Bulls n Bears Daily Market Commentary : 05 September 2023

Wed Sep 6 06:24:57 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 : 05 September 2023

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

Zimbabwe Stock Exchange (ZSE)

The ZSE extended prior session’s losses owing to profit-induced sell-offs. Regardless of a notable increase in liquidity on the board, overall Market Cap eased 0.39% to close at ZWL$9.70 trillion. Total turnover increased to ZWL$ 3.88 billion and Total volumes traded accumulated to ZWL$15.97 million. First M. Limited and Econet pushed the overall turnover for today as they constituted 86.34% of the total turnover realized on the board.

Losses were evenly spun across the market's medium-cap counters owing to reduced investor activity and profit-induced sell-offs. By the end of today's trading session, all the heavy-weight indexes were in red. The benchmark All-Share Index lost another 0.20% to close at 121,727.85 points at the back of 13 movers and 8 laggards. The Top-15 index decreased by 0.40% to close at 77,959.33 points, and 0.48% was trimmed on the gigantic Top 10 Index which settled at 56,056.92 points.

The mover's list for today was led by Ariston, topping the list with an 18.10% return as it closes at $29.40. Nampak Zimbabwe gained 10.30% to close at $182.00 and OK Zimbabwe closed 9.67% stronger at $131.76. Other counters that traded in the positive include Seed Co and EcoCash Holdings Limited.

Leading the shakers list for today is Hippo Valley, after losing 9.17% to close at $1, 816.53. ZB Financial Holdings shed 5.36% to $600.00 and First M. Properties traded 4.69% weaker at $96.00. Other counters that traded in the negative include Stra Africa Corp and Econet which went down by 3.44% and 3.28% to close at $5.41 and $500.05, respectively.

Victoria Falls Stock Exchange (VFEX) 

The VFEX All Share Index lost 1.55% to close the session at 68.96 points. Nat Foods Holdings and First Capital Bank Ltd were the only ones that traded in the negative, retreating by 2.50% and 19.50% to close at $0.02 and $1.61, respectively.

Trading in the positive were Simbisa Brands Ltd and Innscor Africa Ltd, after each gained 2.99% and 1.28% to close at $0.37 and $0.42, respectively. The rest of the counters remained unchanged.

Global Currencies & Equity Markets

South Africa

South African rand and stocks slip as power cuts bite

(Reuters) - The South African rand weakened on Tuesday against a stronger dollar as the country suffered the worst power cuts on record.

At 1516 GMT, the rand traded at 19.2350 against the dollar , about 0.5% weaker than its previous close.

The dollar last traded more than 0.6% stronger against a basket of global currencies.

"With the U.S. closed ... most markets were stable, except the rand that fell sharply," said Rand Merchant Bank analysts in a research note.

Advertisement · Scroll to continue

The rand tumbled after South Africa's struggling state utility Eskom reinstated the worst rolling blackouts on record, which mean up to 12 hours of power cuts for most households per day.

In the second quarter, when Eskom somewhat eased the levels of outages, the country's economy recorded a greater than expected expansion, local data showed on Tuesday.

S&P Global survey showed South Africa's private sector activity grew for the first time in six months in August as improved demand led to firms boosting output.

Advertisement · Scroll to continue

On the stock market, the Top-40 (.JTOPI) and the broader all-share (.JALSH) indexes closed around 0.5% lower.

South Africa's benchmark 2030 government bond was weaker in afternoon deals, with the yield up 7.5 basis points to 10.410%.

Nigeria

Naira begins new week on negative note

The naira depreciated against the dollar on Monday as it exchanged at N747.87 at the Investors and Exporters window.

The naira dropped by 1.01 per cent compared to the N740.38 it exchanged for the dollar after the close of business on Sept. 1.

The open indicative rate closed at N772.06 to the dollar on Monday.

A spot exchange rate of N799.90 to the dollar was the highest rate recorded within the day’s trading before it settled at N747.87.

The naira sold for as low as N730 to the dollar within the day’s trading.

A total of 74.64 million dollars was traded at the investors and exporters window on Monday. (NAN)

 <mailto:info at bulls.co.zw> 

Global Markets

Rupee opens flat at 83.02 against the US dollar

The Indian rupee opened flat against the US dollar on Wednesday amid broader strength in the greenback and a sharp surge in crude oil prices. The local currency opened at 83.02 a dollar as compared to previous close of 83.04.

