Bulls n Bears Daily Market Commentary : 02 May 2023

Wed May 3 04:49:52 CAT 2023

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Bulls n Bears Daily Market Commentary : 02 May 2023

 <https://www.cloverleaf.co.zw/> 

ZSE commentary

ZSE resilient in month opener.

The ZSE commenced the new month of May in the positive territory. The
primary All-Share Index gained 2.92% to close at 42599.78pts while, the ZSE
Top Ten Index advanced 3.30% to close at 24548.01pts. The Mid-Cap Index
ticked up 1.92% to 93105.02pts as the ZSE Agriculture Index lost 0.15% to
finish at 183.83pts. Masimba was the top riser as it soared 15.00% to
$219.6500 while, First Mutual Properties followed on a 14.61% surge to
$20.0560. Bankers CBZ firmed up 12.24% to $220.0000 as logistics firm
Unifreight Limited gained 8.57% to $76.0000. Econet capped the top ten
winners of the day on an 8.41% rise to $290.6837. Ariston led the fallers of
the day on a 14.19% dip to end at $10.0698 while, ART Holdings trimmed 2.83%
to $25.1011. Zimplow fell 1.37% to $36.0000 as milk producer Dairiboard
retreated 1.15% to $140.4000. Property concern Mashonaland Holdings
completed the top five decliners of the day after dropping 0.81% to
$19.5018. The market registered a positive breadth of fifteen as twenty
counters registered gains against five that lost ground.

Activity aggregates were depressed in the session as volume traded plummeted
77.34% to 1.34m shares while, turnover plunged 92.01% to $152.89m. The value
drivers for the session were Delta (34.81%), OKZIM (19.14%), Hippo Valley
(16.87%), Econet Wireless (14.57%) and Ecocash Holdings (7.66%). In the
volumes section, OKZIM contributed 37.44% of the volumes traded while,
Ecocash Holdings claimed 12.38% of the same. A total of 140,092 units worth
$904,234.20 exchanged hands in the ETF section. Morgan & Co MCS added 2.16%
to end pegged at $30.1370 as Datvest improved 0.55% to $1.7616. On the
losing side, there was Old Mutual ETF and MIZ that gave up 8.02% and 2.91%
to $8.7344 and $2.0000 respectively. The Tigere REIT slipped 0.12% to
$50.4502 after trading 8,677 units. - efesecurities

Global Currencies & Equity Markets

 <https://www.cloverleaf.co.zw/> 

South Africa

South African rand slips with focus on local PMI, Fed this week

(Reuters) - South Africa's rand slipped on Tuesday, with market attention
this week likely to hinge on a local purchasing managers' index (PMI) survey
and a U.S. Federal Reserve interest rate meeting.

At 1525 GMT, the rand traded at 18.4925 against the dollar, around 0.56%
weaker than its previous close.

The U.S. currency was last down about 0.12% against a basket of currencies .

PMI surveys for the manufacturing sector and whole economy give investors
further insight into the health of Africa's most industrialised economy.

South African manufacturing activity contracted again in April but less than
in February and March, helped by companies building up inventories, a survey
showed on Tuesday.

Investors will now turn their focus to an S&P Global PMI survey due on
Thursday.

Meanwhile, the Fed is expected to deliver another 25 basis point rate hike
on Wednesday.

Investors will focus on whether the U.S. central bank indicates that it
expects to pause rate increases after May, or if it keeps alive the
possibility of another hike in June or later.

Shares on the Johannesburg Stock Exchange fell, with the broader-all share
index (.JALSH) closing down 0.88% and the blue-chip Top-40 index (.JTOPI)
ending 0.96% lower.

South Africa's benchmark 2030 government bond was slightly weaker, with the
yield down 1.5 basis points to 10.195%.

Nigeria

Naira gains amid low liquidity

Naira on Tuesday appreciated by 0.14 percent against the dollar despite low
liquidity at the Investors and Exporters (I&E) forex window.

The daily foreign exchange market turnover, which reflects the level of
activity and liquidity in the market declined by 35.77 percent to $46.04
million on Tuesday from $71.68 million recorded on Friday.

At the close of the first trading day of the week on Tuesday,after the
workers' day holiday, the dollar was quoted at N462.33 as against N463.00
quoted on Friday at the I&E window, Nigeria's official foreign exchange
market, data from the FMDQ indicated.

Read also: Firms; earnings take hit from naira crunch, elections

Most currency dealers who participated at foreign exchange market auction on
Tuesday maintained bids between N460.00 (low) and N466.00 (high) per dollar.

At the parallel market, also known as black market, naira depreciated
against the dollar, losing 0.40 as the dollar traded at N738 as against N735
per dollar on Friday.

At the money market on Tuesday, the Overnight (O/N) rate decreased by 1.75
percent to close at 11.38 percent as against the last close of 13.13 percent
on Friday and the Open Repo (OPR) rate decreased by 1.63 percent to close at
11.00 percent compared to 12.63 percent on the previous day.

"Despite the Open Market Operation (OMO) repayment of N50.00 billion, the
money market rates are likely to remain at current levels in the near term,
barring any mop-up activity by the Central Bank of Nigeria (CBN).

The Nigeria treasury bills secondary market closed on a mildly positive note
with the average yield across the curve decreasing by 1 basis point to 6.67
percent from 6.68 percent on the previous day.

A report by FSDH research noted that average yield across the long-term
maturities declined by 1 basis point.

However, average yields across short-term and medium-term maturities closed
flat at 4.99 percent and 6.34 percent, respectively. NTB 7-Dec-23, NTB
25-Jan-24, NTB 8-Feb-24, and NTB 7-Mar-24 maturity bills witnessed mild
buying interest, with a yield decline of 1 basis point each.

