Bulls n Bears Daily Market Commentary : 08 March 2023

Wed Mar 8 20:52:26 CAT 2023

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Bulls n Bears Daily Market Commentary : 08 March 2023

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

OKZIM gleams in mid-week trades

Giant retailer OKZIM anchored the activity aggregates after 14.91m shares
worth $835.31m exchanged hands. The trade represented 93.47% of the total
volumes traded and 67.71% of the value outturn. Delta was the other notable
value driver with a contribution of 25.56% to the aggregate. Volume of
shares traded soared 594.23% to 15.95m while, turnover surged 337.65% to
$1.23bn. The primary All Share Index advanced 0.16% to 29281.10pts while,
the Mid Cap Index stepped up 1.03% to 65467.66pts. The Agriculture Index
rose 2.31% to 125.76pts while, the Blue-Chip Index tumbled 0.36% to
125.76pts. Headlining the gainers of the day was Ariston that jumped 11.11%
to settle at $11.0000, followed by tea producers Tanganda that grew 10.29%
to $299.6471. TSL Limited added 3.11% to $65.0094 as the selling season
opened today while, apparel retailers Edgars gained 2.42% to $178.0745.
Telecoms giant Econet completed the top five winners’ list on a 1.76% uplift
to $178.0745.

Star Africa led the shakers of the day on a 6.26% drop to $1.6968 while,
fintech group Ecocash Holdings trimmed 5.75% to $65.9091. Brickmaker
Willdale retreated 1.41% to $3.5000 'as General Beltings slipped 1.20% to
end pegged at $1.9000. Retailer OKZIM Limited capped the top five losers’
list on a 1.18% slid to $56.0298. The market closed with a positive breadth
of two after thirteen counters advanced against eleven that lost their grip.
Top decliner on the VFEX was Simbisa that shed 6.62% to $0.4202, trailed by
Innscorthat lost 3.68% to $0.7031. Padenga and Axia tripped 0.56% and 0.14%
apiece. SeedCo International was the only gainer amongst its kind as it
improved 0.27% to $0.2620. The Datvest MCS went up 8.60% to $1.9548 while,
the OMTT ETF fell 2.04% to $7.8372. Cass Saddle and MIZ ETF were stable at
$2.0500 and

$1.4000 apiece. The Tigere REIT inched up 0.50% to $47.6863 on 1,610 units.
Elsewhere Meikles declared a second interim dividend of USD$0.0060 per share
payable on the 28th of March. -efesecurities

Global Currencies & Equity Markets

South Africa

South African rand recovers from multi-year low

(Reuters) - The South African rand recovered some ground on Wednesday after
hitting its lowest level in almost three years after South African data
showed a sharp economic contraction and on hawkish comments from U.S.
Federal Reserve Chair Jerome Powell.

At 1531 GMT, the rand traded at 18.5200 to the dollar, 0.42% stronger than
its closing level on Tuesday. Earlier on Wednesday it hit 18.7200, the
lowest since May 2020 during the first months of the pandemic.

The biggest driver was a warning from Powell on Tuesday that U.S. interest
rates might need to go up even faster and higher than expected to rein in
inflation, ETM Analytics said.

Powell's comments pushed the dollar to multi-month highs at one point
against most other major currencies on Wednesday.

The rand's slide was compounded by gross domestic product (GDP) figures
released on Tuesday that showed South Africa's economy contracted more than
expected in the fourth quarter of last year.

If it contracts again in the current quarter, South Africa will be in a
recession.

A survey published on Wednesday showed South Africa's business confidence
fell in the first quarter, dragged down by long hours of power cuts and
deteriorating household income.

"SA risks a contraction in GDP in Q1.23, with a recession increasingly
likely as the state is unable to turn the collapse in security of supply of
electricity around," Investec analyst Annabel Bishop said.

Shares on the Johannesburg Stock Exchange slumped, mirroring similar moves
in global equities as Powell's comments spooked markets.

South Africa's broader-all share index (.JALSH) closed down 1.04%, while the
top-40 index (.JTOPI) ended 1.11% lower.

The government's benchmark 2030 bond was stronger, with the yield down 5
basis points to 10.165%.

-The Thomson Reuters Trust Principles.’

Ghana

Cedi recoups losses against US dollar

The cedi recouped some lost value against the US dollar and other major
trading currencies last week.

At the close of trading in the week ending March 4, the local currency
continued the run of volatility with the GH¢12.5 to GH¢13.20 band. 

Investment bank, GCB Capital, said in its weekly review that its indicative
retail rate showed thta the cedi recovered 1.5 per cent week-on-week versus
the US dollar on the retail market at the close of trading last week.

It said it was even more resilient against the British pound and the euro,
having gained 2.3 per cent and 1.8 per cent week-on-week (w/w) respectively.

"The local unit was broadly stable against the US dolale on the interbank
reference market but ceded 0.15 per cent and 0.43 per cent to the GBP and
the Euro, respectively.

