Bulls n Bears Daily Market Commentary : 27 February 2023

Tue Feb 28 07:14:12 CAT 2023

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Bulls n Bears Daily Market Commentary : 27 February 2023

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

ZSE commences new week in gains as Innscor debuts on the VFEX.

The ZSE commenced the new week on a positive note as four indices that we
review closed the session in the black. The mainstream All-Share Index grew
1.51% to 28427.18pts while, the ZSE Top Ten Index added 1.08% to
16938.13pts. The ZSE Agriculture Index put on 2.36% to end at 118.80pts
while, the Mid Cap Index rose 2.53% to close at 62471.47pts. TSL headlined
the winners of the day on a 14.87% surge to $61.1089, trailed by General
Beltings which jumped 14.82% to $1.8400. Banking group FBC soared 11.11% to
$80.0000 as Tanganda leapt 11.00% to $251.2500. Completing the top five
gainers of the day was African Sun that firmed up 8.58% to settle at
$96.3636. The faller's pack was led by ART that dipped 4.55% to $21.0000,
followed by SeedCo Limited that trimmed 1.06% to $197.6377. Telecoms giant
Econet shed 0.80% to

$170.6601 while, fintech group Ecocash let go 0.15% to $70.0000. Spirit and
wines manufacturer AFDIS held the fifth position of the shakers' table as it
slid 0.02% to close at a vwap of $284.9508.

Volume of shares traded succumbed 55.51% to 1.56m, yielding a turnover of
$138.11m which was a 22.24% retreat. Volume drivers of the day were Star
Africa, OKZIM, Econet and First Capital that claimed a combined 80.66% of
the aggregate. Econet, Delta, Hippo, AFDIS and OKZIM that accounted for
27.23%, 21.78%, 14.77%, 14.55% and 11.36% of the outturn respectively. On
the VFEX, a total of 73,181 shares worth $22,051.94 exchanged hands. Innscor
plunged 9.07% to USD$0.8381, having listed at USD$0.9217 as 181 shares
traded. SeedCo International and Simbisa ticked up 10.82% and 4.49% apiece
as Padenga was stable at USD$0.2500 on 18,000 shares. MIZ, Morgan and Co MCS
and Datvest went up 2.11%, 1.40% and 0.07% in that order. The Cass Saddle
was the only decliner amongst the ETFs with a 3.32% loss to $2.1367. The
Tigere REIT tripped 5.63% to $47.7726 on 16,523 units.-efesecurities

Global Currencies & Equity Markets

Nigeria

Naira begins week on negative note

The figure represented a depreciation by 0.18 per cent compared with the
N461.17 it exchanged for at the close of business on Feb. 24.

The open indicative rate closed at N461.35 to the dollar on Monday.

An exchange rate of N462.05 to the dollar was the highest rate recorded
within the day's trading before it settled at N462.

The Naira sold for as low as N446 to the dollar within the day's trading.

A total of 54.37 million dollars was traded at the official Investors and
Exporters window on Monday.

South Africa

South African rand regains some ground as dollar slips

(Reuters) - The South African rand regained some ground on Monday against a
weaker U.S. dollar, after a stretch of losses that saw it end last week at
its lowest level so far this year.

At 1506 GMT, the rand traded at 18.3925 against the dollar, about 0.2%
stronger than its previous close. On Friday, it hit a 2023-low of 18.4850.

The dollar was down around 0.5% against a basket of global currencies ,
slipping from a seven-week high that had been fuelled by strong U.S.
economic data last week.

There were no major South African economic data releases on Monday. Tuesday
will see the release of January money supply (ZAM3=ECI), trade (ZATBAL=ECI)
and budget (ZABUDM=ECI) figures, as well as fourth-quarter unemployment
numbers (ZAUNR=ECI).

The Financial Action Task Force, which sets standards on combating money
laundering and illicit financing, added South Africa to its "grey list" on
Friday, a knock to the reputation of Africa's most advanced economy.

But markets appeared to have moved on quickly from the news, analysts said.

On the stock market, the Top-40 (.JTOPI) index closed about 0.9% higher and
the broader all-share (.JALSH) was up 0.75%.

Steinhoff (SNHJ.J) led gainers with shares up over 40% after the retail
holding group reported double-digit revenue growth for its quarter
ended-December on Friday.

"We do not believe markets will continue to react over negatively due to the
grey-listing, especially since a lot of this unwelcome news has already been
priced in," Adriaan Pask, Chief Investment Officer at PSG Wealth said in a
note.

