Bulls n Bears Daily Market Commentary : 17 February 2023

Sat Feb 18 07:17:59 CAT 2023

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Bulls n Bears Daily Market Commentary : 17 February 2023

 <mailto:info at bulls.co.zw> ZSE commentary

Econet anchors volume aggregate.

Telecoms giant Econet anchored the volume aggregate of the day as 8.23m
shares worth $1.44bn which represents 64.72% of the total volumes and 37.55%
of the value aggregate. Other notable volume and value drivers of the day
were Innscor and Delta that accounted for a combined 25.23% of former and
54.17% of the latter. Activity aggregates enhanced in the session as volumes
traded rallied 273.76% to 12.74m shares while, turnover jumped 147.08% to
$3.84bn. Telecoms giant Econet headlined the laggards of the day on 7.97%
drop to $175.0023 followed by Star Africa that slid 3.19% to $1.7232.
Fintech group Ecocash Holdings slipped 3.12% to $70.5000 while; Axia trimmed
2.83% to $133.9909. Capping the top five losers' pack was First Capital that
retreated 2.31% to $18.2567. Positive movers of the day were led by
Zimpapers

that surged 14.94% to settle at $5.0000, trailed by life assurer Fidelity
notched 12.50% to $27.0000. Hotelier Meikles Limited grew 11.11% to
$200.0000 as African Sun advanced 5.31% to $62.0124. Spirit and Wines
manufacturer AFDIS completed the top five winners' set on a 4.59% uplift to
close the day pegged at $285.0000.

The risers and fallers' spectrum of the day was equally distributed at
twelve apiece. The All-Share Index lost 0.77% to 27301.03pts while, the
Blue-Chip Index shed 1.63% to 16645.38pts. On the contrary, the Agriculture
Index inched up 0.05% to 112.94pts as the Mid cap Index put on 1.34% to
56883.05pts. On the VFEX market, Padenga went up 0.81% to USD$0.2598 while,
Simbisa tripped 1.86% to USD$0.4224. Cumulatively, 54,228 shares worth
$14,207.53 traded on the VFEX. The Datvest ETF and MIZ ETF rose 4.77% and
1.39% to close at $1.6240 and $1.3500 respectively. MCMS ETF eased 2.28% to
$21.5000 while, the Old Mutual ETF fell 0.19% to settle at $9.0027. The
Tigere Reit stumbled 0.04% to $48.7587 as 12,100 units traded.-efesecurities

Global Currencies & Equity Markets

South Africa

South African rand firms against dollar; eyes on 2023 budget

(Reuters) - South Africa's rand on Friday recouped some losses from the
previous session, when President Cyril Ramaphosa defended his decision to
appoint a minister of electricity to try to end crippling power cuts.

At 1524 GMT on Friday, the rand traded at 18.0525 against the dollar, 0.7%
stronger than its previous close.

Ramaphosa's responses in parliament have done very little to calm market
fears, ETM Analytics said in a note.

"It is difficult to argue with anyone suggesting that the rand's performance
reflects the country's mood at the moment."

Next week's budget announcement by South Africa's finance minister could
offer clues on the government's plans to take on a majority of the debt owed
by beleaguered utility Eskom.

Financial support to struggling state-owned enterprises and crimped growth
from erratic power generation will mean more wide budget deficits to come, a
Reuters poll found on Friday.

The Top 40 (.JTOPI) and the broader all-share (.JALSH) indexes fell more
than 1%.

The South African government's benchmark 2030 bond was weaker in afternoon
deals, with the yield up 9 basis points to 10.115%.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar hits six-week high as traders ramp up Fed bets

(Reuters) - The dollar hit a six-week high against a basket of currencies on
Friday as traders ramp up bets that the Federal Reserve will hike rates
higher than previously anticipated, and hold them there for longer, as it
battles still-high inflation while the employment picture also remains
strong.

