Bulls n Bears Daily Market Commentary : 13 July 2023

Fri Jul 14 04:49:28 CAT 2023

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Bulls n Bears Daily Market Commentary : 13 July 2023

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

Zimbabwe Stock Exchange (ZSE)

The overall Market Cap for today dropped 14.36% close at ZWL10.59 trillion.
Total turnover decreased by 23.23% to close at ZWL1.94 billion, with a drop
of 26.75% in the total volumes traded which later closed at ZWL2.38 million.
Delta, Econet and Nampak Zimbabwe were today's three most traded counters,
with a contribution of 94% to the total turnover. 

The benchmark All-Share Index dropped 1.98% to close with 132,380.43 points
at the back of 8 raisers and 15 decliners. The Top 15 Index lost 2.01% to
86,108.26 points with the Top 10 Index also dropping 2.41% to close with
63,103.02 points.

Fidelity Life Assurance and Masimba Holdings topped the movers list for the
day after adding 8.70% and 7.97% to close at $100.00 and $856.75.  Nampak
Zimbabwe, Rainbow Tourism Group and CBZ Holdings capped the risers' list
after advancing by 0.65%,  0.03% and 0.0042% to close at $118.78, $114.65
and $906.20,respectively.

Trading on top of the decliners' list for the day was Nmbz Holdings and Ok
Zimbabwe after each lost 14.99% and 14.81% to close at $206.65 and $192.42,
respectively. First M. Properties and ART decreased by 14.77% and 13.04% to
close at $93.75 and $60.00, respectively.  Dairibord capped the list after
dropping 12.37% to close at $290.00.

Victoria Falls Stock Exchange (VFEX) 

The VFEX All Share Index lost 0.49% to close with 73.55 points. Simbisa
Brands Ltd contributed 77.53% to the total turnover.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

Risk-sensitive rand hits 3-month peak as slowing U.S. inflation hurts dollar

(Reuters) - The South African rand gained strongly on Thursday, touching its
highest in more than three months and extending the previous day's rally as
cooling U.S. inflation further dented the dollar.

The risk-sensitive rand traded as strong as 17.9125 to the dollar by 1510
GMT, its firmest since April 5.

The dollar continued to slump on global markets in the wake of a
slower-than-expected U.S. inflation reading on Wednesday that raised hopes
the Federal Reserve will hit the pause button on interest rate hikes after
this month.

The rand's gains came despite local mining output declining by 0.8% in May
following a revised rise of 3.2% in April. Miners face headwinds including
the worst rolling blackouts on record, a major drag on power-hungry sectors.

Senior economist at FNB, a local financial services company, Thanda Sithole
said the decline in mining production reflected sustained weakness in the
sector.

However mining stocks performed well on Thursday, benefiting from the
stronger rand and rising crude import prices, according to Viv Govender, a
portfolio manager at Rand Swiss.

The resources index (.JRESI) rose about 1.7%, helping the Johannesburg Stock
Exchange's All-share index (.JALSH) close up 1% at 77,317 points.

South Africa's benchmark 2030 government bond also strengthened, as the
yield fell 6 basis points to 10.400%.

Nigeria

Naira appreciates to N746.28/$ in I&E window

The naira yesterday appreciated to N746.28 per dollar in the Investors and
Exporters, I&E window.

Data from FMDQ showed that the indicative exchange rate for the Investors
and Exporters (I&E) window fell to N746.28 per dollar from N782.49 per
dollar on Wednesday, indicating N36.21 appreciation for the naira.

Similarly, the naira appreciated to N790 per dollar in the parallel market
yesterday from N793 per dollar on Tuesday, indicating N3 appreciation.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar buckles on US disinflation signs as Fed nears end of hiking cycle

(Reuters) - The dollar sank to its lowest since April 2022 on Thursday, as
cooling U.S. inflation bolstered expectations the Federal Reserve would hike
interest rates just one more time this year, eroding the greenback's yield
advantage over its peers.

Against a basket of six currencies, the dollar index fell 0.8% to 99.738 ,
after dropping earlier to 99.767, a new 15-month trough. The dollar index
was headed for its biggest weekly slide in 2023.

The euro rose 0.9% to $1.1220 , after hitting a new 16-month high earlier in
the session. The euro headed for a sixth daily gain, its longest stretch of
rises against the dollar this year.

Versus the Swiss franc, the dollar plunged to an eight-year low of 0.8583
francs . It last changed hands at 0.8588 francs, down nearly 1%.

