Bulls n Bears Daily Market Commentary : 30 October 2023

Tue Oct 31 07:33:45 CAT 2023

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Bulls n Bears Daily Market Commentary : 30 October 2023

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

The ZSE All Share Index went up by 4,420.14 points higher to close the
session at 153,756.06 points. Trading in the positive: DELTA CORPORATION
LIMITED added $243.0383 to $2,849.5780 and BRITISH AMERICAN TOBACCO ZIMBABWE
LIMITED increased by $210.1196 to $14,205.7100. MASHONALAND HOLDINGS LIMITED
gained $9.5833 to close at $135.0000, DAIRIBORD HOLDINGS LIMITED was $9.0498
up at $485.0000 and EDGARS STORES LIMITED added $4.3839 to $99.7407.

Trading in the negative: FBC HOLDINGS LIMITED retreated by $11.7500 to close
at $745.0000, HIPPO VALLEY ESTATES LIMITED shed $2.4666 to close at
$1,890.0630 and CBZ HOLDINGS LIMITED eased $0.4390 to $1,805.0000. ECOCASH
HOLDINGS ZIMBABWE LIMITED lost $0.0284 to $137.9658 and TANGANDA TEA COMPANY
LIMITED was $0.0101 down at $950.0000.

EXCHANGE TRADED FUNDS (ETF)

MORGAN & CO MADE IN ZIM EXCHANGE TRADED FUND added $0.0123 to $6.9123, CASS
SADDLE AGRICULTURE EXCHANGE TRADED FUND , OLD MUTUAL TOP 10 ETF , MORGAN &
CO MULTISECTOR EXCHANGE TRADED FUND and DATVEST MODIFIED CONSUMER STAPLES
EXCHANGE TRADED FUNDS remained flat at $7.2500, $32.0541, $250.0000 and
$7.2400 respectively.

REAL ESTATE INVESTMENT TRUST (REIT)

TIGERE REAL ESTATE INVESTMENT TRUST was $4.3407 down at $235.6593.-zse

Global Currencies & Equity Markets

South Africa

South Africa's rand strengthens ahead of mid-term budget

(Reuters) - The South African rand rose on Monday at the start of a
data-heavy week that includes the government's midterm budget statement.

At 1505 GMT, the rand traded at 18.8000 against the dollar, more than 0.3%
stronger than its previous close.

Meanwhile, the dollar last traded down 0.4% against a basket of global
currencies.

South Africa's finance minister Enoch Godongwana will on Wednesday table in
parliament the medium-term budget policy statement (MTBPS), which updates
economic forecasts, adjusts the budget and makes emergency changes to
spending.

The rand's appreciation in recent days is surprising given that Godongwana
will likely highlight the deterioration of South Africa's fiscal position,
analysts at ETM said.

The currency could be drawing strength from more hawkish talk from the South
African Reserve Bank, which has left the prospect of another rate hike on
the table, they said.

"The broader picture remains worrisome, with all eyes turning to the MTBPS
to determine if the government has the appetite to implement urgently needed
structural reforms," ETM Analytics said in a research note.

Central bank data on Monday showed that South Africa's credit growth
(ZACRED=ECI) had risen to 4.60% in September from 4.39% in August, and that
M3 money supply growth (ZAM3=ECI) was at 7.67% in September, down from 8.53%
the previous month.

National Treasury figures showed the country recorded a budget deficit of
14.59 billion rand ($774.84 million) in September, compared to a deficit of
3.29 billion rand in the same month a year earlier.

Shares on the Johannesburg Stock Exchange rose, with the blue-chip Top-40
index (.JTOPI) closing over 0.7% higher.

South Africa's benchmark 2030 government bond fell, the yield up 5.5 basis
points at 10.715%.

($1 = 18.8298 rand)

Nigeria

Naira to regain true value before December 2023 - Oyedele

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms,
Taiwo Oyedele, has assured Nigerians that the ongoing plan by the Federal
Government to introduce new foreign exchange rules will reflect the true
value of the naira.

He also said the plan which would include a crackdown on illicit currency
trading, would result in naira closing its gap with the unofficial rate and
reaching a "fair price" before the end of 2023.

According to him, the government sees a "fair price" for the dollar at "N650
to N750".

Oyedele, speaking in an interview with Bloomberg on Monday, added that the
government would set transparent rules for the operations of the official
market after clearing a backlog of dollar demand estimated at about $6.7bn.

He said, "The Federal Government plans to introduce new foreign exchange
rules, the federal government plans to introduce new foreign exchange rules,
including a crackdown on illicit currency trading."

