Bulls n Bears Daily Market Commentary : 20 October 2023

Fri Oct 20 19:57:21 CAT 2023

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:bulls at bulls.co.zw> Views & Comments
<http://www.bullszimbabwe.com> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:%20bulls at bullszimbabwe.com?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 20 October 2023

ZSE commentary

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

The ZSE All Share Index added 566.97 points to close the session at
145,265.26 points. Trading in the positive: TSL LIMITED added $67.5498 to
$517.9000 and FIRST MUTUAL HOLDINGS LIMITED increased by $19.2345 to
$519.2345. NMB LIMITED  gained $14.6778 to close at $300.8824, NAMPAK
ZIMBABWE LIMITED was $10.9001 up at $346.0000 and MASIMBA HOLDINGS LIMITED
added $10.0000 to $800.0000.

Trading in the negative: FIRST MUTUAL PROPERTIES LIMITED lost $0.5500 to
close at $132.9500. TANGANDA TEA COMPANY LIMITED shed 0.2890 to close at
$923.7980 and ZIMRE HOLDINGS LIMITED eased $0.0500 to $94.9500. ARISTON
HOLDINGS LIMITED traded $0.0495 lower at $31.5000 and BRITISH AMERICAN
TOBACCO LIMITED decreased by $0.0321 to close at $13999.9250.

EXCHANGE TRADED FUNDS 

MORGAN & CO MADE IN ZIM EXCHANGE TRADED FUND added $0.2461 to $7.0000.
DATVEST MODIFIED CONSUMER STAPLES EXCHANGE TRADED FUNDS added $0.0375 to
$7.2375 and OLD MUTUAL TOP 10 ETF added $0.6207 to $31.4850. CASS SADDLE
AGRICULTURE EXCHANGE TRADED FUND and MORGAN & CO MULTISECTOR EXCHANGE TRADED
FUND remained flat at $7.2500 and $250.0000 respectively

REAL ESTATE INVESTMENT TRUST (REIT)

TIGERE REAL ESTATE INVESTMENT TRUST shed $2.9542 to $236.9658.-zse

Global Currencies & Equity Markets

South Africa

South African rand regains ground against dollar

(Reuters) - The South African rand regained lost ground on Friday against
the U.S. dollar while global focus remained on conflict in the Middle East.

At 1505 GMT, the rand traded at 18.9350 against the dollar , over 0.5%
weaker than its previous close. The rand had weakened in the past couple of
days on soaring U.S. Treasury yields and a sharp spike in local inflation.

The dollar last traded around 0.07% weaker against a basket of global
currencies.

"Global markets are volatile, which creates risks of spillover, but overall,
the rand seems unlikely to go very far in either direction," analysts at
Rand Merchant Bank said in a note earlier.

Local investors will turn their attention towards monthly producer price
inflation figures next week for clues on the health of Africa's most
industrialised economy.

Shares on the Johannesburg Stock Exchange closed lower, with the blue-chip
Top-40 index (.JTOPI) down 1.1%.

South Africa's benchmark 2030 government bond was stronger in early deals,
with the yield down 8.5 basis points to 10.800%.

Nigeria

Naira races to N1,170/$ on dollar shortage

Like in athletics, Nigeria's currency on Friday raced to an all-time low of
N1,170 per dollar on the parallel market, popularly called black.

This represents 1.3 percent depreciation compared to N1,155/$1 on Thursday.

Naira's weakness followed strong demand for dollars by end users who could
not meet their needs at the official market.

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

At the official market, Naira on Thursday fell to a record low of N999
according data quoted by Reuters from Refinitiv, an LSEG (London Stock
Exchange Group) business, and one of the world's largest providers of
financial markets data and infrastructure.

But data from the FMDQ showed that naira closed stronger than dollar,
gaining 1.01 percent as the dollar was quoted at N782.68 on Thursday
compared to N790.68 quoted on Wednesday at the Nigerian Autonomous Foreign
Exchange Market (NAFEM), the market trading segment for Investors'
Exporters' and End-users that allows for foreign exchange (FX) trades to be
made at exchange rates determined based on prevailing market circumstances.

Read also: Dollar supply drops by 86.99% after CBN restored 43 items

During the FX auction on Thursday, willing buyers and willing sellers
offered the highest bid of N986, weaker than N981/$1 on Wednesday and lower
bid of N700/$1, data from the FMDQ indicated.

 <mailto:info at bulls.co.zw> 

Global Markets

Global Markets

Dollar hits 150 yen then dips on intervention jitters

(Reuters) - The dollar touched the closely watched 150 level against the yen
on Friday after the benchmark 10-year Treasury yield briefly hit 5% late on
Thursday as investors positioned for the Federal Reserve to hold rates
higher for longer.

A move above 150 is seen in the market has having the potential to spur an
intervention by Japanese monetary officials concerned about the currency
weakening too far.

