Bulls n Bears Daily Market Commentary : 16 August 2023

Wed Aug 16 17:23:41 CAT 2023

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Bulls n Bears Daily Market Commentary : 16 August 2023

ZSE commentary

Zimbabwe Stock Exchange (ZSE)

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

The overall Market Cap closed after dropping off 0.32% to close at ZWL9.45
trillion. Total turnover also trimmed 74.21% to close at ZWL0.77 billion,
with the total volumes traded shedding 83.79% to close at ZWL0.93 million.
For today the three most traded counters were Delta, BAT Zimbabwe and Hippo
Valley, with a contribution of 61% to the total turnover. 

The benchmark All-Share Index gained 0.07% to close with 118,987.76 points
at the back of 11 risers and 9 decliners. The Top 15 Index declined by 0.01%
to 75,946.13 points with the Top 10 Index increasing by 0.39% to close with
55,529.71 points.

Turnall and OK Zimbabwe topped the movers list for the day after adding
11.67% and 9.48% to close at $14.00 and $140.28, respectively. Star Africa
Corporation, Meikles Limited and Dairibord capped the risers' list after
advancing by 6.76%, 5.73% and 4.80% to close at $5.67, $690.00, and
$471.60,respectively.

Trading on top of the decliners' list for the day was Afdis, Edgars Stores
and Econet after each lost 11.11%, 7.69% and 7.43% to close at $1,600.00,
$109.95, and $462.69, respectively. ART and EcoCash Holdings Ltd also lost
1.43% and 1.30% to close at $46.00 and $141.31, respectively.  

Victoria Falls Stock Exchange (VFEX) 

The VFEX All Share Index gained 0.33% to close with 70.84 points. Simbisa
Brands Ltd was the most traded counter on the VFEX Exchange, contributing
71.37% of the total turnover.

Global Currencies & Equity Markets

South Africa

South African rand inches up before retail sales data

(Reuters) - The South African rand inched up in early trade on Wednesday,
reversing some of the previous day's losses, before the release of retail
sales data.

At 0708 GMT, the rand traded at 19.1125 against the dollar , about 0.1%
stronger than its previous close.

The dollar last traded around 0.1% weaker against a basket of global
currencies.

Statistics South Africa will publish June retail sales figures (ZARET=ECI)
at 1100 GMT, with analysts polled by Reuters expecting a decline of 0.2%
year on year.

"Retail is vital to a consumption-driven economy such as South Africa and
has been weighed down by the cost-of-living crisis," ETM Analytics said in a
research note.

Retail sales have contracted in annual terms in every month since December
2022, with rolling power blackouts a contributing factor.

But an easing in the intensity of the power cuts in June may have provided
some support to sales, ETM Analytics added.

South Africa's benchmark 2030 government bond was stronger in early deals,
with the yield down 2 basis points to 10.335%.

The Thomson Reuters Trust Principles.

Nigeria

Naira gains at parallel market, sells at 910/$

Naira is seen strengthening against the Dollar on Wednesday as demand in the
parallel segment of the foreign exchange (FX) market drops further.

FX dealers were as of 12.34 pm buying the greenback at N880 while selling at
N910, according to data by AbokiFX, an online platform that tracks the
exchange rate on the parallel market.

Read also: NGX, CIS, ASHON to partner MOFI on market development, listings

This new level shows a remarkable gain compared to the preceding day when
dealers bought it at N932 and sold at N942.

Details later...

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar flat after retail sales data, yuan falls to 9-month low

(Reuters) - The dollar index was flat after data showed U.S. retail sales
increased more than expected in July, while the yuan sank to a nine-month
trough on Tuesday after China's central bank unexpectedly cut key policy
rates.

U.S. retail sales jumped 0.7% last month, the Commerce Department said,
demonstrating that demand has remained resilient despite the Federal
Reserve's aggressive interest rate hikes to tame inflation, thanks to strong
wage gains from a tight labor market.

