Bulls n Bears Daily Market Commentary : 12 July 2023

Thu Jul 13 08:16:38 CAT 2023

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Bulls n Bears Daily Market Commentary : 12 July 2023

 <https://www.cloverleaf.co.zw/> 
ZSE commentary

Zimbabwe Stock Exchange (ZSE) 

The overall Market Cap for today dropped 12.57% close at ZWL10.81 trillion.
Total turnover decreased by 55.58% to close at ZWL1.12 billion, regardless
of an increase of 77.68% in the total volumes traded which later closed at
ZWL3.25 million. Delta, Nampak Zimbabwe and Econet were today's three most
traded counters, with a contribution of 93% to the total turnover. 

The benchmark All-Share Index dropped 4.25% to close with 135,056.70 points
at the back of 10 raisers and 13 decliners. The Top 15 Index lost 5.24% to
87.878.56 points with the Top 10 Index also dropping 6.21% to close with
64,663.99 points.

 First M. Limited topped the movers list for the day after adding 15.00% to
close at $264.50.  Edgars Stores, Masimba Holdings and Willdale capped the
risers' list after advancing by 7.95%,6.51% and 1.50% to close at $793.52,
$793.52 and $18.96,respectively.

Trading on top of the decliners' list for the day was Ecocash Holdings Ltd
and Dairibord after each lost 14.85% and 14.83% to close at $161.14 and
$330.95, respectively. Meikles Limited and Nampak Zimbabwe decreased by
14.65% and 13.77% to close at $852.06 and $118.01, respectively.  Delta
capped the list after dropping 10.06% to close at $2,024.26.

Victoria Falls Stock Exchange (VFEX) 

The VFEX All Share Index lost 0.74% to close with 73.92 points.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South African rand firms as dollar dips on modest inflation data

(Reuters) - The South African rand extended gains against the dollar on
Wednesday after inflation in the U.S. slowed in June, boosting hopes
interest rates might not be hiked several times this year.

At 1503 GMT, the rand was up over 1.6% against the dollar to 18.1925, its
highest level in a month.

U.S. consumer prices rose to 3% in June, lower than market expectations of a
3.1% increase, signalling to investors that the U.S. Federal Reserve may be
nearing the end of its tightening cycle.

Although the Fed has said rates could be hiked in its next meeting,
investors are betting on just one single hike before it pauses, a move which
could gradually spark economic activity.

"We are seeing strength come in on the emerging market currencies including
commodity based currencies of which the rand is both," said Shaun Murison,
senior market analyst at IG.

The dollar last traded around 0.75% weaker against a basket of global
currencies.

The main board of the Johannesburg Stock Exchange (.JALSH) was up 1.99% to
76,367 points, while the benchmark top 40 (.JTOPI) rose above 2.1% to
70,991.

The resources index (.JRESI) rose by 3.1%, driven by platinum group metal's
miners, Northam Platinum (NPHJ.J) and Anglo American platinum (AMSJ.J).

Greg Davies, head of wealth at asset manager Cratos Capital, added that the
weakness in the dollar boosted metals prices while the prospect of slower
rate hikes had a positive impact overall on the local bourse.

South Africa's benchmark 2030 government bond firmed further, with the yield
down 2.1 basis points to 10.515%.

The Thomson Reuters Trust Principles.

Egypt overtakes Nigeria in start-up capital as Africa tech funding slows

Egypt led in the total equity funding raised by start-ups in Africa from
June 2022 to June 2023, toppling Nigeria, according to data released by an
industry group on Tuesday.

The North African country surpassed Nigeria - the continent's largest
economy - as entrepreneurs raised $540 from June 2022 to July 2023, the
African Private Equity and Venture Capital Association (AVCA). 

Although this was a 25% decrease from the $710 million raised the previous
year, it was the least decline among the big four African countries that
raised the most financing, the report showed.

Egypt was also the only country to climb over the half-billion mark within
the period.