It reached 150.165 on Oct. 3 before rallying back to 147.3, but market
participants say it is not clear whether the move resulted from an
intervention by the Ministry of Finance (MOF) or was caused by market
nerves, a trade stop loss or other automated trades being triggered.

"The market is obviously very mindful that the 150 threshold that we're
close to again this morning is a potential precursor for the uncertainty of
having the MOF on the other side of it," said Jeremy Stretch, head of G10
currency strategy at CIBC Capital Markets.

Analysts say that the speed of the move and how far it goes above 150 will
also likely influence whether the Ministry of Finance steps in.

The dollar was last up 0.09% on the day at 149.91 yen .

The dollar rally has stalled since the index hit a 10-month high on Oct. 3,
which some analysts have said may be because the number of investors holding
dollars has become crowded.

Adam Button, chief currency analyst at ForexLive in Toronto, said that the
potential for MOF intervention was limiting further gains.

"I think the dollar would otherwise be stronger if not for the threat of
intervention from Japanese monetary officials," he said. "Given fixed income
and equities, the dollar should be stronger than it this week and I think
it's just a matter of time until it materializes."

The index was last at 106.22, up 0.03% on the day. The euro fell 0.03% to
$1.0579.

The dollar eased on Thursday after Fed Chairman Jerome Powell said rising
market interest rates could reduce the need for action by the central bank.

The odds of a Fed hike in December have dropped to 20%, from 39% before
Powell's comments, while a November pause is seen as a sure thing, according
to the CME Group's Fed Watch Tool. But the U.S. central bank is not expected
to begin cutting rates until June.

Investors are also watching the Middle East for any indications of an
escalation in the war between Israel and Hamas.

The Swiss franc hit an almost six-week high against the greenback earlier on
Friday, before falling back to last trade at 0.8923. The Swiss currency has
been a popular safe haven as a result of rising geopolitical tensions.

The Swissie also hit its highest against the euro since 2015, when the Swiss
National Bank scrapped its peg between the two currencies.

Elsewhere, the pound fell to a five-month low against the euro after a
series of data releases showed a collapse in British consumer confidence in
October following weak retail sales the month before.

Sterling was last up 0.05% against the dollar at $1.2145.│

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold hits 3-month peak as investors take cover from Middle East risks

Gold climbed to a three-month peak on Friday, en route to a second straight
weekly rise, as fears of a further escalation in the Middle East conflict
bolstered safe-haven demand.

Spot gold

was up 0.8% at $1,990.10 per ounce, after hitting its highest since July 20.
U.S. gold futures

added 1.6% to $2,001.40.

"There's an enormous amount of uncertainty around Israel and Gaza at the
minute, and two days can feel like a very long time under the circumstances.
So (there are) safe-haven flows and risk aversion going into the weekend; I
don't think that would be a surprise to anyone," said Craig Erlam, senior
markets analyst at OANDA.

Israel levelled a northern Gaza district on Friday and ordered the
evacuation of the biggest Israeli town near the Lebanese border, as it made
clear that a command to invade Gaza was expected soon.

Gold has risen 2.5% this week, and added nearly $150 since the onset of the
conflict.

Gold was also supported "as fears of another Fed rate hike in 2023 subside,"
Fitch Solutions said in a note, forecasting prices to average $1,950 an
ounce this year.

Fed Chair Jerome Powell on Thursday agreed "in principle" that the rise in
bond yields was helping to further tighten financial conditions and "at the
margin" might lessen the need for additional rate increases.

Higher interest rates raise the opportunity cost of holding gold.

Markets are widely expecting the Fed to keep rates on hold at its policy
meeting next month, according to the CME FedWatch tool.

Spot gold is expected to extend gains into a range of $1,998-$2,010 per
ounce, as it has broken a resistance at $1,972, according to Reuters
technical analyst Wang Tao.

Spot silver rose 2.3% to $23.568 per ounce, platinum gained 1.1% to $900.30.
Both were set for their second consecutive weekly rise.

Palladium added 0.05% to $1,114.21, as it headed for its fourth straight
weekly decline.

.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

Counters trading under cautionary

CBZH

GetBucks

EcoCash

Padenga

Econet

RTG

Fidelity

TSL

FMHL

ZBFH

Invest Wisely!

Bulls n Bears 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> bulls at bullszimbabwe.com  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com  

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

DISCLAIMER: This report has been prepared by Bulls 'n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls 'n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

(c) 2023 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> bulls at bullszimbabwe.com Tel: +263 4 2927658 Cell:
+263 77 344 1674

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231020/9510ca16/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231020/9510ca16/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 154168 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231020/9510ca16/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 42550 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231020/9510ca16/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231020/9510ca16/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130918 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20231020/9510ca16/attachment-0001.obj>