Bulls n Bears Daily Market Commentary : 09 February 2023

Fri Feb 10 07:20:50 CAT 2023

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Bulls n Bears Daily Market Commentary : 09 February 2023

 <mailto:info at bulls.co.zw> 

ZSE commentary

Market maintains a positive trajectory.

The market maintained a positive trajectory for the eleventh consecutive day
in an actively traded session. The primary All Share Index rose 3.33% to
29,631.60pts while, the Blue-Chip Index advanced 3.83% to 18,844.57pts
lifted by gains in Econet and Ecocash. The Mid-Cap Index increased 1.98% to
close the day at 55,373.79pts while, the Agriculture Index contrastingly
dropped a negligible 0.06% to record 112.68pts. Telecoms giant Econet was
the major rise of the day locked at the top end of the circuit breaker at
15% to trade at $218.5500. Fintech Ecocash followed on a 14.89% rise to
close at $70.5636 while, Hotelier African Sun extended gains from prior
session adding 14.36% to $48.0300. First Mutual Properties edged up 13.09%
to $16.9631, followed by Afdis which reversed yesterday's losses by 8.36% to
$282.0206 capping the top five risers. Leading the laggards of the day was
Bridgefort losing 13.04% at $8.000, followed by Mash dropping 11.85% to
$7.0928. Meikles declined 3.66% to trade at $173.2500 while, Tanganda
retreated 0.64% to $183.1887.

CBZ completed the top five losers at $145.0000 losing 0.56%. Market breadth
was positively skewed as there were twentyone gainers and nine losers.
Volumes traded rose 103.68% to 16.2m shares as Masimba, Econet and Delta
contributed a combined 67.53% of the outturn while, turnover added 126.38%
to $4bn. Delta highlighted the turnover for the day contributing 44% of the
total, other notable value drivers were Innscor (18.82%) and Econet
(18.61%). On the VFEX 28,825 shares exchanged hands as Padenga traded 28,825
shares at unchanged price of $0.2865. Simbisa, NatFoods and Bindura were
stable at $0.4300, $1.8100, and $0.0214 respectively while, Seedco
International dropped a negligible 0.01% to $0.2600 on 445 shares. On the
ETF section, 84,925 units traded for a value of $200,633.68 with trades
recorded in all listed ETFs. The Tigere REIT traded 4,458 shares at a stable
price of $50.6200efesecurities

Global Currencies & Equity Markets

South Africa

South Africa's rand rises ahead of Ramaphosa's speech, China shares rebound

(Reuters) - Currencies in emerging markets inched up on Thursday, with South
Africa's rand crawling higher ahead of a much-awaited speech by President
Cyril Ramaphosa, while a recovery in China and Hong Kong shares buoyed the
emerging markets shares index.

The rand rose 0.4% to 17.69 in early trading as investors awaited
Ramaphosa's State of the Nation address, which could offer some solution to
ease a worsening power crisis.

Currencies in central and eastern Europe edged higher against the euro, with
the Romanian leu rising 0.2% ahead of its rate decision due at 1300 GMT.

Romania's central bank is expected to keep its benchmark rate unchanged at
7%, in line with others in central Europe after a year of sharp hikes.

Over the next 12 months, the leu is expected to fall 2.5% to 5.02, with the
country's budget and current account deficits continuing to pose a risk, a
Reuters poll of market strategists showed.

Other regional currencies such as the Polish zloty and Hungarian forint
looked set to gain over the next 12 months, helped by expectations of lower
gas prices, access to European Union funds and a weaker dollar.

The Russian rouble slid against the greenback, briefly hitting its weakest
level since late April, driven down by market demand for foreign currency
and Russia's lower export earnings.

The MSCI's index for emerging market currencies gained 0.1% by 0842 GMT,
while the stocks index rose 0.6%, extending gains for their third straight
session.

"We see emerging markets as well positioned to be early beneficiaries of the
inflection point in global markets, earnings, and GDP growth we expect in
2023," said Mark Haefele Chief Investment Officer, UBS Global Wealth
Management.

Ghana

Cedi extends volatile run

The cedi extended its gains against major trading currencies last week
raising hopes that the local currency is beginning to steady ahead of a deal
with the International Monetary Fund (IMF) later this quarter.

It appreciated against the US dollar, the euro and the British pound last
week to extend the positive run over the last fortnight.

GCB Capital said in its weekly market update that the local currency gained
3.2 per cent vs the US dollar on the retail market last week and opened this
week strongly against the three major trading currencies.

It, however, noted that Ghana's gross reserve is threadbare, and the cedi
remains volatile and news-sensitive.

"The prevailing uncertainty and external monetary policy developments could
keep the local currency volatile until an IMF board-level approval, the
research arm of the investment fund said.

Rocked by faltering reserves and large twin deficits, Ghana has been putting
its house in order to help earn a US$3 billion bailout from the IMF.

The government launched a domestic debt exchange programme (DDEP) in
December in which it requires investors in its cedi debts to swap their
existing holdings for new ones that have a maximum maturity of five years.

The offer is optional, the government said in a January 31 release that also
announced the extension of the programme for the fourth time in a row.

