Bulls n Bears Daily Market Commentary : 14 March 2023

Wed Mar 15 07:06:30 CAT 2023

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Bulls n Bears Daily Market Commentary : 14 March 2023

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

Market upbeat in Tuesday session

The ZSE capped the day in the green as the three of the four indices we
review closed the day pointing northwards. The AllShare Index climbed 1.88%
to 31487.89pts, the Top 10 Index went up 2.53% to 18508.83pts while, the
Mid-Cap Index gained 0.08% to end pegged at 66002.41pts. On the contrary,
the Agriculture Index was the only faller amongst its kind as it slipped
0.04% to 126.97pts. Leading gainers of the day was bankers CBZ Holdings that
advanced 14.24% to $160.0000 followed by Econet with a 7.80% rise to
$207.6504. Turnall added 5.96% to close at $8.0000, as life assurer Fidelity
Life surged 3.45% to $30.0000. Proplastics recovered from prior sessions
losses as it surged 1.59% to $71.1128 to cap the top five best performers of
the day. Clothing retailer Truworths headlined the laggards of the day as it
faltered 14.91% to $2.3825 while Star Africa trimmed 3.95% to $1.6547.

Agriculture concern Ariston Holdings shed 1.78% to $11.0010 while, hotelier
African Sun slipped 0.48% to $90.4939. First Mutual Properties fastened the
top five worst performers of the day on a 0.32% loss to end at $15.4500.
Activity aggregates were traded mixed in the session as turnover slipped
62.07% to see $398.65m exchange hands while, volume traded jumped 62.07% to
5.28m. The volume leaders of the day were First Capital (27.89%), OKZim
(24.40%) and Truworths (15.20%). Trio of Delta, OKZim and Afdis claimed a
combined 67.46% of the aggregate while, Econet and its subsidiary Ecocash
accounted for 6.79% and 6.70% respectively. The VFEX traded a total of
53,111 shares as Padenga Holdings firmed up 13.12% to USD$0.2500. Innscor
dropped 3.38% to USD$0.6745 while, Axia lost 2.17% to USD$0.1350. Seed Co
International eased 0.19% to USD$0.2695 as Simbisa retreated 0.07% to
USD$0.4297. In the ETF category a total 16,098 units worth $132,308.30
traded in the session. The Old Mutual ETF and Morgan & Co Multi Sector were
flat at $7.9100 and $22.000 apiece. The Tigere REIT rose 3.81% to close
trading at $49.9643 as 393,952 units traded. -efesecurities

Global Currencies & Equity Markets

South Africa

South African rand edges higher ahead of mining, manufacturing data

(Reuters) - The South African rand edged up in early trade on Tuesday, ahead
of the release of mining and manufacturing data later in the day.

At 0625 GMT, the rand traded at 18.2000 against the dollar , more than 0.1%
firmer than its closing level on Monday.

Statistics South Africa will publish January mining output (ZAMNG=ECI)
around 0930 GMT, and January factory production (ZAMAN=ECI) is due at 1100
GMT.

Economists polled by Reuters are predicting a 2.65% contraction in annual
terms in mining, and a 5.1% fall in manufacturing. That compares to a 3.5%
contraction in mining in December and a 4.7% fall in manufacturing in
December.

The rand rallied on Monday as the dollar fell sharply on expectations that
the largest U.S. bank failure since the 2008 financial crisis would prompt
the Federal Reserve to slow the pace of its interest rate hikes.

On Tuesday, the dollar still languished near a multi-week low.

South Africa's benchmark 2030 government bond was also slightly firmer in
early deals, with the yield falling 1.5 basis points to 10.010%.

Nigeria

Naira’s Value Falls Across All Foreign Exchange Markets As CBN Finally Gives
Banks Directives on Old Notes 

The value of the naira crashed against the US dollar across foreign exchange
markets Naira fell to the dollar in the official market by 0.04% and also
shed N2 of its value in the unofficial market The CBN has given a directive
to banks to accept, and pay in old 1,000, 500, and 200 naira notes 

Naira on Monday, 12 March 2023, depreciated against the US dollar at the
official and unofficial foreign exchange (FX) markets, as the Central Bank
of Nigeria finally directs banks to accept old notes. The Naira's poor
performance against the US dollar in the parallel market, Peer-to-Peer
(P2P), and Investors and Exporters (I&E) window(the official market). 

Value of the naira drops against US dollar. Credit: @cbn Data from FMDQ
securities where the naira is officially traded showed that its value
declined by 17 Kobo or 0.04 percent against the dollar to settle at
N461.67/$1 on Monday, compared with the previous exchange rate of
N461.50/$1. 

Naira value at unofficial market At the P2P segment, traders exchanged their
local currency for the American currency at an average rate of N754/$1 on
Monday, March 13, compared to the previous rate of N752/$1, indicating a
decline of N2.

It was a similar situation in the black market, where the local currency
lost N2 against the US currency to settle at N746/$1, in contrast to N744/$1
it traded on Friday, March 10. In the interbank segment of the market, CBN
data showed that the Naira also witnessed a drop in value against the Pound
Sterling by N9.48 to exchange at N557.49/£1 from N548.01/£1. It was the same
against the Euro, Naira lost N5.48 to close at N492.59/£1 from the previous
rate of N487.11/£1. CBN obeys Supreme Court Meanwhile, the Central bank of
Nigeria has finally obeyed the Supreme Court judgment on old naira notes. 

