Bulls n Bears Daily Market Commentary : 06 October 2022

Fri Oct 7 06:53:49 CAT 2022

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Bulls n Bears Daily Market Commentary : 06 October 2022

ZSE commentary

ZSE extend losses in Thursday's session.

Heavy cap stock weighed down the market in Thursday's session to see their
own index Top Ten shed 5.29% to 8108.26pts. The All-Share Index slumped
3.18% to end the day at 13632.14pts. On the other hand, the ZSE Agriculture
Index and the Mid Cap Index firmed up 2.42% and 1.89% to  close at 74.50pts
and 29405.77pts apiece. Top capitalised stock Delta plummeted 10.47% to end
pegged $204.4233 while, telecoms giant Econet tumbled 10.03% to $90.0160.
Hotelier RTG dipped 9.78% to $7.0390 while, conglomerate Innscor trimmed
9.48% to $270.0867. Completing the top five shakers of the day was General
Beltings that softened 8.13% to close at $2.0000. Apparel retailer Truworths
headlined the upside of the market as it reversed prior session's losses to
close at $2.5400 having jumped 14.89%. Insurer FML rallied 14.72% to
$27.5318 while, banking group First Capital advanced 13.89% to $10.2944.
Construction group Masimba put on 10.85% to $72.0000 while, National Foods
capped the top five winners of the day on a 9.09% lift to $1,200.0000.
Volumes traded plunged 98.72% to 1.18m shares while, turnover dropped 87.08%
to $147.02m. Volume leaders of the day were Axia (25.51%), Simbisa (17.36%),
Innscor (14.88%), Econet (12.35%) and Delta (11.15%). Anchoring the value
outturn was Innscor, Simbisa, Delta and Axia with a combined contribution of
83.47%. Morgan and Co MCS let go 3.96% to $27.1765 while, Datvest retreated
0.97% to $1.7414. Morgan MIZ shed 0.88% to settle at $1.2886. The Old Mutual
ETF was the only gainer with a 0.92% rise to $5.2346. On the VFEX, Bindura
slipped 1.96% to USD$0.0300 as 1.46m shares exchanged hands. Padenga traded
800 shares worth USD$288.0000 at a stable price of $0.3600. Foreign
participation remained depressed as a mere zwl$21,900 worth of disposals
were registered against a nil purchases position.- efesecurities

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

Rand strengthens against dollarAt 09:32 the rand was at R17.78 against the
dollar.

The rand strengthened in early trade on Thursday as some risk appetite
returned to markets ahead of U.S. jobs data that could give clues on the
Federal Reserve's interest rate trajectory.

At 09:32 the rand was at R17.78 against the dollar.

The dollar index, which measures the currency against six major rivals, was
last trading up 0.1% at 110.98.

The South African government's benchmark 2030 bond was up in early deals,
with the yield down 4.5 basis points to 10.670%.

The US Labour Department's closely watched non-farm payrolls data is due on
Friday.

Ghana''Cedi loses 37.5% in value to dollar as of September 30, 2022 - BoG

Cedi has fallen by more than 30% so far in 2022

As of September 30, 2022, the Ghana cedi had depreciated by 37.5% to the US
dollar, the Bank of Ghana has said.

At the same time, the cedi had depreciated by 24.1 percent, and 27.5 percent
against the pound, and Euro.

In comparison with the same period of last year, the Ghana cedi fared
better, depreciating by 1.8% and 0.5% against the US dollar and the pound,
respectively, and appreciated by 4.0% against Euro

In its October 2022 Monetary Policy Report, the Central Bank said the
depreciation of the currency was driven by higher crude oil product import
bill on the back of rising prices, non-roll over of maturing bonds by
non-resident investors, portfolio reversals and sudden exit of non-resident
investors in the bond market, as well as loss of market access to Eurobond
resources.

"The effect of these factors has been exacerbated by the strength of the US
dollar, resulting in depreciation of the local currency from the beginning
of the year-to-date".

Bloomberg had earlier stated that the cedi lost 40.05% in value to the US
dollar in nine months of 2022, ranking it as the second worst-performing
currency in the world in the 147th position.

This decline in the local currency against the American currency is the
worst in over three decades.

