Bulls n Bears Daily Market Commentary : 18 October 2023

Thu Oct 19 08:10:32 CAT 2023

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Bulls n Bears Daily Market Commentary : 18 October 2023

ZSE commentary

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

The ZSE All Share Index increased by 3291.00 points to close the session at
142,798.43 points. Trading in the positive: CBZ HOLDINGS LIMITED added
$236.2244 to $1907.2000 and  MEIKLES LIMITED increased by $102.7214 to
$820.0183. FIRST MUTUAL HOLDINGS LIMITED gained $60.7500 to close at
$465.7500, DELTA CORPORATION LIMITED was $55.0433 up at $2455.3030 and SEED
CO LIMITED added $.65057 to $643.6543.

Trading in the negative: BRITISH AMERICAN TOBACCO LIMITED lost $950.0857 to
close at $13999.9143. CAFCA LIMITED shed 49.6000 to close at $2350.0000 and
EDGARS STORES LIMITED eased $5.3750 to $95.3750. ECOCASH HOLDINGS LIMITED
traded $1.9375 lower at $132.2238 and TANGANDA TEA COMPANY LIMITED decreased
by $0.9130 to close at $924.0870.

EXCHANGE TRADED FUNDS (ETF)

MORGAN & CO MULTISECTOR EXCHANGE TRADED FUND , MORGAN & CO MADE IN ZIM
EXCHANGE TRADED FUND and CASS SADDLE AGRICULTURE EXCHANGE TRADED FUND
remained unchanged at $253.0000, $7.9000 and $7.2500 respectively. DATVEST
MODIFIED CONSUMER STAPLES EXCHANGE TRADED FUNDS  added $0.5712 to $7.1168
and OLD MUTUAL TOP 10 ETF added $0.6759 to $30.0000

REAL ESTATE INVESTMENT TRUST (REIT)

TIGERE REAL ESTATE INVESTMENT TRUST lost $0.0671 to $238.9929-zse

Global Currencies & Equity Markets

South Africa

South African rand falls after sharp inflation spike

(Reuters) - The South African rand fell on Wednesday after September
headline consumer inflation rose sharply in Africa's most industrialised
economy.

At 1513 GMT, the rand traded at 19.0625 against the dollar , 1.4% weaker
than its previous close.

The dollar last traded about 0.3% stronger against a basket of global
currencies.

Local investor focus was on data released by Statistics South Africa, which
showed September year-on-year inflation (ZACPIY=ECI) rose to 5.4% from 4.8%
in August.

It was still within the South African Reserve Bank's (SARB) target range of
3% to 6%, but above its desired midpoint of that range.

The rand could face pressure going forward should conflict between Israel
and Hamas expand into a regional war, prompting a move to safe-haven
currencies like the dollar, DailyFX analyst Warren Venketas said in a
research note.

Separately, South African retail sales fell 0.5% year on year in August
after declining by a revised 1.0% in July, statistics agency figures showed.

With no other major economic data points scheduled for the week in South
Africa, the rand is set to take cues from other international factors such
as the direction of U.S. monetary policy.

A host of U.S. Federal Reserve speakers are due to give comments on
Wednesday, while Fed Chairman Jerome Powell is also scheduled to speak on
Thursday.

Shares on the Johannesburg Stock Exchange closed lower, with the blue-chip
Top-40 index (.JTOPI) down over 1.2%.

South Africa's benchmark 2030 government bond was weaker, with the yield up
6.5 basis points at 10.825%.

Reporting by Tannur Anders and Bhargav Acharya; Editing by Jane Merriman and
Jonathan Oatis

Our Standards: The Thomson Reuters Trust Principles.

Nigeria

Nigerian naira hits record black market low of 1,100 per dollar -abokiFx

(Reuters) - Nigeria's naira hit a record low of 1,100 per dollar on the
black market on Wednesday, online platform abokiFX showed, a day after the
currency hit a new low on the official market due to persistent dollar
shortages.

The naira has been in freefall on the unofficial market, where it trades
freely, which worsened after currency restrictions were lifted on the
official market.

The unit fell to a record low of 980 naira to the dollar on the official
market on Tuesday.

Advertisement · Scroll to continue

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

Last month, the currency slid past 1,000 naira per dollar on the black
market and continued to weaken as excess dollar demand is funnelled into the
informal market from the official market.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar gains as Fed, Middle East in focus

(Reuters) - The dollar rose against the euro and yen on Wednesday as
benchmark 10-year Treasury yields hit 16-year highs and as investors watched
the war between Hamas and Israel for signs of escalation.