The South African government's benchmark 2030 bond was stronger, with the
yield down 6.5 basis points to 10.065%.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar slips after recent gains, recent uptrend intact

(Reuters) - The dollar fell from a seven-week high on Monday, tracking a
slide in U.S. Treasury yields, as investors consolidated gains after the
greenback's recent rise and looked ahead for the release of jobs data and
consumer prices for February.

The dollar's decline was exacerbated by a higher-than-expected drop in U.S.
durable goods of 4.5% last month, reversing a huge December boost from
Boeing. These so-called durable goods orders increased 5.1% in December.

The report dented some of the hawkishness built into U.S. interest rates,
though they are expected to remain higher for longer, analysts said.

article-prompt-devices

Register for free to Reuters and know the full story

With February coming to an end after the dollar's almost 3% climb during the
month on stronger-than-expected U.S. economic data, investors are
consolidating recent positions, said Joe Manimbo, senior market analyst at
Convera in Washington.

"It's just investors pulling some chips off the table," he said. "We've had
a ton of data so far, and so far it's been hotter than expected and that's
been the fuel for the dollar."

The market awaits this month's data for U.S. unemployment on March 10 and
the consumer price index on March 14, both of which will influence Federal
Reserve policy on interest rates and the central bank's efforts to slow
inflation to its target pace.

"Until the market gets a look at the next non-farm payrolls as well as the
next consumer price index, the market is going to be reluctant to push the
dollar meaningful lower," Manimbo said. "The market is just realizing the
road to 2% inflation is likely to be longer and more winding."

Advertisement . Scroll to continue

Investors will get more information on the state of the global economy this
week, with U.S. ISM manufacturing and services survey data for February due
on Wednesday and Friday, respectively. Preliminary euro zone CPI inflation
figures for February are due on Thursday.

New data on Monday that showed U.S. pending home sales posted their largest
gain in 2-1/2 years failed to lift the dollar, as recent strong economic
readings have done.

The National Association of Realtors (NAR) said its Pending Home Sales
Index, based on signed contracts, jumped 8.1% last month, the biggest
increase since June 2020. Economists polled by Reuters had forecast
contracts, which become sales after a month or two, rising 1.0%.

Traders now expect the Fed to raise interest rates to about 5.4% in July,
according to pricing in futures markets . At the beginning of February, they
envisaged rates rising to a peak of just 4.9%.

The dollar index , which measures the currency against six major peers, fell
0.513% and is on track to snap a four-month losing streak. Earlier it hit
its highest since Jan. 6.

The euro rose 0.58% to $1.0607, while the Japanese yen strengthened 0.20%
versus the greenback at 136.20. The yen reversed some of its gains after
rising to a more than two-month high of 136.54 earlier in the session.

Incoming Bank of Japan Governor Kazuo Ueda said on Monday the merits of the
bank's current monetary policy outweigh the costs, stressing the need to
maintain support for the Japanese economy with ultra-low interest rates.

Sterling rose after British Prime Minister Rishi Sunak struck a new deal
with the European Union on post-Brexit trade rules for Northern Ireland on
Monday and said it would pave the way for a new chapter in London's
relationship with the bloc.

The pound was last at $1.2059, up 0.96% on the day.

Currency bid prices at 2:40 p.m. (1940 GMT)

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold gains as dollar rally cools, but rate-hike fears linger

Gold prices ticked up on Monday on a pullback in the dollar, although
worries around further interest rate hikes from the U.S. Federal Reserve
kept bullion near a two-month low.

Spot gold rose 0.3% to $1,816.83 an ounce. U.S. gold futures were up 0.4% at
$1,823.90.

The dollar index fell after hitting a seven-week peak, making bullion less
expensive for overseas buyers.

Gold has support around $1,806 but it has been sliding on
higher-than-expected inflation and economic data continues to be quite firm,
said Bart Melek, head of commodity markets strategy at TD Securities.

Gold prices hit their highest since April 2022 this month, but have since
fallen by more than 7% after a slew of U.S. data pointed to a resilient
economy.

Data on Friday showed U.S. consumer spending increased by the most in nearly
two years in January, while inflation accelerated, adding to market fears
that the Fed could continue raising interest rates into summer.

"Given how the Fed's favoured measure of inflation accelerated in January,
appetite for zero-yielding gold may be soured by rate-hike bets in the near
term - ultimately dragging prices lower," said Lukman Otunuga, senior
research analyst at FXTM.

"Gold (will) remain highly sensitive to chatter by Fed officials, key
economic data and any topic relating to inflation as we head into the new
month."

Rising interest rates dull gold's appeal as they increase the opportunity
cost of holding the non-yielding asset.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

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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