Bulls n Bears Daily Market Commentary : 27 December 2023

Thu Dec 28 09:16:16 CAT 2023

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:bulls at bulls.co.zw> Views & Comments
<http://www.bullszimbabwe.com> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:%20bulls at bullszimbabwe.com?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 27 December 2023

ZSE commentary

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

ZSE past key level in thin trade-gains

HARARE - Zimbabwe Stock Exchange shares record-stepped into the last trading
week of the year with a marginal gain mostly supported by mid-tier stocks.
The All Share Index went past a key level after putting on 0.69% to 200
163.14.

Investors are now focused on the upcoming year, which as the 2024 National
Budget showed, will be characterised by higher costs of doing business and
even more challenging costs of compliance.  Economist Farai Mutambanengwe
told FinX that he expects the cost of doing business to remain high, as the
environment is expected to get tougher for the formal players.

''The authorities have done nothing about fixing both monetary and fiscal
distortions. Instead they have gone on to impose another raft of measures
aimed at bringing the informal sector into the tax bracket.  What would have
been preferred is to fix the formal environment, to make the formal
environment   thrive and do better and pay more taxes."

Zimbabwe's economic outlook for 2024 presents a complex picture, with both
potential opportunities and significant challenges. While some analysts
predict modest growth, others warn of persistent hurdles that could hinder
progress. 

At close, turnover was at 1.29 billion after 823 100 shares exchanged hands
in 190 trades. Delta contributed the most to volume and turnover after 312
000 shares worth $1 billion traded. Dairibord also saw a sizeable parcel of
243 700 shares. Foreigners bought $1.68 million of Meikles shares.

The Top Ten Index added 0.23% to 83 910.83 led by Seed Co's 5% advance to
101 325c. Econet Wireless added 1.30% to 71 755.78c and continues to trail
four times below Delta's share price, using its comparative historical
valuation. Delta was up a marginal 0.19% and the most active at 29 trades.

There were losses in EcoCash, which was down 3.78% to 15 395.75c.

The Medium Cap rose 1.57% to go past the 900 000 level at 906 932.08. FMP
put on 14.99% to 32 198.39c and Star Africa added 14.31% to 610c

OK Zimbabwe was 5.41% higher to 20 029.41c. At a recent analyst briefing, a
new strategy for sustainable growth was unveiled by the company. With a
focus on the G.R.O.W.T.H. strategy, the company aims to achieve sustainable
growth and success in the coming years.

Willdale was the worst performer with a 4.16% loss to 4 144.15c while
fractional losses were seen in Meikles, Mash Holdings and Masimba.

NTS led the risers with a 100% gain to 4 940 cents taking its market cap to
$12.54 billion. Resultantly the Small Cap Index rose 2.61% to 5 483 703.77.

The VFEX All Share retreated 1.41% to 69.20 weighed down by losses in
Simbisa, African Sun and Zimplow.

Global Currencies & Equity Markets

Zambia

Stable Kwacha key to sustaining stable fuel prices - Chikwanda

ENERGY Expert Johnstone Chikwanda says with investor issues around Mopani
and KCM resolved, the country should expect improved production and dollar
inflow which will ultimately contribute to stabilising the Kwacha. And Dr
Chikwanda has advised Zesco to invest in technology which allows for
maintenance works to be conducted on live wires without switching them off
to ensure revenue optimisation. In an interview, Tuesday, Dr Chikwanda said
a stable currency was a key fundamental factor in sustaining stable pump
prices. "The global oil markets are expected to remain unstable because of
the ongoing war which has not de-escalated. With major elections coming up
in the United States of America and India, major political decisions around
energy could be expected in these....

South Africa

South African rand firms in thin trade

(Reuters) - South Africa's rand firmed in thin trade on Wednesday, ahead of
the last economic data releases of the year later this week.

At 1003 GMT, the rand traded at 18.5075 against the dollar , about 0.8%
stronger than its previous close.

"We expect the local currency to remain fairly range-bound until the new
year," said Andre Cilliers, currency strategist at TreasuryONE.

South African money supply, trade and budget balance data for the month of
November are all due on Friday.

On the stock market, the Top-40 (.JTOPI) index was last trading about 3%
higher.

South Africa's benchmark 2030 government bond was marginally stronger, with
the yield down 1 basis point at 9.735%.

Nigeria

Naira appreciates further against US Dollar at official forex market

The Naira resumed work positively after the Christmas holiday as it
depreciated against the US dollar at the parallel market on Wednesday.

Official FMDQ data disclosed that Naira appreciated N872.59 per $1 compared
to N885.88 per $1 quoted on Friday before Christmas break.

Meanwhile, at the parallel market, the A Bureau De Change Operator in Wuse
Zone 4, Dayyabu Mistila, disclosed to DAILY POST that the Naira traded at
N1,210 per $1 on Wednesday from N1,205 per $1 on Tuesday.

