Bulls n Bears Daily Market Commentary : 06 September 2023

Thu Sep 7 06:40:35 CAT 2023

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Bulls n Bears Daily Market Commentary : 06 September 2023

ZSE commentary

Zimbabwe Stock Exchange (ZSE)

 <https://www.dulys.co.zw/> Marginal gains were recorded on most of the
counters that traded today. Overall Market Cap closed 1.77% up at ZWL$9.87
trillion. Total turnover increased to ZWL$ 47.88 billion and Total volumes
traded accumulated to ZWL$228.97 million at the back of a negotiated trade
of 226,997,219 First M. Holdings shares which were exchanged at ZWL$196
each. As a result, First M. Limited pushed the overall turnover for today as
it constituted 94.55% of the total turnover on the board.

A slight recovery on the heavy-weight counters was noted during today's
trading session as all the heavy-weight indexes were in black. The benchmark
All-Share Index recovered by 1.01% to close at 122,959.61 points at the back
of 10 movers and 5 laggards. The Top-15 index went up by 1.17% to close at
78,867.77 points, and 1.43% was added to the gigantic Top 10 Index which
settled at 56,857.63 points.

The mover's list for today was led by Willdale, topping the list with a
63.96% return as it closes at $5.50. OK Zimbabwe gained another 6.34% to
close at $140.11 and ZB Fin Holdings closed 5.67% stronger at $634.00. Other
counters that traded in the positive include Star Africa Corp and Econet.

Leading the shakers list for today is EcoCash Holdings Ltd which reversed
its previous gains by 2.64% to close at $139.98. Hippo Valley shed 0.91% to
$1, 800.00 and Seed Co traded 0.01% weaker at $1, 043.00. Other counters
that traded in the negative include BAT Zimbabwe and Tanganda Tea Co. Ltd.

Victoria Falls Stock Exchange (VFEX) 

The VFEX All Share Index dwindled by 1.00% to close the session at 68.27
points. Axia, Innscor, and Nat Foods Holdings gained 6.34%, 0.57%, and 0.74%
to close at $0.08, $0.42, and $1.62, respectively. The rest of the counters
either recorded insignificant gains, remained unchanged, or traded in the
negative.

Global Currencies & Equity Markets

South Africa

South African rand falls on power cuts, risk-off sentiment

(Reuters) - The South African rand weakened on Wednesday, as the country
continued to be battered by its worst rolling blackouts on record and as
markets moved away from riskier assets.

At 1503 GMT, the rand traded at 19.2300 against the dollar , nearly 0.2%
weaker than its previous close.

The dollar last traded around 0.2% stronger against a basket of global
currencies.

"The rand has struggled for any traction through the first half of the
week," said Danny Greeff of ETM Analytics, as sentiment towards riskier
currencies like the rand soured.

"Simultaneously, there is very little in the way of positive news flow out
of South Africa for investors to focus on."

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.

Adding fuel to the fire, petrol and diesel prices were also hiked on
Wednesday, hurting Africa's most industrialised economy.

This exacerbates the country's fiscal crisis and deters investment in the
rand and government bonds, Greeff added.

On the Johannesburg Stock Exchange, both the blue-chip Top-40 (.JTOPI) and
the broader all-share (.JALSH) index closed over 0.8% weaker.

South Africa's benchmark 2030 government bond was flat, with the yield at
10.410%.

 <mailto:info at bulls.co.zw> 

Global Markets 

Dollar rises to six-month high after US data; weak yen prompts warning

(Reuters) - The dollar climbed to a six-month peak on Wednesday, reversing
earlier losses, after U.S. data showed the services sector surprisingly
picked up steam last month amid a rise in new orders and businesses paying
higher prices, suggesting persistent inflation pressure.

The greenback recovered against most currencies after the data, with the
euro and sterling hitting three-month lows and the yen touching session
troughs. The U.S. currency, however, pulled back a bit in the afternoon as
volume thinned.

The dollar index was last at 104.84, up 0.1%, after earlier hitting a fresh
six-month high of 105.03.

The euro and sterling fell to three-month lows after the data and were last
flat at $1.0726 and down 0.5% at $1.2505 , respectively.

