Bulls n Bears Daily Market Commentary : 03 April 2023

Tue Apr 4 06:31:14 CAT 2023

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Bulls n Bears Daily Market Commentary : 03 April 2023

 <https://www.cloverleaf.co.zw/> 

ZSE commentary

Heavies drags down the market .

The market faltered in the month-opening session as heavies weighed down the
ZSE to see their own index decline 1.71% to 22687.54pts. The All-Share Index
retreated 1.01% to close at 38180pts. The ZSE Agriculture Index and the Mid
Cap Index put on 1.78% and 1.22% to end at 145.70pts and 76227.10pts in that
order. Telecoms giant Econet was the worst faller of the day on a 8.11% dip
to $245.7197 followed by property concern FMP that shed a similar 8.11% to
$15.0000. Banking group CBZ dropped 7.91% to $175.8909 while, Mashonaland
Holdings trimmed 7.11% to settle at $13.9342. Fintech group Ecocash capped
the top five shakers of the day on a 2.86% fall to $68.0000. Partially
mitigating today's losses were gains in banking group FBC that surged 14.76%
to $113.0000. Tea company Tanganda jumped 11.11% to $350.0001 while, spirits
and wines manufacturer AFDIS put on 5.00% to settle at $315.0000.
Construction Masimba went up 2.11% to trade at $145.0000 while, Proplastics
added 2.04% to close at a vwap of $96.9413. Nineteen counters registered
price movements in the session as nine gained against ten that faltered to
register a negative breadth of one.

Volume of shares traded eased 17.20% to 2.30m while, turnover plunged 49.51%
to $421.64m. Volume leaders of day were OKZIM (27.01%), Star Africa
(20.34%), Econet (16.59%) and Delta (12.82%). Value drivers of the day were
Delta, Econet and OKZIM that claimed a combined 90.29% of the outturn. On
the VFEX, Simbisa slipped 0.66% to $0.4200, Bindura let go 0.51% to $0.0197
and Innscor slid 0.06% to $0.6500. A total of 391,781 shares worth
USD$200,322.62 traded on the VFEX. The Old Mutual ETF was only active one
amongst the ETFs as it tripped 5.00% to $9.5000 on 21,332 shares. Elsewhere,
Simbisa released half year results in which PAT jumped 38% to USD$17.40m and
the group declared an interim dividend of USD$0.0088 per share.
efesecurities

Global Currencies & Equity Markets

South Africa

South African rand flat against dollar; stocks rise

South Africa's rand was flat on Monday, having regained its losses from
earlier in the day after a decision by major oil producers to reduce supply
caused the dollar to briefly spike.

At 1615 GMT, the rand traded at 17.8000 to the dollar, close to its previous
close of 17.8050.

The dollar index which measures the currency against six rivals, was down
about 0.8%.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies,
known as OPEC+, announced on Sunday its decision to reduce oil supply by
about 1.16 million barrels per day.

The decision pushed oil prices up over 6% on Monday and drove dollar
strength initially, although it was short-lived. Investors are now focusing
on diverging central bank policy with the Federal Reserve widely viewed as
nearing the end of its rate-hike cycle.

South African stocks rose on Monday, with the Johannesburg All Share index
(.JALSH) and the Top-40 index (.JTOPI) up about 0.7%.

The rise in oil prices caused energy shares to gain globally. South African
petrochemical group Sasol(SOLJ.J) ended the day with shares up 5.7%.

Shares of UK-based real estate trust Industrials REIT (MLII.L), , which has
a secondary listing on the Johannesburg Stock Exchange, rose almost 38%
after it agreed to the terms of an offer to be acquired by Blackstone.

The government's benchmark 2030 bond was weaker, with the yield up 3.5 basis
points to 9.865%.

Source: Reuters

Nigeria

Naira drops against dollar by 0.46%

The Naira depreciated against the dollar on Monday, exchanging for N463.50
at the investors' and exporters' window.

The rate represents a decrease of 0.46 per cent when compared to the N461.38
it exchanged to the dollar at the close of business on March 31.

The open indicative rate closed at N461.80 to the dollar on Monday.

A spot exchange rate of N466 was used for trading within the day before it
settled at N463.50.

Gold prices edged lower on Tuesday as a steady dollar made bullion more
expensive for overseas buyers, while softer U.S. economic data heightened
expectations of less-aggressive moves by the Federal Reserve.

FUNDAMENTALS

* Spot gold was down 0.1% at $1,962.36 per ounce, as of 0103 GMT. U.S. gold
futures were flat at $1,999.50.

* The dollar index was 0.1% higher.

* Gold prices had dropped on Monday after a surprise cut in OPEC+ crude
production was announced during the weekend. But prices reversed course to
rally 1% as the dollar stumbled following the release of softer U.S.
economic data.

* Data showed U.S. manufacturing activity slumped to the lowest level in
nearly three years in March as new orders continued to contract, and
activity could decline further amid tightening credit conditions.

* U.S. Treasury Secretary Janet Yellen said a surprise OPEC+ oil production
cut is an "unconstructive act" that will add uncertainty to the global
growth outlook.

* While gold is traditionally considered a hedge against inflation, higher
interest rates to rein in rising price pressures dim the appeal for
non-yielding bullion.

* Markets see a 54.8% chance of the Fed hiking rates by a quarter point in
May, according to the CME FedWatch tool.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund,
said its holdings rose 0.22% to 930.04 tonnes on Monday from 928.02 tonnes
on Friday.