The performance of the cedi also ranked it as the worst among 30
top-performing currencies on the African continent.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar ascendant as focus turns to jobs data

(Reuters) - The dollar was strongly poised on Friday, buoyed by a chorus of
hawkish Federal Reserve speakers and as investors bet a solid jobs data
later in the day will keep the world's biggest central bank on its
aggressive tightening path to tame inflation.

The rising greenback pushed the pound and the euro off their intra-week
highs in early Asia trade, which also saw a break of 145 per dollar again
for the Japanese yen.

Sterling was off 0.09% to $1.1150, away from a high of $1.1493 hit earlier
in the week after staging a recovery thanks to the U.K. government's
reversal of its planned cut to the highest rate of income tax.

The euro traded 0.05% lower at $0.9788, after two unsuccessful attempts to
regain parity this week.

Overnight, a slew of Fed officials reinforced the view that the central bank
is nowhere near done with its hiking cycle as it seeks to bring down
inflation, and that rates are expected to go up further. read more

"The rhetoric coming from Fed speakers has been very clear in terms of this
hawkish message," said Rodrigo Catril, a currency strategist at National
Australia Bank.

"That certainly reasserted the argument that not only does the Fed remain
very much committed to keeping its foot on the tightening pedal, whilst at
the same time, you look at economic data, and still the U.S. looks in a much
stronger place than others."

The U.S. dollar index was up 0.04% at 112.29, after rising nearly 1%
overnight and away from a low of 110.05 hit earlier in the week.

All eyes now turn to the U.S. nonfarm payrolls report due later on Friday,
with economists forecasting 250,000 jobs to have been added last month,
compared with 315,000 in August.

Elsewhere, the yen last bought 145.04 per dollar, close to its 24-year low
of 145.90 hit last month which prompted an intervention by Japanese
authorities to shore up the fragile currency.

"We've been long arguing that an intervention is not an effective way of
changing the trend in the currency ... our sense is that the trigger for a
new intervention will be a sudden drastic weakening of the yen," said
Catril.

The kiwi rose 0.04% to $0.5657 and was on track for its first weekly gain
since August, having seen some support from a similarly hawkish Reserve Bank
of New Zealand after it lifted its official cash rate by a widely-expected
50 basis points on Wednesday, and promised more to come.

The Aussie traded 0.05% higher at $0.6414.

While the Reserve Bank of Australia on Tuesday surprised markets by lifting
interest rates by a smaller-than-expected 25 bp, it added that further
tightening would still be needed.

In another sign that central banks across the world are still far from over
in their fight to tame decades-high inflation, European Central Bank
policymakers appeared increasingly worried at their meeting last month that
high inflation could become entrenched, making aggressive policy tightening
necessary even at the cost of weaker growth. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold steady ahead of U.S. jobs data, but heads for best week since March

Gold prices held steady on Friday ahead of the U.S. jobs report that could
help investors gauge the Federal Reserve's rate-hike path, and were headed
for their biggest weekly gain since March.

Fundamentals

Spot gold was little changed at $1,709.69 per ounce, as of 0123 GMT.

Prices have risen about 3% so far in the week, helped by a retreat in the
dollar and Treasury yields from multi-year peaks.

U.S. gold futures

were flat at $1,719.90.

The dollar index

and benchmark U.S. 10-year Treasury yields

were steady after rising overnight.

Investors are now focused on the U.S. nonfarm payrolls report due later in
the day, with economists forecasting 250,000 jobs to have been added last
month, compared with 315,000 in August.

New Federal Reserve Governor Lisa Cook on Thursday added her voice to the
U.S. central bank's broad consensus for continued interest rate hikes.

The number of Americans filing new claims for unemployment benefits
increased by the most in four months last week, but the labor market remains
tight even as demand for labor is cooling amid higher interest rates.

The German government expects Europe's largest economy to slide into
recession next year as an energy crisis, rising prices and supply
bottlenecks take their toll, two sources told Reuters on Thursday, citing
provisional figures.

The Perth Mint's sales of gold products in September rose 4.2%
month-on-month, while silver sales jumped to their highest in seven years,
the refiner said in a blog post.

Spot silver

fell 0.4% to $20.56 per ounce, platinum

dipped 0.4% to $918.38 and palladium

dropped 0.6% to $2,247.62.

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
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