Bulls n Bears Daily Market Commentary : 15 May 2023

Tue May 16 05:19:29 CAT 2023

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Bulls n Bears Daily Market Commentary : 15 May 2023

ZSE commentary

Winning streak continues as ZSE halts trading.

The ZSE winning streak persisted into mid-month as the ZSE halted today's
trading session after the mainstream All Share Index breached the 10%
threshold on the upside during live trading. The mainstream All share Index
VWAP surged 8.37% to 68415.14pts while, the ZSE Top Ten Index advanced 8.90%
to 41679.96pts. The ZSE Agriculture Index jumped 8.71% to close at 247.98pts
while, the Mid Cap Index went up 6.69% to end at 126,640.89pts. The market
registered a positive breadth of twenty-eight as twenty-eight counters
gained against nil fallers. The top gainers' list was headlined by AFDIS,
RTG, TSL, Zimplow and RioZim that added a similar 15.00% to close at
respective prices of $782.0000, $37.9500, $172.5000, $83.9500 and $253.0000.
Other notable gainers of the day were Meikles (+14.99%), Tanganda (+14.92%),
OKZIM (+14.48%), Econet (+12.82%), Hippo (+12.01%), Delta (8.00%) and
Ecocash (+5.84%).

Volume of shares traded dipped 76.59% to 1.53m while, market spend tumbled
78.38% to $196.27m. Volume leaders of the day were OKZM and Star Africa that
claimed 58.43% and  12.92% apiece. OKZIM, Hippo and BAT anchored turnover on
respective contributions of 40.34%, 22.57% and 11.77%. The top gainer
amongst the ETFs was Cass Saddle that edged up 14.87% to trade at $2.5272,
trailed by MIZ that put on 13.45% to $2.5000. Old Mutual and Datvest MCS
rose 6.89% and 5.92% in that order. Cumulatively, 221,074 units worth $1.30m
exchanged hands in four ETFs. The Tigere REIT improved a negligible 0.00198%
to $50.6210 on 492,311 units. efesecurities

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South African rand regains some ground against the dollar

(Reuters) - South Africa's rand firmed on Monday, recovering from an
all-time low hit against the dollar last week as investors were spooked by
possible sanctions amid U.S. allegations, rejected by Pretoria, that South
Africa had shipped arms to Russia.

At 1543 GMT, the rand traded at 19.0325 against the dollar , 1.54% stronger
than its previous close.

The currency - already under pressure over the worst power cuts on record -
was pummelled last week by investor concerns over a U.S. allegation that a
Russian ship had picked up weapons in South Africa in December.

It hit 19.51 to the dollar at one point on Friday, its weakest level ever.

South African officials swiftly rejected the U.S. claims and said the
country had not approved any arms shipment to Russia in December.

Barclays' analysts said in a note they did not expect the rand to attract
significant capital inflows in the long term.

"Investors, it seems, simply do not see value in South African economy, and
we do not think this situation will change until there is material progress
towards resolving energy or fiscal issues," Barclays said.

On the stock market, the Top-40 (.JTOPI) and the broader all-share index
(.JALSH) were both almost flat.

South Africa's benchmark 2030 government bond was stronger in afternoon
deals, with the yield down 19.5 basis points at 10.745%.

Nigeria

Naira crashes to Dollars again

The Naira depreciated against the dollar on Monday, exchanging for N464 at
the investors' and exporters' window.

The rate represented a decrease of 0.36 per cent when compared to the
N462.33 it exchanged at the close of business on May 12.

The open indicative rate closed at N463 .50 to the dollar on Monday.

A spot exchange rate of N467 was used for trading within the day before it
settled at N464.

Spot exchange rate was determined instantly.

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

A total turnover of 55.10 million dollars was traded at the official
Investors' and Exporters' window.

 <mailto:info at bulls.co.zw> 

Global Markets

US dollar retreats from five-week high as debt ceiling stalemate weighs

(Reuters) - The dollar fell from a five-week high on Monday, as investors
consolidated gains made last week on the greenback and awaited news from
Washington on how to address the debt ceiling issue, which could force the
U.S. government to default on its debt if not resolved.

In emerging markets, the Turkish lira sank to a near record low as weekend
elections looked headed for a runoff, while the Thai baht rallied after a
more decisive election result.

The greenback took an early dive after data showed the New York Federal
Reserve's Empire State manufacturing index plunged to -31.8 this month from
a reading of 10.8 in April.

Action Economics in its blog wrote that the Empire State fall was the
largest decline since April 2020 and the lowest since January's three-year
trough of -32.9.

The dollar's decline on Monday came after it notched its best weekly
performance on Friday since September last year.

