Bulls n Bears Daily Market Commentary : 30 August 2023

Thu Aug 31 06:41:54 CAT 2023

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Bulls n Bears Daily Market Commentary : 30 August 2023

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

Zimbabwe Stock Exchange (ZSE)

The ZSE All Share Index added 124.22 points to finish the session at
122,353.47 points. Trading in the positive: RAINBOW TOURISM GROUP added
$18.2667 to $160.0000, CBZ HOLDINGS LIMITED gained $17.7419 to $817.7419 and
DAIRIBORD HOLDINGS LIMITED traded $8.6429 to close at $578.6429. ECOCASH
HOLDINGS LIMITED increased by $3.4620 to settle at $138.1589 and OK ZIMBABWE
LIMITED was $3.3483 higher at $144.3802.

Trading in negative: SEED CO eased $143.2330 to $955.6904, MASIMBA HOLDINGS
LIMITED lost $61.3483 to $450.3517 and FBC HOLDINGS LIMITED was $20.0000
lower at $800.0000. TANGANDA TEA COMPANY lost $17.3417 to close
at$1,081.6580 whilst NMBZ HOLDINGS LIMITED traded $7.0000 weaker at
$160.0000.

EXCHANGE TRADED FUNDS (ETF)

DATVEST MODIFIED CONSUMER STAPLES EXCHANGE TRADED FUND added $0.0053 to
$5.6853 and MORGAN & CO MULTISECTOR EXCHANGE TRADED FUND traded $2.9297
higher at $172.9297. MORGAN & CO MADE IN ZIMBABWE EXCHANGE TRADED FUND ,
CASS SADDLE AGRICULTURE EXCHANGE TRADED FUND and OLD MUTUAL ZSE TOP 10 ETF
remained flat at $5.5000, 7.2500 and $23.6500 respectively REAL ESTATE
INVESTMENT TRUST TIGERE REAL ESTATE INVESTMENT TRUST eased $0.0100 to close
at $204.9900.

Global Currencies & Equity Markets

South Africa

South African rand falls as domestic data disappoints

The South African rand slipped on Wednesday after data showed the country's
private sector credit grew slower than expected and the budget deficit
widened.

At 1612 GMT, the rand traded at 18.6450 against the dollar , nearly 1%
weaker than its previous close.

Central bank data showed private sector credit grew 5.87% year-on-year in
July, down from 6.25% in June (ZACRED=ECI) and slower than the 6.21% growth
expected by analysts polled by Reuters.

Meanwhile, figures released by the National Treasury showed that South
Africa recorded a budget deficit (ZABUDM=ECI) of 143.76 billion rand ($7.75
billion) in July, compared with analysts' expectation of a deficit of 123.7
billion rand.

The rand has been highly volatile since last week's Jackson Hole Symposium
of global central bankers, where Fed Chair Jerome Powell said the U.S.
central bank may need to raise interest rates further.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI)
closed 0.61% higher. South Africa's benchmark 2030 government bond was
weaker, the yield up 4 basis points at 10.205%.

Source: Reuters

Nigeria

Naira loses 0.42% as FX market records marginal turnover

Naira lost 0.42 percent of its value at the official market on Tuesday as
the foreign exchange (FX) market recorded a marginal increase in the volume
of transactions.

The daily FX market turnover which represented the volume of transactions at
the official market increased marginally by 3.36 percent to $71.32 million
on Tuesday, from $73.80 million recorded on Monday, data from the FMDQ
showed.

Consequently, naira depreciated by 0.42 percent as the dollar was quoted at
N775.32/$1 on Tuesday compared to N772.12/$1 quoted on Monday at the
Investors' and Exporters' (I&E) forex window, Nigeria's official FX market.

The continued loss in the value of the naira followed the scarcity of
dollars occasioned by low inflows from oil receipts, foreign capital, and
diaspora remittances among others, according to analysts.

At the parallel market, also known as the black market on Wednesday, the
naira steadies between N920 and N925 at the various street trading areas
across the country.

During the intraday trading on Tuesday, the dollar was quoted at N920 to
N925/$1, which represents 1.09 percent (N5 - N10) depreciation compared to
N915 per dollar traded during the morning session.

The exchange rate gap between the official and parallel segments of the
foreign exchange (FX) has widened to N150 per dollar from N96/$1 after FX
unification in June 2023.

However, with the current exchange rate, the gap between the official and
parallel market has dropped to N150 from N301 in 2021.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar falls to two-week low as economic data softens

(Reuters) - The dollar dropped to a two-week low against the euro and a
basket of currencies on Wednesday after data showed that U.S. private
payrolls rose less than expected in August, adding to expectations that the
Federal Reserve would stop raising interest rates.

