Bulls n Bears Daily Market Commentary : 11 September 2023

Tue Sep 12 05:43:57 CAT 2023

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Bulls n Bears Daily Market Commentary : 11 September 2023

ZSE commentary

Zimbabwe Stock Exchange (ZSE)

 <https://www.dulys.co.zw/> Marginal gains were recorded across the board.
Overall Market Cap closed 5.21% up at ZWL$11.04 trillion following a surge
in market activity concentrated on the market's blue-chip counters. Total
turnover increased to ZWL$ 3,33 billion after a surge in Total volumes
traded which accumulated to ZWL$3.53 million. Delta and Dairibord pushed the
overall turnover for today as they accounted for almost 81% of today's total
turnover.

The benchmark All-Share Index closed 5.26% up at 137,693.93 points at the
back of 15 movers and 4 laggards. The Top-15 index went up by 6.64% to close
at 90,405.24 points, and a staggering 8.21% was added to the Top 10 Index
which settled at 67,156.25 points.

Delta and CBZ Holdings led the movers list for today after hitting the
15.00% circuit breaker, closing at $2,918.50 and $920.05, respectively.
Masimba Holdings trailed the list with another  14.99% gain as it closed at
$684.85. Willdale and First M. Limited were also among the gainers for
today.

The shakers list for today was led by Dairibord which lost 14.65% to close
at $597.39. EcoCash Holdings shed 6.92% to $141.71 and BAT Zimbabwe traded
3.83% weaker at $17,238.40.

Victoria Falls Stock Exchange (VFEX) 

The VFEX Market Cap went up by 0.93% to close the session at US1,17 million.

Global Currencies & Equity Markets

South Africa

South African rand jumps on encouraging Chinese data

(Reuters) - The South African rand extended gains against a weaker dollar on
Monday as encouraging economic data from China aided some emerging market
currencies.

At 1542 GMT, the rand traded at 18.8775 against the dollar , 1.35% stronger
than its previous close.

The dollar last traded around 0.27% weaker against a basket of global
currencies.

Strong lending data and fresh stimulus measures from China - South Africa's
biggest trading partner - supported risk-sensitive currencies such as the
rand.

Locally, the currency seemed little affected by South Africa's manufacturing
output figures, which rose 2.3% year on year in July after rising by a
revised 5.9% in June. (ZAMAN=ECI), (ZAMFG=ECI)

In the absence of major local economic data points, investors this week will
turn their focus towards U.S. inflation data due on Wednesday.

"Risks are elevated midweek, starting with U.S. CPI on Wednesday, followed
by ECB rate announcement and press conference on Thursday," RMB analysts
said in a research note.

Inflation data out of the U.S. could give clues on the Federal Reserve's
interest rate path before it convenes next week and might influence the
risk-sensitive rand.

Shares on the Johannesburg Stock Exchange rose, with the blue-chip Top-40
index (.JTOPI) ending 0.73% higher.

South Africa's benchmark 2030 government bond was marginally weaker, with
the yield up 1.5 basis points at 10.390%.

Nigeria

Naira steadies at N930 per dollar on Monday

Naira on Monday remained stable at N930 per dollar at the parallel market,
popularly known as black market.

This is due to moderation in the demand for dollars.

At the Investors and Exporters (I&E) forex window, naira remained at
N736.62/$1 and is expected to either appreciate or depreciate after trading
on Monday.

 <mailto:info at bulls.co.zw> 

Global Markets

Yen stands tall, dollar finds floor ahead of US inflation

SINGAPORE (Reuters) - The yen steadied near a one-week high on Tuesday as
comments from Japan's top central banker on a possible end to its negative
interest rate policy reverberated through markets, while the dollar regained
some lost ground.

Bank of Japan (BOJ) Governor Kazuo Ueda told a newspaper interview over the
weekend the bank could get enough data by year-end to determine whether it
can end negative rates, remarks that on Monday saw the yen clock its largest
daily gain against the dollar in two months.