The currency has benefited from expectations the U.S. Federal Reserve will
hold rates higher for longer as it battles to bring inflation closer to its
2% annual target.

"Largely I think we're still basing currency movements on interest rates,"
and the Fed's "very determined attempt to keep interest rates high to fight
inflation," said Joseph Trevisani, senior analyst at FXStreet.com in New
York.

Since mid-July, the benchmark 10-year Treasury yield has climbed about 120
basis points and the dollar index has risen around 7%.

Fed funds futures traders are pricing in a 39% chance that the Fed could
hike rates again by year-end, but only 6% odds of an increase next month,
according to the CME Group's FedWatch Tool.

In a strong signal that the Fed will not raise interest rates at its next
meeting but could easily do so later, Fed Governor Christopher Waller said
he wants to "wait, watch and see" if the U.S. economy continues its run of
strength or weakens in the face of the Fed's rate hikes to date.

Fed Bank of New York President John Williams also said interest rates will
need to stay high for a while to get inflation back to the central bank's 2%
target.

Fed Chaiman Jerome Powell and several regional Fed presidents are due to
give comments on Thursday before Fed officials enter into a blackout period
on Oct. 21 before the central bank's Oct. 31-Nov. 1 meeting.

The U.S. central bank's "Beige Book" indicated that U.S. economic activity
was little changed over the last month and a half, as labor market tightness
continued to ease and prices continued to increase at a modest pace.

The dollar index was last up 0.32% on the day at 106.55. It is holding below
the 107.34 level reached on Oct. 3, the highest since November 2022.

The euro dipped 0.38% to $1.0536. It is up from $1.0448 on Oct. 3, the
lowest since December 2022.

The dollar is also benefiting from safe haven demand on concerns over the
conflict in the Middle East.

U.S. President Joe Biden pledged solidarity with Israel on Wednesday and
said a deadly blast at a Gaza hospital seemed to have been caused by a
rocket misfired by militants.

Sterling fell after a brief pop as British consumer price inflation (CPI)
unexpectedly held at 6.7% in September, remaining the highest of any major
advanced economy and keeping alive the possibility of another rise in
interest rates.

The pound was last down 0.32% at $1.2144.

The yen weakened against the greenback to a two-week low of 149.89. The Bank
of Japan unexpectedly announced $2 billion in bond-buying to keep downward
pressure on yields.

The 150 yen mark has become a psychological level after past government
interventions to prop up the currency occurred around that point. Earlier in
October, the yen rallied sharply after falling past 150, although it later
fell back and early indications suggest Japan did not intervene.│

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold advances as Middle East tensions spur safe-haven demand

(Reuters) - Gold rose to a more than two-month peak on Wednesday as the
escalating conflict in the Middle East sent investors flocking towards the
safe-haven metal.

Spot gold increased 1% to $1,950.67 per ounce by 2:48 p.m. ET (1848 GMT),
after hitting its highest since Aug. 1. U.S. gold futures settled 1.7%
higher at $1,968.3.

"Gold could breach $2,000 in the near-term if there is an escalation of
geopolitical conflict. Additionally, having the Fed pause rate increases or
hint at a lower probability of increases in the future would be viewed
positively," said Ryan McIntyre, senior portfolio manager at Sprott Asset
Management.

Gold, considered a safe store of value amid political and financial
uncertainty, has climbed more than 5% so far in October. Wall Street's main
stock indexes have dipped amid risk aversion.

"Gold will pull back if the Middle East situation simmers down, but right
now the market place is expecting a further escalation," said Jim Wyckoff,
senior analyst at Kitco Metals.

About 500 Palestinians were killed in a blast at a Gaza City hospital on
Tuesday.

With the dollar maintaining its bullish trend and bond yields on the rise
again, it is not going to take much to slam gold back down, Fawad Razaqzada,
market analyst at City Index, wrote in a note.

Focus is also on Federal Reserve Chair Jerome Powell's speech due on
Thursday, which could offer some clarity on the Fed's interest rate path
after recent dovish comments from several U.S. policymakers.

Ole Hansen, head of commodity strategy at Saxo Bank, highlighted in a note
that asset managers, many of which trade gold through exchange-traded funds
(ETFs), continue to focus on U.S. economic strength, rising bond yields and
potentially another delay in peak rates.

Spot silver rose 0.2% to $22.87, platinum fell 1.4% to $884.89 and palladium
fell 1% to $1,132.61.

.

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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