Bulls n Bears Daily Market Commentary : 10 October 2023

Wed Oct 11 08:32:05 CAT 2023

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Bulls n Bears Daily Market Commentary : 10 October 2023

ZSE commentary

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

ZSE extends gains...

The ZSE extended gains in Tuesday'ssession as the primary All- Share Index
added 1.18% to 133,374.38pts while, the Blue- Chip Index rose 1.37% to
59,867.85pts. The Mid Cap Index edged up 0.86% to 524,271.20pts while, on
the contrary the Agriculture Index lost 0.62% to 514.29pts. Banking group
CBZ Holdings jumped 14.75% to $1,423.0000 as insurers First Mutual Limited
stepped up 12.24% to settle at $359.1538.

General Beltings added 1.46% to $10.1455 while, telecoms giant Econet
Holdings advanced 0.80% to close at a vwap of $475.2327. Zimre Holdings
Limited capped the top five gainers' pack on a 0.65% uplift to close at
$90.6889. Cigarette manufacturer BAT led the laggards of the day on a 3.66%
slump that took it to $15,400.0000, followed by Turnall that eased 1.79% to
settle at $26.3000. Retailer OKZim retreated 0.65% to land at $135.0919
while, fintech group Ecocash Holdings declined 0.36% to $137.0000. TSL
completed the top five fallers' set on a 0.23% slide to $498.8750. The
market closed with a positive breadth of seven after fourteen counters

recorded gains against seven that faltered.

Activity aggregates enhanced in the session as volumes traded ballooned
108.00% to 2.00m shares while, turnover grew 141.40% to $1.10bn. Econet
highlighted today's aggregates after contributing 55.23% and 47.73% to the
volume and value totals respectively. The other top volume drivers of the
day were OK (9.18%), Mash Holdings (8.14%), Dairibord (7.98%) and Delta
(6.29%). Delta, Dairibord and Masimba contributed a combined 37.03% to the
value outturn. In the ETF section, Cass Saddle and MIZ dropped 0.38% and
1.47% to end pegged at $7.2200 and $7.7842 apiece. Morgan & CO Multi Sector
surged 15.00% to close at $253.0000. The Tigere REIT was stable at $230.0000
as 4,695 units traded.

VFEX rebounds...

The VFEX reversed prior session's losses as the All-Share Index  ained 1.58%
to 73.58pts. Fast foods group Simbisa firmed up 0.03% to USD$0.3995. In
contrast, First Capital shed 5.18% to settle at USD$0.0238 while, Bindura
fell 5.11% to USD$0.0130. Innscor capped the fallers' set on a 1.62% slump
to close at USD$0.4919.

Activity aggregates were mixed in the session as volume traded succumbed
20.95% to 409,956 shares while, turnover ballooned 32.06% to USD$170,010.03.
Simbisa was the top volume driver , claiming 80.73%, followed by Innscor
that  contributed 18.47%. The top value drivers of the day were Simbisa
(77.77%) and Innscor (21.91%).

Global Currencies & Equity Markets

South Africa

South African rand flat before release of census results

(Reuters) - The South African rand was broadly unchanged in early trade on
Tuesday ahead of the release of the results of a national census.

At 0607 GMT, the rand traded at 19.3300 against the dollar , the same level
as its previous close.

The census is the fourth in post-apartheid South Africa and the first in
over a decade.

On Monday the rand tumbled as violence in the Middle East stoked risk
aversion on global markets.

"In a world of so much uncertainty, it is not surprising to see the
(dollar-rand pair) unable to adopt any clear-cut directional momentum. It is
trading in a tight range, and investors are waiting for the dust to settle,"
ETM Analytics said in a research note.

-The Thomson Reuters Trust Principles.

Nigeria

Naira falls further to N1,010/$ on increased demand

Naira on Tuesday fell to N1,010 per dollar following rising demand for the
greenback on the parallel segment of the foreign exchange (FX) market, also
called black market.

This represents 0.19 percent weaker than N1,008/$1 exchanged on Monday on
the same market. Naira on Monday resumed depreciation against the dollar,
after exchanging steady for four trading days at the parallel market.

At the Investor' and Exporters' (I&E) forex window, the naira depreciated by
4.27 percent as the dollar was quoted at N773.54 on Monday as against
N741.85 on Friday and compared to N775.20 quoted on Thursday, data from the
FMDQ showed.

This is despite an increase in the daily FX market turnover by 74.39 percent
to $96.58 million as of Monday October 9, 2023 from $55.38 million recorded
on Friday.

Muda Yusuf, CEO, Centre For the Promotion of Private Enterprise, said, the
Central Bank of Nigeria (CBN) must ensure strategic and transparent
intervention in the forex market to minimize volatility, as far as the
reserves can support.