Two Federal Reserve officials said on Thursday the U.S. central bank likely
should have lifted interest rates more than it did early this month and
warned that additional hikes in borrowing costs are essential to lower
inflation back to desired levels.

Major banks are also raising their rate hike forecasts. Goldman Sachs said
it was expecting the Fed to hike rates three more times this year, by a
quarter of a percentage point each time, after data this week pointed to
persistent inflation and resilience in the labor market.

"Right now the markets are having a major reset with Fed rate hike
expectations," said Edward Moya, senior market analyst at OANDA in New York.
"It seems this current wave of inflation is proving to be troubling for
policymakers everywhere and we could start to see monetary policy globally
become much more restrictive."

U.S. data on Thursday showed monthly producer prices increasing by the most
in seven months in January as the cost of energy products surged, while the
number of Americans filing new claims for unemployment benefits unexpectedly
fell last week.

Concerns about the impact of higher rates on the economy is also weighing on
risk sentiment, giving a further boost to the U.S. currency.

"We're starting to see risk aversion take over, and that's also triggering
some safe-haven flows for the dollar," said Moya.

Fed funds futures traders are now pricing for the fed funds rate to reach
5.31% in July, and remain above 5% all year. The Fed's target range stands
at 4.5% to 4.75%, having risen rapidly from 0% to 0.25% in March 2022. ,

The dollar index was last up 0.17% at 104.27, after earlier reaching 104.67,
the highest since Jan. 6.

The euro dipped 0.24% to $1.0647, after earlier falling to $1.06125, the
lowest since Jan. 6.

European Central Bank (ECB) officials have also made clear that they expect
euro zone rates to keep rising.

"There is a risk that inflation proves to be more persistent than is
currently priced by financial markets," German ECB official Isabel Schnabel
told Bloomberg on Friday.

The dollar gained 0.41% against the Japanese yen to 134.49, after reaching
135.12 earlier, the highest since Dec. 20.

Sterling was flat at $1.1985, after earlier falling to $1.19150, its lowest
since Jan. 6. Data on Friday showed British consumers unexpectedly increased
their shopping in January.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold set for third weekly fall on dollar strength, hawkish Fed worries

Gold prices on Friday were on track for their third straight weekly dip,
weighed down by a stronger dollar and bond yields following fresh hawkish
rhetoric from U.S. Federal Reserve officials.

Spot gold was last up 0.25% at $1,841.99 per ounce, after earlier falling to
its lowest since late December. Prices have fallen 1.4% so far this week.

U.S. gold futures fell 0.02% to $1,851.40.

The dollar's advance, paired with the hawkish outlook from members of the
Fed, was weighing on the market, said Phillip Streible, chief market
strategist at Blue Line Futures in Chicago.

Fed officials this week said the U.S. central bank likely should have lifted
interest rates more than it did early this month, with Fed Governor Michelle
Bowman reiterating the 2% inflation goal.

The dollar index surged to a six-week high, making bullion less attractive
for overseas buyers, while bond yields also climbed.

Higher interest rates increase the opportunity cost of holding zero-yield
bullion. Prices of the previous metal are down about 7.3% since its
nine-month peak earlier this month.

Goldman Sachs said it expected the Fed to raise rates three more times this
year by a quarter of a percentage point each.

Traders await next week's release of the latest FOMC minutes and U.S. GDP
data for more clues on the path of rate hikes.

"The test for the Fed will occur if and when the economy weakens without
inflation declining rapidly ... should the Fed react to those potential
outcomes by easing policy, then gold should perform well," said Caesar
Bryan, portfolio manager of the Gabelli Gold Fund.

Spot silver gained 0.69% to $21.7492 per ounce, while palladium was down
0.81% to $1,498.4626.

Platinum was down 0.11% at $919.2444, after earlier reaching its lowest
since November.

Russia is likely to limit exports of key metals such as palladium if the
United States imposes steep taxes on imports of aluminum from Russia,
analysts said.

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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