Bulls n Bears Daily Market Commentary : 22 November 2022

Wed Nov 23 07:57:39 CAT 2022

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Bulls n Bears Daily Market Commentary : 22 November 2022

 <mailto:info at bulls.co.zw> 

ZSE commentary

The ZSE All Share Index was flat after adding just 2.14 points to close the
trading session at 13,772.01 points. Trading in the positive: AXIA
CORPORATION LIMITED  increased by $1.1625 to $62.9826, FBC HOLDINGS LIMITED
added $1.0499 to $63.0000 and HIPPO VALLEY ESTATES LIMITED traded $1.0000
higher at $201.0000. MASHONALAND HOLDINGS LIMITED gained $0.7511 to $9.0000
whilst DELTA CORPORATION LIMITED went up by $0.6621 to $201.2977. 

Trading in the negative: BRITISH AMERICAN TOBACCO LIMITED  decreased by
$3.1429 to $2,945.0000, ECOCASH HOLDINGS ZIMBABWE LIMITED shed $1.0383 to
$35.9479 and MEIKLES LIMITED lost $1.0000 to $100.0000. FIRST CAPITAL BANK
LIMITED traded $0.9996 lower at $9.0806 and TRUWORTHS LIMITED was down
$0.2500 to $2.2000. 

EXCHANGE TRADED FUNDS (ETF)

MORGAN & CO MADE IN ZIMBABWE EXCHANGE TRADED FUND was up $0.0316 at $1.2000
whilst CASS SADDLE AGRICULTURE EXCHANGE TRADED FUND and DATVEST MODIFIED
CONSUMER STAPLES ETF remained flat at $2.0000 and $1.7000 respectively.
MORGAN & CO MULTI SECTOR EXCHANGE TRADED FUND added $0.4298 to $22.0000 and
OLD MUTUAL ZSE TOP 10 shed $0.5775 to close at $5.7008.zse

Global Currencies & Equity Markets

South Africa

S.African rand gains as dollar retreats amid return of risk appetite

(Reuters) -South Africa's rand gained on Tuesday, as the dollar retreated
amid investor demand for riskier assets.

At 1605 GMT, the rand traded at 17.2800 against the dollar, 0.19% stronger
than its previous close.

The South African currency had slipped on Monday, as market sentiment was
dented by worries about a rise in COVID-19 cases in China and tightening
restrictions in some cities there, sending the safe-haven dollar higher.

However, recent cooler-than-expected U.S. inflation data has raised global
investors' hopes that the Federal Reserve may be in a position to slow its
pace of interest rate hikes.

Investors will be looking at minutes from the Fed's November meeting due on
Wednesday for any clues on the outlook for interest rates.

The dollar index, which measures the currency against six major rivals was
last trading down 0.37% at 107.37.

Shares on the Johannesburg Stock Exchange rose slightly, mirroring similar
moves in global equities as improved risk appetite boosted markets.

Overall on the stock market, the Top-40 index closed 0.4% higher, while the
broader all-share ended up 0.42%.

The government's benchmark 2030 bond was lower, with the yield up 5 basis
points to 10.290%.

Nigeria

Naira closes unchanged at N780 per dollar at parallel market

Naira on Monday closed unchanged at N780 per dollar at the parallel market
called the black market, following moderation in demand for the greenback.

Naira had depreciated against the dollar at the parallel and official market
following shortage of the greenback, occasioned by declining inflows, high
import demand, oil theft and subsidy, among others.

After the Central Bank of Nigeria (CBN) announced plans to redesign and
replace the nation's banknote, the local currency weakened to as low as N890
per dollar at the unofficial and N446/1$ at the official market, known as
Investors and Exporters (I&E) forex window.

Naira appreciated marginally at the I&E window as the dollar was quoted at
N445.38 on Monday as against the last close of N445.67 on Friday, data from
the FMDQ indicated.

Most currency dealers who participated at the FX auction on Monday
maintained bids between N439.99 (low) and N447.50 per dollar (high).

"At the close of the week, we saw the local currency experience a slight
calm in demand in the foreign exchange market following announcements by
deposit money banks on the amount of permissible dollar purchases from banks
and its availability for Business Travel Allowance (BTA), and Personal
Travel Allowance (PTA), purposes," said analysts at Cowry Asset Management
Limited.

Consequently, the Naira edged the dollar by N0.08 (0.02%) week on week at
the importers and exporters window to N445.67/USD from N445.75/USD it closed
the previous week as FX users continue prowling for FX at the open market
whose rates are determined by the forces of demand.

A report by Cowry Asset Management show that at the open parallel market FX
window the Naira lost N59 or 8.14 percent week on week to close the week at
N784/USD from N725/USD in the previous week's close as "we begin to approach
festivities coupled with the reason by users to hedge against the weakening
naira whose purchasing power has also been eroded by the spiralling
inflationary levels."

At the Interbank foreign exchange forward contracts market, the spot
exchange rate remained unchained from the previous week as it closed the
week at N445/USD from last week. Analysis of the Naira/USD exchange rate in
the Naira FX Forward Contracts Markets, indicated that there was a mixed
trend across tenors as seen in the 1 month, 2 month and 3 month contracts
all gaining by 0.4 percent, 0.21 percent and 0.75 percent week on week to
close the week at a stronger offer contact price of N449.28/USD, N452.67/USD
and N457.27/USD in that order.

