Bulls n Bears Daily Market Commentary : 02 March 2023

Fri Mar 3 05:16:24 CAT 2023

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Bulls n Bears Daily Market Commentary : 02 March 2023

 <https://www.facebook.com/Hyundaizimbabwe> ZSE commentary

ZSE slips into the red in Thursday's session.

The market retreated in the penultimate of the week weighed down by heavy
cap counters. The All-Share Index retreated 0.23% to 29232.73pts while, the
Blue-chip Index was 0.43% weaker at 17077.27pts on the backdrop of losses in
CBZ. The Agriculture Index was down 0.42% to 124.06pts while, on the
contrary the Mid-Cap Index was the only gainer amongst its kind as it
recorded marginal gains of 0.03% to end the day pegged at 64043.41pts. Paper
manufacturer ART led the laggards of the day as it slipped 5.88% to
$20.0000. Bankingduo in CBZ and First Capital dropped 5.34% and 4.70% to
settle at $147.0824 and $18.0001 respectively. Tea producer Tanganda eased
1.62% to trade at $255.7375 while, Hippocapped the top five losers of the
day as it trimmed 1.32% to $500.0000. Partially mitigating the losses were
Bridgefort

Capital that garnered 15.00% to close at $9.2000, trailed by mining concern
RioZim that advanced 14.64% to $184.0000.

Brick maker Willdale closed 13.91% higher at $3.1000 while, apparel retailer
Edgars climbed 11.87% to $15.1022. Financial services group ZB fastened the
top five risers of the day on a 1.77% gain to $115.0000. Activity aggregates
improved in the session as volumes traded ballooned by 872.95% to see 15.26m
shares worth $2.01bn exchange hands recording a 140.26% increase in
turnover. Blue Chips duo of Delta and Econet stole the show claiming a
combined 80.56% of the value traded. Econet, Nampak, First Capital, Delta
and NMB were the top volume drivers with respective contributions of 20.84%,
16.11%, 13.70%, 13.51% and 13.20%. The ETFS traded in the egative territory
in the session as the Old Mutual Top 10 dropped 6.05%, Morgan & Co Multi
Sector fell 2.23%. Datvest MCS and Morgan & Co Made in Zim were 1.13% and
0.31% weaker while, Cass saddle was flat at $2.1000. Elsewhere, the VFEX
All-Share Index added 0.45% to close pegged at 105.8223pts buoyed by gains
in Simbisa and Padenga-efesecurities

Global Currencies & Equity Markets

South Africa

South African rand weakens against stronger dollar

(Reuters) - South Africa's rand weakened on Thursday, as the dollar firmed
on strong U.S. labour data, which suggested the Federal Reserve will likely
keep rates higher for longer.

At 1611 GMT, the rand traded at 18.1650 to the dollar, 0.28% weaker than its
previous close but still an improvement on the levels it had reached late
last month.

The dollar was up about 0.5% against a basket of global currencies .

There were no local economic data releases on Thursday. Investors will be
looking at S&P Global's South Africa PMI survey due on Friday to see how the
economy fared in February.

"Notwithstanding the ongoing high degree of load-shedding that has detracted
massively from economic growth, the ZAR has recovered from its worst levels,
at one stage breaking below 18.1000," said ETM Analytics in a research note.

"How much further the recovery runs will depend on what risk appetite does
in the next two days."

On the stock market, the Top-40 (.JTOPI) index and the broader all-share
(.JALSH) index were both down about 1.4%.

Malawi

Malawi 2023/24 budget deficit seen at 8.7% of GDP - finance minister

(Reuters) - Malawi's budget deficit for the 2023/24 fiscal year is seen at
1.32 trillion kwacha ($1.30 billion), or 8.7% of GDP, Finance Minister
Sosten Gwengwe said in a budget speech to parliament on Thursday.

($1 = 1,012.1100 kwacha)

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar firms after U.S. labor data points to further Fed tightening

(Reuters) - The dollar strengthened on Thursday after unemployment claims
pointed to a strong U.S. jobs market that along with other data showing
growing labor costs indicates the Federal Reserve will keep interest rates
higher for longer.

The yield on two-year Treasury notes, which are sensitive to interest rate
expectations, shot to levels last seen in July 2007 at 4.944% as the market
perceived the Fed will raise rates further to tame sticky inflation.

"There's more and more of a concern that incoming data is revealing that the
Fed might be a little bit behind the curve than maybe they expected heading
into this year," said Bipan Rai, North America head of FX strategy at CIBC
Capital Markets in Toronto.

"We've got two-year yields at levels we haven't seen in 15 or 16 years.
That's an obvious reason why the dollar is outperforming," he said.

The number of Americans filing new claims for unemployment fell again last
week, pointing to a still strong jobs market. Another Labor Department
report showed labor costs grew much faster than previously estimated in the
fourth quarter.

Futures pricing edged higher, with a peak rate climbing on Thursday to
5.493% in the Fed funds by September.

The euro slid on data that showed inflation in the euro zone was not as high
as investors had feared but remains elevated. Inflation eased to 8.5% from
8.6% in January on lower energy prices.

