Bulls n Bears Daily Market Commentary : 27 March 2023

Tue Mar 28 03:49:40 CAT 2023

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Bulls n Bears Daily Market Commentary : 27 March 2023

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

The ZSE All Share Index decreased by 53.61 points to close at 37,271.15. ECOCASH HOLDINGS ZIMBABWE LIMITED fell by $3.6262 closing at $79.1030, ECONET HOLDINGS  dropped by $3.5006 to $264.8706 and AFRICAN SUN LIMITED decreased by $1.9385 to $87.0615. NAMPAK ZIMBABWE traded $1.3875 lower at $30.0000. FIRST CAPITAL BANK  also reduced by $0.9695 to close at $32.8640.

Trading in the positive: BRITISH AMERICAN TOBACCO ZIMBABWE increased by $33.9833 to $2733.0333, TANGANDA TEA COMPANY increased by $26.3254 to $341.3754 and RIOZIM LIMITED also stronger by $21.3115 to $205.3115. DAIRIBORD HOLDINGS LIMITED gained $5.0833 to $100.0000 and MASIMBA HOLDINGS traded higher at $5.0000 to $125. EXCHANGE 

TRADED FUNDS MORGAN & CO MULTI SECTOR EXCHANGE TRADED FUND gained $0.9500 to $29.1400 and MORGAN & CO MADE IN ZIMBABWE EXCHANGE TRADED FUND traded $0.0541 higher at $1.9014. OLD MUTUAL ZSE TOP 10 , CASS SADDLE AGRICULTURE EXCHANGE TRADED FUND (CSAG.zw) and DATVEST MODIFIED CONSUMER STAPLES EXCHANGE TRADED FUND remain unchanged at $10.0000, $2.1000 and $1.8900 respectively.

REAL ESTATE INVESTMENT TRUST 

TIGERE REAL ESTATE INVESTMENT TRUST increased by $0.5275 to close at $49.7875.-zse

Global Currencies & Equity Markets

South Africa

South African rand weakens against stronger dollar

(Reuters) - South Africa's rand weakened against a stronger dollar on Monday, as investors awaited a central bank decision on monetary policy later this week.

At 0635 GMT, the rand traded at 18.2050 against the dollar, 0.26% weaker than its previous close.

The dollar index , which measures the currency against six major rivals, was up more than 0.2% at 103.20.

"Volatility in the rand remains the order of the day, although the local unit did perform a little better last week, at least against the dollar," ETM Analytics said in a research note.

The South African Reserve Bank (SARB) will announce its rate decision on Thursday, with markets expecting a 25-basis-point hike.

The government's benchmark 2030 bond was slightly stronger in early deals, with the yield down 1 basis points to 9.925%.

-The Thomson Reuters Trust Principles.

Nigeria

Naira weakens at official market

Naira weakened slightly against the United States dollar to trade at N461.50 per dollar at the official market on Monday.

Data from the FMDQ securities exchange window where forex is officially traded showed that the rate reflected a N0.17 or 0.04 per cent decline from N461.33 the local currency traded last Friday.

According to the market data posted, the naira experienced an intraday low of N462.42 per dollar and a high of N460.00 before it closed at N461.50 per $1 on Monday, the same rate it traded last Wednesday.

The spot market segment recorded $101.77 million as foreign exchange turnover within the business period on Monday, the FMDQ data revealed.

Similarly, the naira fell significantly against the greenback at the unauthorised window on Monday.

Market rates collated across States on Monday showed that the dollar was exchanged at N743.39 per $1.

Mon March, 11:05:01 AM

💵 1 USD >>>>> ₦743.390

💷 1 GBP >>>>> ₦924.479

💶 1 EUR >>>>> ₦812.673

v1.0.6

— ₦aira Rates (@naira_rates) March 27, 2023

This represents a N3.29 or 0.44 per cent depreciation from N740.10 per $1 it exchanged in the previous market window last Friday.

The spread between the authorised and unauthorised markets stood at N281.89, leaving a margin of 61.1 per cent at the close of business on Monday.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar advances against Japanese yen as banking fears ease

The dollar rose to a five-day high against the Japanese yen on Monday as authorities’ efforts to rein in worries over the global banking system helped soothe investor nerves.

