Bulls n Bears Daily Market Commentary : 09 August 2023

Thu Aug 10 03:40:53 CAT 2023

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Bulls n Bears Daily Market Commentary : 09 August 2023

ZSE commentary

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

Zimbabwe Stock Exchange (ZSE)

The overall Market Cap decreased by 0.58% to close at ZWL9.67 trillion
today. Total turnover decreased by 84.30% to close at ZWL 187.32 million and
total volumes traded declined by 46.29% to close at ZWL798,400. Edgars
Stores and Masimba Holdings were today's most traded counters, with a total
contribution of 56.02% to the total turnover.

The benchmark All-Share Index lost 0.54% and closed at 121,294.54 points at
the back of 8 risers against 14 decliners. The Top 15 Index slid by 0.73% to
close at 77,794.88 points while the Top 10 Index also went down by 0.88% to
56,938.27 points.

Trading in the positive was Zimre Holdings, Willdale, and Dairibord after
advancing by 14.77%, 11.56%, and 8.59%, respectively. First M. Limited and
Star Africa Corporation trailed the list after gaining 1.74% and 1.27%,
closing at $175.00, and $5.27, respectively.

The shakers list for today was led by ZB Financial Holdings with a decline
of 14.99% hence closing at ZWL635.00. Trailing on the defeated list was
Ariston, Nampak Zimbabwe, Delta and NMBZ Holdings after pulling back by
2.75%, 2.40%, 1.79% and 1.62%, respectively.  

Victoria Falls Stock Exchange (VFEX)

The VFEX All Share Index gained 0.44% to close at 68.86 points.

Global Currencies & Equity Markets

Nigeria

Nigeria naira drops to record low on black market -traders

Nigeria's naira fell to a record low of 910 per dollar on the black market
on Wednesday, driven by seasonal demand from individuals paying for expenses
abroad, traders said.

The naira has been weakening on the black market, as excess demand is
funnelled to the informal market, widening the gap with the official market,
where restrictions on trading the currency were recently lifted.

The unit was quoted at 771 naira on the official market at 1234 GMT,
swinging between a range of 700 naira and 804 naira this month.

Olawale Edun, who is likely to be Nigeria's next finance minister, has said
a weaker black market rate was not backed up by economic fundamentals and
that a more appropriate naira exchange rate would be around 700 to the
dollar.

South Africa

South African rand again slips on weak China data

Yesterday, South Africa's rand slipped again as weak economic data from
China kept investors away from risk-sensitive currencies. In the afternoon,
the rand traded at 19.0025 against the dollar , down around 1.6% from its
previous close. The currency has lost more than 6% against the dollar this
month.

Chinese data showed on Tuesday that both imports and exports fell more than
expected, pointing to softening global demand. "A global slowdown may
encourage major developed markets' central banks to ease off their
tightening, but it also means the possibility of financial market volatility
and a rise in risk aversion," ETM Analytics said.

reuters.com

 <mailto:info at bulls.co.zw> 

Global Markets

US dollar inches lower ahead of inflation report

(Reuters) - The U.S. dollar drifted lower on Wednesday in thin rangebound
trading, with investors looking ahead to Thursday's U.S. consumer prices
report for indications on where the Federal Reserve's monetary policy is
headed.

The greenback posted steeper losses earlier in the session, particularly
after data showing the Chinese economy slipped into deflation last month.
That raised the chances of China launching additional stimulus measures and
nudged investors into risk assets.

Reported dollar selling by state-owned Chinese banks also helped the yuan
rally from a one-month low, dealers said. The Chinese central bank's
stronger-than-expected exchange-rate fixing at 7.1588 per dollar before the
open signaled its discomfort with the yuan's recent declines.

The greenback was last down 0.1% against the offshore yuan at 7.227 .

Investors are now focused on Thursday's U.S. inflation data, which looms
large in a market hungry for clues on the path for Fed policy. Wall Streets
economists expect the year-on-year core consumer price index (CPI) to have
risen 4.8% in July, unchanged from the previous month.

"We're still pretty convinced about inflation in the U.S. continuing to
ease, led by a disinflation in shelter prices - which is 35% of the headline
CPI index," wrote Macquarie analysts led by FX & rates strategist Thierry
Wizman.

"We expect that CPI may come in on the low side of expectations (4.7%
year-over-year) and do so because of disinflation in primary and
owner-equivalent rents."

The dollar index , which measures the performance of the U.S. currency
against six others, slipped 0.1% to 102.46, partly reversing Tuesday's rise.

The euro rose 0.2% to $1.0976, while sterling slid 0.2% to $1.2721.

