Bulls n Bears Daily Market Commentary : 13 September 2023

Thu Sep 14 06:32:03 CAT 2023

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Bulls n Bears Daily Market Commentary : 13 September 2023

ZSE commentary

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

The ZSE All Share Index retreated 1,086.12 points to close at 144,351.25 points. Trading in the negative: BRITISH AMERICAN TOBACCO LIMITED lost $214.3143 to $17285.6857, DELTA CORPORATION LIMITED eased $154.5466 to $3117.2495 .SEED CO LIMITED shed $98.3325 to $900.0000 and MASIMBA HOLDINGS LIMITED traded $90.2668 lower to $609.7332. FBC HOLDINGS LIMITED decreased by $0.1000 to settle at $800.0000.

The ECONET WIRELESS Las recorded their first trades easing $109.2900 to finish the session at $10.0000 Losses were offset by gains in CBZ HOLDINGS LIMITED which added $137.7487 to $1057.7987, AFDIS DISTILLERS LIMITED gained $54.6875 to $1855.0000 and MEIKLES LIMITED was $53.8829 stronger at $803.9043. ECOCASH HOLDINGS increased by $20.4590-zse

Global Currencies & Equity Markets

South Africa

South African rand weakens ahead of US inflation report

(Reuters) - South Africa's rand slipped early on Wednesday, as focus turned towards U.S. inflation data that could provide more clues on the Federal Reserve's interest rate path.

At 0610 GMT, the rand traded at 18.9400 against the dollar ZAR=D3, about 0.16% weaker than its previous close.

The dollar index =USD was last up 0.16% against a basket of currencies.

"Focus for the day ahead will be on the US inflation numbers, which carry two-way risks for the market given the uncertainty surrounding the Fed's outlook," ETM Analytics said in a research note.

Like most other emerging market currencies, the risk-sensitive rand tends to take cues from global economic drivers such as U.S. monetary policy in the absence of local data points.

South Africa's benchmark 2030 government bond ZAR2030= slipped in early deals, with the yield up 5 basis points to 10.405%.

Nigeria

Naira falls across FX markets on rising demand for dollars

Nigeria’s currency on Wednesday depreciated against the dollar at the official and parallel segments of the foreign exchange (FX) market, due to rising demand for the greenback.

Naira weakened by 1.07 percent as the dollar traded at N940 on Wednesday against N930 traded since last Friday at the parallel market, also known as black market.

Traders said on Wednesday that individuals and importers are buying up dollars for business travel, school fees, medical and tourism.

At the Investors’ and Exporters’ (I&E) forex window, Nigeria’s official FX market, naira fell by 2.16 percent as the dollar was quoted at N758.12 on Wednesday compared to N742.10/$1 quoted on Tuesday, data from the FMDQ indicated.

The daily FX market turnover increased by 11.62 percent to $42.26 million on Tuesday from $37.86 million recorded on Monday, data from the FMDQ showed.

During the FX market auction on Tuesday willing buyers and willing sellers, which include banks, the Central Bank of Nigeria (CBN) Exporters and investors maintained bids as high as N807.15, slightly lower than N804.15 per dollar on Monday and low bid of N738, which was weaker than N722.39/$1 on Monday.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar hovers below 3-month high to euro as ECB decision looms

TOKYO : The U.S. dollar hovered below a three-month high to the euro on Thursday as attention turned to the European Central Bank's rate-setting meeting later in the day, after U.S. inflation data failed to alter views for a Federal Reserve pause next week.

The yen pulled away from near a 10-month trough to the dollar as a decline in long-term Treasury yields removed some support for the U.S. currency.

Australia's dollar popped to a one-week high after strong employment figures, but then quickly retraced most of the advance as the data showed the vast majority of new jobs were part-time.

The U.S. dollar index - measuring the currency against a basket of six developed-market peers, including the euro and yen - edged 0.1per cent lower to 104.63 in the Asian morning.

