Bulls n Bears Daily Market Commentary : 28 July 2023

Sat Jul 29 13:48:50 CAT 2023

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Bulls n Bears Daily Market Commentary : 28 July 2023

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

Zimbabwe Stock Exchange (ZSE)

The overall Market Cap for today declined by 0.20% to close at ZWL9.33
trillion. Total turnover went up by 5.99% to close at ZWL 2.20 billion.
Total volumes traded dropped to ZWL3.81 million, which is a 50.67% decline
compared to yesterday. Delta, OK Zimbabwe and Econet were today's three most
traded counters, with a total contribution of 91.67% to the total turnover.

The benchmark All-Share Index dwindled by 0.24% to close at 116,748.92
points at the back of 11 risers against 13 decliners. The Top 15 Index lost
0.35% to close at 74,115.15 points and the Top 10 Index shaded 0.49% as it
closed at 52,904.70 points.

The mover's list for today was led by National Tyre Services, Edgars Stores,
and Dairibord which increased by 14.59%, 12.72%, and 12.01%, respectively.
Turnall and EcoCash Holdings Ltd trailed the list after advancing by 7.69%
and 6.18% to close at $14.00 and $120.00, respectively, as well.

Trading at on top of the negatives was Truworths and OK Zimbabwe which lost
14.76% and 14.74%. Zimre Holdings, Hippo Valley and First M. Limited were
also amongst the fallers after losing 11.93%, 5.00% and 2.22%, respectively.

Victoria Falls Stock Exchange (VFEX) 

The VFEX All Share Index gained by 0.24% and closed at 70.29 points.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

Risk-sensitive rand gains as global interest rates seen peaking

(Reuters) - The South African rand posted strong gains on Friday afternoon,
on buoyant risk appetite whetted by the prospect that global interest rates
could be nearing their peak.

At 1510 GMT the rand was trading at 17.6250 against the dollar , about 1.2%
stronger than its previous close after earlier trading up as much as 1.5%.

"With major central banks expected to end their rate hikes and the global
economy remaining resilient, the rand could be set for further gains ahead,"
said Lloyd Miller, co-head of financial markets at ETM Analytics.

"South African bonds are trading at attractive levels to foreigners and as
inflows into the bond market improve, the rand will continue to strengthen."

The U.S. Federal Reserve raised rates as expected on Wednesday, but some
investors expect that to be the last increase in its hiking cycle. The South
African Reserve Bank kept rates on hold last week after 10 hikes in a row.

Also supporting the rand on Friday was a weaker dollar on global markets and
data showing South Africa recorded a budget surplus in June (ZABUDM=ECI).

The rand has gained more than 6% against the greenback this month, with
analysts citing foreign buying of government bonds and a commitment by
Chinese policymakers to support their economy among drivers.

On the Johannesburg Stock Exchange (JSE), the blue-chip Top-40 index
(.JTOPI) closed up about 0.3%. South Africa's benchmark 2030 government bond
firmed on Friday, as the yield fell 3 basis points to 10.185%.

Nigeria

Naira drops against Dollar, exchanges at N775.76 in official window 

The Naira on Friday ended the week losing against the Dollar, exchanging at
N775.76, at the Investors and Exporters window.

The local currency lost 0.93 per cent compared to N768.60, which it
exchanged for the Dollar on Thursday.

The open indicative rate closed at N776.74 to the Dollar on Thursday.

A spot exchange rate of N799.50 to the Dollar was the highest rate recorded
within the day's trading before it settled at N775.76.

The Naira sold for as low as N465 to the Dollar within the day's trading.

On Friday, $54.18 million was traded at the investors' and exporters'
window.

The Acting governor of thr Central Bank of Nigeria, Mr Folashodun Shonubi,
briefing the media at the end of July's Monetary Policy Meeting, admitted
the current foreign exchange market challenges facing the Country.

DAILY POST recalls that CBN, on June 14, announced operational reforms to
the forex market, which led to the floating of the Naira.

 <mailto:info at bulls.co.zw> 

Global Markets

Why is the US dollar losing its shine?

The US dollar's decline has gained speed this month as investors pare back
their interest rate expectations.

The greenback soared to a two-decade high last September, driven by the
Fed's aggressive pace of interest hikes. But then came recession fears, the
collapse of three regional banks and worries about congressional infighting
and US spending.

Now, as inflation continues to cool, the Federal Reserve appears to be
nearing the end of its rate-hiking cycle. Last week, that helped lead the US
Dollar Index, which tracks the dollar versus the British pound, euro, Swiss
franc, Japanese yen, Canadian dollar and Swedish krona, to its lowest level
in more than a year.

The Fed on Wednesday raised interest rates by a quarter point and hinted at
another hike later this year. But it's possible that a second hike never
comes and the Fed decides to move on to the next phase of its inflation
fight - keeping rates steady until inflation moderates to its 2% target.