The dollar index, a basket of major trading currencies, rose 0.469%, while
the euro fell 0.5% to $1.0612.

The market's reaction to the euro zone data was initially muted following
the euro's 0.9% against the dollar on Wednesday, its biggest daily jump in a
month, after data that showed prices in Germany rose more than hoped last
month.

The hotter-than-expected German inflation in February came after
unexpectedly strong readings in France and Spain, reinforcing the case for
the European Central Bank to keep raising interest rates.

Investors now see the ECB's 2.5% deposit rate rising by a combined 100 basis
points in March and May, then to around 4.1% at the turn of the year.
Markets have priced in an extra 50 basis points of hikes in just the past
month.

Policymakers were split in February on the type of signal they should send
about the ECB's next rate move, accounts of the central bank's meeting on
Feb. 2 showed on Thursday.

Sterling was held back by remarks from Bank of England Governor Andrew
Bailey, who said "nothing is decided" on future rate increases, which had
traders trimming back bets on higher rates. Sterling traded at $1.1954, down
0.64% on the day.

The Japanese yen weakened 0.35%, while the Australian and New Zealand
dollars moved lower after strong gains on Wednesday driven by Chinese
manufacturing data.

The offshore Chinese yuan rose 0.59% to $6.9192 per dollar.

Investors are looking ahead to China's National People's Congress meeting,
which begins on Sunday, for guidance on policy support for the post-COVID
recovery.

Bitcoin fell 1.27% to $23,335.00 after shares of Silvergate Capital Corp
nearly halved when the crypto-focused bank delayed its annual report and
said it had sold additional debt securities.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold, silver fall amid rise in USDX, U.S. bond yields

(Kitco News) - Gold and silver prices are weaker at midday Thursday, as
rising U.S. Treasury yields and an appreciating U.S. dollar on the foreign
exchange market are bearish outside market forces working against the metals
market bulls today. April gold was last down $6.20 at $1,839.10 and May
silver was down $0.245 at $20.85.

Global stock markets were mixed overnight. U.S. stock indexes are mixed at
midday. A feature in the marketplace recently has been rising U.S. Treasury
yields. The yield on the benchmark U.S. 10-year Treasury note is presently
fetching 4.081%. The yield is the highest since last November. Traders and
investors worried about a still-hawkish Federal Reserve keeping interest
rates higher for longer in order to successfully tamp down problematic price
inflation. However, that means the Fed clamping down on U.S. economic growth
to squelch consumer and commercial demand.

In overnight news, the Euro zone February consumer price index came in at up
8.5%, year-on-year, compared to up 8.6% in January and a forecast for up
8.2% in the February report. It's apparent the European Central Bank still
has more work to do to defeat high inflation in the Euro zone.

The key outside markets this morning see the U.S. dollar index solidly
higher. Nymex crude oil futures prices are near steady and trading around
$77.75 a barrel. Oil prices have rallied recently on hopes for better energy
demand from China, the world's second-largest economy, as that nation has
abandoned its Covid restrictions.

Technically, April gold futures bears have the slight overall near-term
technical advantage. A price downtrend is in place on the daily chart, but
now just barely. Bulls' next upside price objective is to produce a close
above solid resistance at $1,881.40. Bears' next near-term downside price
objective is pushing futures prices below solid technical support at
$1,800.00. First resistance is seen at this week's high of $1,852.50 and
then at last week's high of $1,856.40. First support is seen at Wednesday's
low of $1,829.60 and then at $1,820.00. Wyckoff's Market Rating: 4.5.

May silver futures bears have the overall near-term technical advantage.
Prices are in a steep downtrend on the daily bar chart. Silver bulls' next
upside price objective is closing prices above solid technical resistance at
$22.25. The next downside price objective for the bears is closing prices
below solid support at $20.00. First resistance is seen at this week's high
of $21.285 and then at $21.52. Next support is seen at this week's low of
$20.505 and then at $20.25. Wyckoff's Market Rating: 3.5.

March N.Y. copper closed down 950 points at 407.30 cents today. Prices
closed nearer the session low today. The copper bulls have the firm overall
near-term technical advantage and have momentum. Copper bulls' next upside
price objective is pushing and closing prices above solid technical
resistance at the January high of 435.50 cents. The next downside price
objective for the bears is closing prices below solid technical support at
the February low of 393.45 cents. First resistance is seen at this week's
high of 418.10 cents and then at the February high of 423.70 cents. First
support is seen at today's low of 406.00 cents and then at 400.00 cents.
Wyckoff's Market Rating: 6.0.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Nampak

AGM

Boardroom, 68 Birmingham Road, Southerton

March 8, 9am

Art

AGM

virtual

March 9, 2:30pm

Good Friday

April 7

Easter Saturday

April 8

Easter Sunday

April 9

Easter Monday

April 10

Independence Day

April 18

Workers' Day

May 1

Africa Day

May 25

Counters trading under cautionary

CBZH

TSL

Fidelity

Willdale

FMHL

ZBFH

GetBucks

Zimre

Seed Co

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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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
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for guideline purposes only and sourced from third parties.

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