Softening data this week has raised bets that the U.S. central bank has
concluded its tightening cycle. It follows a brief increase in expectations
for a November rate hike after relatively hawkish comments by Fed Chairman
Jerome Powell on Friday.

This Friday's jobs report for August will be closely watched for further
confirmation that the tightness in the labor market is ebbing as interest
rates remain relatively high.

"The dollar's falling on the belief that the Federal Reserve has done
enough," said Adam Button, chief currency analyst at ForexLive in Toronto.
"I think nonfarm payrolls will be the final 'stick the fork in it' moment if
it's soft."

Friday's jobs data is expected to show that employers added 170,000 jobs in
August, according to the median estimate of economists polled by Reuters.
(USNFAR=ECI)

Private payrolls rose by 177,000 jobs last month, the ADP National
Employment report showed on Wednesday. Economists polled by Reuters had
forecast private employment would increase by 195,000.

The greenback also fell on Tuesday after data showed that U.S. job openings
dropped to the lowest level in nearly 2-1/2 years in July as the labor
market gradually slowed.

Markets now see an 89% chance of the Fed leaving rates unchanged next month,
the CME FedWatch Tool showed, and a 46% probability of a hike in November.

Other data on Wednesday showed that the U.S. economy grew at a slightly less
brisk pace than initially thought in the second quarter as businesses
liquidated inventory.

Personal consumption expenditures due on Thursday will also give new clues
on inflation.

The dollar index was last down 0.36% at 103.16, after earlier going as low
as 102.92. It has fallen from 104.44 last Friday, the highest since June 1.

The greenback gained 0.23% to 146.195 Japanese yen, but remained below a
10-month high of 147.375 reached on Tuesday.

The euro was last up 0.38% at $1.0921. It has bounced from $1.07655 on
Friday, the lowest since June 13.

The single currency was boosted by hotter-than-expected inflation in
Germany, a day before highly anticipated consumer price data for the euro
zone.

German consumer prices increased by an annual 6.4% in August, down from a
reading of 6.5% in July but above the 6.3% forecast in a poll of economists
surveyed by Reuters.

Spain's consumer prices also rose to 2.6%, while core inflation fell to 6.1%
from 6.2% in July.

The data "add to the uncertainty surrounding the near-term path of ECB
policy. On balance, we think that the ECB will raise rates once more in this
cycle," said Hubert de Barochez, markets economist at Capital Economics.

Money markets raised their bets on a September rate hike from the European
Central Bank, pricing in a 58% chance of a 25 basis-point move.

Meanwhile, Australian inflation slowed to a 17-month low in July,
reinforcing the case for the Reserve Bank of Australia to hold rates steady
at its policy meeting next week.

The Aussie dollar was last down 0.04% at $0.6478, after earlier dropping to
$0.64495.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold set for monthly drop as recent gains in US yields, dollar weigh

Gold prices firmed on Thursday as a fresh set of soft U.S. economic data
added to expectations that the Federal Reserve will pause rake hikes this
year, although a surge in Treasury yields and dollar kept bullion on track
for a monthly loss.

FUNDAMENTALS

* Spot gold was up 0.2% at $1,946.17 per ounce by 0114 GMT, trading close to
a one-month high hit on Wednesday. U.S. gold futures steadied at $1,973.10.

* Bullion is on track for a nearly 1% monthly decline as the U.S. dollar
eyes its first monthly rise in three and U.S. Treasury yields see their
fourth consecutive monthly climb having reached 2007 levels last week.

* The U.S. economy grew at a slightly less brisk pace than initially thought
in the second quarter. Investors are now awaiting the PCE inflation data
later in the day, and the non-farm payrolls report on Friday.

* The Fed can end its interest rate hiking cycle if the labor market and
economic growth continue to slow at the current gradual pace, the former
president of the Boston Fed said on Wednesday.

* Japan's seasonally adjusted factory output fell more than expected in July
from the previous month.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund,
said its holdings edged 0.1% higher to 890.10 tons on Wednesday.

* Elsewhere, spot silver was steady at $24.66 per ounce, having climbed to a
more-than-one-month high on Wednesday.

* Platinum added 0.3% to $977.02 as it heads for its second consecutive
monthly gain. Palladium rose 0.5% to $1,228.42, but was set for a 4% monthly
fall. 

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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DISCLAIMER: This report has been prepared by Bulls 'n Bears, a division of
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