Funding to tech firms in Nigeria fell the most at 77% year on year to $470
million from $2 billion, the group which promotes private investment in
Africa said in its report.

South African start-ups lost 53% of their investment, plummeting to $420
million, while deal making in Kenyan fell by 69 percent to $300 million
during the same period.

During 'the funding heatwave' between June 2021 and June 2022, the Big Four
- Nigeria, Kenya, South Africa and Egypt - jointly raised $4.6 billion. This
fell to $1.7 billion in the 'funding winter' between June 2022 to July 2023,
AVCA said in its report. 

The 'funding winter' first bit the US and China before spreading. 

The financials sector, popularly known as fintech, continued to attract most
equity funding, though at a slower pace, AVCA said.

Over the years, the success of companies like Nigeria’s Paystack, acquired
in 2020 by US payments firm Stripe, and fellow unicorn startup Flutterwave
has fueled deal making in Africa.

Other notable successes are payments platform MFS Africa, Kenyan fintech and
solar firm M-Kopa and e-commerce company Wasoko. 

However, it was not all doom and gloom this year the report said. 

"Against all odds, three markets managed to pull off growth in this
unfavourable context," the report co-authored by Maxime Bayen, the Operating
Partner for Catalyst Fund, and Max Cuvellier, Head of Mobile for
Development, GSMA who co-authored the report said.

Funding grew 15% in Côte d’Ivoire and 34% in Cameroon. The biggest jump by
far was recorded in Algeria from $30m to $150m, attributable to a single
deal - YASSIR's investment in November 2022. 

Noureddine Tayebi, Founder and CEO of YASSIR, a multi-sided marketplace
offering on-demand services such as ride hailing, food and grocery delivery,
banking and more, raised $150 million in Series B funding from a series of
prominent global investors.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar deepens dive on inflation surprise

(Reuters) - A sliding dollar was pushed lower still in Asia on Thursday, as
traders took surprisingly slow U.S. inflation as a signal U.S. interest rate
rises will be all but finished by month's end.

The dollar has been steadily slipping for about six weeks, but had its worst
session in five months on Thursday - falling more than 1% against the euro
to its lowest in more than a year - as the U.S. inflation slowdown gave
dollar sellers confidence.

The euro made a fresh 15-month high of $1.1148 in Asia on Friday and the yen
touched its strongest since mid-May at 138.08 per dollar. The U.S. dollar
index fell marginally to 100.42, its lowest since April 2022.

U.S. core inflation came in at 0.2% in June against market expectations for
0.3%. Headline annual CPI fell to 3% and has been dropping since hitting a
peak at 9.6% a year earlier.

Interest rate futures showed markets have fully priced a Federal Reserve
rate hike later this month, but expectations of any further increases are
being wound back.

"The view is that the Fed will very likely hike at the end of July and that
will be the last one," said Westpac strategist Imre Speizer.

The New Zealand dollar rose 0.5% to a two-month high of $0.6332 and the
Aussie was up 0.4% to a three-week peak at $0.6813.

Moves in other currencies were smaller but still delivered new milestones as
traders reckon the dollar has further to drop. The Swiss franc hit its
strongest since 2015 at 0.8655 to the dollar and sterling a 15-month top of
$1.3019.

The Chinese yuan steadied near a one-month high at 7.1675 per dollar, held
back by weak trade data that showed exports diving at their fastest pace for
three years.

Emerging market currencies also rallied across Asia, led by Malaysia's
ringgit which jumped 1% and through to the strong side of 4.6 per dollar.
Thailand's baht held small gains while traders waited to see whether prime
ministerial hopeful Pita Limjaroenrat could command a majority in
parliament.

In Scandinavia, where inflation is looking sticky and central bankers are
projecting further rate hikes, currencies tacked extra gains to Thursday's
surges for the Swedish and Norwegian crowns to eye weekly gains of 5%.

