Bulls n Bears Daily Market Commentary : 25 October 2022

Wed Oct 26 05:20:57 CAT 2022

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:bulls at bulls.co.zw> Views & Comments
<http://www.bullszimbabwe.com> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:%20bulls at bullszimbabwe.com?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 25 October 2022

 <mailto:info at bulls.co.zw> 

ZSE commentary

Market in stable gains.

ZSE maintained stable gains in Tuesday's session to see the primary
All-Share Index adding 0.63% to 14645.20pts while, the Blue-Chip Index rose
0.32% to close at 8632.08pts.The Mid-Cap Index doubled the previous day's
gains to record a 1.33% rise as it settled at 32269.73pts while, the
Agriculture Index went up 0.59% to 75.57pts. Hotelier African Sun led the
day's gainers on a 9.69% surge to $23.7806, albeit on scrappy 3,100 shares
while, Axia Corporation was 5.31% firmer at $64.6379. Ariston Holdings
climbed 4.68% to finish at $4.2000 as milk processor Dairiboard picked up
3.99% to settle at $49.7158. Property concern FMP capped the top five
winners' list on a 3.68% gain to end pegged at $9.0400. Mashonaland Holdings
Limited was the top laggard of the day after a 5.06% fall to $7.5000,
followed by cement manufacturer Lafarge that slipped 3.23% to $120.0000.
Telecoms firm Econet lost 2.46% to $84.6252 while, retailer OK Zimbabwe slid
0.37% to $32.8486. Sugar refiners Star Africa completed the top five losers
as it dropped a marginal 0.06% to $1.6987. The market recorded a positive
breadth of ten as eighteen counters

advanced against eight that faltered.

Activity aggregates enhanced as turnover grew by 4.79% to $254.72m while,
volume of shares traded jumped 189.43% to 4.08m shares. The trio of Econet,
Delta and Innscor accounted for a gigantic 86.73% of the value traded while,
the rest of the portion was shared between other counters. Bankers First
Capital and Econet claimed 37.56% and 33.03% of the total volumes traded
respectively. On the VFEX market, Bindura ticked up 1.69% to US$0.0300
having traded 9400 shares while, Seed Co International grew 0.11% to
US$0.3804 on a paltry 80 shares. Old Mutual ETF ticked up 1.20% to $5.5011
as Datvest improved 0.59% to $1.7100. Trading in the negative territory were
Cass Saddle that declined 9.77% to $1.8678, MIZ which slipped 3.42% to
$1.0624 and Morgan & Co Multi-sector ETF that gave up 2.95% to end pegged at
$21.3501.. -efesecurities

Global Currencies & Equity Markets

South Africa

South African rand weakens as dollar firms amid economic uncertainty

(Reuters) - South Africa's rand fell on Monday, following other emerging
market currencies, as the U.S. dollar held firm amid global economic
uncertainty.

At 1538 GMT, the rand ZAR=D3 traded at 18.4275 against the dollar, 1.75%
weaker than its previous close.

The U.S. dollar made gains against other major currencies, with the dollar
index =USD up about 0.13% at 111.97.

A further escalation of the Russia-Ukraine war, policy worries in China
following President Xi Jinping's appointment of loyalists to the government,
and Britain's contest for a new prime minister, have all unsettled markets
in recent days.

"South Africa. continues to see a score of risks from the external
environment, including ongoing monetary policy tightening in advanced
economies, which is driving rising domestic borrowing costs, while high
inflation also adds to the pressure on bond yields," Investec analyst
Annabel Bishop said in a research note.

She said domestic factors including problems at state logistics group
Transnet and state power utility Eskom had also contributed to rand
weakness.

This week, local investor attention turns to the South African government's
mid-term budget. A Reuters poll published on Friday predicted the National
Treasury would be able to trim this year's projected budget deficit thanks
to buoyant mining receipts.

Shares on the Johannesburg Stock Exchange fell, weighed down by market
heavyweights Naspers NPNJn.J and Prosus PRXJn.J, which slumped 17.40% and
15.19%, respectively.

They hold a near 29% stake in Tencent Holdings 0700.HK, whose shares fell
along with other prominent Chinese tech companies, as President Xi's new
leadership team sparked investor concerns over private sector growth.

Overall on the stock exchange, the Top-40 .JTOPI index closed 1.06% lower,
while the broader all-share .JALSH index ended down 0.86%.

The government's benchmark 2030 bond ZAR2030= was down, with the yield up
2.5 basis points to 11.050%.

Nigeria

Naira depreciates marginally, exchanges at 441.67 to dollar

The Naira on Tuesday exchanged at 441.67 to the dollar at the Investors and
Exporters window, a depreciation of 0.07 per cent, compared with N441.38 to
the dollar it exchanged on Monday.

The open indicative rate closed at N440.58 to the dollar on Tuesday.

An exchange rate of N447 to the dollar was the highest rate recorded within
the day's trading before it settled at N441.67.

The Naira sold for as low as 423 to the dollar within the day's trading.

A total of 79.41 million dollars was traded at the official Investors and
Exporters window on Tuesday.

(NAN)

 <mailto:info at bulls.co.zw> 

Global Markets

Sterling at 6-week high as Sunak becomes PM, while dollar sags

(Reuters) - Sterling rallied to a six-week high on Tuesday on improved risk
sentiment as Rishi Sunak became Britain's prime minister, while the dollar
fell to a three-week low as weakening U.S. economic data cooled expectations
on the pace of future U.S. rate hikes.

