Bulls n Bears Daily Market Commentary : 01 June 2023

Thu Jun 1 23:44:47 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 : 01 June 2023

ZSE commentary

ZSE maintains gains into new month.

The ZSE maintained gains into the new month as the bullish momentum
continued to prevail on the bourse. The mainstream All-Share Index surged
6.01% to 111,472.57pts while, the Blue-Chip Index advanced 5.32% to settle
at 67,489.32pts buoyed by CBZ and SeedCo. The Mid-Cap Index was 8.41% firmer
at 211205.84pts while, the Agriculture Index added 7.25% to 419.43pts.
Headlining the gainers was the duo of CBZ and CFI that garnered a similar
15.00% to see the former settle at $925.1500 and the latter at $1073.5500.
Seed manufacturer SeedCo buttressed prior sessions gains as it jumped 14.99%
to end at $1115.4173 while, cable manufacturers Cafca trailed behind with an
identical 14.99% gain to close at $502.5500. Banking group ZB capped the top
five winners of the day on a 14.99% gain to $319.1500. Only listed mining
concern RioZim led the laggards of the day as it dropped 2.90% to $281.5948,
followed by agriculture concern Ariston that eased 1.58% to $17.7068.
Plastic manufacturer

Proplastics closed at $380.0001 after losing 0.77%. Retailer OKZIM trimmed a
negligible 0.07% to end pegged at $201.0536 while, beverages giant Delta was
0.0033% weaker at $2342.0794 as it capped the top five worst performers of
the day.

Activity aggregates recovered during the session as volume of shares traded
increased by 92.03% to 3.12m shares while, turnover ballooned 119.34ptsto
$1.93bn. Proplastics anchored the volume aggregate of the day as it
contributed 64.14% while, Star Africa claimed 14.04%. The threesome of
Proplastics, BAT and Delta claimed a combined 92.35% of the turnover. In the
REITS category, Tigere REIT rose 6.95% to close at a VWAP $126.7613 as 4,000
units exchanged hands. In the ETF category, a total of three funds advanced
against two that faltered. The Morgan & Co MCS gained 14.45% to close at
$77.5000. Morgan & CO Made in Zimbabwe and Cass Saddle retreated 7.02% and
1.25% respectively. efesecurities

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South African rand recovers from record low amid investor caution

(Reuters) - The South African rand recovered from a record low hit earlier
on Thursday, following a hammering in May on the back of souring investor
sentiment.

At 1538 GMT, the rand traded at 19.5925 , up 0.66% from its previous close.
It fell to its lowest level of 19.9075 against the U.S. dollar earlier in
the day.

"The rand remains entrenched in the R19.50/R20.00 range, but short-term
risks remain for a breach of the R20.00 level as investor outflows continue
and exporter inflows remain limited," Andre Cilliers, Currency Strategist at
TreasuryONE, said.

Worsening rolling blackouts and U.S. allegations that South Africa had
supplied arms to Russia last year have left a sour taste in investors'
mouths.

This sent the currency into a tailspin in May where it lost more than 7%
against the greenback.

The dollar was last trading 0.48% lower against a basket of global
currencies.

Investors were relieved when, overnight, the U.S. House of Representatives
passed a bill to suspend the $31.4 trillion debt ceiling. Failure to pass
could have tipped the world's biggest economy into a recession.

The bill is now headed to the Senate where the legislation could be enacted
before the weekend.

"While the... U.S. debt ceiling bill may shortly pass (lifting risk appetite
and helping the dollar to retreat), there is limited clarity regarding a
quick resolution of domestic factors to support the rand," said Jason
Swartz, portfolio manager at Old Mutual Investment Group.

Locally, the Absa Purchasing Managers' Index (PMI) survey showed
manufacturing activity contracted for a fourth consecutive month in May.

Shares on the Johannesburg Stock Exchange rose, with the blue-chip Top-40
(.JTOPI) index and the broader all-share (.JALSH) index both closing almost
1% higher.

South Africa's benchmark 2030 government bond also rose, pushing the yield
down 6 basis points to 11.240%.

The Thomson Reuters Trust Principles.

Uganda

Ugandan shilling gains ground, helped by slowing importer demand

KAMPALA: The Ugandan shilling strengthened on Thursday, helped by a slowdown
in demand for dollars from merchandise importers, traders said.

At 0750 GMT, commercial banks quoted the shilling at 3,755/3,765, stronger
than Wednesday's closing rate of 3,765/3,775.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar stumbles as signs point to Fed skipping June rate hike

(Reuters) - The dollar was on track for its worst daily loss in nearly a
month on Thursday as U.S. manufacturing data and comments by Federal Reserve
officials reinforced expectations the Federal Reserve will likely skip an
interest rate hike at its upcoming meeting.

