Bulls n Bears Daily Market Commentary : 27 July 2023

Fri Jul 28 06:34:10 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 : 27 July 2023

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

Zimbabwe Stock Exchange (ZSE) 

The overall Market Cap for the day abated by 0.02% and closed at ZWL9.35
trillion. Total turnover was boosted by 39.36% to close at ZWL 2.08 billion.
Total volumes traded accumulated to ZWL7.73 million with an advancement of
36.41%. Delta, EcoCash Holdings Ltd and Econet were today's three most
traded counters, with a total contribution of 91.74% to the total turnover.

The benchmark All-Share Index dwindled by 0.05% to close at 117,025.08
points at the back of 12 risers against 11 decliners. The Top 15 Index lost
1.15% and closed at 74,378.85 points and the Top 10 Index shaded 0.05% as it
closed at 53,163.15 points.

The gainers list for today included Edgars Stores, Masimba Holdings, Nmbz
Holdings, OK Zimbabwe and Star Africa Corporation, they had advancements of
5.37%, 2.82%, 2.39%, 1.71% and 1.37% ,respectively, hence closing at
$109.53, $945.95, $169.29, $130.02, and $5.46%, respectively.

The top shakers for the day included Riozim, Willdale and Tanganda Tea Co.
Ltd which lost 8.92%, 4.84% and 2.40%, hence closing at $500.01, $18.00, and
$1,219.01, respectively. Rainbow Tourism Group and Ariston were also amongst
the defeated and they dropped by 2.26% and 1.65% to close at $130.00 and
$29.27, respectively.

Victoria Falls Stock Exchange (VFEX) 

The VFEX All Share Index dwindled by 0.24% and closed with 70.12 points.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

Rand turns to losses as dollar gains on strong U.S. data

(Reuters) - The South African rand fell on Thursday, surrendering gains made
earlier in the day after strong U.S. economic data sent the dollar up.

At 1510 GMT, the rand traded at 17.6875 against the dollar , about 0.4%
weaker than its previous close after earlier trading up as much as 1.1%.

The dollar was up about 0.7% against a basket of global currencies , after
U.S. data showed the economy grew faster than expected in the second quarter
and new orders for key U.S.-manufactured capital goods unexpectedly rose in
June.

The rand had been on the front foot in morning trade on the prospect that
U.S. interest rates could have peaked after Wednesday's widely-expected
25-basis-point hike.

The rand was little moved by local data showing South African producer
inflation (ZAPPIY=ECI), (ZAPPI=ECI) slowed sharply in June to 4.8% in annual
terms from 7.3% in May, a bigger slowdown than analysts had expected.

Slowing inflation and the South African central bank's decision to leave its
main interest rate on hold last week have spurred buying of government bonds
and contributed to the rand's strong showing in July, with the currency up
about 6% against the dollar this month.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI)
closed up over 0.8%. South Africa's benchmark 2030 government bond was
stronger, the yield down 4 basis points at 10.215%.

Nigeria

Nigeria's naira futures fall to new record lows

ABUJA - Nigeria's naira has fallen to new record lows on the futures market,
exchange data showed on Thursday, adding to the currency's steep fall on the
official spot market after the central bank loosened trading restrictions
last month.

The futures market sets expectations for where the naira will trade on the
spot market, and is used by the central bank to allow foreign investors to
hedge against currency losses.

Under President Bola Tinubu, the central bank is moving away from a
much-criticised system of multiple exchange rates used to keep the naira
artificially strong, and towards a unified exchange rate.

Data from the FMDQ Exchange showed the August 2024 futures contract quoted
the naira around 914 per dollar, versus about 906 to the U.S. currency last
week and the current spot market level of about 800 to the dollar.

The June 2028 contract, which has one of the longest tenors, quoted the
naira at about 1,551 to the dollar compared to 1,531 last week.

As one of Tinubu's first moves since his inauguration in late May, he
suspended central bank governor Godwin Emefiele who oversaw the multiple
exchange rate system.

The central bank then allowed the naira to drop by more than a third on the
official spot market, taking it closer to where it trades on the black
market.

Traders say the naira is likely to continue weakening on the official market
as central bank dollar sales are insufficient to support trading volumes and
dollar liquidity from other sources like foreign investors is yet to fully
return.

The naira currently trades around 867 naira to the dollar on the black
market.

 <mailto:info at bulls.co.zw> 

Global Markets

US dollar rises as strong data push against dovish policy narrative

(Reuters) - The dollar strengthened against the euro on Thursday, after
better-than-expected U.S. economic data continue to foil investors'
expectation for relatively dovish monetary policy from the Federal Reserve.

A recent string of strong data show that, for now, the U.S. is staving off a
recession, increasing the likelihood that the Fed could further hike
interest rates if it continues to see strong economic numbers across the
board.