He said in addition to the I&E window, it has become necessary to create an
autonomous window in the banking system where the currency can trade freely
without any encumbrances. This is necessary to avert the diversion of
remittances to other jurisdictions or the black market. "We cannot afford to
live in denial at this time," he said.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar loses steam ahead of Fed meeting minutes, U.S. inflation test

The dollar dipped broadly on Wednesday, tracking a slide in U.S. Treasury
yields weighed down by dovish Federal Reserve comments, as traders looked to
the central bank's policy meeting minutes out later in the day for clues on
its interest rate outlook.

A slew of Fed officials have signaled in recent days that the U.S. central
bank may not need to tighten monetary policy much further than initially
thought.

Atlanta Fed Bank President Raphael Bostic said on Tuesday the central bank
did not need to raise borrowing costs any further, and Minneapolis Fed
President Neel Kashkari followed with similar remarks later in the day.

The comments pushed the greenback to a two-week trough against a basket of
currencies in the previous session, with the dollar index

languishing near that level in early Asia trade. It last stood at 105.66.

Sterling

rose to a three-week high of $1.2296, while the euro

last bought $1.0606, not far from Tuesday's more than two-week top of
$1.0620.

"The Fed is shifting away from further rate hikes, and its tightening bias
too may be dropped by December," said Thierry Wizman, Macquarie's global FX
and interest rates strategist.

U.S. Treasury yields have similarly tracked lower following the dovish Fed
comments, with the two-year yield, which typically reflects near-term rate
expectations, hitting a one-month low of 4.9260% on Tuesday. It was last at
4.9675%.

The benchmark 10-year yield

stood at 4.6468%.

The focus now turns to minutes of the Fed's September policy meeting out
later on Wednesday, which could offer further clues on its interest rate
outlook. U.S. inflation data is due the next day.

"I think markets will be particularly interested in whether or not the
(Federal Open Market Committee) will follow through with the extra
25-basis-point hike forecast in (its) latest dot plot," said Carol Kong, a
currency strategist at Commonwealth Bank of Australia, or CBA.

"Any comments that are perceived to be slightly dovish, I think the unwind
of yields can continue and that can weigh down on the U.S. dollar more."

The Australian dollar

rose to a roughly one-week high of $0.6440 while the New Zealand dollar

scaled a two-month top of $0.6050, helped slightly by a report saying China
is weighing new stimulus measures.

The two Antipodean currencies are often used as liquid proxies for the yuan.

China is looking to increase its budget deficit for 2023 as the government
prepares to bring a new round of stimulus to help the economy meet Beijing's
annual growth target, Bloomberg News reported on Tuesday.

"Markets are still pretty cautious about whether or not the government will
introduce a large scale stimulus given they have been reluctant this past
year about unleashing any large scale stimulus. So I think markets are a
little bit unsure whether that report is real," said CBA's Kong.

"If that report is true and Chinese officials come out with a big stimulus
package, that will obviously boost (the yuan) and currencies linked to the
Chinese economy."

The offshore yuan, which touched a roughly one-month high of 7.2700 per
dollar on Tuesday, last bought 7.2839.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold holds gains as markets mull rate pause

Gold held gains as conflict in the Middle East continued to roil markets,
while investors considered whether tightening financial conditions may have
reached a peak following dovish commentary from Federal Reserve officials.

The precious metal steadied after jumping 1,6 percent on Monday, the most
since May, as haven demand surged on the back of Hamas's shock attack on
Israel at the weekend. Comex gold implied volatility picked up on Monday
while December futures rose the most since August, stoked by the
geopolitical tensions.

Bullion is also benefiting from a shift in mindset over the rate outlook. US
policymakers are coalescing around the idea that the recent surge in US
Treasury yields - which went into reverse on yesterday - may substitute for
additional increases in their benchmark interest rate. Higher rates are
generally negative for non-interest-bearing gold.

Still, bullion's longer-term performance will depend on whether there is
deeper economic and financial fallout from the Middle East crisis, RBC
Capital Markets LLC strategist Christopher Louney said in a note. The bank
in September raised its base case outlook for the metal on a view that
monetary policy will eventually turn as economic growth slows.

"Amidst oil's price gains, we also highlight the potential implications that
related price inflation and heightened uncertainty could have for the Fed
and thus gold," he wrote. "Given our current gold outlook and the move
higher in risks, we may have seen a quarterly low already."

Spot gold was 0,1 percent higher at US$1 862,71 an ounce as of 8:22 a.m. in
Singapore. The Bloomberg Dollar Spot Index was little changed. Silver
dipped, while palladium and platinum edged higher. - Bloomberg.

.

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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