Data showed the Institute for Supply Management (ISM)'s non-manufacturing
PMI rose to 54.5 last month, the highest since February and up from 52.7 in
July. Economists polled by Reuters had forecast the non-manufacturing PMI
would decrease to 52.5.

"It's clear the U.S. economy remains much stronger by comparison than most
of the rest of the G10 and runs substantially less risk of entering a
recession," said Helen Given, FX trader at Monex USA in Washington.

"With the UK and the eurozone teetering on the brink of true contraction,
investors really have little choice but to place their faith in the U.S.
(economy)."

The data suggested interest rates will remain elevated for longer, although
it does not alter expectations that the Federal Reserve will pause its rate
hikes at a meeting later this month.

For the November and December policy meetings, the chances of a rate hike
increased to 48.4% and 46.6%, respectively, on Wednesday, according to the
CME's FedWatch. Those odds were at 45.2% for November and 43.5% for December
late on Tuesday.

Fed officials the last two days, however, struck a dovish tone suggesting
the U.S. central bank could pause again for the next several meetings to
further assess the impact of monetary tightening on economic data.

Boston Fed President Susan Collins said Wednesday the central bank will
proceed carefully when it comes to its next monetary policy steps.

Her comments followed similar remarks by Fed Governor Christopher Waller on
Tuesday. Waller said in a CNBC interview that "there's nothing that is
saying we need to do anything imminent anytime soon, so we can just sit
there, wait for the data, see if things continue" on their current
trajectory.

Against the yen, the dollar trimmed losses, last down little changed at
147.69 yen. Earlier in the session, it rose to 147.82, the lowest since Nov.
4.

The currency market remains on yen-intervention watch, however.

The yen strengthened to as much as 147.02 per U.S. dollar after Japan's top
currency diplomat, Masato Kanda, said they will not rule out options if
speculative moves persist, the strongest warning since mid-August.

Kanda, Japan's vice-minister of finance for international affairs, has been
the central figure in the country's efforts to stem the sharp decline of the
yen since last year.

Japan intervened in currency markets 12 months ago when the dollar rose past
145 yen, prompting the Ministry of Finance to buy the yen and push the pair
back to around 140 yen. It intervened again in October last year when the
currency pair hit 150 yen.

Also on Wednesday, the Fed released its so-called "Beige Book", a snapshot
of the U.S. economy. The report showed a moderation in economic growth in
recent weeks, with inflation slowing in most parts of the country.

The dollar showed little reaction to the report.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold extends decline as dollar gains upper hand

Gold extended its retreat to a fifth day on Wednesday as yields climbed and
bets for higher-for-longer U.S. interest rates and global growth concerns
continued to drive safe-haven flows into the dollar.

Spot gold

fell 0.48% to 1,916.506. U.S. gold futures

settled 0.4% lower at $1,944.20.

The dollar held near a six-month peak, while benchmark 10-year Treasury
yields were near Aug. 23 highs.

A rise in the safe-haven rival dollar makes gold more expensive for overseas
investors, while higher yields decrease non-yielding bullion's appeal.

Gold's move is not dramatic, it's a wait-and-watch to see "what the FOMC is
going to do and also if the global economy is going to slip into recession
or not," said Chris Gaffney, president at EverBank World Markets.

Markets were all but certain that the Fed will keep rates unchanged at its
Sept. 19-20 meeting, but still bet on a 43% chance of a hike before 2024,
according to CME's FedWatch tool.

The resilience of the U.S. economy, especially the labor market, will allow
the Fed to continue to raise rates, especially after OPEC did not do any
favors by extending their voluntary production cuts, said Gaffney.

Fed Governor Christopher Waller said on Tuesday the latest round of economic
data was giving the U.S. central bank space to see if it needs to raise
rates again.

"A lot will also depend over the next few months on how China's economy
holds up, in particular, appetite for jewelry, which really goes hand in
hand with consumer confidence," said Edward Gardner, commodities economist
at Capital Economics.

Silver dropped 1.63% to $23.147 per ounce and platinum fell 1.67% to
$910.7584. Both slid to over two-week lows.

Palladium eased 0.5% to $1,205.94, its lowest since late-2018 and was last
up 0.39% at 1,216.7863.

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
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