Bulls n Bears Daily Market Commentary : 11 October 2023

Thu Oct 12 09:15:54 CAT 2023

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Bulls n Bears Daily Market Commentary : 11 October 2023

ZSE commentary

Market continues to firm up...

 <https://www.dulys.co.zw/> The ZSE stretched gains in mid-week session as
the All- Share Index went up 1.90% to finish at 135,903.78pts while, the Top
10 Index was 2.07% stronger at 61,109.94pts. The Mid Cap Index rose 1.63% to
end at 532,815.93pts while, the ZSE Agriculture Index was the only faller of
the day as it lost a marginal 0.01% to close at 514.24pts. On the risers'
table the banking duo of NMB and CBZ surged 14.68% and 14.55% to close at
$289.000 and $1,630.0000 respectively. Clothing retailer Edgars jumped
11.89% to $100.1714 while, First Mutual Properties gained 11.27% to settle
at $133.5278.

Packaging group Nampak completed the top five winners of the day on a 10.43%
rise to $360.0000. Masimba Holdings led the day's laggards on a 13.55% drop
to $695.9091 as tobacco processor BAT eased 1.59% to $15,154.6012. Ecocash
shed 1.49% to $134.9528 while, Hippo Valley Estates declined 0.65% to
$1,822.5259. Meikles capped the top five fallers of the day on a 0.46% slide
to $718.6364. Activity aggregates were improved in the session as valuen
outturn advanced 46.71% to $1.16bn while, volumes jumped 72.81% to 3.46m
shares. OK Zimbabwe was the top volume leader of the day contributing 62.16%
while, Delta and SeedCo Limited, had 11.30% and 10.06% in that order. Delta
(54.83%), OK Zimbabwe (17.45%) and Seed Co Limited (13.07%) anchored the
value aggregate of the day. A total of 29,572 units worth $501,350.02
exchanged hands in four ETFs.

The Datvest ETF succumbed 2.53% to $7.7000 while, the Morgan & Co MCS shrunk
0.79% to $251.0000. Cass Saddle retreated 0.01% to $7.2191. The Tigere REIT
was stable at

$230.0000 as 216,716 units traded.

VFEX retreats in mid-week...

The VFEX bourse ended lower as the All-Share Index faltered 0.22% to
73.41pts. Innscor was the only riser of the day after putting on 1.65% to
USD$0.5000. First Capital lost 13.87% to end at USD$0.0205 as Padenga
Holdings slipped 0.28% to USD$0.1795.

Activity aggregates were depressed as volumes plunged 54.15% to 187,976
shares while, the value outturn plummeted 95.39% to USD$7,837.28. First
capital was the major volume contributor as it claimed 94.40% of the volume
and 46.38% of the turnover. Other value drivers were Innscor(43.17%),
Simbisa(4.73%) and Padenga(4.58%).

Global Currencies & Equity Markets

South Africa

South African rand extends gains on lower U.S. yields

(Reuters) - The South African rand jumped on Wednesday as risk-off sentiment
pushed U.S. Treasury yields lower, extending Tuesday's gains.

At 1603 GMT, the rand traded at 18.8350 against the dollar , nearly 1%
stronger than its previous close.

The dollar last traded about 0.05% stronger against a basket of global
currencies.

The rand's gains this week "could be read as a surprising move, given the
events taking place in the Middle East, which would usually add pressure on
currencies such as the ZAR," ETM Analytics market analyst Bheki Mahlobo told
Reuters.

But investors seeking safety during heightened tensions has resulted in
lower U.S. Treasury yields and higher gold prices, benefiting South Africa's
terms of trade, Mahlobo added.

Some investors use the rand as a proxy for emerging market risk, and the
currency is highly sensitive to shifts in global risk appetite.

On Thursday, investors will turn to U.S. inflation figures for clues on the
U.S. Federal Reserve's future interest rate path.

"Should consumer prices move closer to the U.S. Fed's target, we could see
the ZAR continue to recover towards the end of the week," Mahlobo added.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed around
0.1% weaker.

The government's benchmark 2030 bond was stronger, the yield down 6.5 basis
points at 10.725%.

Nigeria

Naira-dollar exchange rate falls to N1,040 in parallel market

The exchange rate between the naira and the dollar has dropped to N1,040 in
the parallel market.

