Bulls n Bears Daily Market Commentary : 26 July 2023

Thu Jul 27 07:14:13 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 : 26 July 2023

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

Zimbabwe Stock Exchange (ZSE)

The overall Market Cap the day closed at ZWL9.35 trillion with a decline of
0.97%. Total turnover diminished by 43.60% to close at ZWL 1.49 billion.
Total volumes traded accumulated to ZWL5.66 million with an advancement of
43.45%. Delta, OK Zimbabwe and Meikles Limited were today's three most
traded counters, with a total contribution of 69% to the total turnover.

The benchmark All-Share Index dwindled by 1.00% to close at 117,077.97
points at the back of 9 risers against 17 decliners. The Top 15 Index lost
1.24% to close at 74,488.44 points and the Top 10 Index shaded 1.51% as it
closed at 53,190.69 points.

The gainers list for today was led by Fidelity Life Assurance with an
increase of 7.81% and closing at $113.25, followed by Nampak Zimbabwe with a
6.12% advancement closing at $130.00 and NMBZ Holdings which gained 3.33% to
close at $165.33. Mashonaland Holdings also acquired 1.94% to close at
$122.33, and Delta slightly advanced by 0.36% to settle at $1,707.21.

The top shakers for the day included OK Zimbabwe, Meikles Limited and Hippo
Valley which lost 14.86%, 14.49% and 4.68%, closing at $127.83, $650.60, and
$2,000.31, respectively. FBC Holdings and Masimba Holdings Ltd were also
amongst the defeated for the day after losing 3.51% and 2.66% to close at
$859.75 and $920.00, respectively.

Victoria Falls Stock Exchange (VFEX) 

The VFEX All Share Index declined by 0.82% to close with 70.29 points.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

Rand weakens as Fed outcome seen posing a big risk

(Reuters) - The South African rand slumped on Wednesday, as analysts said
the outcome of a U.S. Federal Reserve policy meeting later in the day could
leave it open to losses after strong gains this month.

At 1735 GMT, the rand traded at 17.6750 against the dollar , around 0.7%
weaker than its previous close, after earlier being down almost 1% against
the greenback.

"(There is) quite a lot of caution in the market because of the Fed rate
decision tonight," said Greg Davies, head of wealth at asset manager Cratos
Capital.

Rand Merchant Bank said in a morning briefing that after recent gains "the
rand is stretched too far".

Referring to the Fed's interest rate announcement later on Wednesday, it
said "event risk is huge tonight" and that a sharp fall in the rand should
not be ruled out.

Markets are betting on a 25-basis-point hike from the Fed on Wednesday, but
they are split on the odds of another later in the year. If the Fed's
language is hawkish it could boost the dollar and leave emerging market
currencies like the rand exposed.

The rand has gained more than 6% against the greenback so far in July,
helped by dollar weakness in the first half of the month, a commitment from
Chinese policymakers to support their economy, and foreign buying of South
African government bonds.

Kevin Lings, an economist at asset manager Stanlib, linked the foreign
bond-buying to a decline in South African inflation and a decision by the
Reserve Bank last week to leave its main interest rate on hold.

"(This) reflects the power of a credible central bank," he wrote on Tuesday
on X, the social media platform formerly known as Twitter.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI)
closed nearly flat. South Africa's benchmark 2030 government bond was
slightly stronger, with the yield down 3 basis points to 10.255%.

Nigeria

Naira strengthens against dollar, closes at N740/$ at I&E window

The naira, Nigeria's legal tender, closed at N740.08 per dollar at the
investors and exporters (I&E) window on Wednesday.

The I&E foreign exchange (FX) window is the market trading segment for
investors, exporters and end-users that allows for FX trades to be made at
exchange rates determined based on prevailing market circumstances. It is
the country's official FX market.

According to FMDQ Securities Exchange Limited, a platform that oversees FX
trading in Nigeria, the closing rate represents a 6.49 percent appreciation
from the N791.42/$ recorded on Tuesday.

The development comes a day after the Central Bank of Nigeria (CBN) monetary
policy committee (MPC) meeting.

Since the float of the naira, there have been consistent fluctuations in the
FX rates with no sign of stability at the official window.

Folashodun Shonubi, acting governor of the apex bank, who addressed
journalists at the end of the meeting on Tuesday, assured that the "volatile
times" in the FX market would soon moderate.

"We believe that we need to encourage the markets to be more efficient and
to be more effective and that [it] takes a bit of time," he had said.

"Some of the volatility you've seen over the period has been driven by that
same fact that the market needs to find its level and also the reality that
there's pent-up demand which current supply may not be sufficient for and as
we ease and satisfy the pent-up demand, [we] will begin to see a more
efficient market that runs.

"We also need to understand the dynamics of pricing in the market. We feel
we should actually stop calling it the investors and exporters (I&E) widow
because it is now much more than the I&E.

"It's a market where everybody and anybody through the licensed institutions
can participate. So, we expect that over time, sooner rather than later the
volatility you are seeing would normalise."

