Bulls n Bears Daily Market Commentary : 24 January 2023

Wed Jan 25 07:52:42 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 : 24 January 2023

 <mailto:info at bulls.co.zw> 

ZSE commentary

ZSE in lean gains.

The market registered meagre gains in Tuesday's session as the mainstream
All-Share Index gained 0.12% to close at 21861.40pts while, the ZSE
Agriculture Index grew 1.43% to 90.05pts.The Mid-Cap Index went up 1.02% to
44359.31pts as the Top Ten Index succumbed to a 0.23% loss to 134614.31pts.
Cafca Limited headlined the gainers' list with a14.99% jump to $230.1000
followed by seed manufacturer Seed Co Limited that rose 12.59% to $135.1377.
Tea company Tanganda surged 3.85% to $135.0000 while; construction group
Masimba Holdings rose 3.15% to trade at $99.6955.

Hotelier African Sun completed the top five winners of the day after adding
2.66% to $31.3550. Losers were led by Mashonaland holdings which gave up
8.37% to $8.0816 as roofing sheets outfit Turnall weakened 7.41% to $4.0000.
Bankers CBZ took a 3.32% knock to $143.1541 while, Star Africa Corporation
retreated 3.24% to $1.9831. Ecocash Holdings capped the top five laggards'
group on a 2.14% decline to $52.9540.Market activity improved as seen by
volumes that jumped  18.37% to 2.48m shares while, value outturn notched
60.09% to $525.27m. Volume drivers of the day were Econet, Delta,
Proplastics and Innscor which claimed a combined 81% of the outturn. 

Value outturn was anchored by Delta, Innscor andEconet with respective
contributions of 34.34%, 31.52% and26.64%. Foreign inflows ballooned 90.56%
to $159.75m while, outflows surged 80.17% to $263.14m leaving the market
with a net fund outflow position. On the VFEX market, a cumulative 2,168
shares worth USD$995.04 exchanged hands in two counters. Bindura ticked up
11.11% to USD$0.0240 on 100 shares as Simbisa was stable at USD$0.4800. On
the ETFs section, Datvest firmed up 0.77% to $1.5218 as Cass Saddle stepped
up 0.08% to $2. 2300.Morgan and Co MCS was flat at $23.2000 while, Old
Mutual ETF lost 0.07% to $7.4606. Tigere REIT let go 0.06% to $50.5920 on
5,510 units.-efesecurities

Global Currencies & Equity Markets

South Africa

South African rand weakens as investors await rate decision

(Reuters) - South Africa's rand weakened against the dollar on Tuesday as
investors awaited the central bank's decision on monetary policy later this
week.

At 1520 GMT, the rand traded at 17.2525 against the dollar, 0.28% weaker
than its previous close. The dollar was

0.27% firmer against a basket of major currencies .

The South African Reserve Bank (SARB) will announce its rate decision on
Thursday, with 11 of the 20 economists polled by Reuters predicting a hike
of 50 basis point (bps) to 7.50% (ZAREPO=ECI). Eight projected an increase
of 25 bps and one no change.

Most economists polled by Reuters see no further rate hikes after this week.

"The rand could gain somewhat on a 75bp increase in the repo rate instead of
50bp this week, although the ongoing loadshedding remains a substantial,
overshadowing negative effect on the domestic currency," Investec analyst
Annabel Bishop said.

Loadshedding, a term for scheduled power cuts, has become a daily occurrence
in South Africa, crippling business activity and weakening investor
confidence.

The government's benchmark 2030 bond was up on Tuesday, with the yield down
3.5 basis points to 9.745%.

On the Johannesburg Stock Exchange, the Top-40 index (.JTOPI) and the
broader all-share index (.JALSH) closed down about 0.1%.

The Thomson Reuters Trust Principles.

Nigeria

Naira falls slightly after CBN raises interest rate

Naira on Tuesday fell marginally by 0.08 percent against the dollar at the
official market, the same day that the Central Bank of Nigeria (CBN) raised
its benchmark interest rate for the fifth straight time to 17.5 percent.

After trading on Tuesday, Naira depreciated by 0.08 percent as the dollar
was quoted at N462.00 as against the last close of N461.63 on Monday at the
Investors and Exporters (I&E) forex window, Nigeria's official market, data
from the FMDQ indicated.

Most currency dealers who participated at the foreign exchange auction on
Tuesday, maintained bids between N440.00 (low) and N463.00 (high) per
dollar.

The level of activities at the I&E window increased as the daily foreign
exchange market turnover rose by 15.73 percent to $112.04 million on Tuesday
from $96.81 million recorded on Friday last week.

At the parallel market, popularly called the black market, naira closed at
N748 per dollar, the same rate it closed on Monday.

The CBN is scheduled to conduct a Primary Market Auction to roll over
treasury bills maturities worth N219.15 billion across 91-day (N1.07
billion), 182-day (N1.03 billion), and 364-day (N217.05 billion) tenors, on
Wednesday.

Read also: More pain for SMEs as CBN hikes rate to 17.5%

A report by the FSDH research showed that the Nigerian treasury secondary
market closed on a flat note on Tuesday with the average yield across the
curve closing flat at 3.79 percent. Average yields across short-term,
medium-term, and long-term maturities closed flat at 1.69 percent, 2.82
percent, and 5.58 percent, respectively.