The dollar index , which measures the currency against six peers including
the euro and sterling, dropped as low as 102.800 after hitting a 1-1/2-month
high at 103.46 on Monday. It was last up 0.058% at 103.200.

"The dollar is holding relatively stable here, but we are seeing a lot of
weakness in other currencies globally," said Karl Schamotta, chief market
strategist at Corpay.

The dollar gained over 0.5% against the offshore yuan to a nine-month high
of 7.3307 as the People's Bank of China (PBOC) cut its rates in an effort to
boost a sputtering economic recovery.

Punctuating those worries, Chinese data on industrial output, retail sales
and investment released shortly after the PBOC's rate cut showed unexpected
slowdowns.

"I think the strong U.S. sales data provided some relief to the negative
surprise in the Chinese data, so this has pushed risk back up," said John
Velis, head of Americas macro strategy at BNY Mellon Markets in New York.

YEN WATCH

Against the yen, the U.S. dollar pushed to a fresh nine-month high of
145.865, before dropping to a session low at 145.25. It was last trading at
145.66 per yen.

Traders are looking for any hints of intervention, after the dollar's surge
above 145 last autumn triggered the first yen buying by Japanese officials
in a generation.

"It does seem that authorities both at the People's Bank of China and at the
Ministry of Finance in Japan are relatively comfortable with further
depreciation in their currencies. However, they're certainly looking at and
certainly prepared to step in if we see a disorderly one-sided move in
currency markets," said Schamotta.

Japanese Finance Minister Shunichi Suzuki said on Tuesday that authorities
are not targeting absolute currency levels when it comes to intervening in
the market.

Elsewhere, sterling rose after data showed British basic wages grew at a
record pace, adding to the Bank of England's inflation worries.

The pound was last 0.16% higher at $1.2705 following data showing British
wages excluding bonuses were 7.8% higher than a year earlier in the three
months to June. That represented the highest annual growth rate since
comparable records began in 2001.

The UK unemployment rate, however, unexpectedly rose to 4.2% from 4.0%, but
money market traders still expect the Bank of England to raise rates by at
least 25 basis points next month on worries high pay growth will lead to
second-round effects on inflation.

The euro was last unchanged $1.09045.

The Russian rouble gave up early gains after Russia's central bank lifted
its key interest rate by 350 basis points to 12% at an emergency meeting to
try and halt the currency from weakening past 100 to the dollar after a
public call from the Kremlin for tighter monetary policy.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold ticks up as dollar eases before Fed's July minutes

Gold clawed higher on Wednesday on a weaker dollar and bond yields,
recovering some ground after retreating below the key $1,900 level in the
last session following robust U.S. economic data.

Bullion traders also positioned for minutes from the Federal Reserve's July
policy meeting for further cues on interest rate strategy, as well as U.S.
homebuilding and factory output data later in the day.

Spot gold

edged up 0.2%, to $1,905.25 per ounce, while U.S. gold futures

were up 0.1%, at 1,936.60.

Gold has found short-term support from a weaker dollar as the pound
strengthened after data showed British core inflation stayed strong in July,
said Quantitative Commodity Research analyst Peter Fertig.

Non-yielding gold, priced in dollars, also gained as benchmark 10-year
Treasury yields retreated from near 10-month highs.

"Economic data out of the U.S. thus far has provided room for rates to be
kept high for longer. We have the U.S. retail sales data yesterday pushing
back against recession concerns and potentially keeping safe-haven flows at
bay," said Yeap Jun Rong, a market strategist at IG.

Gold fell to its weakest level since end-June after the data on Tuesday.

Indicating investor sentiment, holdings of the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust, fell to their lowest since January
2020. No inflows have been reported since late July.

Minneapolis Fed President Neel Kashkari on Tuesday said interest rates may
still need to go higher to tame inflation.

"The main factor slowing gold's decline is the lack of confidence in the
health of the global economy with the latest data out of China adding to
that negative sentiment," Kinesis Money analyst Rupert Rowling said in a
note.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

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
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opinions expressed and recommendations made are subject to change without
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