Bulls n Bears Daily Market Commentary : 23 March 2023

Fri Mar 24 04:29:03 CAT 2023

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Bulls n Bears Daily Market Commentary : 23 March 2023

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

ZSE bullish trend snaps.

The market slipped into the red in the penultimate session of the week
halting its eleven day rising streak. The All-Share Index retreated 1.05% to
38119.28pts while, the ZSE Top 10 Index was 1.80% weaker at 22918.47pts
weighed down mainly by Ecocash, Delta and Econet. On the contrary, the
Agriculture Index advanced 1.14% to 139.32pts while, the Mid Cap Index put
on 1.26% to settle at 74,383.54pts. Headlining the laggards of the day was
banking Group ZB that eased 11.07% to $104.4916, trailed by Ecocash Holdings
that trimmed 4.35% to $86.0870. Property concern First Mutual fell 4.26% to
end pegged at $15.0000. Mashonaland Holdings dropped 3.37% to

$10.6396 post the release of its FY22 results in which the group recorded a
PAT $17.15bn and declared a total dividend of $212.40m. Agriculture concern
Zimplow capped the top five losers of the day on a 3.15% loss to close at
$34.0000. Leading the risers of the day was banking group First Capital that
buttressed prior sessions gains as it eked 13.85% to settle at $32.9606.
Digital group Zimpapers garnered 8.60% to $5.8100 while, Proplastics closed
at $95.0000 following a 6.31% rise.

FBC jumped 5.96% to close the day pegged at $92.2344 while, sugar
manufacturer Hippo Valley fastened the top five risers of the day on a 5.27%
surge to $600.0187. Activity aggregates faltered in the session as volume of
shares traded declined by 63.99% to see 2.40m shares trade while, turnover
slipped by 34.30% to $503.71m. OKZim led the volume aggregates as it
contributed 30.35% of the total, trailed by Econet and Delta that claimed
16.57% and 12.46% respectively. Trio of Delta, Econet and OKZim claimed a
shared 78.22% of the turnover. The ZSE ETF Index jumped 22.39% to 480.52pts
as all the listed ETFs surged in the session. On the VFEX, the All-Share
Index was down 2.22% to 95.04pts. All the counters on the above-mentioned
bourse traded in the negative territory headlined by Innscor and Simbisa
that shed

4.89% and 0.99% apiece. A total of 66,338 shares worth US$32,139.66
exchanged hands in six counters .

-efesecurities

Global Currencies & Equity Markets

South Africa

South African rand firms on dollar pullback

(Reuters) - South Africa's rand strengthened against a weaker dollar on
Thursday after the U.S. Federal Reserve signalled that it would pause its
interest rate hiking path.

The Fed on Wednesday raised interest rates by a widely expected 25 basis
points (bps), but dropped language about "ongoing increases" being needed in
favour of "some additional" rises, as it watches how wobbling confidence in
banks affects the economy.

At 1546 GMT, the rand traded at 18.0325 against the dollar, 1.52% stronger
than its previous close.

The dollar index , which measures the currency against six rivals, fell more
than 0.3% to 102.12.

"The world has been so dominated by dollar strength over many, many years...
I think we may be in for a sustained period of relative dollar weakness",
said Wayne McCurrie, portfolio manager with FNB.

Headline inflation in South Africa rose slightly in February to 7% from 6.9%
in January, data showed on Wednesday, fuelling bets that the South African
Reserve Bank (SARB) would hike interest rates by 25 bps at its meeting next
week.

Stocks on the JSE closed slightly higher, with both the blue-chip Top 40
(.JTOPI) and its broader all-share index (.JALSH) ending the day up more
than 0.4%.

The government's benchmark 2030 bond was stronger, with the yield down 4.5
bps to 9.950%.

Nigeria

Naira weakens further at I&E window, exchanges at 469.50 per dollar

The rate represented a decrease of 0.04 per cent compared to the N461.50 for
which it exchanged to the dollar on Wednesday.

On Thursday, the naira depreciated against the dollar at the Investors and
Exporters Window, exchanging at N461.67.

The rate represented a decrease of 0.04 per cent compared to the N461.50 for
which it exchanged to the dollar on Wednesday.

