Bulls n Bears Daily Market Commentary : 15 March 2023

Thu Mar 16 06:45:34 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 : 15 March 2023

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

ZSE extends gains in mid-month trades.

The ZSE extended gains in the mid-month session as the primary All share
Index edged up 1.49% to 31957.05pts while, the Blue-Chip Index surged 2.04%
to 18886.24pts. The Agriculture Index inched up 0.27% to 127.31pts while, on
contrary the Mid Cap Index lost 0.03% to 65982.63pts. Telecoms giant Econet
Wireless led the gainers of the day after jumping 6.05% to $220.2145 while,
Proplastics added 4.58% to $74.3714. Banking group CBZ Holdings rose 3.13%
to $165.0000 while, beverages group Delta advanced 2.49% to settle at a vwap
of $615.9170. First Capital Bank capped the top five risers' pack on a 0.33%
uplift to close at $18.0471. Hotelier RTG headlined the laggards of the day
as it eased 7.14% to $13.0000, followed by fintech group Ecocash Holdings
that trimmed 3.28% to end at $66.7836. CAFCA slipped 2.82% to $340.0000
while, Zimre Holdings trimmed 0.71% to $11.4545.

Star Africa completed the top five fallers of the day on a 0.68% slump to
$1.6434. The market closed with a negative breadth of seven as fifteen
counters gained against eight that faltered. Activity aggregates were
depressed in the session as volumes traded dropped 70.22% to 1.57m shares
while, total value traded shed 50.85% to $195.93m. OKZim, Econet, Star
Africa and Dairibord were the volume leaders of the day as they contributed
a combined 74.04% of the total. The top value drivers were Econet (37.21%),
Delta (25.73%), OKZim (12.09%) and Cafca (8.47%). Cumulatively, 20286 shares
worth USD$19,131.49 exchanged hands on the VFEX. Axia retreated 11.11% to
USD$0.1200 as Innscor gave up 0.30% to USD$0.6725. Fast foods group Simbisa
lost 0.42% to close pegged at $0.4279. Datvest and Old Mutual ETFs went up
1.02% and 0.54% to close at $1.8689 and $7.9526 apiece. Cass Saddle, MIZ and
Morgan and Co MCS were stable at $2.0900 $1.4300 and $7.9526. The Tigere
REIT put on 1.32% to settle at $50.6200. -efesecurities

Global Currencies & Equity Markets

South Africa

South African shares, rand pummeled as banking crisis spreads

(Reuters) - South African shares and the rand plummeted on Wednesday as the
U.S. banking crisis spread to Europe and continued to wreak havoc on global
markets.

The country's blue-chip Top 40 (.JTOPI) and its broader all-share (.JALSH)
indexes fell around 3% to the lowest they have been this year.

"My big fear is that it leads to a crisis of confidence, that's more of an
issue than the reality of what's happening to the banks," Sasfin equity
strategist David Shapiro told Reuters, referring to the falling stocks.

Among fallers, shares in the banking sector (.JBANK) slipped 2.78%,
reflecting global market sentiment.

This decline comes after Credit Suisse's (CSGN.S) biggest investor said it
was unable to increase its stake, citing regulatory issues about the size of
its holding.

At 1608 GMT, the rand traded at 18.4025 against the dollar, 1.56% weaker
than its previous close.

Data from Statistics South Africa showed retail sales (ZARET=ECI) fell 0.8%
year on year in January after falling by a revised 0.5% in December.

-The Thomson Reuters Trust Principles

Nigeria

Inflation rises to 21.9%, private sector blames naira crisis

Headline inflation rose to 21.91 per cent in February amid a naira redesign
policy that was meant to mop up cash and curb excess currency in
circulation.

According to the Organised Private Sector in the country, the Central Bank
of Nigeria's naira redesign policy has contributed to a naira crisis that
has driven inflation to record highs.  Nigeria's 21.91 per cent inflation
rate for February is the highest in 18 years.

Data from the National Bureau of Statistics revealed that this is the second
consecutive month inflation is rising in the year after it fell in December
2022, after an 11-month rise. In January, inflation rose to 21.82 per cent
from the 21.34 per cent that was recorded in December 2022.

The NBS, on Wednesday, disclosed that increases in the price of bread,
cereal, rent, potatoes, yam, tubers, vegetables, and meat drove inflation up
in February.

It said, "In February 2023, the headline inflation rate rose to 21.91 per
cent compared to January 2023 head-line inflation rate which was 21.82 per
cent.

"Looking at the trend, the February 2023 inflation rate showed an increase
of 0.09 per cent points when compared to January 2023 headline inflation
rate."

The national statistics body of the country added, "The contributions of
items on a class basis to the increase in the headline index are presented,
thus: bread and cereal (21.67 per cent), actual and imputed rent (7.74 per
cent), potatoes, yam and other tubers (6.06 per cent), vegetable (5.44 per
cent), and meat (4.78 per cent)."

The effect of inflation is more felt in Bauchi (24.59 per cent), Rivers
(24.40 per cent), and Ondo (24.27 per cent), where inflation is above the
national average.

Sokoto (18.90 per cent), Borno (18.94 per cent), and Cross River (19.62 per
cent), recorded the slowest rise in headline y-o-y inflation.

In February, food inflation rose to 24.35 per cent year-on-year basis. Food
was more expensive in Kwara as food inflation hit 29.51 per cent, Imo (27.47
per cent), and Lagos (27.42 per cent). It was lowest in Sokoto (18.54 per
cent), Jigawa (19.67 per cent), and Yobe (21.89 per cent).

