Bulls n Bears Daily Market Commentary : 24 October 2023

Wed Oct 25 06:04:52 CAT 2023

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Bulls n Bears Daily Market Commentary : 24 October 2023

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

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 (ETF)

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 (TIG.zw) shed $2.9542 to $236.9658.-zse

Global Currencies & Equity Markets

South Africa

South African rand weakens against stronger dollar

(Reuters) - South Africa's rand fell on Tuesday as the dollar strengthened
following fresh economic data, which highlighted the strength of the U.S.
economy.

At 1546 GMT, the rand traded at 19.0600 against the dollar , around 0.5%
weaker than its previous close.

The dollar was up more than 0.6% against a basket of global currencies.

U.S. data showed business output ticked higher in October as the
manufacturing sector pulled out of a five-month contraction.

Nigeria

Naira free fall: Nigerians lament, call for acceptance of locally-made goods

Worried over the continuous rise in the rate of the dollar against the
naira, Nigerians have stressed the need for the consumption of locally made
goods.

They said the continuous rise in the dollar rate has increased the hardship
and hunger in Nigeria.

The dollar rate worsened at the parallel market, also known as the black
market exchanging for above N1175 per dollar last week.

For months now, dollar has been swaying, bringing more pain to the lives of
Nigerian particularly making imported goods more expensive.

In an interview with Daily Champion, a businessman, Mr. Sunday Samuel, said
the way dollar is falling is  lesson for Nigerians to accept locally-made
goods.

"For example, rice is made in China, if we want to do business with them we
have to change naira to dollar but if we produce rice ourselves and sell
among ourselves and even export it, it might fall and in that case we don't
even need dollar", he said.

Miss Omobolaji Olalekan, a working staff said that if possible we export
goods rather than importing them it might also allow dollar fall.

A Businessman, Mr. Amusa Ismail, said dollar increase is really affecting
the expenses of goods, adding that a separate fund should be set up for
government imports such as fuel.

"This should be given to banks only for setting government imports, banks
will not keep and profit margin for these payments. This will reduce
pressure on the private sector demand for the dollar for the import of other
essential.

A graduate of UNILAG, Mr. Omotayo Basit, urged the Federal Government to
reduce corruption, adding that corruption is gradually becoming synonymous
to Nigeria because the political office holders are not ready to use their
wealth to develop the country.

"Most of the political office holders prefer to invest in USA, China and
patronize hospitals in UK, Germany and many thereby gradually pulling down
Nigeria's Gross Domestic Product (GDP).

The naira hit a new record low of 999 per dollar on the official market on
Thursday, Refinitiv data showed, in line with weakness on the parallel
market as dollar shortages continued to put pressure on the currency.

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.

On Tuesday, it slumped to N1,100 to the dollar on the parallel market, and
N980 per dollar on the official market, Refinitiv data showed.

The Central Bank of Nigeria (CBN) has promised to intervene in the foreign
exchange market occasionally to boost liquidity.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar rises as US business activity ticks up in October

(Reuters) - The dollar rose against a basket of currencies on Tuesday as a
slew of fresh economic data highlighted the strength of the U.S. economy
relative to the United Kingdom and the European Union.

U.S. business output ticked higher in October as the manufacturing sector
pulled out of a five-month contraction on a pickup in new orders, and
services activity accelerated modestly amid signs of easing inflationary
pressures, S&P Global said on Tuesday.

-

It was the latest sign the U.S. economy is withstanding the surge in
interest rates, spurred by the Federal Reserve's campaign to beat back
inflation.

The dollar index , which measures the currency's strength against a basket
of six rivals, was 0.6% higher at 106.27. The index had slipped to a
one-month low of 105.35 earlier in the session.

"The big picture still clearly remains intact, especially when you compare
U.S. PMI to the concurrent releases out of the UK and the euro zone this
morning," said Helen Given, FX trader at Monex USA.

