Bulls n Bears Daily Market Commentary : 15 December 2022

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Bulls n Bears Daily Market Commentary : 15 December 2022

 

 	

 <mailto:info at bulls.co.zw> 

 

 	


ZSE commentary

 

All Share enhances in mid-month trades…

The market extended gains in the mid-month session as the All -Share Index advanced 0.94% to end at 15018.41pts. The Blue Chips Index added a similar 0.94% to 8755.35. The Agriculture Index added 0.16% to 71.08pts while, the BlueChip Index firmed up 0.48% to 33.887.76pts. Leading the ga ners of the day was Ariston Holdings that jumped 12.47% to $3.4000 while, Axia rose 7.88% to settle at $86.6174. Beverages giant Delta Holdings surged 2.70% to $251.7709 while, bankers First Capital extended 1.08% to $10.9288. Fintech group Ecocash Holdings completed the top five winners’ list on a 1.04% uplift to close the day pegged at $35.4575. Retailers OK Zimbabwe headlined the laggards of the day on a 5.97% slump to $27.9757 followed by General Beltings that lost 5.42% to $1.7025. Zimplow Holdings dropped 2.33% to $16.5067 while, First Mutual Properties declined 0.36% to $10.0000. Cigarettes manufacturer BAT capped the top five losers pack of the day it slipped 0.17% to $2,875.0000.

 

Activity aggregates were mixed in the session as volumes succumbed by 13.92% to 2.98m shares while, turnover swelled 144.20% to $472.67m. The market closed on positive breadth of five as thirteen counters gained ground against eight counters that lost their grip. Delta, Econet, Proplastics and Innscor were the top volume drivers of the day after contributing 38.53%, 16.94%,11.73% and 9.80% apiece. The top values drivers of the day were Delta, Innscor, Econet that claimed a combined 91.15% of the outturn. A total of 28,579 shares exchanged hands on the VFX with Padenga Holdings putting on 0.06% to USD$0.2260 while, Seed Co International was up 5.35% to USD$0.3290. Bindura was stable at USD$0.0230 on 18,300 shares. On the ETF section, Morgan and Co MCS firmed 14.29% to $24.0000 as the Old Mutual ETF charged 6.30% to $5.4405. The Datvest ETF eased 1.87% to $1.60000 while, Tigere REIT traded 4.64m units at $34.0000.-efesecurities

 

 

 

 

 

 

 

Global Currencies & Equity Markets

 

 

 

South Africa

 

South African rand, stocks on back foot after Fed rate signals

(Reuters) - The South African rand weakened against a stronger dollar on Thursday, after the U.S. Federal Reserve and the European Central Bank signalled more interest rates hikes.

 

At 1642 GMT, the rand traded at 17.4850 against the dollar, 1.92% weaker than its Wednesday close.

 

Statistics South Africa figures on Thursday showed producer inflation (ZAPPIY=ECI) slowed to 15% year on year in November from 16% in October.

 

Another data showed the country's formal sector employment, excluding agriculture, rose 0.1% quarter on quarter to 9.984 million people in the third quarter of 2022.

 

On the stock market, the Top-40 (.JTOPI) index ended 1.88% lower while the broader all-share (.JALSH) fell 1.76%.

 

Shares in Steinhoff International Holdings NV (SNHJ.J) fell over 60% after the retailer said on Thursday it had reached an agreement with some of its largest creditors to extend the maturity of its debt.

 

The South African government's benchmark 2030 bond was stronger in afternoon deals, with the yield falling 4.5 basis points to 10.215%.

 

-The Thomson Reuters Trust Principles.

 

 

 

 

Nigeria

 

Naira slips against dollar at official, black markets

Naira weakened against the U.S. dollar on Wednesday, depreciating by 0.94 per cent.

 

According to data published by FMDQ where forex is officially traded, the naira closed at N450.58 per dollar on Wednesday with $141.92 million recorded as forex turnover within the business day.

 

At the authorised window, the local currency hovered within an intraday range of N452.00 (low) and a high of N426.00 per dollar before settling at N450.58 per $1 on Wednesday.

 

The strongest rate the local unit has traded at the Investor’s window this week is N446.00 it exchanged on Monday. However, the naira has been trading within the range of N440 and above at the official market over the last two months.

 

Likewise, the naira exchange rate in the open market has been hovering within the rate of N730.00 and N750.00 to a dollar fortnightly.

Although this is about 18.0 per cent appreciation from the N880.00 and above rate it was exchanged after the CBN announced the naira redesign policy over a month ago.

 

Checks with currency dealers on Wednesday showed an unauthorised market rate closed between N735.00 and N750.00 per $1 across states on Wednesday.

 

Currency dealers at the Abuja zone 4 market, said the dollar was exchanged at N735.00 and sold at N740.00 and above on Wednesday, as against N730.00 and above it traded on Tuesday.

 

Atiku-Okowa AD

 

Also, at the Uyo Udi street market, currency dealers said the dollar was exchanged at N745.00 and sold at N750.00 per $1.

 

 

 

 

 

 

 

 

 

 

 

 

 <mailto:info at bulls.co.zw> 

 

 

Global Markets

 

U.S. dollar gains sharply across the board as recession fears mount

(Reuters) - The U.S. dollar soared on Thursday, led by strong gains against the yen, sterling, and commodity currencies, as investors fretted about the risk of recession with the Federal Reserve likely to raise interest rates well into next year.