While justifying the naira redesign policy, the CBN's acting Branch
Controller in Ondo State, Mr Giwa Ademola, explained that the "benefits of
the currency redesign to the Nigerian economy are enormous given that this
policy will help to control inflation, as the exercise will bring the
hoarded currency into the banking system, thereby making monetary policy
more effective.

"It will also help with better design and implementation of monetary policy
as we will have much more accurate data on money supply and monetary
aggregates."

According to the Governor, CBN, Godwin Emefiele, currency management is a
key function of the apex bank, and controlling the currency in circulation
is key to the success of monetary policies, which includes taming inflation.

While briefing the diplomatic community on recent monetary policy decisions
of the CBN at the Ministry of Foreign Affairs in Abuja in February, he said,
"We have started to see inflation trending downwards and exchange rates
relatively stable."

Economic experts disagree with the position of the CBN governor. The
national Vice Chairman of the Nigerian Association of Small-Scale
Industrialists, Segun Kuti-George, stated that the naira redesign policy
which has fueled scarcity of the local currency, was responsible for the
spike in the country's inflation rate.

Speaking with The PUNCH, the Kuti-George also faulted the NBS figures,
noting that it was not consistent with what is obtainable in the
marketplace.

According to him, Nigeria's real inflation rate should not be less than 50
per cent if properly calculated.

He said, "It is because of the strain in the economy caused by this badly
implemented cashless policy.

"I was talking to a woman who runs a local canteen, and she said she used
N3000 to buy N17,000. She wanted to pay for garri, and she had to pay N3000
extra for the N17,000. So, the garri that she was supposed to buy for
N17,000, she bought for N20,000.

"That is what it means. When she is going to sell it, she will consider the
fact that her cost price was N20,000."

On his part, the Chief Executive Officer of the Nigerian Economic Summit
Group, Laoye Jaiyeola, said the inflation surge can be traced to the current
increase in the prices of goods.

He said, "The factors are general. The cost of doing business is higher. Now
we even have to pay cash for cash. We never expected the inflation rate to
slow down."

According to Securities Analyst at Parthian Securities, Azeezat Awonuga,
naira scarcity should be blamed for the rise in inflation.

She said, "The increase recorded can be attributed to the ongoing cash
crunch, as some vendors now require extra charges for payments."

Research analyst at Atlas Portfolios Limited, Olaide Baanu, added, "The food
inflation expanded by three base points to 24.35 per cent year-on-year
following the cash crunch policy and dry-season effect as Nigerians search
for cash to purchase scarce staple foods (like meat, tubers, vegetables,
etc.) from farmers."

Financial analyst, Okechukwu Unegbu, expressed concerns about the
correctness of the inflation rate released by the NBS.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar and yen pick up a bid as the jitters return

Is the dollar finally responding to the fears in the market? Well, perhaps
considering that this now involves a European, or more specifically a Swiss,
name. The euro and franc has tumbled with EUR/USD falling by 0.5% from
around 1.0730 earlier to 1.0670 levels currently. Meanwhile, USD/CHF is up
0.6% on the day to 0.9190 at the moment.

The Japanese yen is the biggest beneficiary in all of this though, as
markets start to lean towards a flight to safety once again. It's all about
the jitters with US futures down 1% and bond yields tumbling lower after a
solid bounce at the start of the day. USD/JPY is now down 0.3% to 133.80
levels after taking a shot at 135.00 earlier:

USDJPY

As to the reason for the renewed risk aversion, Credit Suisse is the big
name involved as mentioned here. Bank stocks in Europe are being pummeled
and Credit Suisse itself is seeing shares fall to a fresh record low below
$2:

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold rallies over 1% as Credit Suisse crisis hits risk appetite

(Reuters) - Gold prices climbed over 1% to their highest since early
February on Wednesday as a fresh crisis in the banking sector turned
investors away from seemingly riskier assets and drove them to the safety of
bullion.

Spot gold jumped 1.2% to $1,924.63 per ounce by 11:56 a.m. EDT (1556 GMT).
U.S. gold futures gained 1.1% to settle at $1,931.30.

Europe's bank stocks came under pressure again, with Credit Suisse (CSGN.S)
shares sliding after its largest investor said it could not provide the
Swiss bank with more financial assistance.

"It's a total safe-haven trade. There's a lot of concern about Credit Suisse
and now European banks are really coming under quite a bit of pressure. So
it's a complete flight to safety," said Phillip Streible, chief market
strategist at Blue Line Futures in Chicago.

Gold prices in sterling hit a record high while bullion in euros also spiked
towards all-time peaks hit last year.

"People are going to the U.S. Treasuries, gold, silver, and the dollar.
They're exiting riskier assets like U.S. equities and economically-sensitive
metals like copper, platinum and palladium," Streible said.

Gold rose despite a sharp jump in the dollar. A strong greenback would
usually weigh on demand for dollar-priced bullion.

Spot silver added 0.6% to $21.82 per ounce, while platinum fell 2.4% to
$958.76, and palladium lost 3.1% to $1,459.79.

Overall focus was still on the Federal Reserve's next move on interest rates
as it assesses data showing elevated inflationin February against the
backdrop of the collapse of two regional banks.

Advertisement . Scroll to continue

Markets put a 57.1% chance on the Fed holding its benchmark rate at current
levels at its March 21-22 policy meeting.

Gold is traditionally considered a hedge against inflation, but higher rates
increase the opportunity cost of holding the non-yielding asset.

Volatility is expected over the coming days ahead of the Fed meeting, said
Craig Erlam, senior market analyst at OANDA.

-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 

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/20230316/48b114c1/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/20230316/48b114c1/attachment-0002.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 1090498 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230316/48b114c1/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 32236 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230316/48b114c1/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 29358 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230316/48b114c1/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230316/48b114c1/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130904 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230316/48b114c1/attachment-0001.obj>