It said with the temporal external debt service suspension still in place,
coupon payments on three Eurobond tenors falling due in March 2023 will not
be honoured, providing a temporal respite for the stock of foreign exchange
(FX) reserves. 

"However, we expect the cedi's volatile run to continue, with speculative FX
demand, dividend repatriations and corporate FX demand exerting depreciation
pressures.

The local currency came under intense pressure last year, losing about 60
per cent of its value to the US dollar as of August 2022 before steadying to
30.1 per cent for the full year. 

The steep decline led to historical price hikes, with inflation peaking at
54.1 per cent in December.

Although inflation fell to 53.6 per cent in January, the currency market has
been volatile this year. 

The cedi lost about 22.13 per cent to he US dollar in he first two months
before rebounding this month. 

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar hits 3-mth high as Powell flags higher rates

LONDON - The dollar scaled multi-month highs against most other major
currencies on Wednesday, after Federal Reserve Chair Jerome Powell warned
that U.S. interest rates might need to go up even faster and higher than
expected to rein in stubborn inflation.

Higher rates benefit the dollar by improving its yield and as traders look
for safety while global stockmarkets drop.

The dollar hit a two-month high against the euro of $1.0524 , extending
Tuesday's 1.2% jump. Sterling, the Swedish and Norwegian crowns, the Chinese
yuan and the Canadian, Australian and New Zealand dollars all struck
multi-month lows.

The greenback also broke above its 200-day-moving average against the yen
for the first time this year, rising as far as 0.5% to a nearly three-month
high of 137.9 yen.

Powell told lawmakers on Capitol Hill on Tuesday that recent U.S. economic
data was stronger than expected and so the speed and size of future hikes
may also need to increase, which sent short-term U.S. rate expectations
surging.

"The dollar will have a short-term tailwind in the next few weeks due to a
more hawkish Fed," said Dane Cekov, senior macro and FX strategist at
Nordea.

"We see the Fed hiking to 6% in the coming months and they might move faster
now after Powell's comments."

Powell is back for more testimony from 1500 GMT. Ahead of that is an
appearance from European Central Bank head Christine Lagarde at 1000 GMT
and, at 0930 GMT a speech from Bank of England committee member Swati
Dhingra.

The Canadian dollar - last at 1.3762 to its U.S. counterpart and down more
than 1% since Monday - may be vulnerable to further weakness if Canada's
central bank holds rates steady later in the day, as expected.

"Rate differentials in Canada compared to the U.S. leaves the Canadian
dollar under pressure, that's something the Bank of Canada will need to
follow due to imported inflation," Nordea's Cekov said.

The Australian dollar has weakened for a similar reason as the Reserve Bank
of Australia has softened its tone. Having dropped over 2% on Tuesday, the
Australian dollar weakened a bit more to hit a four-month low of $0.6568 on
Wednesday.

Powell's remarks also sent short-term rate expectations higher, with traders
now anticipating around a 65% chance of a 50 basis point U.S. rate hike in
March, according to CME's FedWatch tool, up from about a 30% chance a day
earlier.

Futures imply U.S. rates peaking above 5.6% and holding above 5.5% through
2023. Traders have a laser-focus on Friday's U.S. payrolls data and next
week's inflation figures.

"If those data prints exceed expectations at all, based on what Powell said,
that'd pretty much guarantee a 50-basis point hike in March," said IG
Markets analyst Tony Sycamore in Sydney.

The U.S. dollar index rose as much as 0.2% to a more than 3-month high of
105.88, having jumped by 1.3% on Tuesday, its biggest daily increase since
Sep. 23, 2022.

Sterling fell marginally to $1.1811, its lowest since late November.

China's yuan finished the domestic session at 6.9706 per dollar, the weakest
such close since Dec. 29, 2022.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold tumbles Rs 615; silver plummets Rs 2,285 amid weak global trends

In the overseas markets, both gold and silver were quoting lower at USD
1,814 per ounce and USD 20.05 per ounce, respectively.

Gold tumbles Rs 615; silver plummets Rs 2,285 amid weak global
trendsAgencies

Gold price tumbled by Rs 615 to Rs 55,095 per 10 grams in the national
capital on Wednesday amid a decline in rates of precious metal in the
overseas markets, according to HDFC Securities. The yellow metal had closed
at Rs 55,710 per 10 grams in the previous trade.

Silver also plummeted Rs 2,285 to Rs 62,025 per kilogramme.

"Spot gold prices in the Delhi markets traded at Rs 55,095 per 10 grams,
down Rs 615 per 10 grams," Saumil Gandhi, Senior Analyst - Commodities at
HDFC Securities, said.

In the overseas markets, both gold and silver were quoting lower at USD
1,814 per ounce and USD 20.05 per ounce, respectively.

Comex Gold prices traded negative in the Asian trading hours on Wednesday.

Gold prices extended previous session loss and prices fell to one week low
after US Federal reserve chair Jerome Powell said on Tuesday that interest
rates might need to go higher than previously expected to curb inflationary
pressures, Gandhi said. 

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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