Bulls n Bears Daily Market Commentary : 23 February 2023

Fri Feb 24 05:19:21 CAT 2023

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Bulls n Bears Daily Market Commentary : 23 February 2023

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

Market flops while, SeedCo withdraws cautionary to move to VFEX…

The ZSE faltered in Thursday’s session as the primary All-Share  Index
tumbled 0.61% to close at 27755.81pts while, the Top 10 Index fell 1.28% to
16714.69pts. The ZSE Agriculture Index gained 0.24% to finish at 115.72pts
while, the Mid-Cap Index was up 0.89% to 59503.06pts. Media entity Zimpapers
topped the winners’ pack on a 15.00% rise to $5.7500 followed by Turnall
that advanced 14.78% to $6.6000. Hotelier African Sun firmed 9.45% to
$78.7716 as Ariston Holdings surged 8.47% to $6.0000. Tyre manufacturer NTS
completed the group on a 7.84% lift to $11.0000. First Mutual properties led
the laggards of the day after succumbing 11.76% to $15.0000. Bankers

NMB and First Capital notched 6.82% and 6.39% to $42.0262 and $17.7245
respectively. Zimplow suffered a 6.22% blow to settle at $29.7750 as Delta
capped the top five losers’ set after shedding 5.02% to $513.6154.

Activity aggregates were enhanced as volumes jumped 390.16% to 7.43m shares
while, turnover soared 283.12% to $653.53m. NMB and OK Limited accounted for
a combined

67.63% of the volumes as other countersshared the remaining portion. The
major value drivers of the day were Delta (35.87%), NMB (26.07%) and Econet
(11.99%). On the VFEX market, Simbisa traded 12,113 shares at a stable price
of USD$0.4315 while, Padenga improved 0.12% to USD$0.2500 4,000 shares. Seed
Co International dropped 0.19% to USD$0.2595. Cass Saddle slid 8.19% to
$2.2126, Morgan & Co gave up 0.55% to $21.7023 and Old Mutual weakened 0.05%
to $8.9955. Datvest and MIZ ETFs ticked up 4.52% and 0.12% to end pegged at
$1.8944 and $1.4200 respectively. The Tigere REIT added 1.61% to $49.4439.
In other news SeedCo Limited has withdrawn its cautionary for the scheduled
movement to VFEX.-efesecurities

Global Currencies & Equity Markets

AFRICA-FX- Kenya, Uganda, Ghana currencies expected to weaken

(Reuters) - Kenya's shilling, Uganda's shilling Ghana's cedi and Zambia's
kwacha are expected to weaken against the dollar in the week to Thursday,
while Tanzania's and Nigeria's currencies are forecast to hold steady,
traders said.

KENYA

Kenya's shilling is expected to weaken further, hurt by increased demand for
dollars from the energy and manufacturing sectors.

Commercial banks quoted the shilling at 126.15/35 per dollar, compared with
last Thursday's close of 125.70/90.

Earlier on Thursday, the shilling, which is down 2.4% so far this year,
touched a fresh low of 126.50/70 per dollar before regaining some of its
losses, Refinitiv data showed.

"We see the shilling remaining under a lot of pressure. There is a lot of
demand coming from across all sectors, and mainly from the energy and
manufacturing (sectors)," a trader at one commercial bank.

NIGERIA

Nigeria's naira is seen holding at current levels next week until the
shortage of local notes is resolved, traders said.

The naira has been marginally firmer on the parallel market due to a
shortage of banknotes as the central bank implemented its cashless policy
before Saturday's presidential vote, traders said.

The naira was quoted at 755 to the dollar on the parallel market on
Thursday, compared with 756 at last Thursday's close. It traded within a
range of 460 to 462 on the official market .

"Resolving the cash shortage has become more significant for the naira
outlook than the election result - with the rate likely to hold around
current levels until naira supplies recover," currency trading firm AZA
Finance said in a note.

GHANA

Ghana's cedi is expected to remain under pressure this week if the central
bank does not step up against increased corporate demand and reduced U.S.
dollar supplies.

Refinitiv data showed the cedi trading at 12.6500 to the dollar on Thursday,
up from 12.0000 at last Thursday's close.

"Cedi lost further ground this week amid increased corporate demand and
reduced USD supply. We expect the cedi to remain under pressure barring any
strong intervention from the central bank," said Chris Nettey, a trader at
Stanbic Bank.

Absa Ghana said in a note that the USD/GHS bid offer spread narrowed on
improved liquidity on Wednesday. But the central has provided minimal
support to the spot market by selling roughly $1 million, it added.

UGANDA

The Ugandan shilling is seen weakening as a pick-up in appetite for dollars
from both merchandise importers and commercial banks exerts pressure on the
local unit.

Commercial banks quoted the shilling at 3,730/3,740, compared to last
Thursday's close of 3,665/3,675.

"We're seeing quite substantial (dollar) appetite from importers in various
sectors," said one trader at a commercial bank in the capital Kampala. The
heightened demand was meeting with tight inflows, the trader said.

TANZANIA

Tanzania's shilling is expected to hold steady next week with inflows from
foreign direct investments offsetting demand of the U.S. dollar from most
sectors.