Meanwhile, at the parallel/black market where the dollar is traded
unofficially, the naira traded within a range of N860-N865 per dollar in
Lagos on Wednesday.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar down as Fed's rate-hike cycle seen ending

(Reuters) - The dollar fell on Thursday after the Federal Reserve delivered
what some expected to be its last rate hike, while market focus shifted
across the Atlantic to the European Central Bank's (ECB) rate decision later
in the day.

The Fed on Wednesday raised interest rates by a quarter of a percentage
point, as expected, marking the central bank's 11th rate increase in its
last 12 meetings.

While Fed Chair Jerome Powell left the door open to another hike in
September, traders were unconvinced, sending the U.S. dollar sliding in Asia
trade on Thursday.

That pushed the risk-sensitive Australian and New Zealand dollars higher, as
the prospect that the global monetary tightening cycle could soon be ending
boosted sentiment.

The New Zealand dollar was last 0.8% higher at $0.6259, having earlier
surged more than 1% to a one-week high of $0.6274.

The Aussie similarly jumped nearly 1% to a one-week top of $0.68195.

"Of course, the Fed did not close the door to further rate hikes, but it
seems like in the Asian session, people took a firm conviction that this
could be the last hike for the Fed," said Bank of Singapore currency
strategist Moh Siong Sim.

The dollar index fell 0.3% to 100.81, while sterling touched a one-week high
of $1.29735 earlier in the session.

The British pound was last 0.19% higher at $1.2964.

"(The) U.S. is closer to the end of the hiking cycle than its peers. A
dovish pivot from the Fed will likely exert a downward pressure on the U.S.
dollar in the medium term," said Emin Hajiyev, senior economist at Insight
Investment.

The ECB comes under the spotlight next, with investors expecting the central
bank to similarly raise rates by 25 bps at the conclusion of its monetary
policy meeting later on Thursday, with focus on its forward guidance.

Ahead of the decision, the euro gained 0.18% to $1.11035.

"The ECB looks all but certain to hike the deposit rate by 25 bps... This
should not surprise market as it has been largely telegraphed," said Nadia
Gharbi, senior economist at Pictet Wealth Management.

"The real debate is whether the ECB will hike again in September (and
beyond)."

Elsewhere, the Japanese yen remained under pressure, though was last roughly
0.3% higher against the U.S. dollar at 139.84.

The Bank of Japan (BOJ) announces its monetary policy decision on Friday,
and is seen maintaining its ultra-loose policy stance.

"Changes to the policy rate and an end to quantitative easing still are far
off based on the communication of the BOJ," said Gregor Hirt, global chief
investment officer for multi asset at Allianz Global Investors.

"We would thus expect the accommodative policy to continue for the time
being."

Against the weaker dollar, the yuan edged higher in both the onshore and
offshore markets, with the offshore yuan rising nearly 0.5% to a peak of
7.1170 per dollar, its strongest level since mid-June.

China's industrial profits extended this year's double-digit pace of
declines into a sixth month, data on Thursday showed, bolstering the case
for further policy support to aid the economy.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices hovers near week-high after Fed Chair Powell's statement

Spot gold was up 0.2% at $1,975.05 per ounce

Gold prices held near their highest levels in a week in early Asian trading
on Thursday after the U.S. Federal Reserve delivered a widely expected
interest rate hike and investors digested fairly balanced comments from
Chair Jerome Powell.

FUNDAMENTALS

* Spot gold was up 0.2% at $1,975.05 per ounce by 0114 GMT, its highest
since July 20.

* U.S. gold futures also gained 0.2% to $1,974.70.

* The Fed raised interest rates by a quarter-of-a-percentage point on
Wednesday, setting the benchmark overnight interest rate in the 5.25%-5.50%
range, and highlighting that another 25 bps hike could be possibly at the
September meeting based on a wide range of data.

* Fed Chair Jerome Powell also flagged that the economy still needed to slow
and the labour market to weaken for inflation to "credibly" return to the
U.S. central bank's 2% target, yet were no longer forecasting a U.S.
recession.

* Gold is highly sensitive to rising interest rates as they increase the
opportunity cost of holding non-yielding bullion.

* The dollar and U.S. Treasury yields edged up after having fallen on
Wednesday, limiting bullion's gains.

* On the data front, the United States is expected to report that Q2's gross
domestic product increased at a 1.8% annualised rate, while initial claims
for unemployment benefits are expected to have increased 7,000 to a
seasonally adjusted 235,000 for the week ended July 22.

* Focus also shifts to policy decisions from the European Central Bank and
Bank of Japan due this week, with the ECB expected to raise rates for the
ninth time on Thursday and thereafter taking on a "data-dependent" approach
instead.

* Spot silver rose 0.3% to $25.00 per ounce, platinum was up 0.6% at
$967.06, and palladium gained 0.3% to $1,262.72. DATA/EVENTS (GMT) 1215 EU
ECB Refinancing Rate July 1215 EU ECB Deposit Rate July 1230 US Durable
Goods June 1230 US GDP Advance Q2 1230 US Initial Jobless Clm Weekly

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

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 

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/20230727/e5b655f0/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/20230727/e5b655f0/attachment-0002.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 838198 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230727/e5b655f0/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 39669 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230727/e5b655f0/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 29360 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230727/e5b655f0/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230727/e5b655f0/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130904 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230727/e5b655f0/attachment-0001.obj>