The dollar traded near a six-month peak on safe-haven demand as jitters over China and global growth dragged on risk sentiment. The dollar index rose 0.067% to 104.80 against a basket of currencies, not far off the six-month high of 104.90 it touched overnight.

The yen was at 147.66 per dollar, just shy of 147.8 per dollar, the lowest since November 4 it touched overnight. The euro was unchanged at $1.0721, having breached a three-month low of $1.0705 overnight. Sterling was last at $1.2559, down 0.03% on the day. It also touched a three-month low of $1.25285, Reuters reported.

US Treasury yields rose on Tuesday with the 10-year yield now about ten basis points shy of the recent high as resilient US economic data raised expectations that the US Federal Reserve will keep interest rates high for longer.

Federal Reserve Governor Christopher Waller said on Tuesday that he felt US treasury yields were about where they should be and cautioned against assumptions about no further Fed tightening, Reuters reported.

“The pair is expected to hold the support near 82.80 and move higher towards 83.20 amid strong dollar and higher crude oil prices. The dollar is expected to remain firm amid rising concerns over global growth. Meanwhile, investors will remain focused on Fed members speech to get more clarity on the future rate path," ICICI Direct said in a report.

It expects USDINR to move in between 82.80-83.20. Only close below 82.80 it would slide towards 82.60, it added.

Meanwhile, crude oil prices surged on worries about a supply shortage after Saudi Arabia and Russia extended their voluntary supply cuts to the end of the year.

Brent crude futures rose 0.13% to $90.16 a barrel, while US West Texas Intermediate crude (WTI) futures gained 0.10% to $86.78 a barrel.

On the domestic front, the Indian benchmark equity indices, Sensex and Nifty, were trading flat in the pre-opening session.

On Tuesday, the Foreign institutional investors (FIIs) net sold Indian shares worth ₹1,725.11 crore, while Domestic Institutional Investors (DIIs) net purchased shares to the tune of ₹1,077.86 crore, as per provisional data available on the exchanges.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold retreats as growth risks drive safe-haven bids to U.S. dollar

Gold slipped to a one-week low on Tuesday on rising bond yields and a jump in the U.S. dollar as investors sought a hedge against global economic growth concerns.

Spot gold was down 0.6% at $1,926.21 per ounce. U.S. gold futures settled 0.7% lower at $1,952.60.

Jitters about global growth, particularly in China and the euro zone, caused the safe-haven dollar to hit multi-month highs against a basket of currencies, making gold more expensive for overseas buyers.

“Global bond yields are up sharply across the board and it appears that there are concerns that global growth concerns could get even uglier, and that’s sending everyone back to the dollar,” said Edward Moya, senior market analyst at OANDA.

“The global growth slowdown story will eventually prove to be a positive for gold and that would only come once the market becomes more skeptical about the US recession risks.”

Limiting gold’s downside were trader’s expectations of a 95% chance that the Federal Reserve will leave interest rates unchanged at its Sept. 19-20 policy meeting, and a roughly 60% chance that rates would remain at current levels for the rest of the year, according to CME Group’s FedWatch Tool.

Non-yielding gold tends to lose its appeal when rates rise.

Investors also were focusing on comments by Fed officials this week.

Fed Governor Christopher Waller told CNBC in an interview on Tuesday that the latest round of economic data is giving the central bank space to see if it needs to raise rates again.

“In the meantime, the precious metal is showing signs of exhaustion on the daily charts, with weakness below the 50-day SMA (simple moving average), opening a path back toward $1,920,” Lukman Otunuga, a senior research analyst at FXTM, said in a note.

Silver shed 1.8% to $23.53 per ounce, logging its biggest daily drop in a month.

Platinum dipped 2.6% to $929.54 and palladium eased 0.6% to $1,214.45.

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%2FBullsBearsZimbabwe&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/20230906/09348d00/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/20230906/09348d00/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 100394 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230906/09348d00/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 41153 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230906/09348d00/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/20230906/09348d00/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130922 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230906/09348d00/attachment-0001.obj>