Bulls n Bears Daily Market Commentary : 12 April 2023

Thu Apr 13 05:00:19 CAT 2023

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Bulls n Bears Daily Market Commentary : 12 April 2023

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

ZSE commentary

ZSE slips further.

The market slipped further in midweek session as the primary All-Share Index
dropped 2.98% to 36787.99pts while, the BlueChip Index shed 4.00% to
21217.06pts. The Mid-Cap Index eased 0.12% to 80167.72pts while, the
Agriculture Index edged up 1.25% to 151.12pts. Telecoms giant Econet
Wireless led themlaggards of the day on a 14.97% slump to $183.0647 on
selling pressure while, Ecocash Holdings retreated by a further 13.27% to
close at $52.7399 as demand continued to weaken. Bankers

CBZ Holdings trimmed 11.29% to $177.4531, followed by First Capital Bank
that declined 7.94% to $30.7835. First Mutual Properties completed the top
five losers' pack on a 6.85% drop to $20.7462. Headlining the gainers' pack
of the day was milk processor, Dairibord that jumped 14.99% to $114.9881,
trailed by Ariston Holdings that rebounded 9.86% to end pegged at $11.0000.
Tea processors Tanganda added 1.05% to $342.0846 while, RTG rose 0.98% to
$16.7796. Zimre Holdings Limited capped the top five winners of the day on a
0.18% uplift to settle at $10.5224. The market closed with a negative
breadth of five as thirteen counters went down against eight that gained
ground.

Activity aggregates enhanced in the session as volumes traded grew 98.89% to
3.40m shares while, turnover ballooned 165.78% to $874.25m. OKZIM, Delta and
First Mutual Properties were the top volume drivers of the day as the trio
contributed a combined 86.31% of the total. The top value drivers were Delta
(79.38%) and OKZIM (13.66%). On the VFEX, Padenga, SeedCo and Simbisa surged
10.08%, 11.57% and 0.31% to close USD$0.1998, USD$0.2912 and USD$0.4209
respectively. On the contrary, Axia and Innscor succumbed 1.37% and 0.60% to
USD$0.1005 and USD$0.6449 apiece. The Cass Saddle ETF fell 0.43% to $2.0373
while, MIZ ETF eased 0.60% to $1.9240. OMTT ETF dropped 2.32%  o close
pegged at $10.2077 while, the Datvest ETF was stable at $1.8500. The Tigere
REIT tumbled 0.74% to settle at $50.6200 on scrappy 1,372 units.
efesecurities

Global Currencies & Equity Markets

South Africa

South African rand bolstered by U.S. inflation data; stocks end lower

(Reuters) - The South African rand gained modestly on Wednesday as the
dollar fell globally on data showing cooler-than-expected U.S. headline
inflation in March.

Johannesburg-listed stocks closed slightly lower.

U.S. consumer prices rose 0.1% in March, compared to expectations for a 0.2%
increase and a 0.4% rise in February.

Despite the smaller-than-predicted increase, economists said underlying
inflation pressures mean the Federal Reserve will probably still raise
interest rates again next month.

At 1550 GMT, the rand traded at 18.3750 against the dollar, about 0.1%
stronger than its previous close.

The dollar was down around 0.5% against a basket of global currencies .

The risk-sensitive rand is highly sensitive to shifts in the outlook for
U.S. inflation and monetary policy.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI)
closed down 0.4% and the broader All-share index (.JALSH) ended the day 0.3%
lower, with the bulk of the losses coming before the U.S. inflation figures
were released.

Global stock markets were boosted by the U.S. inflation figures, and South
Africa-based traders said they should support local equities also.

"I think JSE market investors would be relieved the efforts by the Federal
Reserve to tame inflation seem to be working," said Greg Davies, head of
wealth at Cratos Capital.

South Africa's benchmark 2030 government bond traded stronger, the yield
down 3.5 basis points at 9.905%.

The Thomson Reuters Trust Principles.

Nigeria

Naira appreciates to N737/$ at parallel market as dollar demand slows

The naira, on Wednesday, appreciated to N737 per dollar at the parallel
section of the foreign exchange (FX) market, popularly called the black
market.

The figure indicates a N9 or 1.2 percent gain compared to the N746 it traded
three weeks ago.

The currency had maintained stability against the U.S dollar in the past
couple of weeks at N745/$- N746/$ before its recent appreciation.

Speaking to TheCable in the Victoria Island area of Lagos, Bureaux De Change
operators (BDCs) said they purchase the greenback at N730/$, make a gain of
N7 and then sell at N737/$.

The street traders attributed the appreciation of the local currency to low
demand for dollars by customers.