That release also revised the terms of the debt swap in response to protests
and resistance from business associations and individual bondholders that
have constituted themselves into groups.

The programme was also extended on Tuesday, February7 to February10 over
what was described as administrative glitches.

The debt swap is an urgent necessity to make the country's debt sustainable,
which is a prerequisite to sealing the US$3 billion bailout.

An IMF staff-level agreement was received in December.

 <mailto:info at bulls.co.zw> 

Global Markets

U.S. dollar tumbles as Fed outlook weigh, Sweden's crown surges after rate
hike

(Reuters) - The U.S. dollar fell across the board on Thursday, moving in
line with lower Treasury yields, as investors stuck to their views that the
Federal Reserve does not need to raise interest rates any more than it
should as inflation is starting to get under control. 

The Swedish crown, on the other hand, soared after the country's central
bank raised rates, forecast further hikes and said it wanted a stronger
currency, adding to the dollar's woes. A higher-than expected U.S. jobless
claims number further compounded the dollar's losses, as the report
suggested labor market weakness that can help bring down inflation. Initial
claims for state unemployment benefits rose 13,000 to a seasonally adjusted
196,000 for the week ended Feb. 4, data showed. 

Economists polled by Reuters had forecast 190,000 claims for the latest
week. "We had a big buildup in dollar shorts and lot of that has been
unwound. Then (Fed Chair Jerome) Powell and other Fed officials spoke and
there was some relief in the sense that they repeated the upside risks, but
they did not signal any imminent increase in the terminal rate," said
Vassili Serebriakov, FX strategist at UBS in New York, referring to the peak
federal funds rate.

"Investors are still hesitant to go back into dollar shorts before the CPI
(consumer price index) report. There's a lot of focus on CPI to see whether
Powell's disinflation story holds." Powell had said on Tuesday and last week
that disinflation, or a deceleration in the rise of overall prices, has
started. In late morning trading, the dollar index fell 0.7% to 102.74. 

The euro, the biggest component in the dollar index, climbed 0.6% to $1.078,
while sterling rose 0.9% to $1.2179, with both boosted by improving risk
sentiment across markets. The dollar was last down 2% against the Swedish
crown at 10.31 while the euro dropped 2% as well to 11.11, set for its
biggest daily percentage fall since 2009, after the Riksbank raised its
benchmark interest rate by 50 basis points to 3%, and forecast more
increases in the spring. 

The central bank also said a stronger currency would be desirable to bring
down inflation. Elsewhere, the Australian dollar, often seen as a proxy for
risk sentiment, rose 0.8% to US$0.6973 as the safe-haven U.S. currency
dipped in line with a rally in equities and other so-called "risk-friendly"
assets, helped by strong company earnings. 

The dollar fell 0.4% against the Japanese yen to 130.92. Japan's government
is planning to present the new Bank of Japan governor nominee to parliament
on Feb. 14, broadcaster TBS reported on Thursday. Markets are closely
watching the appointment, as the new governor's agenda will be scrutinized
as to how quickly the central bank could phase out its massive stimulus. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices unchanged; yellow metal sells at Rs 57,550 per 10 gram

Gold prices remained unchanged on Thursday, with 10 grams of the yellow
metal (24-carat) trading at Rs 57,550. Silver prices increased by Rs 100 per
kg. The precious metal is selling at Rs 71,400 per kg.

The price of 22-carat gold also remained unchanged from yesterday's close at
Rs 52,750 per 10 grams, according to the GoodReturns website.

US gold prices edged back up in a choppy session on Wednesday as investors
looked forward to more economic data to gauge the US Federal Reserve's
rate-hike strategy.

Spot gold was up 0.1% at $1,875.10 per ounce by 3:19 p.m. ET (2019 GMT). US
gold futures rose 0.3% to settle at $1,890.70.

In Mumbai, Kolkata, and Hyderabad, 10 grams of 24-carat and 22-carat gold
are selling at Rs 57,550 and Rs 52,750, respectively.

In Delhi, 10 grams of 24-carat and 22-carat gold are trading at Rs 57,700
and Rs 52,900, respectively. In Chennai, 10 grams of 24-carat and 22-carat
gold are selling at Rs 58,720 and Rs 53,830, respectively.

In Delhi and Mumbai, 1 kg of silver is trading at Rs 71,400, while in
Chennai and Hyderabad, it sells at Rs 74,000. In Kolkata, the metal is
selling at Rs 71,400.

US Spot silver rose 0.3% to $22.25, platinum slipped 0.1% to $972.00, and
palladium dipped 0.1% to $1,643.37

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Robert Mugabe National Youth Day

February 21

Cafca 

AGM

virtual 

February 23  - (12pm)

Ariston 

AGM

Centenary Room, Royal Harare Golf Club

February 24 - 3:30pm

Good Friday

April 7

Easter Saturday

April 8

Easter Sunday

April 9

Easter Monday

April 10

Independence Day

April 18

Workers' Day

May 1

Africa Day

May 25

Counters trading under cautionary

CBZH

TSL

Fidelity

Willdale

FMHL

ZBFH

GetBucks

Zimre

Seed Co

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
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for guideline purposes only and sourced from third parties.

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