The U.S. economy grew faster than expected in the second quarter as labor
market resilience underpinned consumer spending, while businesses boosted
investment in equipment, potentially keeping a recession at bay.

Initial claims for state unemployment benefits fell by 7,000 to a seasonally
adjusted 221,000 for the week ended July 22, the lowest level since
February, according to a Labor Department report. Economists had forecast
235,000 claims for the latest week.

"The market is of the view that things will slow down pretty rapidly in the
U.S. And the market is instead somewhat more constructive on the rest of the
world," said Alvise Marino, macro strategist at Credit Suisse in New York.

"It doesn't take a lot to upset those expectations. Today's numbers very
much reinforced that."

The dollar index , which measures the currency against six major peers, rose
0.692% to 101.790, while the euro is down 1.06% to $1.0965.

Meanwhile, the Japanese yen strengthened 0.77% versus the dollar at 139.14,
after a report that the Bank of Japan will discuss tweaking its yield curve
control policy at a meeting on Friday.

The BOJ is largely seen maintaining its ultra-loose policy stance, although
a tweak to the policy remains a possibility.

"The market is generally positioned in a way that it is prepared for the
possibility that the BOJ might do something that is relatively hawkish,"
said Marino.

The BOJ is that last in a trio of central banks to hold policy meetings in a
week where both the Fed and the European Central Bank raised rates by a
quarter of a percentage point, as expected.

Fed Chair Jerome Powell left open the possibility of another hike in
September, and the ECB kept its options open on whether more increases will
be needed to bring down inflation even as evidence of a slowdown in Europe
is mounting.

Loan demands hit a record low in the second quarter, business confidence has
deteriorated in Germany, and disappointing Purchasing Manager Indexes came
in below expectations for the euro zone as a whole.

"You've got this weakness in the data from the euro zone and more resilience
from the U.S. That just questions why the market's being so long of the euro
whilst it's questioning the ability of the dollar to hold its ground," said
Jane Foley, head of FX strategy, Rabobank London.

"I think that the resilience of the U.S. economy should counter some of the
bearishness that the dollar has been seeing in recent weeks."

Meanwhile, Sterling was last trading at $1.2783, down 1.21% .

In cryptocurrencies, bitcoin last fell 1.41% to $29,159.00, and Ethereum ,
last fell 1.04% to $1,860.50.

========================================================

Currency bid prices at 4:01PM (2001 GMT)

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices brace for biggest weekly decline in five

Gold prices held near two-week lows on Friday after strong U.S. economic
data spurred the dollar and bond yields in a high interest rate environment
that dragged the non-interest-bearing metal towards its biggest weekly
decline in five.

Spot gold was up 0.3% at $1,951.19 per ounce by 0249 GMT, after earlier
hitting its lowest level since July 12 and ending 1.4% lower in the previous
session. Bullion has declined 0.4% so far in the week, heading for its
biggest weekly fall since June 23.

U.S. gold futures rose 0.2% to $1,950 per ounce.

The higher drift in gold prices lacks conviction as there is still
indecision at play in the lead-up to the upcoming Bank of Japan meeting as
chatters that it will discuss tweaking its yield curve control policy has
kept market participants on their toes, said Yeap Jun Rong, a market
strategist at IG.

"Any confirmation of an adjustment at the upcoming meeting will bring about
upside risks to global bond yields and weigh on the non-yielding yellow
metal further."

Asian stocks were off five-month highs and the yen extended a sharp rally
amid speculation the Bank of Japan will keep ultra-low interest rates on
Friday, but may make minor tweaks to extend the lifespan of its yield
control policy.

The U.S. dollar index and benchmark 10-year Treasury yields head near
Thursday's highs reached after data showed the U.S. economy grew faster than
expected in the second quarter, potentially keeping a much-feared recession
at bay and increasing the likelihood that the Fed could further hike
interest rates.

Higher U.S. interest rates and Treasury bond yields raise the opportunity
cost of holding gold.

Analysts slightly lowered their gold price forecasts for this year, a
Reuters poll showed. Global economic concerns also drove down platinum and
palladium forecasts for 2024.

Spot silver edged 0.1% higher to $24.16, platinum held at $937.07, and
palladium steadied at $1,241.16, all set to post weekly losses.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

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/20230728/e30ef888/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/20230728/e30ef888/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230728/e30ef888/attachment-0004.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/20230728/e30ef888/attachment-0001.obj>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image007.jpg
Type: image/jpeg
Size: 101702 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230728/e30ef888/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image008.jpg
Type: image/jpeg
Size: 28625 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230728/e30ef888/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image009.jpg
Type: image/jpeg
Size: 29360 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230728/e30ef888/attachment-0007.jpg>