Commercial banks quoted the shilling at an average of 2,336/2,346 on
Thursday, compared to 2,332/2,342 recorded at last week's close.

"Tanzania's government this week gave the green light to construction of a
$3.5bn oil pipeline transporting crude from Uganda to the port of Tanga for
export in the face of opposition over its potential environmental impact,"
AZA Finance said in a note.

"We expect the shilling to continue trading around current levels near term.
"

ZAMBIA

The kwacha is likely to remain under pressure against the dollar next week
as demand for hard currency continues to exceed supply. On Thursday,
commercial banks quoted the currency of Africa's second-largest copper
producer at 19.8400 per dollar from a close of 19.6100 a week ago. "The
kwacha is projected to follow a downward trajectory in the short term due to
lack of dollar inflows and rising demand for hard currency," Access Bank
said in a note.

The Thomson Reuters Trust Principles.

South Africa

South African rand slips as post-budget relief recedes

(Reuters) - The South African rand edged lower against the U.S. dollar on
Thursday, losing all the ground gained in response to the finance minister's
budget speech the previous day.

At 1557 GMT, the rand traded at 18.2775 per dollar, 0.14% lower than its
previous close.

It had strengthened to 18.1250 on Wednesday after the government said it
will take on more than half of state utility Eskom's debt amid South
Africa's worst power cuts on record.

The rand has been one of the worst-performing emerging market currencies
this year.

"Unfortunately, the budget announcement did not offer as much relief to the
ZAR as many might've hoped," ETM Analytics said in a research note.

One factor weighing on the currency is that the Financial Action Task Force
(FATF), which sets standards on combating money laundering and illicit
financing, could add South Africa to its "grey list" at meetings on Friday,
ETM said.

Being added to the FATF list would be a reputational blow to South Africa
and could hurt local asset prices, as grey-listed countries are subject to
greater monitoring.

Shares on the Johannesburg Stock Exchange rose, with both the broader
all-share index (.JALSH) and top-40 index (.JTOPI) closing up about 1.1%.

The government's benchmark 2030 bond was stronger, with the yield down 4
basis points at 10.115%.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw>

Global Markets

Dollar clings to modest gains on data

(Reuters) - The dollar clung to modest gains against its major peers on
Thursday, bolstered by strong economic data that continues to suggest the U.
S. Federal Reserve's monetary policy tightening could be extended if it is
to bring down the highest inflation in decades.

A succession of stronger-than-expected data and recent rhetoric from "a few"
policymakers in favor of larger interest-rate increases have been supporting
the greenback this month. Adding to that, the number of Americans filing new
claims for unemployment benefits unexpectedly fell last week, showing a
still-tight labor market and a resilient U.S. economy.

"February just threw everyone off side because the data just came strong one
after the other ... really stressing this fact that we're not slowing down
enough, that inflation is staying sticky," said Clifton Hill, global macro
portfolio manager at Acadian Asset Management in Boston. "And so, through
all that, as yields have risen, that has just put a bid to the dollar, as
the anticipated growth slowdown is not materializing but actually the
opposite - it is reaccelerated."

The euro , down 0.09% in late New York trading, remained range bound at
$1.0597. Sterling also eased 0.22% at $1.2017, shrugging off signals from a
recent PMI survey for the likelihood of another Bank of England hike in
March.

 <mailto:info at bulls.co.zw>

Commodities Markets

Gold hits 2-month low as Fed rates seen higher for longer

Gold prices slipped to their lowest in about two months on Thursday, after a
drop in U.S. weekly jobless claims numbers favored the Federal Reserve’s
stance that interest rates would have to go higher to control inflation.

Spot gold  was down 0.1% at $1,822.5 per ounce by 4:16 p.m. ET, having
touched their lowest level since Dec. 30 earlier. U.S. gold futures  fell 0.
8% to settle at $1,826.8.

The number of Americans filing new claims for unemployment benefits
unexpectedly fell last week, pointing to a tight labor market and
inflationary pressures.

Meanwhile, the country’s gross domestic product increased at a revised 2.7%
annualized rate in 2022′s fourth-quarter, revised down from 2.9% reported
last month.

While GDP numbers missed expectations by a bit, the lowered drop in jobless
claims keeps the Fed in the driver’s seat such that they can keep raising
rates, said Bob Haberkorn, senior market strategist at RJO Futures.

Minutes from the Fed’s Jan. 31-Feb. 1 meeting on Wednesday showed
policymakers agreed rates would need to move higher, but that the shift to
smaller hikes would let them calibrate more closely with incoming data.

“The only way to combat inflation is to raise rates and the only way it’s
going to go away is when the consumer taps out, but the consumer hasn’t
tapped out yet... they’re still buying,” Haberkron highlighted.

Fed fund futures now price in three more hikes to 5.25-5.50% scaling back
expectations for future rate cuts.

High interest rates dampen gold’s appeal as an inflation hedge while
raising the opportunity cost of holding the non-yielding asset.

Elsewhere, spot silver fell 0.8% to $21.3233 per ounce, platinum was 0.2%
lower at $947.153 and palladium sank 2.4% to $1,446.54.

UBS expects auto-catalyst palladium’s prices to fall to $1,400 per ounce by
end-December on a combination of slower economic growth and on substitution
with platinum.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

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
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