"We think the recent dollar underperformance reflects a qualitative shift in
market comfort with being short dollars as the terminal Fed policy rate
looks increasingly capped," said currency analyst Steve Englander at
Standard Chartered.

Two-year Treasuries, which track rate expectations, extended an overnight
rally driving yields down 4 basis points to 4.71%.

Amongst the dollar selling, one outlier was perhaps the yen which has led
gains. It is up more than 4% in five sessions, but paused in Asia as the
focus turned to whether the Bank of Japan (BOJ) might soon tweak its yield
control policy.

The closely-watched 10-year yield fell slightly to 0.46% on Thursday,
comfortably below the BOJ's 0.5% cap, suggesting only modest speculation of
a policy shift as the possibility of easing inflation reduces some of the
pressure.

"Governor (Kazuo) Ueda has maintained, thus far, that the risks of moving
too early outweigh the risks of moving too late," said DBS strategist Chang
Wei Liang.

"Certainly, the Fed entering the tail-phase of rate hikes provides relief
and allows the BOJ to normalise policy at their own desired pace."

European Central Bank meeting minutes, European industrial production data
and British monthly GDP are ahead on Thursday.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold climbs over 1% as cooling US inflation boosts Fed pause bets

(Reuters) - Gold prices jumped more than 1% on Wednesday after signs of
cooling inflation in the United States boosted hopes that the Federal
Reserve could hit the brakes on its interest rate hike cycle sooner than
previously thought.

Spot gold was up 1.3% at $1,957.32 per ounce by 02:21 p.m. ET (1821 GMT),
while U.S. gold futures settled 1.3% higher at $1,961.70.

U.S. consumer prices rose modestly in June and registered their smallest
annual increase in more than two years as inflation continued to subside. In
the 12 months through June, the CPI advanced 3.0%, compared with Reuters
estimates of 3.1%.

"Gold gapped $10 higher on the softer-than-expected CPI print on hopes that
a July hike might be the last one of the cycle," said Tai Wong, a New
York-based independent metals trader.

"If gold can break above the 50-day moving average at $1,960, it will
trigger more bullish bets."

The dollar tumbled 1% to a more than one-year low against major peers after
the U.S. inflation print, making gold more attractive for other currency
holders. Benchmark 10-year U.S. note yields dropped to 3.8770%.

Inflation is slowing fast enough to allow the Fed to stop tightening U.S.
monetary policy after what is still widely expected to be an interest rate
hike at its meeting in two weeks time, traders bet on Wednesday.

Markets see a 91% chance of a 25-basis point Fed rate hike later this month.
Gold is highly sensitive to rising U.S. interest rates, as these increase
the opportunity cost of holding non-yielding bullion.

Earlier this week, several U.S. central bank officials said that the end to
the Fed's current monetary policy tightening cycle is getting close.

Spot silver climbed 4.4% to $24.11 per ounce, its highest since June 19.
Platinum rose 2.9% to $950.98 and palladium gained 2.4% to $1,281.23.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Dairibord

AGM

Virtual

July 13 2023 | 11am

CBZ

AGM

Virtual

July 21 2023 | 4pm

POSB

AGM

Chapman Golf Club

July 25 2023 |10am

Afdis

AGM

Virtual | St Marnocks, Lomagundi Road, Stapleford

July 26 2023 | 12pm

RTG

AGM

Rainbow Towers Hotel

July 27 2023 |12pm

ZHL

AGM

206 Samora Machel Avenue

July 28 2023 | 10am

Delta

AGM

Virtual | Head Office, Northridge Close, Borrowdale

July 28 2023 | 12:30pm

Heroes’ Day

Aug 14

Defence Forces Day

Aug 15

zIMBABWE

2023 harmonised elections

August 23

Counters trading under cautionary

CBZH

GetBucks

EcoCash

Padenga

Econet

RTG

Fidelity

TSL

FMHL

ZBFH

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
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:
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