-

"While all three PMI readings for the U.S. (manufacturing, services, and
composite) were positive, both the UK and the euro zone showed contractions,
re-emphasizing the continuing resilience of the larger U.S. economy in
comparison to its peers around the world."

Earlier on Tuesday, survey data showed euro zone business activity took a
surprise turn for the worse this month in a broad-based downturn across the
region, suggesting the bloc may slip into recession.

-

The euro was last 0.8% lower at $1.0588.

German data was particularly glum. The purchasing managers' index survey
showed the service sector joined the manufacturing sector in contractionary
territory.

The Bank of England is due to set interest rates on Thursday next week,
after the Fed's decision on Wednesday. The European Central Bank's meeting
ends this Thursday, with traders expecting all three central banks to hold
rates steady.

"The October flash PMI surveys suggest that economic activity got off to a
weak start in Q4, especially in Europe," Capital Economics global economist
Ariane Curtis said in a note.

"And with weak activity taking some of the steam out of labor markets and
inflation, we are growing more confident in our view that the Fed, ECB and
Bank of England are done hiking policy rates," she said.

Global financial markets have been gripped by a surge in U.S. bond yields,
which on Monday pushed the benchmark 10-year Treasury yield above 5% to its
highest since July 2007. The rise in yields drove the dollar index to an
almost one-year high earlier this month.

The yield dropped sharply later on Monday. Analysts said one catalyst was a
social media message by prominent hedge fund investor Bill Ackman, saying he
had closed out his bet against longer-dated bonds and that geopolitical
worries were a factor. Yields rise as prices fall and vice versa.

The dollar was last up 0.1% at 149.91 yen , keeping traders nervous about
possible government intervention to prop up the Japanese currency.

The British pound was last down 0.72% at $1.2161. Britain's businesses
reported another decline in activity this month and cost pressures cooled
further, surveys showed on Tuesday, underlining the risk of recession.

In cryptocurrency markets, bitcoin extended its rise, helped by speculation
that an exchange-traded bitcoin fund is imminent. The world's largest
cryptocurrency by market cap was last up 2.4% at $33,850.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold little changed with focus on Middle East conflict, US economic data

(Reuters) - Gold held nearly steady on Tuesday after hitting a five-month
high last week, while traders kept one eye on U.S. economic data and another
on tensions in the Middle East.

Spot gold ticked 0.1% higher at $1,975.39 per ounce by 12:42 p.m. ET (1742
GMT) after falling as much as 1% earlier in the session. U.S. gold futures
settled 0.1% lower at $1,986.1.

"We saw some profit taking earlier in the session and then traders came to
buy the dip... $2,000 is still (on the) cards for the near-term or even a
new record high if there is an escalation in the Middle East crisis," said
Jim Wyckoff, senior analyst at Kitco Metals.

-

Gold prices have climbed about 9% in the past two weeks, hitting a
five-month high of $1,997.09 on Oct. 20, a rally mainly fuelled by
safe-haven inflows on concern Israel's war with Islamist group Hamas will
spread.

But gold's inability to rally (this week) is a signal that "safe-haven
demand has started to wane, as markets learn to live with tensions in the
Middle East," Marios Hadjikyriacos, senior investment analyst at forex
broker XM, wrote in a note.

-

Limiting gains for bullion, the dollar index (.DXY) rose against its rivals,
making gold more expensive for overseas buyer.

Market focus is on the U.S. third-quarter GDP figures due on Thursday and
the U.S. PCE price index on Friday that could influence the Federal
Reserve's outlook on interest rates.

"Direction of gold for the foreseeable future will be linked to the
direction of interest rates. If the economy weakens, and there's a view in
the market that we are entering a recession, then interest rates will likely
decline and the price of gold will likely go up," said Chris Mancini,
associate portfolio manager of the Gabelli Gold Fund.

-

Spot silver was flat at $22.97 an ounce, platinum dipped 1.2% to $885.88,
while palladium gained 0.8% to $1,127.04.

.

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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