HOLDINGS LIMITED shed $0.0339 to $3.9661. 

EXCHANGE TRADED FUNDS (ETF)

DATVEST MODIFIED CONSUMER STAPLES ETF added $0.0137 to $1.7437. MORGAN & CO MULTI SECTOR EXCHANG TRADED FUND , CASS SADDLE AGRICULTURE EXCHANGE TRADED FUND  and MORGAN & CO MADE IN ZIMBABWE EXCHANGE TRADED FUND remained at $21.2500, $1.8747 and $1.0600 respectively whilst OLD MUTUAL ZSE TOP 10 shed $0.0741 to $5.4258.- ZSE

Global Currencies & Equity Markets

South Africa

South African rand steady before inflation, retail figures

(Reuters) - The South African rand was steady in early trade on Wednesday as investors awaited the release of consumer inflation and retail sales numbers.

At 0555 GMT, the rand traded at 17.2550 against the dollar, 0.1% weaker than its Tuesday close.

Statistics South Africa is due to publish November consumer inflation figures (ZACPIY=ECI) around 0800 GMT, and October retail sales (ZARET=ECI) around 1100 GMT.

Economists polled by Reuters expect inflation will fall to 7.5% in annual terms in November from 7.6% in October, and for October retail sales to contract 0.5% year on year versus a 0.6% decline the previous month.

On global markets, the focus was on a policy announcement by the U.S. Federal Reserve later in the day.

Risk-sensitive currencies like the rand got a boost on Tuesday as U.S. consumer prices rose less than expected for a second straight month in November, clearing the way for the Fed to start scaling back its interest rate hikes.

Also underpinning the rand, on Tuesday South Africa's governing African National Congress party stopped an impeachment process from being launched against President Cyril Ramaphosa.

The government's benchmark 2030 bond was firmer early on Wednesday, the yield falling 7 basis points to 10.300%.

Nigeria

Naira falls to US dollars at official, black markets

Naira exchanges for N562 per dollar, as CBN moves to stop the slide

The Nigerian currency, the Naira on Tuesday depreciated against the US dollar at the Investors and Exporters (I&E) window of the foreign currency market and the black market.

According to data obtained from FMDQ Securities Exchange, the Naira depreciated against the dollar in the I&E window or spot market by 38 Kobo, or 0.09 percent, to finish at N446.38/$1, up from the previous day’s value of N446.00/$1.

Naira’s poor performance occurred as the value of forex deals at the official exchange rate segment decreased by $5.93 million or 7.6% to $72.15 million from $78.08 million on Monday.

Also, at the parallel market, the domestic currency lost N2 against the United States currency yesterday to settle at N742/$1 compared with the preceding day’s N740/$1.

At the interbank window, it was a mixed bag as the local currency depreciated against the Pound Sterling by N1.18 to trade at N548.17/£1 compared with Monday’s N546.99/£1, but against the Euro, it appreciated by N7.79 to close at N469.91/€1 versus N477.70/€1 a day earlier.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar loses ground after Fed raises rates, forecasts more hikes

(Reuters) - The dollar was lower against the yen and the euro on Wednesday after first gaining ground when the U.S. Federal Reserve raised interest rates by half a percentage point as expected and said it would need to continue to raise rates.

The greenback reversed course and retreated when Fed Chair Jerome Powell took questions. The Fed projected at least an additional 75 basis points of increases in borrowing costs by the end of 2023 as well as a rise in unemployment and a near stalling of economic growth.

Ahead of the Fed meeting, lower-than-expected inflation data had led some investors to hope that Powell would take a more dovish tone at Wednesday's press conference. But Powell said it was too soon to talk about the U.S. central bank's cutting interest rates and that the Fed's focus was on setting policy that would return inflation to its 2% goal over time.

"This is a more hawkish set of communications than markets expected. Policymakers dashed hopes for a sustained easing in financial conditions by maintaining previous language saying that 'ongoing increases' would be needed to put policy on a sufficiently restrictive footing," said Karl Schamotta, chief market strategist at Corpay.

"By raising terminal rate projections to 5.1% and avoiding a sharp drop in longer-term rate expectations, officials refused to back down from the 'higher-for-longer' message that has been articulated for months," he said. "On balance, this suggests we will need to see more conclusive evidence of an easing in inflation pressures before the Fed 'pivots' in any meaningful way."

The euro was last up 0.43% against the dollar at $1.0674. The dollar was down 0.24% at 135.235 yen . Sterling was last up 0.54% against the dollar at $1.2429.

The dollar index , which measures the greenback against a basket of major currencies, was recently down 0.39%.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold price weakens as FOMC still leaning hawkish

(Kitco News) - Gold and silver prices are lower in early-afternoon U.S. trading Wednesday, and extended mild earlier losses after the Federal Reserve raised U.S. interest rates and said more rate hikes are coming. February gold was last down $12.00 at $1,812.80 and March silver was down $0.145 at $23.83.

The just released Federal Reserve’s Open Market Committee (FOMC) meeting statement saw the U.S. central bank raise its key Fed funds rate by 0.5%, as expected. The Fed said it will continue to tighten monetary to tamp down inflation. The marketplace’s initial read on the statement and the economic projections is a bit more hawkish than many expected. Traders are now awaiting a press conference from Fed Chair Jerome Powell. The European Central Bank and the Bank of England meet on Thursday and are likely to follow the U.S. Federal Reserve with half-point rate hikes.

China imported more than 1.2 million ounces of platinum in 2022 what does this means for 2023

U.S. stock indexes are lower in the immediate aftermath of the FOMC statement. The other key outside markets today see the U.S. dollar index slightly weaker. Prices Tuesday hit a 5.5-month low following a slightly cooler than expected U.S. consumer price index report. Nymex crude oil prices are firmer and trading around $77.00 a barrel. A major oil pipeline in the U.S. has been shut due to a leak, and that’s supporting Nymex crude oil prices this week. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently 3.539%. 

Technically, February gold prices hit a 5.5-month high Tuesday. The gold futures bulls have the firm overall near-term technical advantage. Prices are in a five-week-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at today’s high of $1,824.70 and then at this week’s high of $1,836.90. First support is seen at $1,800.00 and then at this week’s low of $1,789.00. Wyckoff's Market Rating: 7.0

March silver futures prices hit a seven-month high Tuesday. The silver bulls have the solid overall near-term technical advantage. Prices are in a choppy 3.5-month-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at this week’s high of $24.39 and then at $24.75. Next support is seen at this week’s low of $23.32 and then at $23.00. Wyckoff's Market Rating: 7.0.

March N.Y. copper closed up 395 points at 388.10 cents today. Prices closed nearer the session high today. The copper bulls have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 354.70 cents. First resistance is seen at this week’s high of 392.90 cents and then at the November high of 394.70 cents. First support is seen at this week’s low of 378.60 cents and then at 370.00 cents. Wyckoff's Market Rating: 6.0.

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 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.

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