The U.S. currency, however, clung to a narrow range against most major currencies as investors appeared hesitant to place big wagers in either direction as they sought clarity on the fallout from the recent collapse of two U.S. lenders and the rescue of Credit Suisse.

“Feels like a market that is tired with overnight ranges very narrow and volumes very light,” said Brad Bechtel, global head of FX at Jefferies.

“The calendar is a bit lighter this week than it has been in a while and there were no emergencies over the weekend to keep everyone busy and so we open in a state of anxious calm,” Bechtel said.

Global banking stocks, which have been battered this month following the sudden collapse of Silicon Valley Bank and Signature Bank, received some respite on Monday after the Federal Deposit Insurance Corporation said First Citizens BancShares Inc would acquire all of Silicon Valley Bank’s deposits and loans from the regulator.

This helped ease some fears of contagion in Europe with an index of European banking shares up up 1.43%, led by Deutsche Bank which jumped 6.15% after an 8.5% slide on Friday. The S&P 500 Banks Index was up 3.49%.

Easing worries helped the dollar rise 0.77% to 131.75 yen, reversing some of its recent losses against the Japanese currency. Risk-averse investors had sent the yen to a seven-week high of 129.65 per dollar on Friday and the currency was on track to clock a 3.5% gain in March.

The dollar index, which measures the currency against six rivals, was 0.27% lower on the day at 102.84, not far from the near 7-week low of 101.91 touched on Thursday.

The euro was 0.36% higher at $1.0798, after data on Monday showed German business morale unexpectedly improved in March despite the banking sector turmoil.

“The USD is narrowly mixed and may continue to range trade in the short run,” Shaun Osborne, chief currency strategist at Scotiabank, said in a note.

The U.S. Federal Reserve on Wednesday raised interest rates by 25 basis points, as expected, but took a cautious stance on the outlook because of the banking sector turmoil. However, Chair Jerome Powell kept the door open for further rate rises if necessary.

Markets are pricing in around a 55% chance of the Fed standing pat on interest rates in its next meeting in May and anticipate a rate cut as early as July.

Sterling was higher against the dollar after Bank of England Governor Andrew Bailey signaled on Monday that interest rate-setters would focus on fighting inflation and would not be swayed unduly by worries about the health of the global banking system. The British pound was up 0.48% at $1.2288.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold slips more than 1% as risk appetite improves

(Reuters) - Gold prices fell more than 1% on Monday as worries over a crisis in the banking sector subsided, prompting investors to scale back safe-haven trades in favour of riskier assets like equities and crude oil.

Spot gold dropped 1.2% to $1,952.95 per ounce by 2:10 p.m. EDT (18:10 GMT). U.S. gold futures settled 1.5% lower at $1,953.80.

There is a sense of calm in the markets and a flight back into some of the risk-on assets, and all the safety trades like gold are starting to sell off, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

A buyer for Silicon Valley Bank's deposits and loans helped Wall Street's main indexes open higher, sending gold further below the $2,000 mark breached last week.

"Much of the rally on the gold market was really short-covering," Streible said, adding that prices were likely going to continue to come under pressure.

Recent banking sector stress and the possibility of a follow-on credit crunch bring the U.S. closer to recession, Minneapolis Fed president Neel Kashkari said. However, U.S. Federal Reserve officials said there was no indication financial stress was worsening.

"After kissing the psychological $2,000 level last week, bears exploited this resistance to attack. Appetite for the precious metal has also been dampened by a stabilising dollar and mixed signals on monetary policy from the Fed," said Lukman Otunuga, senior research analyst at FXTM.

Last week, the Fed indicated it was on the verge of pausing further increases in borrowing costs, boosting non-yielding gold's appeal.

On the physical front, China's February net gold imports via Hong Kong nearly tripled from the previous month.

Spot silver fell 1.1% to $22.98 per ounce, platinum eased 0.6% to $970.81, and palladium dipped 0.2% to $1,412.97.

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 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.

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