European markets gained after equities tumbled the day before as the Italian
government announced a surprise 40% windfall tax on banks.

Italy's finance ministry subsequently clarified that the one-off measure,
which targets gains from banks' higher interest rates, would not amount to
more than 0.1% of their total assets.

In China, the country's consumer prices fell for the first time in more than
two years in July. Rather than lifting safe-haven appetite for the dollar,
the figures reinforced the view that the Chinese government might take steps
to underpin the economy with monetary stimulus.

There were also more dovish signals from Fed officials overnight, with
Philadelphia Fed President Patrick Harker suggesting interest rates are high
enough already, echoing the view of Atlanta Fed President Raphael Bostic.

The message has been far from uniform though, with Fed Governor Michelle
Bowman saying on Monday further hikes are likely.

Against the yen, the dollar rose 0.2% to 143.70 yen .

"With the 10-year yield spread between the U.S. and Japan still holding at
roughly 3.4% ... and the prospect of any official BOJ (Bank of Japan ) rate
hike seemingly pushed back, dollar/yen has resumed its year-to-date rally
and may soon hit fresh 2023 highs, especially if (Thursday's) U.S. CPI
report comes in hotter than expected," said Matthew Weller, global head of
research at FOREX.com and City Index.

========================================================

Currency bid prices at 3:05PM (1905 GMT)

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold, silver weaker on more weak China data, technical selling

(Kitco News) - Gold and silver prices are down in midday U.S. trading
Wednesday, with both metals dropping to four-week lows. The precious metals
are pressured by another economic report out of China that suggests less
consumer demand for goods and services, which includes metals. Chart-based
selling is also featured at mid-week, as the near-term technical postures
for gold and silver have turned more bearish. December gold was last down
$7.80 at $1,952.10 and September silver was down $0.057 at $22.75.

There was more downbeat economic data coming out of China today. The
second-largest global economy has slipped into deflation territory for the
first time in two years, due to weaker consumer demand. Chinese consumer
prices fell 0.3% in July, year-on-year. The reading was in line with market
expectations.

Asian and European stock markets were mixed to firmer in overnight trading.
U.S. stock indexes are weaker near midday.

Key U.S. inflation reports this week are also in focus for the marketplace.
The July U.S. consumer price index it out Thursday and the producer price
index is out Friday. Both the CPI and PPI are expected to uptick just a bit
from the June reports.

'If you are going to take big risks, it has to be for big rewards' - Rick
Rule on resource investing

The key outside markets today see the U.S. dollar index slightly lower.
Nymex crude oil prices are higher and trading around $84.00 a barrel.
Meantime, the benchmark 10-year U.S. Treasury note yield is presently
fetching 4.182%.  

Technically, December gold futures prices hit a four-week low today. Bears
have the overall near-term technical advangtage. Prices are in a
three-week-old downtrend on the daily bar chart. Bulls' next upside price
objective is to produce a close above solid resistance at $2,000.00. Bears'
next near-term downside price objective is pushing futures prices below
solid technical support at the June low of $1,939.20. First resistance is
seen at today's high of $1,966.10 and then at Tuesday's high of $1,972.80.
First support is seen at $1,950.00 and then at $1,939.20. Wyckoff's Market
Rating: 4.0.

September silver futures prices also hit a four-week low today. The silver
bears have the overall near-term technical advantage. Prices are in a
fledgling downtrend on the daily bar chart. Silver bulls' next upside price
objective is closing prices above solid technical resistance at $25.00. The
next downside price objective for the bears is closing prices below solid
support at the June low of $22.34. First resistance is seen at $23.00 and
then at Tuesday's high of $23.255. Next support is seen at $22.50 and then
at $22.34. Wyckoff's Market Rating: 4.0.

September N.Y. copper closed up 250 points at 379.15 cents today. Prices
closed near mid-range. The copper bears have the overall near-term technical
advantage. Copper bulls' next upside price objective is pushing and closing
prices above solid technical resistance at the July high of 402.40 cents.
The next downside price objective for the bears is closing prices below
solid technical support at the May low of 356.50 cents. First resistance is
seen Tuesday high of 384.20 cents and then at this week's high of 387.70
cents. First support is seen at today's low of 376.45 cents and then at this
week's low of 372.65 cents. Wyckoff's Market Rating: 4.0

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Heroes' Day

Aug 14

Defence Forces Day

Aug 15

Padenga

EGM

Royal Harare Golf Club

August 16 - (10am)

Border Timbers

EGM

4 - 12 Paisley Road, Southerton, Harare, or virtually
:https://escrowagm.com/eagmZim/Login.aspx" 

August 18 - (10am)

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
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
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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.

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