Bulls n Bears Daily Market Commentary : 03 August 2023

Fri Aug 4 04:21:25 CAT 2023

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Bulls n Bears Daily Market Commentary : 03 August 2023

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

Zimbabwe Stock Exchange (ZSE)

The overall Market Cap gained 1.05% to close at ZWL9.59 trillion today.
Total turnover advanced by 100.92% to close at ZWL 1.56 billion. Compared to
yesterday, total volumes traded decreased by 10.51% to ZWL1.25 million
compared to yesterday. Delta, Econet and Hippo Valley were today's most
traded counters, with a total contribution of 98.26% to the total turnover.

The benchmark All-Share Index advanced by 1.04% and closed at 120,230.27
points at the back of 12 risers against 10 decliners. The Top 15 Index
gained 1.60% to close at 76,921.35 points while the Top 10 Index also
increased by 2.72% ending the day at 55,831.67 points.

Trading in the positive was Meikles Limited, Delta and OK Zimbabwe after
advancing by 7.81%, 5.12% and 4.16%, respectively. CBZ Holdings and Econet
trailed the list after gaining 3.93% and 0.48% closing at $904.54, and
$502.95, respectively.

The shakers list for today was led by Willdale, Ariston and BAT Zimbabwe
with losses of 14.52%, 14.06% and 9.09%, respectively. Afdis and First M.
Limited were also among the decliners after pulling back by 5.26% and 5.15%,
respectively.

Victoria Falls Stock Exchange (VFEX)

The VFEX All Share Index gained 0.03%  to close at 66.49 points.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

Ghana

Cedi sells at GH¢11.65 to $1, GH¢11.00 on BoG interbank as of August 3

Note that these rates may be different at a forex bureau near you. Our forex
bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.

The Interbank forex rates from the Bank of Ghana today, August 3, 2023, have
shown that the Ghana Cedi is trading against the dollar at a buying price of
10.9971 and a selling price of 11.0081.

At a Forex bureau in Accra, the dollar is being bought at a rate of 11.40
and sold at a rate of 11.65.

Against the Pound Sterling, the Cedi is trading at a buying price of 13.9861
and a selling price of 14.0012.

At a forex bureau in Accra, the pound sterling is being bought at a rate of
14.60 and sold at a rate of 15.40.

The Euro is trading at a buying price of 12.0352 and a selling price of
12.0472.

At a forex bureau in Accra, the Euro is being bought at a rate of 12.30 and
sold at a rate of 12.90.

The South African Rand is trading at a buying price of 0.5944 and a selling
price of 0.5950.

At a forex bureau in Accra, the South African Rand is being bought at a rate
of 0.30 and sold at a rate of 0.90.

The Nigerian Naira is trading at a buying price of 70.0225 and a selling
price of 70.6069.

At a forex bureau in Accra, Nigerian Naira is being bought at a rate of
12.00 Naira for every 1 Cedi and sold at a rate of 18.00.

For the CFA, it is trading at a buying price of 54.4489 and a selling price
of 54.5032.

At a forex bureau in Accra, CFA is being bought at a rate of 17.00 CFA for
every 1 Cedi and sold at a rate of 21.00 CFA for every 1 Cedi.

South Africa

South African rand slide continues after 5% tumble this week

(Reuters) - The South African rand weakened in early trade on Thursday,
after slumping almost 5% this week amid concerns over global economic growth
and a United States credit rating downgrade.

At 0604 GMT, the rand traded at 18.4925 against the dollar , about 0.16%
weaker than its previous close.

The dollar last traded at 102.640, about 0.05% stronger against a basket of
global currencies.

The rand, like other currencies, weakened against the greenback this week
after Fitch's credit rating downgrade of the U.S. "led to higher credit
spreads and risk-off", said Rand Merchant Bank analysts in a research note.

"(The dollar/rand exchange rate) is trading more normally, tracking the
usual global factors. But with the (dollar) strengthening and global risk
assets weakening that still leaves (the dollar/rand exchange rate) with an
upside bias," RMB added.

The rand often takes cues from global economic factors in the absence of
local movers.

Locally, the country's monthly whole economy PMI data will be released at
around 0715 GMT (ZAPMIM=ECI), which will provide insight into South Africa's
private sector activity.

South Africa's benchmark 2030 government bond was flat in early deals, with
the yield at 10.390%.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar hits 4-week peak, then eases, sterling lower after BOE hike

(Reuters) - The dollar slid from a four-week peak on Thursday after U.S.
labor market data failed to impress a day before a key jobs report, and as
Treasury yields rose but eased at the short end.

Nonfarm-productivity rose to an annualized 3.7% to help curb growth in labor
costs and aid an improving U.S. inflation outlook. But labor productivity
has grown at a 1.4% rate since the fourth quarter of 2019, well below the
long-term average since 1947 of 2.1%.