"We sold at N1,210 per $1 as of Wednesday, compared to N1,205 on Tuesday.
However, we buy at N1,200 per $1 on Wednesday," he said.

The quoted figure showed that the country's currency, the Naira, marginally
dropped compared to the N1,205 to $1 it traded on Tuesday.

Meanwhile, on Wednesday, Naira traded around N1,193.9 to $1 on Binance, a
P2P market and crypto platform.

Since June 14, 2023, when the apex bank introduced FX reforms, the Naira has
been fluctuating in the forex markets.

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, recently
assured Nigerians that the Naira is expected to strengthen in the FX market
in 2024

 <mailto:info at bulls.co.zw> 

Global Markets

Bruised dollar wobbles as traders eye U.S. rate cuts next year

The dollar nursed steep losses on Thursday and was headed for a yearly
decline after two years of strong gains as expectations of interest rate
cuts from the Federal Reserve next year grip markets.

With the year coming to a close, thin liquidity and limited moves are
expected until the New Year.

The dollar index

, which measures the U.S. currency against six rivals, fell to a fresh five
month low of 100.81. The index fell 0.5% on Wednesday and is on course for a
2.6% decline this year, snapping two straight years of strong gains.

Investor focus remains on the timing of the interest rate cuts from the Fed,
with markets pricing in a 89% chance of a cut in March 2024, according to
CME FedWatch tool. Futures imply as much as 158 basis points of Fed easing
next year.

Some analysts though remain unconvinced the U.S. central bank would be so
aggressive.

"We still believe that a March policy change toward easing is much too early
and there is quite a bit of potential for a dollar rally if and when such
action does not materialize," Monex USA analysts said in a note.

While the Fed took an unexpectedly dovish stance in its December meeting,
opening the door to rate cuts next year, other major central banks,
including European Central Bank retained their stance of needing to keep
rates higher for longer.

Markets though are still pricing in as much as 165 basis points of rate cuts
from the ECB next year.

"The European and U.K. economies are in a much more precarious state and we
believe this will force their respective central banks to cut interest rates
both before they are fully ready and before the Fed does so," said the Monex
USA analysts, noting the divergence in the outlooks for the U.S. and
European economies.

The euro

was up 0.09% at $1.1113, couched just below the five-month peak of $1.1122
hit on Wednesday. The single currency headed for a yearly gain of 3.7%, its
strongest performance since 2020.

Sterling

was last at $1.2813, its highest since Aug. 10. The pound is headed for a 6%
gain in the year, its strongest performance since 2017.

Investors expect that the Bank of England will not be able to cut rates as
much as the Fed and ECB, given inflation is running higher in the U.K.

That has widened the gap between British bond yields and those in the U.S.
and Europe, making them look more attractive and boosting the pound.

Meanwhile, the Japanese yen

strengthened 0.23% to 141.50 per dollar, inching closer to a five-month peak
of 140.95 it touched earlier this month.

The Asian currency is up 4% against the dollar in December, heading for its
second straight month of gains on increased expectations that the Bank of
Japan may soon move away from its ultra-loose monetary policy.

The central bank, however, stuck to its policy earlier this month and
Governor Kazuo Ueda on Wednesday said he was in no rush to unwind
ultra-loose monetary policy as the risk of inflation running well above 2%
and accelerating was small.

For the year, yen is down 7% against the dollar.

Rate cut bets have also boosted riskier currencies, with the Australian
dollar

and the New Zealand dollar

perched at fresh five-month peaks. The Aussie was last up 0.26% at $0.6865,
while the kiwi was at $0.6360, up 0.3%.

 <mailto:info at bulls.co.zw> 

Commodities Markets

London gold price benchmark breaks all-time high, LBMA says

(Reuters) - London's gold price benchmark hit an all-time high of $2,069.40
per troy ounce at an afternoon auction on Wednesday, surpassing the previous
record of $2,067.15 set in August 2020, the London Bullion Market
Association (LBMA) said.

"I can think of no clearer demonstration of gold's role as a store of value
than the enthusiasm with which investors across the world have turned to the
metal during the recent economic and geopolitical turmoils," said LMBA's
chief executive officer Ruth Crowell.

LBMA is a leading bullion trade body that certifies gold refiners, allowing
them access to London's bullion market, the world's largest. The LBMA Gold
Price is the global benchmark price for unallocated gold delivered in
London.

The London gold price opened the year on Jan. 3 at $1,835.05 and has since
risen by 12.7%, LBMA said. Since the turn of the century, the price has
increased more than seven-fold.

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 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> bulls at bullszimbabwe.com  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com  

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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
report shall be solely responsible for making their own independent
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.

(c) 2023 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> bulls at bullszimbabwe.com Tel: +263 4 2927658 Cell:
+263 77 344 1674

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231228/3801f239/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231228/3801f239/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 201886 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231228/3801f239/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 43741 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231228/3801f239/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231228/3801f239/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130908 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231228/3801f239/attachment-0001.obj>