Bulls n Bears Daily Market Commentary : 17 October 2023

Wed Oct 18 06:43:48 CAT 2023

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Bulls n Bears Daily Market Commentary : 17 October 2023

ZSE commentary

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

ZSE turnover jumps 418pc over 3 months

The Zimbabwe Stock Exchange (ZSE) total turnover for the third quarter of
2023 jumped 418 percent to $171 billion compared to $33 billion recorded
during the same period in the prior year, as excess liquidity found its way
to the equities market.

However, quarter on quarter, growth was 27 percent as the Government
implemented measures to tighten liquidity and tame inflation.

Figures from the exchange show that total market capitalisation lost 29
percent during the third quarter period compared to the previous quarter, to
close at $9,87 trillion in depressed activity.

But this represents a 443 percent increase from the same comparative period
last year, although, in real US dollar terms, the market is still below the
US$4 billion mark. Delta, Econet, FBCH, and CBZ accounted for 30,36 percent,
13,10 percent, 5,4 percent and 4,2 percent respectively to total market
value.

During the period under review, ZSE All Share Index lost 26 percent from the
previous quarter to close at 126,642.42 points. Foreign investor
participation was depressed and accounted for 11 percent of Q3 2023 trades.

The blue chip index, the ZSE Top 10 Index retreated by 39 percent to close
the quarter at 56,560.21 points in Q3 2023. The ZSE ICT Index recorded the
highest loss for Q3 2023, registering a 41 percent drop to close at
78,092.73 points.

During the period, FML was the top traded company accounting for $52,7
billion followed by Delta at $14,8 billion while Econet, Meikles and OK
completed the top five top traders.

On the exchange-traded funds (ETFs) the ZSE ETF Index which measures the
performance of ZSE-listed ETFs was up by 11 percent during the quarter under
review to close at 1,596.31 points.

The total value traded on the ETF board was $84,8 million and the total
number of ETF units that exchanged hands in the third quarter period of 2023
7,5 million. Total market capitalisation for the for ETFs was $39 billion at
the end of the quarter under review.

Since its launch, the ZSE direct has continued to play an integral part in
increasing retail participation on the bourse. The online and mobile trading
platform was specifically designed with the retail investor in mind to make
the process of accessing the stock market easier even for first-time
investors on the ZSE.

During the period under review, the platform had 17 564 clients,
representing a growth of 22,88 percent compared to the previous quarter,
which had 14,294 clients. Of these figures, active clients were 9 824, which
was a marginal growth of 3,44 percent over the previous quarter.-herald

Global Currencies & Equity Markets

South Africa

South African rand extends gains ahead of central bank policy review

(Reuters) - The South African rand strengthened in early trade ahead of a
central bank monetary policy review on Tuesday and local inflation figures
the following day.

At 0723 GMT, the rand traded at 18.7100 against the dollar ZAR=D3, over 0.3%
firmer than its previous close.

The rand has had a strong start to the week, jumping over 1% on Monday as
market sentiment improved, despite ongoing tensions in the Middle East.

The South African Reserve Bank will at around 1430 GMT release its October
Monetary Policy Review, which is expected to shed light on Africa's most
industrialised economy.

The next major economic data release will be the monthly consumer inflation
figures at 0800 GMT on Wednesday.

"A break below the 18.75 level could see the local currency push towards
18.65 and possibly 18.50, which will most likely depend on international
developments," said Andre Cilliers, currency strategist at TreasuryONE.

The rand, like most emerging market currencies, is highly sensitive to
geopolitical tensions and U.S. monetary policy. Economic data releases in
China also tend to affect the rand as China is South Africa's biggest
trading partner.

Shares on the Johannesburg Stock Exchange opened lower, with the blue-chip
Top-40 index .JTOPI last trading down 0.7%.

South Africa's benchmark 2030 government bond ZAR2030= was slightly weaker
in early deals, the yield up 1.5 basis points to 10.750%.

Nigeria

Nigeria's naira hits record low of 980 per dollar on official market
-Refinitiv data

(Reuters) - Nigeria's naira hit a record low of 980 per dollar on the
official market on Tuesday, Refinitiv data showed, mirroring weakness on the
parallel market, as persistent dollar shortages plague the currency market.

The currency slid pass 1,000 naira per dollar on the parallel market last
month and continued to weaken as excess dollar demand was funnelled into the
informal market from the official market, where restrictions on trading the
currency were lifted in June.

The central bank has said it will intervene in the foreign exchange market
occasionally to boost liquidity, after it last week ended an eight-year ban
on some items that were restricted from accessing dollars on the official
market.

 <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 Edges Up on Haven Demand as Mideast Conflict Intensifies

(Bloomberg) -- Gold jumped to the highest level in four weeks as the
intensifying conflict in the Middle East bolstered haven demand, with hopes
for a diplomatic resolution deteriorating after a deadly explosion in Gaza.

US President Joe Biden's visit to Israel and Jordan scheduled for Wednesday
began to unravel even before he left the ground, after the explosion at a
Gaza hospital left hundreds dead and Arab leaders pulled out of a meeting
planned for the trip. 

The threat of escalation continues to provide support for bullion, which has
gained about 6% since Hamas's surprise attack on Israel earlier this month.
Previously, the metal was trading near a seven-month low, with a steep
selloff in Treasuries weighing heavily on the non-yielding asset.

Gold climbed even as data showed US retail sales exceeded all forecasts and
industrial production strengthened last month. The figures reinforced the
case for the Federal Reserve to keep interest rates higher for longer.
Higher borrowing costs are typically negative for gold

Spot gold climbed 0.8% to $1,937.60 an ounce as of 9:42 a.m. in Singapore.
The Bloomberg Dollar Spot Index was steady. Silver, platinum and palladium
gained

©2023 Bloomberg L.P.

.

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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