 

The greenback's allure was magnified, amid worsening risk appetite as stocks fell.

 

Like the Fed, the European Central Bank raised interest rates for the fourth time in a row, although by less than at its last two meetings, pledged further hikes and laid out plans to drain cash from the financial system as part of its fight against runaway inflation.

 

Register for free to Reuters and know the full story

 

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ECB President Christine Lagarde, in her press briefing, said upside inflation risks remain, which necessitates more tightening.

 

The Bank of England also raised its key interest rate by a further half-percentage point on Thursday and indicated more hikes were likely. Investors though bet that the BoE might be getting close to the end of its increases in borrowing costs.

 

"Both the Fed and ECB delivering more hawkish rate steers are compounding recession fears," said Joe Manimbo, senior market analyst at Convera in Washington.

 

"The dollar's boost from the Fed stems from it not being done raising rates and Chair (Jerome) Powell setting a high bar for rate cuts."

 

The Fed projected at least an additional 75 bps of increases in borrowing costs by the end of 2023. Its projection of the target federal funds rate rising to 5.1% in 2023 is slightly higher than investors expected.

 

Powell was also particularly hawkish in his comments, noting that ongoing rate hikes are appropriate to get sufficiently restrictive.

 

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J.P. Morgan Asset Management, in a research note, has increased the odds of recession to 60% from its initial forecast of 50%.

 

"The Fed is raising rates at the fastest pace since 1980, the rest of the world is following its lead, quantitative tightening is in its early stages, and inflation remains painfully high," wrote Bob Michele, chief investment officer, at J.P. Morgan.

 

"It seems very aspirational to assume all this can end in a soft landing."

 

In afternoon trading, the dollar rose to two-week highs against the yen, and last traded up 1.6% at 137.665 .

 

The euro earlier hit $1.0737, the highest since June 9, after the ECB decision, before falling back to $1.0629, down 0.5% on the day. The dollar index, a gauge of the greenback's value against a basket of currencies , rose 0.9% at 104.53

 

The greenback briefly pared gains after data on Thursday showed that U.S. retail sales fell more than expected in November, while the labor market remains tight, with the number of Americans filing for unemployment benefits declining last week.

 

Sterling also fell sharply as investors believe the BOE is nearing the end of its rate hikes. It was last down nearly 2% at $1.2183 .

 

The Norwegian krone dropped as well versus the dollar after Norway's central bank raised its benchmark interest rate by 25 basis points to a 13-year high of 2.75% on Thursday, as expected by economists, and said it will "most likely" hike again in the first quarter of 2023.

 

The dollar surged 1.5% against the Norwegian currency to 9.866.

 

The Swiss franc also fell after Swiss National Bank Chairman Thomas Jordan said it was too early to "sound the all-clear" on high inflation after the central bank hiked interest rates again on Thursday and hinted further increases were still possible.

 

The SNB raised its policy interest rate by 50 basis points to 1% - the central bank's third hike this year as it stepped up its campaign to dampen the rise in prices.

 

The dollar was last up 0.4% versus the franc at 0.9285 .

 

The Australian and New Zealand dollars were down sharply against the greenback. The Aussie fell 2.3% to US$0.6702 , while the New Zealand dollar slid 1.8% to US$0.6345 .

 

 

 

 <mailto:info at bulls.co.zw> 

 

 

 

 

Commodities Markets



 

Gold prices down ₹1,000 from recent highs, falls for third day in a row

Gold prices fell for the third day in a row in Indian markets as sentiment remained weak after Fed signalled that interest rates could remain higher for a long period. On MCX, gold edged lower to ₹54026 per 10 gram while silver fell 0.3% to ₹67,610 per kg. Earlier this week, the yellow metal rose to nine-month highs when it rose above ₹55,000 per 10 gram.

 

In global markets, spot gold traded higher near $1,780.63 per ounce but was down over 1% so far this week. A weaker dollar supported gold prices, making bullion cheaper for overseas buyers. The dollar index was down 0.3%.

 

On Thursday, a day after Fed hiked rates by 35 bps, “ECB hiked deposit rate by 50 bps along expected lines to 2% but ECB chair Lagarde was extremely hawkish in the press conference. She pushed back against any expectations of a pivot and said higher inflation is likely to persist and that the ECB needed to do more than what the market was pricing in," IFA Global said in a note.

 

Bank of England also hiked rates by 50bps as well along expected lines to 3.5%.

 

“The U.S. retail sales and core retail sales data released on Thursday were also below expectations and also pushed both precious metals lower. We expect bullion prices to remain volatile in today’s session. Gold has support at $1768-1755 while resistance is at $1792-1805. Silver has support at $22.80-22.55, while resistance is at $23.48-23.65. In rupee terms, gold has support at ₹53,820-53,650, while resistance is at ₹54,280, 54,450. Silver has support at Rs67,250-66,880, while resistance is at ₹68,520–68,980," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

 

The RBI has announced that the latest tranche of sovereign gold bonds will open from December 19 to December 23, 2022, for subscription. The RBI issues gold bonds on behalf of the Government of India. The issue price will be fixed on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA), for the last three working days of the week preceding the subscription period.

 

 


 

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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