The ongoing trend of demand surpassing supply seems to be a contributing
factor. Forex traders report inflow quotes ranging from N1,035 to N1,045 per
dollar, indicating heightened scarcity, Nairametrics reports Wednesday
night.

Despite this, the official trade rate remains at N776.8/$1, highlighting a
notable disparity between the experiences of Nigerians in official and
unofficial channels.

 <mailto:info at bulls.co.zw> 

Global Markets

U.S. dollar stays nearly flat after FOMC minutes

(Xinhua) -- The U.S. dollar ended nearly flat in late trading on Wednesday,
as the Federal Open Market Committee (FOMC) minutes showed that officials
differed on whether any additional interest rate increases would be needed.

The dollar index, which measures the greenback against six major peers, fell
0.01 percent to 105.8195 in late trading.

The minutes released Wednesday showed that all members of the rate-setting
FOMC agreed they could proceed carefully on future decisions, which would be
based on incoming data rather than any preset path.

"A majority of participants judged that one more increase in the target
federal funds rate at a future meeting would likely be appropriate, while
some judged it likely that no further increases would be warranted," the
summary of the Sept. 19-20 policy meeting said.

The Fed also received some bad inflation news Wednesday, as the U.S. Labor
Department said that the producer price index (PPI), a measure of inflation
at the wholesale level, rose 0.5 percent in September.

Excluding food and energy, the core PPI rose 0.3 percent, versus the
forecast for 0.2 percent. Inflation pressures came primarily from final
demand goods, which surged 0.9 percent, while services increased 0.3
percent.

While in the eurozone, the European Central Bank's Consumer Expectation
Survey, carried out in August and released on Wednesday, showed the median
respondent thought inflation would be 2.5 percent in three years, up from
2.4 percent in the previous survey around a month earlier.

In late New York trading, the euro increased to 1.0608 U.S. dollars from
1.0598 dollars in the previous session, and the British pound was up to
1.2305 U.S. dollars from 1.2280 dollars.

The U.S. dollar bought 149.2340 Japanese yen, higher than 148.7260 Japanese
yen of the previous session. The U.S. dollar was down to 0.9027 Swiss francs
from 0.9049 Swiss francs, and it increased to 1.3600 Canadian dollars from
1.3588 Canadian dollars. The U.S. dollar was up to 10.9135 Swedish krona
from 10.8696 Swedish krona. │

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold climbs on lower Treasury yields, focus on Fed minutes

Gold prices hit a near two-week peak on Wednesday, supported by a dip in
U.S. Treasury yields after dovish remarks from Federal Reserve officials,
while minutes from the U.S. central bank's last policy meeting will be eyed
for more cues on rates.

Spot gold

was last up 0.73% at $1,873.6082 per ounce, after hitting its highest level
since Sept. 29. U.S. gold futures

settled 0.6% higher at $1,887.3.

Dovish comments from Fed officials that the U.S. central bank may pause
tightening and turmoil in the Middle East are supporting the gold market,
said Jim Wyckoff, senior analyst at Kitco Metals.

Atlanta Fed President Raphael Bostic on Tuesday said he saw no more U.S.
rate hikes, while Minneapolis Fed President Neel Kashkari said "possible"
higher bond yields meant the Fed could do less.

Benchmark 10-year U.S. Treasury yields fell for the second straight session
to a near two-week low, moving further away from their 2007 highs scaled
last week.

Uncertainty around the path of the U.S. economy, potential oil price shocks,
and the impact of labor union strikes, pushed Fed officials into a cautious
stance at their meeting last month, according to minutes of the Sept. 19-20
session.

U.S. Consumer Price Index data on Thursday is expected to provide more
clarity on the U.S. interest rate path.

A tamer inflation report will be bullish for the gold market and could push
prices to $1,900, Wyckoff said.

Gold is highly sensitive to rising U.S. interest rates as these increase the
opportunity cost of holding bullion.

Investors also kept a tab on the developments in the conflict between Israel
and Palestinian Islamist group Hamas. On Monday, prices climbed 1.6% as
these geopolitical tensions lifted safe-haven demand.

Spot silver rose 0.92% to $22.0099 per ounce. Platinum added 0.77% to $7.678
and palladium dropped 0.29% to $1,166.9694.

.

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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