Bulls n Bears Daily Market Commentary : 31 August 2023

Fri Sep 1 06:22:30 CAT 2023

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Bulls n Bears Daily Market Commentary : 31 August 2023

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

Zimbabwe Stock Exchange (ZSE)

The local bourse continues to extend gains. During today's trading session
the market gained 2.60% with an overall Market Cap at ZWL$9.98 trillion.
Total turnover aggressively increased by 61.02% to ZWL$ 2.60 billion while
Total volumes traded subsided by 2.04% to ZWL$6.59 million. Delta, OK
Zimbabwe, and BAT Zimbabwe were today's three most traded counters,
constituting about 78% of the total turnover.

The All-Share Index increased by 2.63% to 125,134.79 points at the back of
15 risers and 7 decliners. The Top-15 index gained 2.86% to close at
81,140.54 points. The Top 10 Index also increased by 2.72% to close at
58,625.14 points.

The mover's list for today was led by the circuit breaker Nampak Zimbabwe,
which earned 15.00% to close at $149.55. Trailing the risers list was BAT
Zimbabwe, Seed Co and First M. Ltd after advancing by 14.86%, 14.60% and
14.00% to close at $17,953.16, $1,133.25, and $171,00, respectively. 

Willdale suffered a strong defeat of 66.46% and closed at $3.35. The shakers
list also included CBZ Holdings and FBC Holdings which trimmed 12.08% and
1.24% to close at $718.96 and $809.86, respectively. OK Zimbabwe and Ariston
were also among the defeated after losing 0.79% and 0.67%, respectively. 

Victoria Falls Stock Exchange (VFEX) 

The VFEX All Share Index gained 1.04% to close at 71.84 points. Innscor
Africa Ltd was the most traded counter on the VFEX Exchange, contributing
47.50% of the total turnover.

Global Currencies & Equity Markets

South Africa

South African rand weakens against stronger dollar

(Reuters) - South Africa's rand weakened on Thursday against a stronger
dollar as data painted a mixed picture of the U.S. economy.

At 1544 GMT, the rand traded at 18.9300 against the dollar , nearly 1.3%
weaker from its previous close.

South Africa's July producer inflation (ZAPPIY=ECI) and trade figures
(ZATBAL=ECI) did little to prop up its currency, with the rand taking cues
from the stronger dollar.

South Africa recorded a trade surplus of 15.96 billion rand ($849.53
million) in July, revenue service figures showed, while the statistics
agency said the country's producer inflation slowed to 2.7% year on year in
July from 4.8% in June.

The dollar index was last up nearly 0.6% against a basket of other major
currencies.

U.S. consumer spending accelerated in July with an 0.8% increase, but
slowing inflation fuelled expectations that the Federal Reserve would leave
interest rates unchanged next month.

Shares on the Johannesburg Stock Exchange fell, with the blue-chip Top 40
index (.JTOPI) closing 0.34% lower.

South Africa's benchmark 2030 government bond fell, sending its yield up 7
basis points to 10.275%.

Malawi

Kwacha continues to lose value against dollar

The Malawi kwacha has hit K1,126 to the dollar this month as it continues to
lose value under the Lazarus Chakwera administration.

The Kwacha has fell by 2.8 percent from K1,095 last month.

This follows a foreign exchange auction the Reserve Bank of Malawi (RBM)
conducted on Tuesday.

In a letter addressed to Authorised Dealer Banks (ADBs) on Thursday, Reserve
Bank of Malawi Governor Wilson Banda said the maximum selling price of the
Kwacha shall be K1,126.77 per dollar effective tomorrow, September 1.

The central bank announced in January this year that foreign exchange
auctions will be determining the market clearing price of the Malawi Kwacha
against the United States dollar and other major currencies.

However, on the black market and in some banks, the Kwacha is being sold at
between K1500 and K1800 per dollar.

The Kwacha which was trading at K1,034.67 per dollar n December 2022 has
been losing value for several months. Malawi has also been facing challenges
of foreign currency scarcity for over a year.

Analysts have been advising the Lazarus Chakwera administration to control
expenditure and use of foreign currency such as cutting foreign trips.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar set for weekly loss as crucial US jobs data looms

(Reuters) - The dollar was on course to snap a six-week winning streak
against major peers on Friday, as it headed into a pivotal monthly U.S. jobs
report that is likely to inform the path for Federal Reserve policy over
coming months.

The U.S. currency dipped to a one-week low against the yen, weighed down by
slumping Treasury yields, after a volatile week when overall soft economic
data tempered the outlook for further Fed rate hikes.