The euro recovered from a two-month low on Thursday after European Central
Bank (ECB) President Christine Lagarde said further policy tightening was
necessary.

The dollar index , which measures the currency against a basket of six
peers, fell 0.547% at 103.580, off a two-month high of 104.7 touched on
Wednesday as investors trimmed bets the Fed will raise interest rates this
month.

Fed officials pointed toward a rate hike "skip" at its June 13-14 meeting,
giving time for the central bank to assess the impact of its tightening
cycle thus far against still-strong inflation data.

Markets are pricing in a roughly 32% chance that the Fed will raise rates by
25 basis points at its June meeting, compared with a near 67% chance a day
ago, according to the CME FedWatch tool.

"I think the market is anticipating that the dollar is still going to be in
a position where against higher-yielding currencies it will struggle," said
Edward Moya, senior market analyst at OANDA.

U.S. central bankers should not raise interest rates at their next meeting,
Philadelphia Federal Reserve President Patrick Harker said on Thursday, even
though high inflation is coming down at a "disappointingly slow" pace.

A Thursday readout of U.S. private payrolls data showed jobs increased more
than expected, which could result in the Fed keeping rates elevated for some
time. Private payrolls increased by 278,000 jobs last month, according to
ADP.

U.S. manufacturing contracted for a seventh straight month in May as new
orders continued to plummet amid higher interest rates, but factories
boosted employment to a nine-month high.

The Institute for Supply Management (ISM) said on Thursday that its
manufacturing PMI fell to 46.9 last month from 47.1 in April.

ECB HAS 'GROUND TO COVER'

The euro was last up 0.64% to $1.0757, coming off a two-month low of $1.0635
on Wednesday, after some European countries released national inflation data
showing signs that price pressures have eased.

While data on Thursday showed that inflation in the 20 nations sharing the
euro eased to 6.1% in May from 7.0% in April, below expectations for 6.3% in
a Reuters poll of economists, the current level is more than three times the
ECB's 2% inflation target.

"We have made clear that we still have ground to cover to bring interest
rates to sufficiently restrictive levels," Lagarde said in a speech.

Money markets are pricing in an 85% chance of a 25 basis point hike when the
ECB meets on June 15. Another 25 basis point hike is expected in July,
according to Refinitiv.

"The euro is taking a bit of a ride higher," said John Velis, FX and macro
strategist at BNY Mellon. "There's a sort of narrowing interest rate
differential ... when the ECB is expected to hike one or two more times and
the Fed is more questionable about that."

Elsewhere, sterling was last trading at $1.2524, up 0.67% on the day, while
the Australian dollar rose 0.98% versus the greenback at $0.657.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold climbs as rate hike bets ebb after weaker US data

Gold gained 1% to a more than one-week peak on Thursday, as the dollar
tumbled after weaker U.S. economic data on expectations of the Federal
Reserve skipping an interest rate hike at its June policy meeting.

Spot gold

last rose 0.76% to $1,977.19 per ounce, after earlier hitting $1,981.09 -
its highest since May 24. U.S. gold futures

gained 0.65% to $1,994.90.

U.S. manufacturing contracted for a seventh straight month in May as new
orders continued to plummet, while the number of new U.S. jobless claims
increased modestly last week.

The dollar slipped, making bullion cheaper for holders of other currencies,
while 10-year Treasury yields hit a two-week low, dulling
zero-interest-bearing gold's appeal.

"The Fed wouldn't want to put in this much work and then just basically talk
rates back down from where they are. I think they want to keep them
elevated," said Daniel Pavilonis, senior market strategist, RJO Futures.

Markets now see a roughly 70% chance the Fed will keep rates unchanged next
month, up sharply from a 30% probability earlier, after Fed officials
including the vice chair-designate pointed towards a rate hike "skip" in
June.

Gold, which does not yield any interest of its own, tends to lose its appeal
when interest rates rise.

"There's some kind of safe-haven demand supporting gold because of
uncertainty regarding the debt ceiling bill," said Commerzbank analyst
Carsten Fritsch.

The U.S. Senate was set to take up the bill with just four days left to pass
the measure and send it to Democratic President Joe Biden to sign, averting
a catastrophic default.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Heroes' Day

Aug 14

Defence Forces Day

Aug 15

Counters trading under cautionary

CBZH

GetBucks

EcoCash

TSL

Econet

Turnall

First Capital Bank

ZBFH

Fidelity

Zimplow

FMHL

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/20230601/5cbaebdd/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/20230601/5cbaebdd/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/20230601/5cbaebdd/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130922 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230601/5cbaebdd/attachment-0001.obj>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image007.jpg
Type: image/jpeg
Size: 60515 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230601/5cbaebdd/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image008.jpg
Type: image/jpeg
Size: 29360 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230601/5cbaebdd/attachment-0005.jpg>