Bulls n Bears Daily Market Commentary : 27 November 2023

Tue Nov 28 06:02:35 CAT 2023

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Bulls n Bears Daily Market Commentary : 27 November 2023

 <https://www.dulys.co.zw/> ZSE commentary

The ZSE All Share Index added 1,672.36 points to close at 182,945.06 points.
Trading in the positive: SEED CO LIMITED added $126.3000 to $968.3000, DELTA
CORPORATION LIMITED added $58.9744 to close at $3179.4687 and AFDIS
DISTILLERS LIMITED increased by $23.0769 to $2123.0769. EDGARS STORES
LIMITED added $12.0000 to $97.0000 and CBZ HOLDINGS LIMITED  added $9.2593
to $2109.2593.

Trading in the negative: CAFCA LIMITED shed $237.5000 to close at
$2200.0000, PROPLASTICS LIMITED lost $2.8927 to close at $606.0000 and FBC
HOLDINGS LIMITED  traded $1.6100 lower to $908.1146. WIILDALE LIMITED  was
$1.0336 down at $28.0000 and ECOCASH HOLDINGS LIMITED decreased by $0.1262
to $129.8302

EXCHANGE TRADED FUNDS 

CASS SADDLE AGRICULTURE EXCHANGE TRADED FUND and MORGAN & CO MADE IN ZIM
EXCHANGE TRADED FUND  remained flat $7.5000 and $7.5600. OLD MUTUAL TOP 10
ETF  lost $1.0838 to $31.0162. MORGAN & CO MADE IN ZIMBABWE EXCHANGE TRADED
FUND remained flat $7.5600, DATVEST MODIFIED CONSUMER STAPLES EXCHANGE
TRADED FUNDS  added $0.8211 to

$9.0000.

REAL ESTATE INVESTMENT TRUST 

TIGERE REAL ESTATE INVESTMENT TRUST lost $19.0806 to $235.7894.zse

Global Currencies & Equity Markets

South Africa

South African rand gains at start of data-filled week

(Reuters) - The South African rand was stronger on Monday, helped by the
dollar falling at the start of a week laden with major global and domestic
economic data releases.

At 1540 GMT, the rand traded at 18.7150 against the dollar , about 0.5%
stronger than its previous close.

The dollar index , which measures the currency against six major peers, was
down 0.05% after earlier slipping as much as 0.2%.

This week's global focus includes an OPEC+ meeting, the release of the
Federal Reserve's tracked measure of inflation, and consumer prices data in
the euro zone and Australia.

Locally, investors will scrutinise trade (ZATBAL=ECI), budget balance
(ZABUDM=ECI), producer inflation (ZAPPIY=ECI) and private sector credit
(ZACRED=ECI) figures for insights about the health of Africa's most
industrialised economy.

On the Johannesburg Stock Exchange, the blue-chip Top-40 (.JTOPI) and
broader All Share (.JALSH) indices closed more than 0.4% lower. The yield on
the benchmark 2030 government bond fell 5 basis points to 10.145%.

Nigeria

Naira exchanges with dollar at N1,164

The pressure on the foreign exchange (FX) market continued on Monday, with
the  Nigerian naira depreciating to N1,164 per dollar on the parallel
market, popularly called the black market.

This represents a 1.21 per cent drop compared to N1,150 per dollar traded on
Friday at the same market.

Due to the shortage of greenback, the naira depreciation followed strong
demand for dollars by individuals and importers who could not meet their FX
needs at the official market.

At the Autonomous Foreign Exchange Market (NAFEM), the naira strengthened
against the dollar despite a drop in dollar liquidity on Friday.

Read also Naira falls to N1,155 as market awaits Cardoso's policy thrust at
bankers' dinner

The local currency lost 16.88 as the dollar was quoted at N794.89 on Friday
as against N956.33, which closed on Thursday at NAFEM, data from the FMDQ
indicated.

Willing buyers and willing sellers quoted the dollar at a spot rate of
N1,136, the highest and lowest rate of N700 per dollar.

Read also: Key points from Cardoso's first speech as CBN governor

The daily foreign exchange market turnover declined by 28.13 per cent to $
75.82 million on Friday from $105.50 recorded on Thursday.

 <mailto:info at bulls.co.zw> 

Global Markets

US dollar weakens as Fed rate cut view weighs

(Reuters) - The U.S. dollar slid on Monday, on pace for its biggest monthly
drop in a year, weighed down by expectations that the Federal Reserve is
done hiking interest rates and could start cutting them by the first half of
next year.

The dollar index , which measures the currency against six major peers,
slipped 0.2% to 103.20 and was headed for a monthly loss of more than 3%,
its worst performance since November 2022.