The Japanese currency was last marginally lower at 146.61 per dollar, after
scaling a one-week top of 145.91 in the previous session.

"Essentially, Governor Ueda laid out a conditional path and timeframe for
the first-rate hike and a move away from its negative interest rate policy,
should the data permit," said Chris Weston, head of research at Pepperstone.

"One can assume that the BOJ are also one step closer to moving away from
yield curve control (YCC), and logically one could argue that the BOJ would
like to be able to lift rates and remove YCC concurrently."

The yen has come under immense pressure against the dollar as a result of
growing interest rate differentials with the United States, since the
Federal Reserve began its aggressive rate-hike cycle last year while the BOJ
remains a dovish outlier.

Elsewhere, the U.S. dollar reversed some of its close to 0.5% loss against a
basket of currencies on Monday.

The Aussie was last 0.12% lower at $0.6423 while the New Zealand dollar fell
0.14% to $0.5911, having been among the biggest beneficiaries against a
weaker greenback on Monday and gaining 0.8% and 0.6%, respectively.

The euro, however, touched a one-week high of $1.0771.

"Given the fact that we've also had pretty strong momentum behind long U.S.
dollar positions broadly across G10 currency pairs, I think it's given the
market reason to take profit ahead of the (inflation) numbers in the U.S.,"
said IG market analyst Tony Sycamore.

U.S. inflation data for the month of August is due on Wednesday, with
traders on the lookout for whether the world's largest economy is indeed on
track for a "soft landing" and whether the Fed has further to go in raising
rates.

The U.S. dollar index, which ended last week with an eight-week winning
streak, rose 0.03% to 104.60, after falling 0.46% in the previous session.
Sterling steadied at $1.2508.

The offshore yuan found some support near Monday's one-week high and last
bought 7.3020 per dollar.

It had jumped more than 0.8% in the previous session, its largest daily gain
in about six months, further boosted by data showing new bank lending in
China beat expectations by nearly quadrupling in August from July's level.

In cryptocurrencies, bitcoin was last marginally higher at $25,179, after
falling below $25,000 for the first time in three months on Monday.

Ether similarly gained 0.29% to $1,556.20, after sliding to a six-month low
of $1,531.10 in the previous session.

"At the moment, what we're really seeing is the effects of tighter liquidity
in the market starting to weigh on speculative assets like bitcoin once
again," said Kyle Rodda, senior financial market analyst at Capital.com.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold firms on dollar dip as US inflation test looms

Gold edged up on Monday on a retreat in the dollar, with focus still
squarely on U.S. inflation readings and their likely influence on the
Federal Reserve's interest rate trajectory.

Spot gold climbed 0.2% to $1,921.8947 per ounce by 4:27 p.m. EDT, while U.S.
gold futures settled 0.1% higher at $1,945.40.

The dollar index fell 0.5%, making gold less expensive for other currency
holders.

Capping zero-yield gold's uptick, however, yields on the benchmark 10-year
Treasury note edged higher.

Traders were mostly positioning for the U.S. consumer price data (CPI) on
Wednesday, given its potential influence on whether the Fed may put rates on
hold.

"Gold has started the week on a positive note on some dollar weakness, but
prices will likely face some pressure in the near-term with the market
expecting one more rate hike this year," said Edward Moya, senior market
analyst at OANDA.

"I don't think we'll be getting the green light for investors to become
aggressive and getting back into the precious metal very soon."

According to the CME FedWatch tool, traders predicted a 93% chance of Fed
leaving rates unchanged at their Sept. 19 to 20 policy meeting. But the odds
also suggested a 41% chance of a hike in November.

Ahead of their next meeting, Fed policymakers have been clear that they are
not itching to raise rates, but few among them are ready to declare victory.

For gold futures to climb above $2,000 per ounce, the Fed needs to be less
hawkish and the dollar index and Treasury yields need to back off, said
Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

Silver jumped 0.7% to $23.07 per ounce. Platinum added 0.8% to $899.4927 per
ounce and palladium gained 1.3% to $1,213.95.

.

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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