* Spot silver fell 0.3% to $23.92 per ounce, while platinum edged up 0.2% to
$987.92 and palladium rose 0.2% to $1,462.09.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar skids after soft U.S. economic data; impact of OPEC+ cuts fades

(Reuters) - The dollar stumbled on Monday, surrendering earlier gains
following unexpected oil output cuts from OPEC+, as data showed the U.S.
economy continued to slow with declines in manufacturing and construction
spending.

Data on Monday added to the narrative that the Federal Reserve is near the
end of its rate-hike cycle.

An announcement on Sunday of output target cuts by the Organization of the
Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+,
propelled oil prices higher. Brent crude last traded at $84.9 per barrel, up
5.7%.

The dollar initially rose after the announcement.

OPEC+ was expected to stick to cuts of two million barrels per day (bpd)
which were already in place until the end of 2023, but instead announced
further output cuts of around 1.16 million bpd.

The OPEC impact, however, was short-lived, as investors focused on monetary
policy and the divergence between the Federal Reserve and other central
banks, particularly, the European Central Bank.

"Our working thesis is that we would probably see the peak in the U.S.
dollar sometime toward mid-year," said Shaun Osborne, chief FX strategist,
at Scotiabank in Toronto.

"That's predicated on the view that peak inflation means peak Fed and that
means peak U.S. dollar. But it's quite possible that we may have seen that
earlier than our forecast."

Monday's economic reports showed U.S. manufacturing activity in March
slumped to its lowest level in nearly three years as new orders continued to
contract. The Institute for Supply Management (ISM) said its manufacturing
PMI fell to 46.3 last month, the lowest since May 2020, from 47.7 in
February.

U.S. construction spending also weakened, down 0.1% in February after
increasing 0.4% in January.

The dollar extended losses after Monday's data.

On Monday, federal funds futures priced in a 65% chance of another 25
basis-point (bp) rate hike by the Fed in May. Futures traders have also
factored in a pause in June and rate cuts by December.

In the euro zone, traders are pricing in around 60 basis points of further
tightening by the ECB by the end of the year after data released on Friday
showed an acceleration in core price growth in the euro area.

The euro was last up 0.6% at $1.0905, after touching a one-week low of
$1.0788 earlier in the session.

"While it's likely that the Fed is done or close to being done, we are going
to see a little more tightening by the ECB. We therefore see euro/dollar
hitting $1.10-$1.12 by the second half of the year," Scotiabank's Osborne
said.

The dollar index , which measures the currency against a basket of six
currencies including the euro, was down 0.9% at 102.01.

Focus this week will be on Friday's U.S. jobs report, although many markets
will be closed for the Easter holiday.

Against the Japanese currency, the dollar fell 0.3% to 132.44 yen , after
earlier hitting its highest level since around mid-March.

Sterling firmed 0.8% at $1.2422, while the dollar dipped 0.% against the
Swiss franc to 0.912 francs .

The risk-sensitive Australian dollar was last up 1.5% at US$0.6790 ahead of
a Reserve Bank of Australia policy meeting on Tuesday. Markets have priced
in an 85% chance the central bank will hold rates steady after 10 hikes. The
Aussie dollar earlier hit a one-month high versus the greenback.

In cryptocurrencies, Dogecoin, a meme coin supported by Tesla Inc (TSLA.O)
founder Elon Musk, soared 27% on Monday to $0.10 after Twitter's webpage
used the token's dog icon instead of the social media website's usual blue
bird, market participants said.

Currency bid prices at 3:58PM (1958 GMT)

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices ease as US dollar regains some ground

Gold prices edged lower on Tuesday as a steady dollar made bullion more
expensive for overseas buyers, while softer U.S. economic data heightened
expectations of less-aggressive moves by the Federal Reserve.

FUNDAMENTALS

* Spot gold was down 0.1% at $1,962.36 per ounce, as of 0103 GMT. U.S. gold
futures were flat at $1,999.50.

* The dollar index was 0.1% higher.

* Gold prices had dropped on Monday after a surprise cut in OPEC+ crude
production was announced during the weekend. But prices reversed course to
rally 1% as the dollar stumbled following the release of softer U.S.
economic data.

* Data showed U.S. manufacturing activity slumped to the lowest level in
nearly three years in March as new orders continued to contract, and
activity could decline further amid tightening credit conditions.

* U.S. Treasury Secretary Janet Yellen said a surprise OPEC+ oil production
cut is an "unconstructive act" that will add uncertainty to the global
growth outlook.

* While gold is traditionally considered a hedge against inflation, higher
interest rates to rein in rising price pressures dim the appeal for
non-yielding bullion.

* Markets see a 54.8% chance of the Fed hiking rates by a quarter point in
May, according to the CME FedWatch tool.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund,
said its holdings rose 0.22% to 930.04 tonnes on Monday from 928.02 tonnes
on Friday.

* Spot silver fell 0.3% to $23.92 per ounce, while platinum edged up 0.2% to
$987.92 and palladium rose 0.2% to $1,462.09.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Good Friday

April 7

Easter Saturday

April 8

Easter Sunday

April 9

Easter Monday

April 10

Independence Day

April 18

Workers' Day

May 1

Africa Day

May 25

Counters trading under cautionary

CBZH

TSL

Fidelity

Willdale

FMHL

ZBFH

GetBucks

Zimre

Seed Co

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
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opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
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for guideline purposes only and sourced from third parties.

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