Bulls n Bears Daily Market Commentary : 26 June 2023

Tue Jun 27 06:07:07 CAT 2023

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Bulls n Bears Daily Market Commentary : 26 June 2023

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

ZSE commentary

Zimbabwe Stock Exchange (ZSE)

The overall Market Cap for today closed at ZWL13.85 trillion with a
percentage increase of 1.24%. Total turnover dropped by 27.84% to close at
ZWL2.58 billion, following a decrease of 75.80% in the total volumes traded
to later close at ZWL2.14 million. Delta, Econet and Ok Zimbabwe were
today's three most traded counters, with a contribution of 90% to the total
turnover.

The benchmark All-Share Index closed 1.31% firmer with 170,025.05 points at
the back of 20 raisers and 7 counters trading in the negative. The Top 15
Index gained 1.30% to 119,525.24 points while Top 10 Index climbed 0.37% to
close at 94,521.33 points. 

Cafca, Star Africa Corporation and Fbc Holdings made the risers' list for
the day after gaining 14.95%, 14.80% and 14.66% each to close at $1,161.00,
$5.30 and $1,250.00, respectively. Truworths and Masimba Holdings capped the
list after advancing by 11.54% and 7.95% to close at $10.15 and $522.50,
respectively. 

Trading on top of the decliners' list for the day was Meikles Limited, which
dropped by 4.80% to close at $1,285.23. Dairibord and Mashonaland Holdings
made the list after decreasing by 2.50% and 0.68% to close at $468.00 and
$109.24, respectively. Zimplow and Zb Financial Holdings capped the list
after dropping by 0.42% and 0.27% to close at $170.00 and $648.25,
respectively. 

Victoria Falls Stock Exchange (VFEX) 

The VFEX All Share Index lost 1.54% to close at 77.00 points. 

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South African rand jumps as investors assess Russia impact

(Reuters) - The South African rand gained against the dollar on Monday, as
investors watched for potential ripple effects of the aborted weekend mutiny
in Russia.

At 1506 GMT, the rand traded at 18.6350 against the dollar , around 0.65%
stronger than its previous close after jumping over 1% earlier.

The dollar was last trading 0.04% weaker against a basket of global
currencies at 102.710.

The market impact of a short-lived rebellion by Russian mercenaries on
Saturday was still unclear, analysts said, with global oil prices slightly
higher on concerns about Russian stability and crude supply.

In local news, state utility Eskom said on Sunday that power cuts would be
implemented at relatively low levels throughout the week, as fewer
breakdowns at power stations had led to more generation capacity.

Many South Africans were facing power cuts of around 10 hours a day until
recently, but there have been some signs of improvement in the last few
weeks as the country grapples with its worst power crisis on record.

"The rand is likely to remain volatile, influenced by global events more
heavily currently, as lower load-shedding (power cuts) stages and President
Ramaphosa's recent efforts to strike a more neutral balance in global
geopolitics have been overshadowed," said Annabel Bishop, Investec's chief
economist, in a research note.

German Foreign Minister Annalena Baerbock is due to visit South Africa on
Tuesday and has said she would discuss the "dramatic developments in Russia"
with the country.

"I believe it is especially important now for me to meet and hold
discussions with our South African partners, so that I can better understand
how they view the current global situation," she said before her departure.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI) and
the broader all-share index (.JALSH) both closed around 0.2% lower.

South Africa's benchmark 2030 government bond was stronger, with the yield
down 7 basis points at 10.605%.

Nigeria

Naira Rebounds 3% As Equity Investors Gain N72bn On Bullish Activity

(THEWILL) - The Naira opened the week on Monday at N768.17/$ - stronger than
it closed the previous week where it plunged to N770.17/$ on Friday, June
23.

This represents a 3 percent gain as traded volume also expanded to $198.13
million from $125.47 million it did on Friday, showing a 57 percent rise.

This indicates increased confidence in the foreign exchange reform which
kicked off on Wednesday, June 14, 2023 with the floating of the Naira and
unification of the forex windows.

Glo

On the other hand, the Nigerian equities market kicked off this week's
trading on a bullish note with market capitalisation hitting N32.3 trillion
compared with N32.2 trillion in the last trading of Friday, reflecting a
gain of N72 billion.

This followed increased demand for BUACEMENT (+2.5%) which closed at N92.25
from the share price of N90.00 per share. Similarly GTCO (+4.0%) gained
N1.25 to close at N32.70 from its N31.34 per share, among the other stock
movements.