The euro added 0.1per cent to US$1.07415, continuing its grind higher from last week's low of US$1.0686.

The dollar slipped 0.2per cent to 147.125 yen, falling back from near last week's peak of 147.875.

The benchmark 10-year Treasury yield eased a further basis point (bp) to around 4.24per cent in early Thursday trading, extending a 1.6 bps decline from the previous session, when it also at one point surged to a three-week top at 4.352per cent.

The U.S. consumer price index (CPI) increased by 0.6per cent last month, the largest gain since June 2022, the Labor Department said on Wednesday. However, core inflation, which is of greater concern to the Fed as it strips out food and energy prices, ran at a 4.3per cent year-on-year rate in August from 4.7per cent the previous month.

Traders remain almost certain the Fed will keep rates steady again on Sept. 20, according to money market pricing. Odds for a quarter point increase by year-end though, stand at about 40per cent.

Meanwhile, wagers for a hike by the ECB later on Thursday now stand at about a two-in-three probability currently, from closer to a coin toss earlier in the week, bolstered partly by a Reuters report that Europe's central bank expects inflation will stay above 3per cent next year in its updated forecasts, far exceeding the 2per cent target.

The Fed's November meeting will be "a pivotal event," with a run-up in crude oil prices adding to the risk of another hike, potentially buoying the dollar, said James Kniveton, a senior corporate foreign-exchange dealer at Convera in Melbourne.

"It is premature to assert that USD bears have assumed control," he said.

At the same time, a hike by the ECB "could potentially catalyse a shift in momentum, relegating the dollar to a secondary position as the euro gains traction," he added.

Meanwhile, the Australian dollar rose as much as 0.5per cent to the highest since Sept. 5 at US$0.64545 after figures showed the economy added a consensus-beating 64,900 jobs in August.

However, 62,100 of those jobs were part-time, and that detail saw a rapid paring of initial gains, with the currency last trading 0.1per cent higher at US$0.64285.

 <mailto:info at bulls.co.zw> 

Commodities Markets

‘Gold will always shine’: Surge in demand for yellow metal expected for festive season, say experts

Demand for gold is expected to increase for the next two to three months. There is a huge demand for yellow metal during festive periods, primarily driven by customs and traditions. The period from September to December traditionally marks an auspicious time, driven by festive and wedding seasons, boosting gold demand.

“In anticipation of the upcoming festive season, gold is expected to see a surge in demand. Despite a stagnant phase in gold prices due to economic challenges in the US, there's optimism that gold demand will surge. This optimism stems from the robust performance of stock markets," said Colin Shah, MD, Kama Jewelry.

There has been a paradigm shift in the way buyers perceive the yellow metal. The buyers have now largely moved on from purchasing gold for investment purposes to a fashionable statement wearable. With this backdrop along with rising income levels and increasing purchasing power among the buyer class, we foresee this festive season to be one of the best, added Shah.

“As the calendar inches closer to the much-awaited festival season, a familiar trend is poised to resurface, Indians will go to jewellery stores, which can drive an anticipated rise in demand for gold between September to November," said Amit Khare, Associate Vice President at Ganganagar Commodity Limited (GCL)

Gold prices are trading near a 2-month low. Amit Khare said that as per the previous 5 years' pattern, Gold generally makes a bottom in August-September, So this year we are hoping the same.

Meanwhile, MCX gold prices slipped on Wednesday. On the Multi Commodity Exchange, gold October futures were trading at ₹58551 per 10 grams, down by 0.13%.

Yashoraj Tyagi, COO, and CTO at CASHe said that festivities often mean individuals have more disposable income that they prefer to invest in assets like gold, aiming to safeguard their financial stability.

September 2023 features significant festivals such as Krishna Janmashtami, Hartalika Teej, Ganesh Chaturthi, and Anant Chaturdashi among others.

Also, the end of the Navratri festival marks the beginning of the wedding season.  Gold jewelry demand is at its peak during the Indian wedding season.

.

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 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.

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