"The market is in consolidation mode and waiting for clearer signals from
Washington on how they're going to avert a U.S. default," said Amo Sahota,
director at FX consulting firm Klarity FX in San Francisco.

"I don't think there are key market levels that have been broken.
Euro/dollar is still above $1.08. On Friday, it was threatening to drop
below $1.08. The pound is still at $1.25," he added.

President Joe Biden is scheduled to meet with congressional leaders on
Tuesday for face-to-face talks, a day before he leaves for a meeting of the
Group of Seven nations in Japan.

Though the two sides did not appear close to an agreement, the White House
has not ruled out the annual spending caps that Republicans say must
accompany any increase in the nation's $31.4 trillion debt limit.

Ahead of Tuesday's meeting, U.S. House Speaker Kevin McCarthy warned on
Monday that there has been "no movement" toward an agreement to lift the
$31.4 trillion debt ceiling in talks with the White House, and he warned
that time is running out to get a deal through Congress.

In afternoon trading, the dollar index , which measures the greenback's
value against six major currencies, fell 0.3% to 102.40. Earlier in the
session, the dollar touched a five-week high of 102.75.

Analysts have said many factors could be behind the dollar's recent
strength, including concerns about U.S. inflation and safe-haven buying
driven by fears about the debt ceiling standoff and global economic growth,
as well as more hawkish rhetoric from Fed officials.

U.S. central bankers on Monday signaled they see interest rates staying high
and, if anything, going higher, given sticky inflation - a stark contrast
with the market's view that the Fed will start cutting rates well before
2023 is over.

The rate futures market has priced in about 50 basis points of cuts by the
end of the year. Traders though have slightly increased their odds of a
25-bps rate hike next month to 20%, with the majority expecting a pause.

The euro was up 0.2% against the dollar at $1.087.

Against the yen, the dollar was up 0.3% at 136.06, while sterling was 0.7%
higher at $1.2527, rebounding after last week's 1.5% fall.

Elsewhere, the dollar was last up 0.5% against the Turkish lira at 19.67 .
It earlier jumped to 19.7 for the first time since March 10, when the dollar
hit a record high of 19.8 on a volatile trading day.

The dollar sank 0.5% to 33.76 baht in onshore Thai trading. Thailand's
opposition parties secured a stunning election win on Sunday.

Commodity currencies -- the Aussie , New Zealand , and Canadian dollars --
gained against the greenback, as oil and metals rose.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Platinum facing biggest deficit in years as carmakers snap up metal

(Reuters) - Rising demand from automakers, industry and investors will push
the global platinum market into its biggest deficit in years, three industry
reports predicted on Monday.

The reports underline an emerging change in fortunes for platinum and its
sister metal palladium, both used chiefly in vehicle exhausts to neutralise
harmful engine emissions.

For years, rising demand and undersupply of palladium pushed prices higher,
while lacklustre consumption and more plentiful availability kept platinum
prices low.

Two of Monday's reports predicted that while palladium would remain in
deficit this year, platinum's undersupply would be bigger.

Automakers are now shifting from palladium to platinum to save money,
production of platinum-intensive heavy-duty vehicles is rising, and
exhaust-free electric vehicles are making inroads into the palladium-focused
light vehicle market.

Also supporting platinum are consumption by industry and jewellers, while
palladium demand depends almost entirely on autos.

Palladium prices have fallen sharply in recent months, while platinum prices
show signs of recovery.

Specialist materials maker Johnson Matthey said the roughly 8 million ounce
a year platinum market would be undersupplied by 128,000 ounces this year,
the first deficit since 2020 and a major shift from last year's surplus of
740,000 ounces.

The World Platinum Investment Council predicted a 983,000-ounce platinum
deficit - the biggest since at least 2014 - after last year's surplus of
854,000 ounces.

Consultants Metals Focus forecast a 953,000-ounce platinum undersupply, up
from just 53,000 ounces in 2022.

The forecasts use slightly different methodology, with Metals Focus
excluding platinum bought or sold by exchange-traded funds.

JM also predicts a rise in supply of both platinum and palladium this year,
which Metals Focus and the WPIC do not.

For the roughly 10 million ounce a year palladium market, JM predicted a
deficit of 43,000 ounces this year, down from 531,000 ounces in 2022.

Metals Focus, however, foresees the deficit rising to 707,000 ounces from
547,000 ounces last year.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Africa Day

May 25

Heroes' Day

Aug 14

Defence Forces Day

Aug 15

Counters trading under cautionary

CBZH

GetBucks

EcoCash

TSL

Econet

Turnall

First Capital Bank

ZBFH

Fidelity

Zimplow

FMHL

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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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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