However, the greenback held on to gains made against the euro and sterling
overnight after policymakers at the respective central banks struck more
dovish postures ahead of policy meetings this month.

Elsewhere, the Chinese yuan strengthened after the nation's central bank cut
forex reserve requirements for the first time in a year.

The U.S. dollar index - which measures the currency against a basket of six
developed-market peers, including the euro, sterling and yen - edged 0.05%
lower to 103.58 on Friday, bringing declines this week to 0.53%.

A parade of employment and inflation data has paved the way to the nonfarm
payrolls report later in the global day, and much of it has been on the
weaker side, leading traders to pare bets for a rate hike on Sept. 20 to 12%
from 18% a week ago, according to the CME Group's FedWatch tool.

Two-year Treasury yields , which are particularly sensitive to rate
expectations, have declined about 20 basis points this week to 4.86%, the
biggest slide since mid-March.

That has helped push the dollar down against the yen . It slipped 0.08% to
145.405 yen on Friday, putting its loss for the week at 0.7%.

The dollar made up some ground on the euro overnight though. The single
currency was little changed at $1.08455 following a 0.74% tumble on Thursday
that pared its weekly advance to 0.49%.

Euro-area data on Thursday showed core inflation fell in August.
Expectations for an "upside surprise" had been building after German
inflation outpaced forecasts in a reading on Wednesday, said Ray Attrill,
head of foreign-exchange strategy at National Australia Bank.

"There's a little bit of relief there, (which) had an impact in just
dampening expectations for a September ECB hike," he said. "That's basically
what took the bite out of the euro."

Also on Thursday, Bank of England chief economist Huw Pill highlighted the
risk that policy tightening will hurt Britain's economy, even as he said the
central bank will "see the job through" on bringing inflation back to
target.

"Pill's comments appear consistent with another quarter-point turn of the
screw on 21 September, but not necessarily thereafter," Attrill said.

In Asia, the early focus turned to the yuan, which jumped to the highest
since Aug. 11 at 7.2392 per dollar in offshore trading , before paring some
of those gains. The dollar was last 0.25% weaker at 7.2574 yuan.

The People's Bank of China said it would cut the foreign exchange reserve
requirement ratio (RRR) by 200 basis points to 4% beginning Sept. 15,
according to an online statement, as it expanded efforts to shore up its
embattled currency, which sank to an 11-month trough at 7.3426 in
mid-August.

In cryptocurrencies, bitcoin unwound all of its gains for the week, last
trading at $26,021 after dropping 5% overnight as the Securities and
Exchange Commission (SEC) delayed a decision on whether to approve several
applications for spot bitcoin ETFs.

Bitcoin had jumped as high as $28,142 on Tuesday after a U.S. court ruled
that the SEC was wrong to reject an application from Grayscale Investments
to create such an ETF, which would be the first of its kind.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices rise to reach Rs 60,160, silver prices unchanged at Rs 77,600

The price of 24-carat gold registered a marginal rise of Rs 160 during
Friday's early trade, with ten grams of the precious metal selling at Rs
60,160, according to the GoodReturns website. On the other hand, the price
of silver remained unchanged, selling for Rs 77,600 per kilogram.

The price of 22-carat gold rose by Rs 150 per 10 grams, with the yellow
metal selling at Rs 55,150 per kilogram.

The price of ten grams of 24-carat gold in Mumbai is on par with that in
Kolkata and Hyderabad, at Rs 60,160.

The price of ten grams of 24-carat gold in Delhi, Bengaluru, and Chennai is
Rs 60,310, Rs 60,160 and Rs 60,490, respectively.

The price of ten grams of 22-carat gold in Mumbai is on par with that in
Kolkata and Hyderabad, at Rs 55,150.

Spot gold edged down 0.1 per cent to $1,940.23 per ounce at 13:51 EDT (17:51
GMT), close to its highest since 2 August, at $1,948.79, reached on
Wednesday.

Bob Haberkorn, senior market strategist at RJO Futures, said that while the
numbers were "not terrible," they were "not great" either and might mean
that the US Federal Reserve could halt interest rate increases early next
year.

Gold is now in wait-and-see mode, and a drop in bond yields could prompt
some strength in bullion, added Haberkorn.

Silver eased 0.7 per cent to $24.48 per ounce, having climbed to a more than
one-month high on Wednesday. Platinum fell 0.8 per cent to $966.05 but was
headed for its second consecutive monthly gain.

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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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
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for guideline purposes only and sourced from third parties.

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