"Technically, the dollar index did enough damage over the last two weeks to
really suggest a breakdown. So the dollar's heyday is done and we're now
looking at a softer dollar," said Amo Sahota, director at FX consulting firm
Klarity FX in San Francisco.

"But we have to be careful here. If you get too aggressive on the softer
dollar outlook primarily because you think U.S. rates are going to be cut,
the Fed will have something to say about that."

U.S. rate futures on Monday showed a roughly 23% chance that the Fed may
begin easing monetary policy as early as March, according to the CME Group's
FedWatch Tool. That probability rises to about 50% in May.

Investors are also looking to a slew of events and data this week that could
determine the future path of interest rates globally.

A postponed OPEC+ meeting, the release of the Fed's preferred gauge of
inflation - the personal consumption expenditures (PCE) price index - as
well as consumer price data in the euro zone and Australia fill this week's
calendar. The market is also eyeing a rate decision from the Reserve Bank of
New Zealand and Chinese purchasing managers' index (PMI) data.

In other currencies, the euro was up 0.2% against the dollar at $1.0953 . On
the month, the euro has gained about 3.6%, on pace for its largest monthly
rise in a year.

Europe's single currency showed little reaction to ECB President Christine
Lagarde's remarks saying that euro zone inflation pressures are easing but
wage growth is still strong, so the ECB's fight to contain price growth is
not yet done.

Against the yen, the dollar fell 0.6% to 148.59 yen . For the month of
November, the U.S. currency has fallen about 2%, set for its biggest monthly
fall since February.

The dollar extended losses after data showed U.S. new home sales fell more
than expected in October, dropping 5.6% to a seasonally-adjusted annual rate
of 679,000 units. September's sales pace was revised lower to 719,000 units
from the previously reported 759,000 units.

"I don't see much potential for a turnaround until later this week when Q3
GDP (gross domestic product) numbers are released Wednesday morning," said
Helen Given, FX trader, at Monex USA in Washington.

"If the U.S. economy can show sustained growth, rather than a sudden sharp
downturn as some major economists have predicted, we could see a reversal
and some dollar strength to end the month."

Elsewhere, sterling rose to a more than two-month high of $1.2644, extending
its gains from last week following data showing British companies
unexpectedly reported a marginal return to growth in November after three
months of contraction.

The pound was last up 0.2% at $1.2628.

The Australian dollar climbed to a more than a three-month high against the
greenback of US$0.6614, while the New Zealand currency was up 0.3% at
US$0.61 before the RBNZ interest rate decision on Wednesday. The RBNZ is
expected to keep its official cash rate unchanged at 5.5%.

In China, the yuan slipped after the official midpoint snapped five straight
sessions of strengthening, with the onshore yuan last at 7.1528 per dollar.
Its offshore counterpart fell 0.1% to 7.160 per dollar.

In cryptocurrencies, bitcoin fell 1.6% to $36,881 .│

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold climbs higher on dollar dip, Fed pause bets

(Reuters) - Gold hit a six-month high on Monday as a softer dollar and
expectations of a pause in the Federal Reserve's monetary tightening helped
bullion consolidate above the key $2,000 an ounce level.

Spot gold was up 0.5% at $2,012.34 per ounce by 3:01 p.m. ET (2001 GMT),
after reaching its highest since May 16. U.S. gold futures settled 0.5%
higher at $2012.4.

The dollar (.DXY) hovered near a three-month low, making greenback-priced
gold less expensive for holders of other currencies.

Gold is likely to trade around $2,000 for a little bit until we get some
more information from the Fed on its plan on interest rates, said Bob
Haberkorn, senior market strategist at RJO Futures.

"Gold will trade higher if they are done with rate hikes for the time
being."

Traders widely expect the U.S. central bank to hold rates in December, while
pricing in about a 50-50 chance of easing in May next year, CME's FedWatch
Tool shows.

Lower interest rates reduce the opportunity cost of holding
non-interest-bearing assets, often boosting gold prices.

Investors' attention will be on the U.S. third-quarter GDP figures on
Wednesday and the personal consumption expenditures (PCE) price index due on
Thursday, the Fed's preferred inflation gauge.

"Economic figures coming out of the U.S. this week, both on the growth and
inflation front, will make or break a case for whether gold remains above
$2,000," said Kyle Rodda, a financial market analyst at Capital.com.

On the physical front, data showed that top consumer China's net gold
imports via Hong Kong fell for a second consecutive month in October as a
patchy economic recovery weighed on demand in the key bullion market.

Silver jumped 1.3% to a nearly three-month high at $24.62 per ounce.
Platinum fell 1.3% to $918.51 and palladium was down 0.2% at $1,071.32.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Counters trading under cautionary

CBZH

GetBucks

EcoCash

Padenga

Econet

RTG

Fidelity

TSL

FMHL

ZBFH

Invest Wisely!

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