CBN in a circular signed by its spokesman Isa AbdulMumin noted that it met
with the Bankers’ Committee and has directed that the old N200, N500 and
N1000 banknotes remain legal tender alongside the redesigned banknotes till
December 31, 2023. CBN spends N58.61billion to print 2.518 billion Naira
notes In another report, Legit.ng disclosed that the Central Bank of Nigeria
has revealed it spent N58.61 billion printing Naira notes for circulation in
the country. According to CBN, 2.51 billion pieces of banknotes of various
denominations were printed to satisfy the currency needs of the economy The
amount spent in 2020 for printing is a significant drop compared to what CBN
spent in 2019 and 2018. 

 <mailto:info at bulls.co.zw> 

Global Markets

Lebanon’s currency value plunges to 100,000 against US dollar

The Lebanese pound has sunk to a historic low against the US dollar on the
country’s parallel market, the latest sombre milestone in an economic
meltdown that has plunged much of the population into poverty.

The Lebanese pound, officially pegged at 15,000 to the dollar, was trading
at 100,000 against the greenback, dealers said on Tuesday – a dizzying
plunge from 1,507 before the economic crisis hit in 2019.

The currency’s market value was at about 60,000 to the dollar in late
January.

Despite the gravity of the crisis, the political elite, which has been
widely blamed for the country’s financial collapse, has failed to check the
currency’s free fall.

Since last year, the country has had no president and only a caretaker
government, amid persistent deadlock between rival alliances in parliament.

Lebanese banks that have long imposed draconian withdrawal restrictions –
essentially locking depositors out of their life savings – were closed on
Tuesday as they resumed an open-ended strike.

The strike began early last month to protest against what the Association of
Banks in Lebanon described as “arbitrary” judicial measures against lenders
after depositors filed lawsuits to retrieve savings.

In response to the lawsuits, some judges sought to seize the funds of bank
directors or board members or to force lenders to pay out customers’ dollar
deposits in pounds at the old 1,507 exchange rate.

Hold-ups

Customers had a two-week reprieve from the strike after caretaker Prime
Minister Najib Mikati intervened late last month to impede the work of one
of the judges investigating banks.

Over the past three years, bank withdrawal limits have sparked public
outrage that has seen some Lebanese resort to armed hold-ups in a bid to lay
hands on their own money.

The facades of many banks in the capital are almost unrecognisable from the
outside, covered in protective metal panels, while ATMs have been vandalised
and bank branches have repeatedly closed for days.

In mid-February, dozens of angry demonstrators attacked several banks in
Beirut after the pound sunk to about 80,000 against the greenback.

Political inaction and a lack of accountability have been a hallmark of the
Lebanese economic crisis.

Officials have failed to enact any of the reforms demanded by international
creditors in return for unlocking billions of dollars in emergency loans.

In April last year, the International Monetary Fund announced an agreement
in principle to provide Beirut with $3bn in loans spread over four years –
conditional on a package of sweeping reforms.

Lebanon is facing the economic meltdown largely leaderless, as divided
politicians have failed to elect a new president for months – in a country
already governed by a caretaker cabinet with limited powers.

Lebanon has had no president since Michel Aoun’s term ended in October.
Repeated sessions of parliament convened to elect a successor have all
failed to reach an agreement on a consensus candidate.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold in tight range with focus on Fed's rate-hike moves

(Reuters) - Gold prices edged up in range-bound trading on Wednesday due to
a softer dollar, while investors assessed the U.S. Federal Reserve's
rate-hike trajectory after a closely-watched consumer prices report showed
still-high inflation.

Spot gold was up 0.1% at $1,903.64 per ounce as of 0316 GMT, trading in a $6
range. Prices had briefly slipped below the key $1,900 level earlier in the
session.

U.S. gold futures eased 0.1% to $1,908.60.

"Some degree of relative calm on U.S. banks and an overnight rise in
Treasury yields may temporarily reduce demand for safe haven proxies" such
as gold, said OCBC FX strategist Christopher Wong.

The dollar index was down 0.1%, making bullion less expensive for overseas
buyers, while U.S. Treasury yields ticked higher.

"As focus shifts to the Federal Open Market Committee meeting next week, the
question remains what guidance and how dots plot will evolve taking into
consideration the recent development with some U.S. banks versus combating
inflation," Wong said.

The Federal Reserve is expected to raise its benchmark rate by 25 basis
points next week and again in May, as a government report showed U.S.
inflation remained high in February, and concerns of a long-lasting banking
crisis eased.

The U.S. consumer price index (CPI) rose 0.4% last month, after accelerating
0.5% in January. In the 12 months through February, the CPI increased by 6%.

Bullion is often seen as a hedge against inflation, but the opportunity cost
of holding the non-yielding asset rises when interest rates are increased to
bring down inflation.

"Investor allocation to gold remains low," analysts at ANZ said in a note,
but added they expect the banking turmoil to "reinvigorate investor demand
over the longer term."

Spot silver rose 0.6% to $21.81 per ounce, platinum added 0.5% at $987.64
and palladium firmed 0.3% at $1,510.92.

The Thomson Reuters Trust Principles.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

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
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
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for guideline purposes only and sourced from third parties.

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