Bulls n Bears Daily Market Commentary : 31 October 2023

Wed Nov 1 06:37:38 CAT 2023

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:bulls at bulls.co.zw> Views & Comments
<http://www.bullszimbabwe.com> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:%20bulls at bullszimbabwe.com?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 31 October 2023

ZSE commentary

 <https://www.dulys.co.zw/> The ZSE All Share Index added 3,327 points to
finish at 157,083.06 points. Trading in the positive: BRITISH AMERICAN
TOBACCO LIMITED added $668.0357 to $14873.7500 and CBZ HOLDINGS LIMITED
increased by $163.3333 to $1968.3333. HIPPO VALLEY ESTATES LIMITED gained
$110.2311 to close at $2000.2941, DELTA CORPORATION LIMITED  was $89.2654 up
at $2938.8436 and DAIRIBORD HOLDINGS LIMITED added $65.0000 to $550.0000.

Trading in the negative: EDGARS STORES LIMITED  shed $14.7041 to close at
$85.0366, NAMPAK ZIMBABWE LIMITED shed $1.5714 to close at $335.0000 and
ECONET WIRELESS LIMITED eased $0.8833 to $499.9885. RAINBOW TOURISM GROUP
LIMITED lost $0.0500 to $134.9500 and ECOCASH HOLDINGS LIMITED was $0.0197
down at $137.9461.

EXCHANGE TRADED FUNDS MORGAN & CO MULTISECTOR EXCHANGE TRADED FUND added
$2.9483 to $252.9483 and OLD MUTUAL TOP 10 ETF added $2.9459 to $35.0000.
CASS SADDLE AGRICULTURE EXCHANGE TRADED FUND and DATVEST MODIFIED CONSUMER
STAPLES EXCHANGE TRADED FUNDS remained flat at $6.9123, $7.2500 and $7.2400
respectively.

REAL ESTATE INVESTMENT TRUST (REIT)

TIGERE REAL ESTATE INVESTMENT TRUST  was $2.3467 up at $238.0067

Global Currencies & Equity Markets

South Africa

South African rand strengthens with focus on mid-term budget

(Reuters) - South Africa's rand strengthened against the dollar on Tuesday,
as investors awaited the government's mid-term budget statement.

At 1553 GMT, the rand traded at 18.7425 against the dollar , 0.6% stronger
than its previous close after firming 1% earlier.

"The rand has seen some mild strength recently, with the Medium-Term Budget
Policy Statement (MTBPS) due out tomorrow, and available data on the fiscal
half year showing that expenditure is at 51% of the budget estimate," said
Investec chief economist Annabel Bishop in a research note.

-

The main economic event in South Africa will be Wednesday's MTBPS, which
updates economic forecasts, adjusts the budget and makes emergency changes
to spending.

"Markets and the credit rating agencies will be watching the debt
projections, with downgrades a risk on markedly higher debt revisions,"
Bishop added.

Shares on the Johannesburg Stock Exchange fell, with the blue-chip Top-40
index (.JTOPI) closing about 0.6% lower.

-

Revenue service figures earlier showed South Africa recorded a trade surplus
of 13.14 billion rand ($701.96 million) in September.

South Africa's benchmark 2030 government bond was stronger, the yield down 3
basis points at 10.675%.

($1 = 18.7189 rand)

Nigeria

Naira reverses two-day rally, falls to N1,185/$ at parallel market

The naira, on Tuesday, depreciated to N1,185 per dollar at the parallel
section of the foreign exchange (FX) market.

Naira fell by N35 or 3.04 percent compared to the N1,150 it traded on
Monday.

The improving fortune of the naira at the parallel market was reversed,
ending a two-day rally.

On Friday, the dollar had plummeted to N1,230/$, from N1,315/$ on Thursday -
and further declined to N1,150/$ on Monday.

Bureau De Change operators (BDCs) who spoke to TheCable in Lagos, said the
plunge was due to the fall of the dollar in the official market.

The traders put the buying price of the dollar at N1,150 and the selling
price at N1,185 - leaving a profit margin of N35.

A BDC operator, who simply identified as Aliyu, said "the news of the
official rate pushed the price up for us".

In the official market, the local currency appreciated to N815.32/$ on
Tuesday - from N993.82/$ on Monday.

According to data from FMDQ Securities Exchange, a platform that oversees
official foreign exchange trading in Nigeria, the exchange rate recorded a
high of N994.82 and a low of N730 in intra-day trading.

Meanwhile, the presidential committee on fiscal policy and tax reforms had
recommended an expansion of the official foreign exchange market to
incorporate BDCs, forex apps and retail FX dealers, and outlaw transactions
in the black market.