 <mailto:info at bulls.co.zw> 

Global Market

Japanese yen rises to two-week high vs dollar on talk of BOJ policy tweak

(Reuters) - The Japanese yen climbed to a two-week peak against the dollar
on Monday after a report said the Bank of Japan is considering tweaking its
yield curve control policy to allow the 10-year Japanese government bond
yield to rise above 1% when it concludes its meeting on Tuesday.

The Nikkei report pushed the yen to 148.81 per dollar, its strongest level
since Oct. 17. The greenback, which has been on the defensive all day, was
last down 0.4% at 149.065 yen .

Surging global rates have heightened pressure on the BOJ, which kicked off
its two-day monetary policy meeting on Monday, to change its bond yield
control policy, in which it maintains a -0.1% short-term interest rate
target and a 0% cap on the 10-year bond yield.

"If the BOJ does not do anything tomorrow, which I think that's what
economists expect, and just wait until December, I think the dollar jumps
right back versus the yen," said Marc Chandler, chief market strategist at
Bannockburn Global Forex in New York.

But with Monday's action, Chandler thinks Japanese intervention seems
unlikely, although he noted that in the last few weeks the BOJ has
intervened in the bond market as an alternative.

"The key to intervention is excessive volatility and the BOJ has been saying
this: that it's not targeting a particular level. So that's taking the magic
away from the 150 mark," he said.

Aside from the BOJ, market participants are looking ahead to interest rate
decisions from the U.S. Federal Reserve and the Bank of England (BoE).

A slew of purchasing managers' surveys, euro zone inflation and GDP data,
and U.S. nonfarm payrolls are also due for release this week.

"If consumer data domestically hadn't been so strong last week, we'd
probably be looking at a bigger slide for the dollar, but markets are still
finding it quite difficult to discount the resilience of the U.S. economy,"
said Helen Given, FX trader at Monex USA in Washington.

Analysts also pointed to the U.S. Treasury's quarterly refunding
announcement on Wednesday that could move both the bond and currency
markets.

That comes as mounting deficits and a heavier interest rate burden have
substantially increased the U.S. Treasury's funding needs. Since the last
announcement in August, borrowing rates have spiraled to their highest since
2006-07.

The dollar index was last down 0.4% at 106.11, after earlier falling to a
one-week low of 106.06, hurt by a pickup in the euro . The euro was last up
0.5% at $1.0615.

The U.S. Treasury on Monday announced borrowing estimates of $776 billion
for the fourth quarter, lower than the $852 billion forecast announced on
July 31, due to expectations of higher receipts.

The greenback slightly extended losses after the announcement.

Later this week, the Fed and BoE are both expected to keep rates steady so,
barring any surprises, the focus will be on the message from policymakers.

The pound was up 0.4% at $1.2164 .

U.S. nonfarm payrolls data on Friday will also be important for expectations
of the Fed's rate hike path. Wall Street economists are expecting new U.S.
jobs of 188,000 for the month of October, according to a Reuters poll.

The Thomson Reuters Trust Principles.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold on track for biggest monthly rise in 11 on safe-haven flows

Gold steadied on Tuesday ahead of central bank meetings this week that could
offer insights on global economy and policy outlook, but the safe-haven
metal was set to end its best performing month in almost a year as the
Israel-Hamas war unfolded.

Spot gold

had advanced to as high as $2,009.29 an ounce on Friday, the highest since
mid-May, as investors bolted for safety amid the Middle East crisis.

The rush for safety spurred gold from $1,809.50 on Oct. 6, a day before
Hamas' attack on Israel, and set bullion on track for an 8% rise this month,
the most since November 2022.

Spot gold was down 0.1% to $1,994.15 per ounce by 0306 GMT. U.S. gold
futures

eased 0.1% to $2,003.60.

"It appears that Israel taking a slightly more measured approach to its
incursion into Gaza has eased fears slightly of a broadening crisis in the
Middle East," said Kyle Rodda, financial market analyst at Capital.com.

"However, the move back below $2,000 is only marginal, and the price still
reflects heightened risks of an escalation in the conflict."

Investors' focus this week is on the U.S. Federal Reserve's monetary policy
decision Wednesday, followed by U.S. monthly jobs report Friday.

"Provided the conflict does not spread into key oil producing (countries),
the Fed's higher for longer narrative should see some of the risk premium
associated with gold unwind over the next few weeks," TD Securities said in
a note.

The Bank of Japan is expected to revise its inflation forecasts and discuss
additional tweaks to its bond yield control at its meeting on Tuesday. The
Bank of England's decision is due Thursday.

In other metals, spot silver

fell 0.6% to $23.17 and platinum

was down 0.1% to $928.58, with both set for monthly gains. Palladium

eased 0.3% to $1,124.69 and eyed an over 9% decline this month.

.

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 

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