Other data showed the number of Americans filing new claims for unemployment
benefits rose slightly last week, while layoffs fell to an 11-month low in
July amid a tight labor market.

"The activity data in the U.S. has shown a lot of resilience compared to the
rest of the world," said Vassili Serebriakov, FX and macro strategist at UBS
in New York, adding he did not find the day's data "particularly impactful."

The dollar also has been bolstered by the carry trade, when investors borrow
in currencies with low interest rates and invest in the dollar or
dollar-based assets.

As the Federal Reserve prepares for its annual symposium from Aug. 24-26 in
Jackson Hole, Wyoming, signs that the U.S. central bank is close to ending
hiking interest rates may appear, nudged by the Fed's counterparts in
Europe.

"It's the European central banks that have offered more clarity about the
peak in interest rates," said Thierry Wizman, global FX and currencies
strategist at Macquarie in New York.

"You would think that the disinflation story being more prominent in the
U.S., that it would be the Fed signaling more clarity on the top in interest
rates," he said.

The European Central Bank last week signaled it may take a break at its next
meeting in September as inflation continues to fall and growth weakens.

The dollar index , which measures the currency against six major peers, fell
0.039%.

The closely watched U.S. nonfarm payrolls report is due on Friday.

Sterling remained lower after the Bank of England downshifted to a smaller
25 basis point hike. The pound last traded at $1.27, down 0.07% on the day.

"The relative disparity in the trajectory of future monetary policy, against
a backdrop of better-than-expected economic growth data, has catalyzed a
rally in the UK pound this year," said John Leiper, chief investment officer
at Titan Asset Management.

"But momentum has dwindled recently, following the latest inflation number
... and signs today that the bank is becoming a little more relaxed around
the direction of travel."

The safe-haven Japanese yen strengthened 0.40% at 142.72 per dollar,
benefiting from risk aversion as global equities extended their recent
decline. Earlier, the currency fell to a four-week low of 143.89 per dollar.

The Japanese currency had come under pressure this week even as the Bank of
Japan on Friday loosened its grip on interest rates. Policymakers have also
been quick to push back against speculation that the move was a prelude to
an imminent exit of the central bank's ultra-easy policy.

The euro rose 0.04% to $1.094, while the Aussie hit a two-month low of
$0.6514.

Elsewhere in Asia, China's offshore yuan strengthened after data on Thursday
showed the country's services activity expanded slightly faster in July,
though investors continue to be on the lookout for further support measures
from Beijing following last week's Politburo meeting.

Currency bid prices at 3:04 p.m. (1904 GMT)

  The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold at three-week low as higher dollar, yields dim shine

Gold was near a more than three-week low on Thursday, dragged by a robust
dollar and elevated bond yields, while investors remained cautious ahead of
July U.S. nonfarm payrolls data.

Spot gold was flat at $1,933.80 per ounce by 2:34 p.m. EDT (1834 GMT), after
hitting its lowest since July 11. U.S. gold futures settled 0.3% lower at
$1,968.80.

The dollar rose to a four-week high, making gold more expensive for other
currency holders. U.S. 10-year Treasury yields rose to their highest since
November.

"There is a lot of focus heading into the jobs numbers tomorrow, especially
as we've had some stronger data lately, which has weighed on the sentiment
and sort of fuelled the idea that the Fed may have to keep the higher rates
for longer," said Ryan McKay, commodity strategist at TD Securities.

Data on Wednesday showed U.S. private payrolls increased more than expected
in July, pointing to continued labor market resilience.

The U.S. jobs report due Friday could influence the Federal Reserve's policy
stance. The number of Americans filing new claims for unemployment benefits
rose slightly last week.

Rising U.S. interest rates increase the opportunity cost of holding
non-yielding bullion.

"Gold prices could drift down towards the $1,900 level, but there is
probably strong support there as well, just because we are certainly getting
towards the end of the hiking cycle," McKay said.

Earlier in the day, the Bank of England raised its key interest rate by a
quarter of a percentage point to a 15-year peak.

While investors digested Fitch's downgrade of the U.S. credit rating,
independent analyst Ross Norman said gold's failure to rally on that news
may be behind redemptions seen in gold exchange-traded funds.

Silver slipped 0.7% to $23.57 an ounce and platinum fell 0.7% to $914.66,
both near three-week lows. Palladium gained 0.8% to $1,252.62.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Heroes’ Day

Aug 14

Defence Forces Day

Aug 15

zIMBABWE

2023 harmonised elections

August 23

Counters trading under cautionary

CBZH

GetBucks

EcoCash

Padenga

Econet

RTG

Fidelity

TSL

FMHL

ZBFH

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
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
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any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

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