Bulls n Bears Daily Market Commentary : 24 August 2023

Fri Aug 25 07:28:55 CAT 2023

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Bulls n Bears Daily Market Commentary : 24 August 2023

ZSE commentary

 <https://www.dulys.co.zw/> Zimbabwe Stock Exchange (ZSE)

The overall Market Cap acquired 0.10% to close at ZWL9.62 trillion today.
Total turnover declined by 69.64% to close at ZWL 0.64 billion. Compared to
yesterday, total volumes traded decreased by 81.13% to close at ZWL1.34
million. Econet, Delta and Dairibord were today's most traded counters, with
a total contribution of 96% to the total turnover.

The benchmark All-Share Index attained 0.12% and closed at 121,158.17 points
at the back of 12 risers against 7 decliners. The Top 15 Index advanced by
0.43% to close at 78,225.78 points while the Top 10 Index also increased by
0.52% ending the day at 57,192.39 points.

Trading in the positive was Delta, Meikles and Dairibord after advancing by
1.80%, 1.43% and 0.99%, respectively. OK Zimbabwe and EcoCash Holdings Ltd
trailed the list after gaining 0.32% and 0.14% hence closing at $140.86, and
$144.08, respectively.

The shakers list for today was led by Masimba Holdings and Tanganda Tea Co.
Ltd with losses of 15.00% and 6.25%, respectively. Star Africa Corporation,
Econet and Seed Co were also among the defeated after pulling back by 1.88%,
0.55% and 0.07%, respectively.

Global Currencies & Equity Markets

AFRICA-FX-Kenyan, Zambian, Nigerian, Ghanaian currencies seen falling

(Reuters) - Kenya's shilling, Zambia's kwacha, Nigeria's naira and Ghana's
cedi are expected to weaken in the next week to Thursday, while the Ugandan
shilling is forecast to strengthen, traders said.

KENYA

Kenya's shilling KES= is expected to be undermined by increased demand for
dollars, especially from the manufacturing and energy sectors.

Commercial banks quoted the shilling at 144.70/90 per U.S. dollar, compared
with last Thursday's closing rate of 144.20/40.

"It's depreciated more. There is a bit of (foreign-currency) demand and very
slow supply coming into the market. Demand is mostly (from) manufacturers,"
one trader said.

ZAMBIA

Zambia's kwacha ZMW= is likely to remain under modest pressure as the market
continues to see low supply of foreign exchange and rising demand.

On Thursday, commercial banks quoted the currency of Africa's second-largest
copper producer at 19.7400 per dollar from 19.6900 a week ago.

Despite positive sentiment related to the external debt restructuring
agreement reached with official creditors, demand for hard currency has been
rising as the economy recovers post-COVID-19, the central bank has said.

NIGERIA

Nigeria's naira NGNP= could lose ground on the parallel market as
expectations fade that the central bank will resume dollar sales to
foreign-exchange bureaus.

The naira was quoted at 900 per dollar on the parallel market on Thursday
from 860 naira last week, after the central bank set a trading margin for
bureau de change operators without resuming dollar sales to them.

The unit was quoted at 776 naira NGN=D1 on the official market, where it has
been trading between 740 to 780 naira supported by central bank
interventions, one trader said.

"Once the official market does not get the needed liquidity, then demand
will go to the parallel market and that will drive the rate there lower,"
the trader said.

GHANA

Ghana's cedi GHS= is expected to continue depreciating as dollar demand
outstrips inflows.

Refinitiv data showed the cedi trading at 11.3200 to the dollar on Thursday,
compared to 11.0000 at last Thursday's close.

"The cedi remained on the ropes this week, largely on the back of weaker FX
flows. Demand from local corporates has also begun to ramp up," said Sedem
Dornoo, a senior trader at Absa Bank Ghana.

Another trader, Selasi Kabo from Stanbic Bank Ghana, said downward pressure
on the cedi was likely to continue.

UGANDA

The Ugandan shilling UGX= is forecast to strengthen, helped by low demand
for dollars thanks to slowing consumer activity.

Commercial banks quoted the shilling at 3,708/3,718 to the dollar, compared
with last Thursday's closing rate of 3,728/3,738.

"The main dynamic that I see driving the market in the short term is low
activity on the (dollar) demand side which I think is connected to low
consumer spending," said one trader.

He said the shilling would likely trade in the 3,680-3,710 range in the
coming days. The central bank this month said the tempo of economic activity
seemed to be slowing down, which it said justified its decision to cut its
benchmark rate.

South Africa

South African rand slips before final day of BRICS summit

JOHANNESBURG: The South African rand slipped in early trade on Thursday,
ahead of the final day of the BRICS summit of emerging economies in
Johannesburg where the bloc is weighing expansion to give the "Global South"
more clout in world affairs.

At 0647 GMT, the rand traded at 18.5200 against the dollar , about 0.2%
weaker than its previous close.