Taiwo Oyedele, chairman of the presidential committee, on Monday, said the
federal government plans to introduce new foreign exchange rules, including
a crackdown on illicit currency trading.

 <mailto:info at bulls.co.zw> 

Global Markets

Rupee wrestles with rise in US yields, dollar before Fed outcome

(Reuters) - The Indian rupee is expected to struggle on Wednesday in the
wake of a rise in U.S. Treasury yields and weakness in Asian currencies.

Non-deliverable forwards indicate the rupee will open at around
83.26-83.2650 to the U.S. dollar, compared with 83.25 in the previous
session.

"We will have one more day in which it (USD/INR) will find a lot of buyers.
That buying will not amount to much until the RBI (Reserve Bank of India)
allows 83.30 to be taken out," a spot currency trader at a bank said.

-

The RBI has been persistently intervening to make sure the rupee does not
slip below the 83.29 record low, according to traders.

The 10-year U.S. yield rose in Asia and the dollar index inched higher.
Asian currencies were mostly lower, down between 0.2% and 0.6%.

The Federal Reserve later in the day is widely expected to keep the policy
rate at 5.25-5.50%. The central bank is not likely to update the economic or
rate forecasts.

-

Some analysts expect that the Fed may soften its guidance on the need for
additional rate hikes on the back of the tightening of financial conditions
prompted by the rise in long maturity U.S. yields.

"We expect the Federal Open Market Committee to soften forward guidance on
policy from "In determining the extent of additional policy firming that may
be appropriate" to "In determining the extent of policy firming ..." -
taking out the word "additional"," Morgan Stanley said in a note.

-

At Fed Chair Powell's press conference, Morgan Stanley anticipate a similar
tone to what he said at speech recently.

"(That of) balanced risks to the outlook, little appetite for near-term rate
hikes amid tighter financial conditions," Morgan Stanley said.

The Fed decision is "highly unlikely" to pull the rupee out it recent range,
the spot trader said.

KEY INDICATORS:

** One-month non-deliverable rupee forward at 83.33; onshore one-month
forward premium at 5.25 paisa

** Dollar index up at 106.75

** Brent crude futures up 0.3% at $85.3 per barrel

** Ten-year U.S. note yield at 4.92%

** As per NSDL data, foreign investors sold a net $203.8mln worth of Indian
shares on Oct. 30

** NSDL data shows foreign investors bought a net $8mln worth of Indian
bonds on Oct. 30

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold heads for biggest monthly rise since November on Middle East crisis

Gold ticked higher on Tuesday and was on track for its biggest monthly rise
since November last year as the Israel-Hamas war boosted safe-haven bets,
but investors also cautiously awaited the U.S. Federal Reserve's policy
meeting this week.

Spot gold rose 0.2% to $2,000.20 per ounce, having spiked as high as
$2,009.29 on Friday. U.S. gold futures also rose 0.2% to $2,009.70.

Spot gold was at its lowest in seven months at $1,809.50 on Oct. 6, a day
before Hamas' attack on Israel. It is now on track for an 8% rise in October
as investors bolted for safety amid the Middle East crisis.

"The precious metal is likely to remain supported as long as the ongoing
conflict threatens to spill over into the broader region and further sour
the global economic outlook," said Exinity chief market analyst Han Tan.

Investors' focus this week is on the U.S. Treasury's refunding announcement
and the Fed's monetary policy decision on Wednesday, followed by the U.S.
monthly jobs report on Friday.

Fed Chair Jerome Powell is likely to stick to the old script of being
data-dependent on the trajectory of the Fed funds rate, while keeping
expectations alive for one last interest rate hike in December, said Kelvin
Wong, senior market analyst for Asia Pacific at OANDA.

The Bank of Japan further loosened its grip on long-term interest rates by
tweaking its bond yield control policy again on Tuesday. The Bank of
England's decision is due on Thursday.

Spot silver fell 0.4% to $23.22 and platinum was up 1% to $938.71, with both
set for monthly gains. Palladium rose 0.2% to $1,130.37, eyeing a near-10%
decline this month.

.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Counters trading under cautionary

CBZH

GetBucks

EcoCash

Padenga

Econet

RTG

Fidelity

TSL

FMHL

ZBFH

Invest Wisely!

Bulls n Bears 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> bulls at bullszimbabwe.com  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com  

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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.

(c) 2023 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> bulls at bullszimbabwe.com Tel: +263 4 2927658 Cell:
+263 77 344 1674

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231101/29526b58/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231101/29526b58/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 102299 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231101/29526b58/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 19909 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231101/29526b58/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231101/29526b58/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130903 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231101/29526b58/attachment-0001.obj>