The All-Share Index advanced by 0.2 percent to 59,338.76 points as against
59,203.75 points last Friday.

Accordingly, the Month-to-Date and Year-to-Date returns increased to +6.4
percent and +15.8 percent respectively.

The total volume traded declined by 12.0 percent to 552.69 million units,
valued at N13.06 billion, and exchanged in 8,052 deals.

ACCESSCORP was the most traded stock by volume at 74.60 million units, while
BUACEMENT was the most traded stock by value at NGN3.86 billion.

>From a sectoral perspective, gains in the Banking (+2.4%), Insurance
(+1.7%), Industrial Goods (+1.0%), Oil & Gas (+0.5%), and Consumer Goods
(+0.1%) indices reflected the overall market performance.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar holds firm ahead of U.S. durable goods, housing data

(Reuters) - The U.S. dollar held its ground against major currencies on
Tuesday as tension in Russia simmered and traders looked ahead to U.S. data
that may determine the timing of interest rate hikes.

Russian President Vladimir Putin said on Monday he let an aborted mutiny go
on as long as it did to avoid bloodshed, a crisis that pushed the greenback
to a 15-month high against the rouble.

The dollar index rose 0.04% to 102.770. The rouble was flat at 84.40 per
dollar after hitting its weakest level since March 2022.

The greenback traded at 143.43 yen , down 0.06% from late U.S. levels.
Japanese officials have sounded the alarm in recent days over rapid
weakening of the currency.

U.S. data this week include new orders for durable goods, housing figures,
and consumer surveys from The Conference Board and University of Michigan.

Market participants expect the Federal Reserve to raise its funds target
rate by 25 basis points in July, but the path beyond is less clear.

"We will have many U.S. indicators, which I think will be mixed, so there
will be no strong momentum, at least today," said Masafumi Yamamoto, chief
currency strategist at Mizuho Securities.

"Two more rate hikes are not fully priced in the market. If the U.S.
economic data comes out on the strong side, then further pricing in for the
two rate hikes will push up the dollar," Yamamoto said.

The euro was flat at $1.09055 ahead of speeches by European Central Bank
officials at the bank's Forum on Central Banking in Sintra, Portugal, on
Tuesday and Wednesday.

The Australian dollar fetched $0.66815 , up 0.10%, while the New Zealand
dollar slid 0.08% to $0.6159.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold firms above 3-month lows on Russia concerns

(Reuters) - Gold prices on Monday firmed above last session's more than
three-month low, as concerns surrounding the political turmoil in Russia
drove flows into safe-haven bullion, outweighing risks from the Federal
Reserve's hawkish outlook.

Spot gold rose 0.2% to $1,924.78 per ounce by 1:57 p.m. EDT (1757 GMT),
while gold futures settled 0.2% higher at $1,933.80.

"We are seeing some modest safe-haven demand in gold on the Russian
incursion that was quickly aborted over the weekend. But there are still
some underlying worries," said Jim Wyckoff, senior analyst at Kitco.

"The marketplace wonders what's going to happen next because the Russian
military appears to be destabilising. Putin appears to see his power
weakening, and that has major implications around the world."

Heavily armed Russian mercenaries withdrew from the southern Russian city of
Rostov on Sunday, while authorities were still investigating the mercenary
leader whose weekend mutiny appeared to be a major threat to the President
Vladimir Putin's 23-year-old rule.

"This new geopolitical set of headlines has helped to give gold some minor
buoyancy and the return of China (from Dragon Boat holidays) to the market
is almost undoubtedly adding some support," said StoneX analyst Rhona
O'Connell.

Bullion slumped nearly 2% in the previous week and touched its lowest since
mid-March on Friday as hawkish comments from Fed officials signalled more
rate hikes to tame sticky inflation.

High interest rates discourage investing in non-yielding gold, which is
otherwise seen as a safe investment amid economic uncertainties.

Spot silver climbed 1.8% to $22.81 per ounce, while platinum rose nearly 1%
to $925.99.

Palladium jumped 2.2% to $1,312.40, after having slid to a four-year low
last week.

But stagnant growth in China and acceleration of battery electric vehicles
could curb palladium autocatalyst demand and push the price lower, Heraeus
analysts wrote in a note.

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 

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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
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opinions expressed and recommendations made are subject to change without
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