The potential for foreign exchange volatility is elevated this week, with
central banks in the euro zone and Canada expected to hike rates by 75 basis
points, and the Bank of Japan set to maintain ultra-low interest rates to
support its fragile economy.

Rishi Sunak became Britain's third prime minister in two months on Tuesday,
tasked with tackling a mounting economic crisis and a warring political
party.

Register for free to Reuters and know the full story

Sterling surged to its strongest level since Sept. 15, and was last up 1.66%
at $1.147, but currency strategists expect the pound's climb to be
short-lived.

"Beyond a brief honeymoon phase rally, I think the daunting road ahead for
the UK economy is likely to cap sterling gains," said Joe Manimbo, senior
market analyst at Convera.

The U.S. dollar was broadly weaker amid signs that Federal Reserve rate
hikes are slowing the world's biggest economy. The greenback slid into
negative territory after data showed that U.S. home prices sank in August as
surging mortgage rates sapped demand.

"U.S. economic data is deteriorating and that is helping push down Treasury
yields," said Edward Moya, senior market analyst at Oanda. "If the data
keeps on getting uglier, the December FOMC meeting debate might not be
between a half point increase and 75 basis point hike, but with a quarter
point rise and 50 basis-point boost."

The Fed is expected to raise rates by 75 basis points for a fourth-straight
time at its Nov. 1-2 meeting.

The dollar index , which measures the greenback against six major peers, was
down 0.822% at 110.94 at 3:10 p.m. EDT (1910 GMT).

The euro strengthened to a 20-day high ahead of Thursday's ECB meeting,
where a three-quarter point hike is expected by the central bank as it seeks
to rein in red-hot inflation. read more

The common currency was last up 0.87% at 0.99595.

"Warm weather is fueling (relative) optimism about the energy crisis, even
if Germany's IFO data is deep into recessionary territory," said Kit Juckes,
chief FX strategist at Societe General.

The Ifo Institute for Economic Research said Germany is heading into
recession, forecasting that Europe's biggest economy will contract by 0.6%
in the fourth quarter.

YEN AND YUAN

The yen firmed against the dollar after suspected Bank of Japan (BOJ)
intervention on Friday and Monday.

A retreat this week in long-term Treasury yields also helped support the
Japanese currency. However, the policy background for yen weakness is likely
to be put into stark relief in coming days, with the BOJ expected to stick
to monetary stimulus on Friday.

At 147.96 yen, the dollar was down from a 32-year high against the Japanese
currency of 151.94 on Friday, which appeared to trigger successive bouts of
BOJ intervention.

Japan's Ministry of Finance declined to comment on whether it had ordered
interventions in recent days, though it did confirm action in September,
which was the first yen-buying foray by Japanese authorities since 1998.

China's currency, meanwhile, extended the weakness seen since Chinese leader
Xi Jinping's choice of leadership team at the twice-a-decade Communist Party
Congress raised fears that growth will be sacrificed for ideology-driven
policies.

The onshore yuan slid to its lowest in nearly 15 years on Tuesday after the
central bank set the lowest mid-point since 2008. The offshore yuan dipped
to a record low of 7.375 against the dollar.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold glitters as dollar retreat adds sheen

Gold reversed course to trade higher after the dollar fell as weakness in
the U.S. economy fueled expectations the Federal Reserve would likely slow
the pace of its interest rate hikes.

Spot gold was up 0.4% at $1,654.58 per ounce, while U.S. gold futures
settled 0.2% higher at $1,658.

"We're seeing some weakness in the dollar and some upside in some of the
other currencies against the dollar, and it's pushing gold back up," said
Bob Haberkorn, senior market strategist at RJO Futures.

The dollar index, which measures the currency against six major peers, was
down about 0.9%, making gold less expensive for overseas buyers.

A survey on Monday showed U.S. business activity contracted for a fourth
straight month, sparking bets the Fed might rein in its aggressive policy
stance.

If the Fed goes with a rate hike below the expected 75 basis points, that'll
signal a slowdown in these hikes and be bullish for gold, "but gold traders
are waiting for something more concrete," Haberkorn added.

Rising interest rates dim bullion's appeal as they increase the opportunity
cost of holding the non-yielding asset.

"Investors are still giving gold the cold shoulder, thereby generating
persistent headwind," with positioning data indicating that a majority of
speculative financial investors are continuing to bet on a falling gold
price, Commerzbank analysts said in a note.

Speculators switched to net short positions of 20,633 contracts in COMEX
gold in the latest week, the U.S. Commodity Futures Trading Commission
(CFTC) said on Friday.

Meanwhile, data showed top consumer China's net gold imports via Hong Kong
in September halved from the previous month.

Spot silver rose 0.4% to $19.34 per ounce, platinum shed 0.8% to $917.53,
while palladium dropped 2.1% to $1,926.75.

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 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com  

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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.

(c) 2022 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221026/ed5c65c7/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221026/ed5c65c7/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 29279 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221026/ed5c65c7/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29358 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221026/ed5c65c7/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221026/ed5c65c7/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130911 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221026/ed5c65c7/attachment-0001.obj>