According to the report, FGN bonds secondary market closed on a mildly
positive note on Tuesday, as the average bond yield across the curve cleared
lower by 1 basis point to close at 14.20 percent from 14.21 percent on the
previous day.

Average yields across short tenor and medium tenor of the curve declined by
1 basis point and 4 bps, respectively. However, the average yield across the
long tenor of the curve closed flat. The 26-APR-2029 maturity bond was the
best performer with a decrease in the yield of 9 bps.

The Debt Management Office has started offering a 2-Year FGN Savings Bond
due May 10, 2025, and a 3-Year FGN Savings Bond due May 10, 2026, at the
interest rate of 10.391 percent per annum and 11.391 percent per annum,
respectively. The bond auction is scheduled to close on May 5, with
settlement on May 10, 2023. The interest will be paid quarterly, with a
redemption bullet repayment on maturity.

 <mailto:info at bulls.co.zw> 

Global Market

Dollar dips as job openings fall, Fed meeting in focus

(Reuters) - The dollar fell Tuesday after data showed that U.S. job openings
fell in March, a day before the Federal Reserve is expected to hike interest
rates by an additional 25 basis points.

U.S. job openings fell for a third straight month and layoffs increased to
the highest level in more than two years, suggesting some softening in the
labor market that could aid the Fed's fight against inflation.

The U.S. Commerce Department also said that factory orders rose by 0.9% in
March, below expectations for a 1.1% gain.

The data comes as investors try to gauge whether the Fed is likely to pause
rate hikes when it concludes a two-day meeting on Wednesday, or if further
increases are possible if inflation remains high.

"The big question is does the Fed signal that policy is restrictive enough,
or provide enough hints for the market to think that we're not going to
require the further tightening of policy," said Edward Moya, senior market
analyst at OANDA in New York.

The dollar index fell 0.22% to 101.93 after earlier reaching 102.40, the
highest since April 11. The euro rose 0.23% against the greenback to
$1.1001, after earlier dipping to $1.0940, the lowest since April 21.

The single currency fell after data showed that euro zone banks are turning
off the credit taps and a key gauge of inflation is finally falling,
boosting the case for a smaller rate increase by the European Central Bank
on Thursday.

The ECB has been seen as possibly hiking rates by 50 basis points this week.
The single currency has risen since mid-March on expectations that the
interest rate differential with the U.S. dollar will continue to shrink.

"The expected forward US rate advantage versus the euro is the lowest in 10
years," Steve Englander, head, global G10 FX research and North America
macro strategy at Standard Chartered Bank said in a note. And "euro-area
equities are experiencing the most extended outperformance versus US
equities in a decade."

The Aussie dollar rose 0.51% to $0.6664, after earlier getting to $0.6717,
the highest since April 21.

The currency jumped against the dollar after the Reserve Bank of Australia
(RBA) unexpectedly lifted the cash rate to 3.85% and said further tightening
may be required to ensure that inflation returns to target in a reasonable
time frame.

"I would think the RBA now thinks they need to see a 4 in front of the cash
rate before thinking they might be done," said Ray Attrill, head of FX
strategy at National Australia Bank.

"Certainly, the data flow since April has been on the strong side," he
added. "It's very probable that another one is to come, though whether it's
as soon as June remains to be seen."

The yen gained, reversing earlier losses after last week's Bank of Japan
decision to maintain ultra-low interest rates.

The dollar fell 0.56% to 136.67 yen, after earlier hitting 137.78, the
highest since March 8.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold advances on fresh banking jitters as Fed verdict looms

Bars of gold are seen at the Krastsvetmet company, one of the world's
largest producers of precious metals in Moscow, Russia on January 31, 2023.
The company produces precious metals in ingots, granules, powders in the
form of chemical compounds. Precious metal bars of Krastsvetmet are included
in the lists of Good Delivery (high quality of delivery) on international
platforms. In 2021, the company produced 203 tons of gold, 484 tons of
silver and 102 tons of platinum group meta

Bars of gold are seen at the Krastsvetmet company, one of the world's
largest producers of precious metals in Moscow, Russia on January 31, 2023. 

Gold extended gains on Tuesday and was on track for its biggest daily rise
in a month, as yields dropped on renewed fears of contagion in the U.S.
banking sector, ahead of the Federal Reserve's widely anticipated decision
to hike interest rates.

Spot gold jumped 1.8% to its highest since April 14 at $2,016.71 per ounce,
while U.S. gold futures rose 1.7% to $2,026.20.

"The banking concerns are back... it's really removing that risk that the
Fed was going to possibly be considering a June rate rise," said Edward
Moya, senior market analyst at OANDA.

Shares of U.S. regional lenders extended declines, while Treasury yields
fell, as the collapse of First Republic Bank continued to ripple through
markets.

Regulators seized First Republic Bank and sold its assets to JPMorgan Chase
& Co on Monday, in a deal to resolve the largest U.S. bank failure since the
2008 financial crisis.

The Federal Open Market Committee kicked off its two-day meeting, where it
is widely expected to raise rates by 25 basis points.

Markets now priced in 1-in-4 odds of a rate cut in June, seeing no chances
of another hike.

While gold is considered a hedge against economic uncertainties, rising
rates hurt demand for the zero-yielding asset.

Gold has also been supported by some safe-haven demand from resurgent
worries over the banking sector's health and U.S. debt ceiling uncertainty,
Bank of China International analyst Xiao Fu said.

U.S. President Joe Biden on Monday summoned four top congressional leaders
to the White House next week after Treasury Secretary Janet Yellen warned
the government could run short of cash to pay its bills by June.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

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
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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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for guideline purposes only and sourced from third parties.

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