The Overnight (O/N) rate decreased by 1.00 percent to close at 10.17 percent
on Tuesday as against the last close of 11.17 percent, and the Open Repo
(OPR) rate decreased by 0.83 percent to close at 9.83 percent compared to
10.66 percent on the previous day.

After the first two-day Monetary Policy Committee (MPC) meeting in Abuja,
seven out of 12 members voted to raise the Monetary Policy Rate (MPR), also
known as the CBN's benchmark interest rate, by 100 basis points to 17.5
percent.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar slips as upbeat euro zone business activity data lifts euro

(Reuters) - The dollar edged lower against the euro on Tuesday after data
showed euro zone business activity made a surprise return to modest growth
in January, while U.S. business activity shrank for a seventh straight
month.

While U.S. business activity shrank in January, the downturn moderated
across both the manufacturing and services sectors for the first time since
September and business confidence strengthened as the new year began.

"It just looks like another piece of data showing what the Fed has been
preaching: the economy is resilient enough to take on more hikes," said Juan
Perez, director of trading at Monex USA in Washington.

Fed fund futures see only two more quarter-point rate hikes by the Fed to a
peak of around 5% by June, before it starts cutting rates later in the year.
The Federal Reserve itself has insisted it still has 75 bps of increases in
the pipeline.

"It is clear looking at PMIs that the Fed has prevented expansion, but the
economy has not taken a hit like many thought," Perez said.

Still, the dollar, which briefly gained on the euro after the U.S. data,
slipped to trade lower on the day, not far from the 9-month lows hit in the
previous session.

The euro was 0.09 % higher at $ 1.0881 , just shy of the 9-month high of $
1.0927 touched on Monday.

The common currency was backed by survey data supporting the view that the
euro zone economy was weathering a winter of intense price pressures
reasonably well, analysts said.

Surveys showed euro zone business activity made a surprise return to modest
growth in January, and service-sector activity in Germany expanded for the
first time since June, although price pressures remained sticky.

A stronger economy could potentially allow the European Central Bank to
raise interest rates more aggressively as it tackles inflation.

"But if earnings and other items put a negative light on the globe, the euro
is more quickly to suffer the consequences than the buck," Monex USA's Perez
said.

The dollar rose to a near 1-week high against the yen, before giving up
those gains to trade down 0.44% to 130.095 yen.

Last week, the dollar fell to as low as 127.215 yen, its weakest since May,
ahead of a Bank of Japan policy review at which investors bet the central
bank might signal the end of its stimulus program. The BOJ, however, left
policy unchanged, giving the dollar some respite.

Sterling was one of the worst-performing major currencies against the
dollar, falling 0.34 % on the day to $ 1.2334 , after a survey showed
British private-sector economic activity fell at its fastest rate in two
years in January.

"Looking forward, we expect sterling to start underperforming neighboring
European currencies as economic data highlights widening growth
differentials," said Simon Harvey, head of FX Analysis at Monex Europe.

Meanwhile, bitcoin was little changed on the day at $22,973, steadying after
having jumped by about a third in value since early January, as investors
shook off pessimism after the high-profile collapse of crypto exchange FTX.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold eases off nine-month peak as U.S. dollar, yields gain

(Reuters) - Gold prices pulled back from a nine-month high on Tuesday due to
a slight uptick in the dollar and U.S. bond yields, although hopes of slower
interest rate hikes from the Federal Reserve underpinned the market.

Spot gold rose 0.2% to $1,934.82 per ounce by 1:40 p.m. ET (1840 GMT),
hitting its highest since late April 2022 earlier in the session. U.S. gold
futures settled up 0.4% at $1,935.4.

The dollar index was 0.2% lower against its rivals, making greenback-priced
bullion cheaper for many buyers, while benchmark U.S. 10-Treasury yields
edged lower from their one-week high.

A survey from S&P Global showed price pressures ticking higher for the first
time since last spring, indicating that inflation is far from licked despite
the Fed's aggressive measures to contain it.

"I think gold is still holding quite strong as the market expectations are
turning more towards a pause from the Fed potentially, or a turn to a more
dovish policy," said Ryan McKay, commodity strategist at TD Securities.

The U.S. central bank delivered four consecutive rate hikes of 75 basis
points (bps) before slowing its pace to 50 bps last month to fight soaring
inflation.

Traders are now pricing in a 96% chance the Fed will raise rates by 25 bps
at its policy meeting next week.

"As the expectation of inflation continuing to come down, there will be
lesser need for Fed interest rate hikes and the market is really focused on
the idea of an ending to the Fed interest rate cycle," said David Meger,
director of metals trading at High Ridge Futures.

Although gold is considered a hedge against economic uncertainties, higher
rates tend to dull zero-yielding bullion's appeal.

Elsewhere, spot silver gained 0.8% to $23.63 per ounce. Holdings in New
York's iShares Silver Trust exchange-traded fund increased by 4% on Monday.

Platinum jumped 1% to $1,057.13 while palladium was up 2.2% to $1,741.75.

The Thomson Reuters Trust Principles.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

National Unity Day

December 22

Christmas Day

December 25

Boxing Day

December 26

Counters trading under cautionary

CBZH

Meikles

Fidelity

TSL

FMHL

Turnall

GBH

ZBFH

GetBucks

Zeco

Lafarge

Zimre

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/20230125/6fa7919c/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/20230125/6fa7919c/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 29279 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230125/6fa7919c/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29358 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230125/6fa7919c/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/20230125/6fa7919c/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130912 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230125/6fa7919c/attachment-0001.obj>