The open indicative rate closed at N461.25 to the dollar on Thursday.

An exchange rate of N462.50 to the dollar was the highest rate recorded
within the day's trading before it settled at N461.67.

The naira sold for as low as N460 to the dollar within the day's trading.

A total of 80.03 million dollars was traded at the official investors' and
exporters' window. 

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar pares losses after central banks raise rates

(Reuters) - The dollar pared earlier losses on Thursday after the U.S.
Federal Reserve sounded close to calling time on interest rate hikes, while
the Swiss National Bank and Bank of England pushed ahead with further rate
increases.

The Fed raised its benchmark funds rate 25 basis points on Wednesday, but
dropped language about "ongoing increases" being needed in favor of "some
additional" rises.

The Fed's hike was notable given that financial markets have been roiled by
wavering confidence in banks globally following a run on Silicon Valley Bank
(SIVB.O) two weeks ago and the sudden demise of Credit Suisse (CSGN.S).

"If the banking crisis should meaningfully calm, and inflation remain
stubbornly high, that could be a recipe to help revive the dollar because
maybe the Fed could go back to fighting inflation at full steam, and not be
as concerned about the banking crisis putting a meaningful dent in the
economy," said Joe Manimbo, senior market analyst at Convera.

The dollar index , which measures the currency against six major peers, was
last up 0.078% at 102.510, set for its first winning day after five straight
days of losses.

"There seems to be not necessarily a lot of flight to safety," said Juan
Perez, director of trading at Monex USA.

"It's actually more like there's a sense that if the banking world is doing
OK, and the banking world is going to be bailed out every time it seems to
be in trouble, that things in general are going to survive and be fine."

Markets are betting on just one more quarter-point hike from the Fed, in
contrast to Europe where markets see around 50 bps of further tightening.

The gap sent the euro surging to a seven-week high of $1.0930, before moving
downward. It was last at $1.08480.

"It seems like the (European Central Bank) may be carrying the most hawkish
baton right now because it just seems like they have more rate hikes on the
table than other central banks at the moment," said Manimbo.

The Bank of England raised borrowing costs by 25 bps on Thursday, in line
with expectations, and said further tightening would be required if there
were evidence of more persistent price pressures.

Sterling gained 0.13% against the dollar to $1.22845.

The Swiss National Bank (SNB) also raised its policy rate by 50 basis points
as the central bank sought to balance tackling inflation with concerns about
financial market turmoil.

The SNB said measures announced by authorities at the weekend regarding
Credit Suisse had "put a halt to the crisis."

The dollar fell against the franc after the decision and was last down 0.19%
at 0.916.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold Gains After Fed's Dovish Hike Reinforces Bullish Trend, Breakout in
Play

Gold prices surged on Thursday amid U.S. dollar weakness after the FOMC
delivered a dovish interest rate hike and signaled that its tightening
campaign may be nearing its end. In late morning trading, XAU/USD was
rallying about 1% to $1,986, inching ever closer to its 2023 highs, just
above the psychological $2,000 level set this past Monday.

Recent banking sector turmoil has led the Fed to adopt a much more cautious
stance and to project a less aggressive hiking cycle than telegraphed just a
few weeks ago, when Powell dropped a hawkish bombshell before Congress. In
fact, the FOMC only expects to raise borrowing costs one final time this
year to 5.00-5.25%, well below the 5.70% peak rate anticipated by the market
earlier this month.

The idea that the terminal rate is within reach, coupled with growing
speculation that the central bank will ease policy shortly thereafter, is
likely to be bullish for non-yielding assets, including precious metals.
This means that gold could remain in an upward trajectory over the medium
term, especially if financial turmoil resurfaces and threatens to create
systemic risks.

In terms of technical analysis, if gold extends its advance in the coming
sessions, the first ceiling to consider appears in the $2,000/$2,015 region.
On further strength and a decisive breakout, the focus shifts to channel
resistance at $2,050, followed by $2,078, last year's high. Conversely, if
sellers return and spark a pullback, initial support comes at $1,975/$1,965.
Below that, the next area of interest lies at $1,920 and $1,900 thereafter.

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
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opinions expressed and recommendations made are subject to change without
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