Bulls n Bears Daily Market Commentary : 23 May 2023

Tue May 23 22:15:37 CAT 2023

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Bulls n Bears Daily Market Commentary : 23 May 2023

ZSE commentary

Market remains firm, as Delta anchors turnover.

The ZSE remained firm in Tuesday's session as the primary All Share Index
rose 3.21% to 87374.15pts while, the Top Ten Index surged 2.56% to
52981.35pts. The Mid-Cap Index shot up 5.46% to 164447.10pts as the ZSE
Agriculture Index charged 1.99% to 311.01pts. The quartet of ART, CBZ,
National Tyre Services and CFI Holdings led the risers of the day with a
similar 15.00% gain closing at $34.5000, $460.0000, $16.1000, and $811.8000
respectively. Bankers ZB Financial Holdings completed the top five risers'
set adding 14.99% to $158.7500.

Headlining the losers of the day was First Mutual Properties that dropped
4.62% to $37.0000, followed by Zimplow Holdings which lost 2.64% to end
pegged at $92.4900. Tea company Tanganda traded at $730.0488 after declining
2.20% as brick makers Willdale lost 0.82% to finish at $5.0000. Mining house
RioZim capped the top five laggards of the day on a 0.39% slip to $253.0000.
Activity aggregates were depressed as volumes tumbled 47.77% to 2.60m shares
while, value outturn took a 30.64% dip

to $1.47bn. Delta claimed a huge 83.06% of the market spend leaving other
counters scrambling for the remaining 16.94%. Volume leaders of the day were
Star Africa (40.25%), Delta (23.89%) and OKZIM (15.53%). A cumulative 2.03m
units worth $15.82m exchanged hands in five ETFs. The MIZ jumped 11.29% to
$3.6500, the Old Mutual ETF firmed 10.83% to $18.8799 while, the Morgan & Co
MCS climbed 6.88% to $49.1818. The Cass Saddle and Datvest MCS slid 0.69%
and 0.01% to close at $2.7837 and $4.7380 respectively.-efesecurities

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets

South Africa

South African rand stabilises after Monday's mini-recovery

(Reuters) - The South African rand was broadly flat on Tuesday, a day after
staging a mini-recovery on relief the country's credit rating was not
downgraded and bets on a large interest rate hike from the central bank this
week.

At 1510 GMT, the rand traded at 19.2075 against the dollar , about 0.1%
stronger than its previous close. On Monday the rand ended more than 1%
stronger, after reaching an all-time low the week before.

Analysts polled by Reuters predict the South African Reserve Bank (SARB)
will deliver a 25-basis-point (bp) rate hike on Thursday. But markets are
pricing in a bigger increase.

"The rates markets are now pricing in a repo rate that may still rise by a
further 150 bp between now and the end of the year," ETM Analytics said in a
research note.

"Aggressive, maybe. But the (rand) has stabilised off the back of it, which
perhaps gives one a sense of what is expected of the central bank to prevent
an outright rout on the (rand)."

Sentiment towards South Africa has been badly affected by the worst rolling
blackouts on record, which mean businesses and households are in the dark
for up to 10 hours daily.

The rand hit a new record low against the dollar on Friday, but it got a
reprieve when ratings agency S&P Global held off from changing South
Africa's sovereign credit rating at the end of last week.

Investors will assess the success of the SARB's efforts to bring inflation
under control when April consumer inflation figures (ZACPIY=ECI),
(ZACPI=ECI) are released on Wednesday.

Shares on the Johannesburg Stock Exchange closed lower, with the blue-chip
Top-40 index (.JTOPI) down 1.77% and the broader All-share index (.JALSH)
down 1.56%.

South Africa's benchmark 2030 government bond was little changed, with the
yield down 0.5 basis points at 11.245%.

Nigeria

Naira begins new week on negative note

Naira on Monday depreciated against the dollar, exchanging at N463.50 at the
Investors and Exporters window.

The local currency decreased by 0.11 per cent as against N463 it exchanged
for the dollar at the close of business on May 19.

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

An exchange rate of N467 to the dollar was the highest rate recorded within
the day's trading before it settled at N463.50.

 <mailto:info at bulls.co.zw> 

Global Market

Dollar index hits two-month high on rising rate bets

(Reuters) - The U.S. dollar hit a two-month high on Tuesday in line with
higher Treasury yields after hawkish comments from Federal Reserve officials
led investors to position for the possibility of further rate hikes.

Regional Fed Presidents James Bullard and Neel Kashkari on Monday indicated
that the U.S. central bank may need to continue hiking rates if inflation
remains high.

"The focus is slowly going back towards inflation and all this hawkish Fed
speak we've been getting and that's been giving the dollar some support
here," said Edward Moya, senior market analyst at OANDA in New York.

The comments come after statements by Fed Chair Jerome Powell on Friday were
viewed as being dovish.

"We've been getting a steady dose of hawkish Fed push back, but not really
from Fed Chair Powell," Moya said, adding that minutes from the Fed's May
meeting due on Wednesday will be watched for any further signs of his
thinking.

Powell said on Friday that it is still unclear if rates will need to rise
further, as central bank officials balance uncertainty about the impact of
past hikes in borrowing costs and recent bank credit tightening with the
fact that inflation is proving hard to control.

Traders have ramped up bets that the Fed funds rate will stay elevated, with
markets pricing in almost a 30% chance of a rate hike in June and the Fed
funds rate seen at about 4.75% in December.

The dollar index , which measures the U.S. currency against a basket of
major peers, reached 103.65, the highest since March 20, and was last at
103.33.

The greenback also rose to 138.91 against the Japanese yen , the highest
since Nov. 30, before falling back to 138.35.

The euro slipped 0.18% to $1.0794. It is holding just above a two-month low
of $1.0760 hit on Friday.

Euro zone data on Tuesday showed that business growth slowed slightly more
than thought this month.

Investors are also focused on when Congress will raise the U.s. debt
ceiling. White House and congressional Republican negotiators will meet
again on Tuesday to resolve a months-long impasse over raising the
government's $31.4 trillion debt limit.

"Markets are still expecting some sort of deal to be reached," said Niels
Christensen, chief analyst at Nordea. "An agreement should spark some more
risk-on sentiment which could be negative for the dollar."

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold slips as yields rise while debt ceiling talks drag on

Gold prices dipped on Tuesday as yields climbed while talks over raising the
U.S. debt limit stretched to another round, but recovered from session lows
as the dollar retreated from earlier highs.

Spot gold was down 0.1% at $1,967.03 per ounce by 11:57 a.m., after shedding
as much as 0.8% earlier. U.S. gold futures fell 0.4% to $1,969.20.

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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