U.S. data on Thursday reinforced the view that inflation is moderating. U.S.
producer prices (PPI) inched up 0.1% in June, with the annual increase at
0.1% as well, the smallest year-on-year rise in nearly three years.

The PPI data followed Wednesday's consumer price index (CPI) report, which
showed U.S. core inflation slowed a lot faster than expected. It came in at
0.2% in June against market expectations for 0.3%, while headline annual CPI
fell to 3%.

"I pretty much understand the reason as to why the dollar is dropping and
it's pretty compelling for dollar bears given the data that we have been
seeing. Short term, we will see a little more dollar weakness," said Brad
Bechtel, global head of FX, at Jefferies in New York.

But he noted that the dollar will find support somehow because the U.S.
economy is still outperforming the rest of the world.

"The U.S. economy is holding in very well. We're talking of soft landing,
instead of hard landing. The data continues to hold up well. So there's a
lot going for the U.S. economy at the moment, and the Fed is still going to
hike in July."

Interest rate futures showed markets have fully priced in another rate hike
from the Federal Open Market Committee (FOMC) later this month, but
expectations of any further increases have evaporated.

Against the yen, the dollar tumbled to a seven-week low of 138.06 yen ,
trading last at 138.31 yen, down 0.1%.

Data also showed an unexpected fall in U.S. initial jobless claims by 12,000
to a seasonally-adjusted 237,000 for the week ended July 8. This was hardly
talked about by market participants, given the focus on inflation, but it
does suggest that the labor market remains tight.

Whether or not the dollar is on a one-way trip lower for the rest of the
year remains to be seen though.

"It's hard to be super negative about the dollar as the U.S. economy has
done okay. The European economy did pretty well last year and at the
beginning of this year relative to expectations," said Ugo Lancioni, head of
currency management and portfolio manager at Neuberger Berman in Milan.

"But we have actually seen some deterioration in European data. And so it's
not a straight line (downward) for the dollar."

Sterling rose 0.8% to $1.3073, set for its sixth day of gains, having broken
on Wednesday above $1.30 for the first time since April last year. The pound
hit a fresh 15-month peak of $1.3140 earlier on Thursday.

Data on Thursday showed Britain's economy shrank by less than expected in
May, supporting the idea the Bank of England can afford to raise rates
further without derailing growth.

In cryptocurrencies, the XRP token surged in value against the dollar to its
highest since December 2021, after a U.S. judge ruled that Ripple Labs Inc
did not violate federal securities law by selling the digital currency on
public exchanges.

XRP was last up 75% at US$0.8552 .

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold scales 1-month peak as dollar, yields drop on rate-hike pause hopes

(Reuters) - Gold prices hovered near 1-month highs on Thursday as the dollar
and Treasury yields fell on expectations the U.S. Federal Reserve could end
its rate-hike cycle soon.

Spot gold was up 0.1% at $1,958.79 per ounce by 01:41 p.m. EDT (1741 GMT),
after hitting its highest since June 16. U.S. gold futures rose 0.1% to
$1,963.80.

The dollar index (.DXY) fell to its lowest in more than a year, making gold
more affordable to overseas buyers, while benchmark U.S. Treasury yields
fell, cutting the opportunity cost of holding non-yielding bullion.

"After yesterday's data, we saw a strong rally in the gold market. Gold has
a good shot, if it can get another catalyst to push up to the $2,000 mark,
but we are chewing through a lot of different resistance points," said
Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

Data on Thursday showed U.S. producer prices barely rose in June, providing
more evidence that the economy had entered a disinflation phase.

This comes a day after data showed that U.S. consumer prices rose modestly
in June, registering their smallest annual increase in more than two years.

"The market has scaled back its expectations for a second hike. In line with
this correction, the gold price has recovered," Commerzbank wrote in a note.

Interest rate futures showed markets mostly priced in another rate hike from
the Federal Open Market Committee (FOMC) later this month, but expectations
of further increases have dropped.

Higher interest rates increase the opportunity cost of holding non-yielding
bullion.

Meanwhile, the number of Americans filing new claims for unemployment
benefits unexpectedly fell last week, indicating that the labor market
remained tight.

Spot silver rose 2.4% to $24.73 per ounce, platinum was up 2.9% at $973.74
and palladium climbed 1.1% to $1,296.30.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

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
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for guideline purposes only and sourced from third parties.

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