Also, the naira gained 0.08 percent to close at N462.88/$ at the investors
and exporters (I&E) forex window on Tuesday, according to data published by
FMDQ, a platform where FX is officially traded.

The data also showed that forex worth $80.90 million were transacted among
market dealers.

The Central Bank of Nigeria (CBN) has continued to intervene in the official
forex market from the external reserve in order to maintain the stability of
the naira.

Recently, the World Bank, in its outlook for 2023, said the economic
slowdown in developing countries such as Nigeria would persist for years due
to inflation, currency depreciation, rising debt service costs, and the
collapse of international reserves.

In February, Nigeria's inflation rate surged to 21.91 percent, up from 21.82
percent in the previous month.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar eases as US inflation cools

(Reuters) - The dollar was on the back foot on Thursday after
cooler-than-anticipated U.S. inflation data lifted risk sentiment and stoked
expectations that the Federal Reserve will be done with its monetary
tightening after hiking one last time next month.

The dollar index , which measures the currency against six major peers,
eased 0.03% to 101.44, hovering around a one week low of 101.40 after
sinking 0.6% overnight.

The Consumer Price Index climbed 0.1% last month after advancing 0.4% in
February, with a decline in gasoline prices offset by higher rental costs.
Economists polled by Reuters had forecast the CPI gaining 0.2% in March.

"While disinflation trends continue and broadened across headline, core and
supercore measures, the CPI report is hardly an all clear on inflation,"
strategists at Saxo Markets said.

Meanwhile, minutes from the Fed's last meeting in March showed several
Federal Reserve policymakers considered pausing interest rate increases
after the failure of two regional banks and but concluded high inflation
needed to be tackled.

The minutes also showed staff projections of a mild recession later this
year.

The Fed raised interest rates by 25 basis points in March and the markets
are pricing in 70% chance of another 25 bps hike in May, according to CME
FedWatch Tool.

Taylor Nugent, an economist at National Australia Bank, said the CPI data
and the minutes provided ample fodder for those reading the Fed tea leaves,
noting that inflation showed welcome, but not overwhelming progress.

San Francisco Federal Reserve Bank President Mary Daly on Wednesday said
that while U.S. economic strength, labour market tightness, and too-high
inflation suggest the Fed has "more work to do" on rate hikes, other factors
including tighter credit conditions could argue for a pause.

The euro was up 0.05% to $1.0994, having touched more than two month high of
$1.1005 earlier in the session.

The Japanese yen weakened 0.04% to 133.20 per dollar, while sterling was
last trading at $1.2486, up 0.04% on the day.

The Australian dollar fell 0.01% to $0.669. The kiwi slid 0.23% to $0.621.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold shines as bets for US rate hike pause gather pace

(Reuters) - Gold prices jumped on Wednesday as signs of cooling inflation
bolstered bets that the U.S. Federal Reserve may pause its policy tightening
after a likely interest rate hike in May.

Spot gold was up 0.6% at $2,014.39 per ounce by 2:10 p.m. EDT (18:10 GMT),
after rising as much as 1.3% earlier. U.S. gold futures settled 0.3% higher
at $2,024.90.

The Consumer Price Index (CPI) climbed 0.1% in March after advancing 0.4% in
February. But in the 12 months through March, the core CPI gained 5.6%,
after rising 5.5% on the same basis in February.

"The risks of not raising rates enough far exceeds over-tightening so the
Fed is probably going to go forward with the quarter-point rate hike, the
core justifies it," said Edward Moya, senior market analyst at OANDA.

"There's still a tremendous amount of risk on the table, so gold should
still see some strong flows headed its way."

Gold drew strength from a slide in the dollar and benchmark U.S. yields .

Gold jumps as signs of cooling inflation bolstered bets for an eventual
pause in U.S. rate increases,

Markets are now pricing in a 69% chance of a 25-basis-point rate hike in the
May meeting, followed by 2-to-1 bets of a pause in June.

While gold is seen as a hedge against inflation, higher rates to tame rising
price pressures weigh on the non-yielding asset's appeal.

Several officials at the Fed's meeting last month considered pausing
interest rate increases over concerns of wider financial stress from the
failure of two U.S. regional banks, but they concluded that high inflation
remained the priority, minutes showed.

Whether the Fed will slow its rate hikes "largely depends on the
confirmation of economic cooling indicators, such as a potential
deterioration in the US job market," said Alexander Zumpfe, a precious
metals dealer at Heraeus.

Silver gained 1.5% to $25.45 per ounce, platinum added 2.5% to $1,019.22 and
palladium rose 1.6% to $1,469.52.

The Thomson Reuters Trust Principles.

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
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