The dollar was up about 0.1% against a basket of global currencies.

The rand gained 1.7% on Wednesday after July inflation data came in lower
than expected and the greenback fell.

South African President Cyril Ramaphosa is due to address the media on
Thursday morning on the outcomes of the summit of the BRICS nations
comprising Brazil, Russia, India, China and South Africa.

More than 40 countries have expressed an interest in joining BRICS, say
South African officials, and 22 have formally asked to be admitted.

They represent a disparate pool of potential candidates - from Iran to
Argentina - motivated largely by a desire to level a global playing field
many consider rigged against them and attracted by BRICS' promise to
rebalance the global order.

South Africa's benchmark 2030 government bond was stronger in early deals,
with the yield down 5 basis points to 10.240%.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar rises ahead of Jackson Hole gathering

(Reuters) - The dollar rose across the board on Thursday as investors
awaited Fed Chair Jerome Powell's speech on Friday at the Jackson Hole
Economic Policy Symposium.

Investors are looking forward to Powell's address on monetary policy at
10:05 am ET on Friday for clues to the Fed's thinking on whether it is about
done with interest rate hikes and how long it plans to hold rates high.

"I think what we are seeing is largely pre-Jackson Hole position
readjustments," said Stuart Cole, chief macro economist at Equiti Capital in
London.

"Nobody knows what Powell is going to say tomorrow and therefore the default
currency to move into is the USD," Cole said.

Two Federal Reserve officials - Philadelphia Fed President Patrick Harker
and Boston Fed President Susan Collins - on Thursday tentatively welcomed a
jump in bond market yields as something that could complement the U.S.
central bank's work to slow the economy and get inflation back to the 2%
target, while also noting they see a good chance that no more interest rate
increases will be needed.

Data on Thursday showed the number of Americans filing new claims for
unemployment benefits fell last week, as labor market conditions remained
tight despite the Fed's aggressive interest rate hikes.

"I think possibly the jobless claims numbers have also provided some support
for the dollar as they were not as soft as had been feared and go some way
to offsetting the downwards revision to the payrolls number we had
yesterday," Cole said.

"But the reaction to them was pretty muted overall, suggesting the Jackson
Hole symposium is the main thing on the markets' mind," he said.

The U.S. dollar index - which measures the currency against six major
counterparts - was up 0.63 % at 103.99 , its highest since June 8.

Softer-than expected data this week in Europe and the U.S. has weighed on
investors' appetite for riskier currencies and supported the safe-haven
greenback.

Elsewhere, the Turkish lira rallied to a 2-month high against the dollar, up
about 6% to 25.55 against the dollar after the Turkish central bank hiked
the 1-week repo from 17.5% to a much-higher-than expected 25%.

According to the median estimate in a Reuters poll, economists were
expecting the policy rate to increase to 20%.

Turkey's central bank embarked on a tightening cycle in June after President
Tayyip Erdogan appointed former Wall Street banker Hafize Gaye Erkan as
governor.

The central bank on Thursday repeated its pledge to tighten policy further
as necessary in a gradual manner, even as it raised its one-week repo rate
by an aggressive 750 basis points.

"Today's decision sends a very strong signal that the CBRT (central bank) is
determined to rein in inflation and the initial market response is very
positive," said Piotr Matys, Senior FX Analyst at Touch Capital Markets in
London.

The pound declined against the dollar and euro on Thursday, a day after data
showed a contraction in British activity in August, prompting markets to
trim expectations for further rate hikes from the Bank of England. The
British currency was down 1.03% to $1.26085, a near 2-month low.

British factory output slumped, leaving the economy on course for recession
and prompting markets to trim expectations for further rate hikes from the
Bank of England.

The yen remained under pressure as traders watched for any signs the
Japanese government was ready to intervene to prop up the currency, as it
did last year.

The dollar was 0.7% higher against the yen , not far from the 9-month high
146.565 touched last week.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold heads down after climb

SJC gold price dropped 0.15% to VND67.85 million ($2,826.50) per tael Friday
morning after a week of rising.

Gold ring price fell 0.09% to VND56.95 million per tael. A tael equals 37.5
grams or 1.2 ounces.

Globally gold prices edged lower on Friday as the U.S. dollar reclaimed a
2-1/2 month peak, but the metal was headed for its best week in six ahead of
a speech by Federal Reserve Chair Jerome Powell that could offer clues on
the interest rate outlook, Reuters reported.

Spot gold eased 0.2% to $1,913.90 per ounce, while U.S. gold futures shed
0.3% to $1,942.

Gold has risen about 1.3% so far in the week, which could be its first week
of gains this month, as prices climbed to their highest since Aug. 10 on
Thursday after a retreat in U.S. Treasury yields.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Counters trading under cautionary

CBZH

GetBucks

EcoCash

Padenga

Econet

RTG

Fidelity

TSL

FMHL

ZBFH

Invest Wisely!

Bulls n Bears 

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