On the flip side, the 6 month and 12 month forward contracts saw the naira
edged out by the dollar by 2bps and 18bps from which they were priced at
N477.02/USD and N504.37/USD respectively.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar slips as investors tiptoe back into riskier currencies

(Reuters) - The dollar retreated across the board on Tuesday, ceding some of
the ground gained in the previous session, as investors looked past worries
about China's COVID flare-ups, boosting demand for more risky currencies.

Equities, commodities and riskier currencies were largely firmer on Tuesday,
a day after fresh COVID-19 curbs in China fuelled worries over the global
economic outlook.

The euro rose 0.5% against the dollar to $1.02965, on pace to snap a
three-session streak of losses.

"The tentative recovery in risk appetite has been enough to stall the
dollar's several-day rebound," said Joe Manimbo, senior market analyst at
Convera in Washington.

"Fed minutes loom tomorrow but for the most part range trading is dominating
ahead of the U.S. holiday," Manimbo said, referring to the Thanksgiving
holiday on Thursday.

The dollar has rallied against every major currency this year, boosted by
the Federal Reserve's supersized interest rate hikes as it battles
inflation. But recent cooler-than-expected U.S. consumer price data has
spurred investors' hopes that the Fed may be in a position to moderate its
pace of hikes.

Federal Reserve Bank of Cleveland President Loretta Mester reiterated
Tuesday that getting inflation down remains critical for the central bank.

Investors will be parsing minutes from the Fed's November meeting, due on
Wednesday, for any hints about the outlook for interest rates.

"The Fed's hawkish outlook is keeping a floor under the dollar but
expectations of a slower pace of tightening is capping rallies," Convera's
Manimbo said.

Tuesday's revival in risk appetite helped lift the Australian dollar 0.6%,
while the New Zealand dollar rose 0.9% as traders braced for New Zealand's
central bank to deliver its biggest ever rate hike this week as it continues
efforts to temper inflation.

Sterling was 0.6% higher at $1.1885 after data showed Britain's government
borrowed less than expected in October, although the budget deficit is
likely to balloon in the months ahead thanks to energy bill support measures
and a slowing economy.

In cryptocurrencies, bitcoin was 2.5% higher at $16,161, a day after falling
to a new two-year low of $15,479 amid jitters about the health of crypto
broker Genesis.

Genesis said on Monday it has no plans to file for bankruptcy imminently,
though Bloomberg News reported, citing sources, that the broker was
struggling to raise fresh cash for its lending unit, and warning investors
it may need to file for bankruptcy if it does not find funding.

The lending unit suspended redemptions last week, citing fallout from the
collapse of FTX, which filed for bankruptcy on Nov. 11.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold flat as market awaits Fed minutes for rate-hike path

Gold prices were flat on Wednesday, as investors held back from making big
bets ahead of the U.S. Federal Reserve's latest policy meeting minutes,
which could offer clues on further interest rate hikes.

Spot gold was flat at $1,739.90 per ounce by 0121 GMT. U.S. gold futures
edged 0.1% higher to $1,741.60.

Spot silver eased 0.3% to $21.01 per ounce, platinum rose 0.2% to $992.62,
while palladium fell 0.2% to $1,857.30.

Gold prices were flat on Wednesday, as investors held back from making big
bets ahead of the U.S. Federal Reserve's latest policy meeting minutes,
which could offer clues on further interest rate hikes.

Spot gold was flat at $1,739.90 per ounce by 0121 GMT. U.S. gold futures

edged 0.1% higher to $1,741.60.

"There is some nervousness in the market ahead of the Fed minutes," said
Edward Meir, an analyst with ED&F Man Capital Markets.

Market participants are awaiting the minutes of Fed's Nov. 1-2 policy
meeting due at 1900 GMT. U.S. durable goods data and weekly initial jobless
claims are also on the radar.

At the beginning of this month, the U.S. central bank delivered a fourth
consecutive 75 basis-point rate hike to tame inflation in what has become
the fastest tightening of monetary policy in 40 years.

The Fed may need to raise interest rates to a higher level and hold them
there for longer in order to successfully moderate consumer demand and bring
down high inflation, Kansas City Fed President Esther George said on
Tuesday.

Although gold is seen as a hedge against inflation, rising U.S. interest
rates dull non-yielding bullion's appeal.

"In the near term, expect gold prices to work a bit higher from here into
year-end because I see the dollar weakening some more and we are very close
to peaking out on inflation and interest rates," Meir said.

Fed fund futures are now pricing in a 79% chance of 50-basis point hike in
the December meeting.

SPDR Gold Trust

, the world's largest gold-backed exchange-traded fund, said its holdings
rose 0.10% to 906.93 tons on Tuesday from 906.06 tons on Monday.

Spot silver

eased 0.3% to $21.01 per ounce, platinum

rose 0.2% to $992.62, while palladium

fell 0.2% to $1,857.30.

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
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opinions expressed and recommendations made are subject to change without
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