Bulls n Bears Daily Market Commentary : 08 September 2023

Fri Sep 8 21:55:57 CAT 2023

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Bulls n Bears Daily Market Commentary : 08 September 2023

ZSE commentary

Zimbabwe Stock Exchange (ZSE)

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

Marginal gains were recorded across the board. Overall Market Cap closed
4.12% up at ZWL$10.50 trillion regardless of a subdued overall market
activity compared to yesterday. Total turnover decreased by 42.30% to ZWL$
451.77 million and Total volumes traded went down by 31.09% to ZWL$709,000.
Delta and Dairibord pushed the overall turnover for today as they accounted
for almost 68% of the total turnover for today.

The benchmark All-Share Index closed 4.19% up 130,812.47 points at the back
of 14 movers and 7 laggards. The Top-15 index went up by 4.95% to close at
84,773.55 points, and a staggering 6.02% was added to the Top 10 Index which
settled at 62,062.50 points.

The mover's list for today was led by First M. Properties, topping the list
after hitting the 15.00 circuit breaker, closing at $110.40. Masimba
Holdings trailed the list with a  14.99% gain as it closed at $595.55.
Delta, EcoCash Holdings, and CBZ Holdings were also among the gainers for
today.

The shakers list for today was led by ART which lost 13.96% to close at
$43.88. Star Africa Corp shed 8.77% to $5.20 and Zimre Holdings traded 7.80%
weaker at $65.00. Other counters that traded in the negative include
Proplastics and Dairibord.

Victoria Falls Stock Exchange (VFEX) 

The VFEX Market Cap dwindled by 1.02% to close the session at US1,16
million. Notable bearish investor sentiments prevailed on the USD bourse as
all counters that traded during today's trading session, including First
Capital and Innscor closed in the red.

Global Currencies & Equity Markets

South Africa

South African rand extends gains as analysts bet on Fed pause

(Reuters) - The South African rand extended gains on Friday against a weaker
dollar as analysts found comfort in the prospects of the U.S. Federal
Reserve leaving interest rates unchanged in September.

At 0637 GMT, the rand traded at 19.1000 against the dollar , 0.46% stronger
than its previous close.

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

The dollar has weakened against most currencies, but "is still poised for
its longest streak of weekly gains in years", said Andre Cilliers, currency
strategist at TreasuryONE.

"This optimism is fuelled by speculations that the Federal Reserve will
maintain elevated interest rates," he added.

Risk-sensitive currencies such as the rand often take cues from global
economic drivers such as the U.S. monetary policy.

The rand has had a tumultuous year, losing more than 12% against the
greenback since January.

"One never knows with the rand these days, but the way things stand this
morning and with little on the data calendar (dollar/rand exchange rate)
should probably just drift sideways into the weekend," Rand Merchant Bank
analysts said in a research note.

South Africa's benchmark 2030 government bond was stronger in early deals,
with the yield down 3.5 basis points at 10.350%.

Nigeria

Naira gains, exchanges at N736/$1

The Naira on Thursday gained against the dollar, exchanging at N736.62 at
the official window.

According to NAN, the local currency appreciated by 4.53 per cent compared
to the N771.59 it exchanged for the dollar on Wednesday.

The open indicative rate closed at N774.74 to the dollar on Thursday.

A spot exchange rate of N799.90 to the dollar was the highest rate recorded
within the day's trading before it settled at N736.62.

The Naira sold for as low as N700 to the dollar within the day's trading.

On Thursday, $66.43 million was traded at the investors and exporters
window.

Meanwhile, at the parallel market, the Naira sold between N915 to N920 to $1
on Thursday.

 <mailto:info at bulls.co.zw> 

Global Markets 

US dollar falls, but on pace for eight straight weeks of gains; yuan slumps

(Reuters) - The dollar fell on Friday, consolidating gains racked up during
the week on better-than-expected U.S. economic data, but the underlying
strong trend remained amid stable consumer and labor markets, which have
kept the chances of another interest rate increase this year.

Despite Friday's fall, the greenback was headed for eight straight weeks of
gains, the longest such streak since 2014.

"The dollar is benefiting from a return of the U.S. exceptionalism theme,"
said Vassili Serebriakov, FX strategist, at UBS in New York, referring to
the country's economic outperformance compared to the rest of the world.

"The resilient U.S. consumer and labor markets have raised questions on
whether the Federal Reserve needs to raise rates further," he added.

China's onshore yuan, on the other hand, ended its domestic session at its
weakest since 2007, as it battles capital outflow pressures and a widening
yield gap with major economies.