As the central bank gets closer to possibly finishing its hiking cycle and
other central banks around the world that began raising rates after the Fed
catch up, the greenback is nearing a more sustainable level, some experts
say.

"The dollar lost some of its luster as the only game in town," said Kathy
Jones, chief fixed income strategist at Charles Schwab.

Why does that matter? The dollar's decline could be a tailwind to some
companies' earnings.

Last year, an unfavorable exchange rate weighed down the top lines of tech
companies, including Salesforce, Microsoft and Apple, which tend to generate
much of their revenue overseas.

A monster run in tech stocks has driven much of the market's gains this
year. The dollar's decline could offer some support to tech earnings,
further boosting those stocks and in turn the broader rally.

But any benefits from a falling dollar to corporate earnings will likely be
limited, says Jones.

The dollar also likely doesn't have more room to slide, says Seema Shah,
chief global strategist at Principal Asset Management.

While Japan hinted Friday it could gradually begin to raise rates, sending
the yen up against the dollar, the European Central Bank said Thursday it
could pause at its next meeting in September.

"It's not like the Fed is going to be cutting rates when the other central
banks are raising rates. That's fairly unlikely," said Shah.

Gold could also benefit. Gold prices have risen over 6% this year, supported
by sliding Treasury yields and a decline in the dollar. The precious metal
is priced in dollars, making it cheaper for investors outside the US to buy
when the greenback's value falls.

The Dow slips to snap 13-day rally

The Dow Jones Industrial Average index fell Thursday, cutting short a
historic 13-day streak of gains.

The blue-chip index fell about 237 points, or 0.7%. That comes after the
index on Wednesday saw its longest run up since 1987, and its highest level
since last February.

If the Dow had closed higher on Thursday, it would have been its longest
daily streak of wins since 1897.

The Dow, up roughly 6% for the year, has rallied in recent weeks as
cooler-than-expected inflation data has investors optimistic that the
economy could avoid a recession.

That, in turn, has spurred investors to snap up shares of economically
sensitive stocks.

The S&P 500 and Nasdaq Composite both fell about 0.6% on Thursday.

Still, all three major indexes are positive for the week and for the month.

Read more here.

'Barbenheimer' boosts the economy

"Barbie" and "Oppenheimer" are adding more fuel to the hot economy.

The films, both released July 21, have been such megahits that they seem to
be having an impact on consumer spending data, reports my colleague Matt
Egan.

Bank of America cardholders increased their non-gasoline spending by 1.9%
from the year earlier period during the week ending July 22, the bank said
Thursday.

More specifically, spending in the entertainment category grew while it fell
in other areas like home improvement, online electronics and furniture.

"Barbie," distributed by CNN owner Warner Bros. Discovery, raked in $162
million during its debut weekend at the domestic box office.

"Oppenheimer" brought in another $82.5 million.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold heads for weekly loss on strong US economic data

Gold regained some ground on Friday as the dollar retreated, but still
headed for its worst week in five after data pointing to a resilient US
economy soured bets for a dovish tilt in US monetary policy.

Spot gold rose 0.6% to $1 956.69 per ounce by 11:33 GMT, up from its lowest
since July 12. US gold futures GCcv1 gained 0.5% to $1 955.70.

Bullion headed for a 0.2% weekly drop, logging its biggest daily decline on
Thursday after data showed faster-than-expected US gross domestic product
growth in the second quarter.

The data contributed to an increase in expectations on how long US interest
rates will remain high, fuelling the rise in the dollar and, in turn, the
sharp fall in gold, said Edward Gardner, commodities economist at Capital
Economics.

Higher interest rates and Treasury bond yields raise the opportunity cost of
holding non-yielding gold. 

But the European Central Bank, while delivering its ninth consecutive
interest rate hike on Thursday, also raised the possibility of a pause in
September.

"Overall, a dovish ECB should have represented positive news for gold. But
in this case, it generated a quick rally of the U.S. dollar," Carlo Alberto
De Casa, market analyst at Kinesis Money, wrote in a note.

The dollar forfeited gains on Friday, but was still bound for a second
straight weekly rise. 

Focus was now on the June personal consumption expenditures (PCE) index, the
Fed's favoured inflation gauge, due at 12:30 GMT.

"If we see lower-than-expected PCE numbers, that could translate into
lower-than-expected interest rates going forward and that could give a bit
of a boost to gold," Gardner noted.

Spot silver XAG= gained 0.7% to $24.31, platinum XPT= rose 0.4% to $939.76
and palladium XPD= eased 0.4% to $1,235.22, all set for weekly losses. 

Edited by Reuters

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

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
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been compiled from sources believed to be reliable, but no representation or
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opinions expressed and recommendations made are subject to change without
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