In late morning trading, the U.S. dollar index , which measures the
greenback against six major peers, was last down 0.2% at 104.84. It hit a
six-month peak of 105.15 the previous session. The index so far this week
was up 0.6%.

That said, Serebriakov said that while eight weeks are an unusually long
stretch of dollar strength, the currency's gains are getting smaller every
week.

"The market is quite long dollars already and the incremental upside has
been small. So I think the market is having a hard time pushing the dollar
significantly higher," he added.

The euro , the largest component in the dollar index, was on track for eight
straight weeks of losses and down 0.3% on the week. It was last up 0.4% on
the day though, having fallen to a three-month low on Thursday.

Data out this week showed the U.S. services sector unexpectedly gained steam
in August and that jobless claims last week hit their lowest since February.
In the euro zone, however, industrial production in Germany, Europe's
largest economy, fell by slightly more than expected in July.

The chances of a rate hike by the Fed at the November meeting was still at
more than 40%, although the market expects the U.S. central bank to hold
interest rates steady later this month.

Sterling edged away from Thursday's three-month low and last bought at
$1.2498, up 0.2%, though was still set to clock a weekly loss of more than
0.8%.

The Canadian dollar strengthened against the greenback after the Canada
created 39,900 jobs last month, compared with a median forecast for a gain
of 15,000. The unemployment rate remained at 5.5%. The U.S. dollar was last
down 0.4% at $1.3625 .

IN THE DOLDRUMS

The onshore yuan opened at 7.3400 per dollar on Friday and touched its
weakest since December 2007 at 7.3510, while its offshore counterpart sank
to a 10-month low of 7.3665 per dollar.

China's currency has depreciated steadily since February as the faltering
post-pandemic economic recovery and widening yield gap with other economies,
particularly the United States, affected capital flows and trade.

The onshore yuan has fallen roughly 6% against the dollar so far this year
and has become one of the worst-performing Asian currencies alongside its
offshore counterpart.

The yuan's rapid decline has prompted authorities to step in to slow the
pace of its depreciation.

The struggling yen was also in focus. The Japanese unit steadied at 147.39
per dollar but remained on the weaker side of the key 145 level that
prompted intervention by Japanese authorities last year.

Japanese Finance Minister Shunichi Suzuki said on Friday rapid currency
moves were undesirable and that authorities wouldn't rule out any options
against excessive swings, in a fresh warning to investors trying to sell the
yen.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Asia Gold India discounts widest in seven weeks, China premiums bounce back

(Reuters) - Discounts on physical gold were highest in seven weeks in India
as sturdy domestic rates restricted purchases, while premiums in China swung
higher this week on some demand optimism flowing from the country's policy
measures to support the economy.

In top consumer China, premiums climbed to as high as $55 an ounce over
global spot prices this week, traders said, from $20-$38 last week.

The policy-measures to support the economy are expected boost physical gold
demand, said Peter Fung, head of dealing at Wing Fung Precious Metals.

Official data on Thursday also showed that the People's Bank of China
increased its gold holdings to 69.62 million fine troy ounces at end-August.

"China has been consistently adding to its gold reserves for the past 10
months, as part of its efforts to diversify away from the U.S. dollar," said
Bernard Sin, regional director, Greater China, at MKS PAMP.

Sin highlighted that while China has implemented a series of policy measures
to revive the slowing economy, there is no indication of the PBoC issuing a
gold import quota.

In India, dealers were offering a discount of up to $5 an ounce over
official domestic prices - inclusive of the 15% import and 3% sales levies,
up from the last week's discount of $4.

"Demand is highly price sensitive. Buyers pause as soon as prices increase,"
said Harshad Ajmera, proprietor of JJ Gold House, a wholesaler in Kolkata.

Local gold prices were trading around 59,200 rupees per 10 grams on Friday,
up nearly 2% in three weeks.

Traders sold bullion at premiums of $0.50-$3.50 in Hong Kong and between
$1.20 and $3 in Singapore.

In Japan, where domestic gold rates were trading at record levels this week,
dealers charged $0.5 premiums.

A Tokyo-based trader said that it is "surprising" that local investors are
buying gold at these high levels.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

SeedCo International

AGM

Virtual

Sept 20 2023| 12:30pm

SeedCo

AGM

physical and virtual - SAZ Office Park, 1 Northland Close, Northridge Park,
Borrowdale

Sept 20 2023| 2pm

Hippo

AGM

The Country Club, 1 Brompton Road, Newlands

Sept 29 2023 | 9am

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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opinions expressed and recommendations made are subject to change without
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