Bulls n Bears Daily Market Commentary : 18 September 2023

Tue Sep 19 07:36:31 CAT 2023

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Bulls n Bears Daily Market Commentary : 18 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 to close at $161.4942.
FIRST MUTUAL PROPERTIES traded $14.6512 higher to $125.0512-zse

Global Currencies & Equity Markets

South Africa

South African rand steady at start of rate decision week

(Reuters) - The South African rand was steady against a weaker dollar on
Monday, ahead of local and international interest rate announcements this
week.

At 1547 GMT, the rand traded at 19.0000 against the dollar , not far from
its previous close of 18.9850.

The dollar last traded down about 0.2% against a basket of global
currencies.

The South African Reserve Bank (SARB) will announce its interest rate
decision on Thursday and provide clues on the country's future rate path.

. Scroll to continue

"The SARB is expected to keep rates unchanged but remain hawkish on the back
of concerns of an uptick in inflation on the back of the higher fuel price,"
said Andre Cilliers, currency strategist at TreasuryONE.

The U.S. Federal Reserve is also expected to keep rates unchanged when it
meets on Wednesday, he added, "but with a hawkish outlook given the higher
oil price and higher inflation numbers".

Shares on the Johannesburg Stock Exchange fell, with both the broader
all-share index (.JALSH) and the blue-chip Top-40 index (.JTOPI) closing
around 1% lower.

South Africa's benchmark 2030 government bond was weaker in afternoon deals,
with the yield up 3.5 basis points to 10.510%.

Nigeria

'Stabilise naira, improve digital infrastructure' - US advises Nigeria on
economic growth

Adewale "Wally" Adeyemo, the United States deputy treasury secretary, says
President Joe Biden's administration is willing to help Nigeria in taking
critical steps to sustain the foreign investments of Africa's biggest
economy.

Adeyemo spoke on Monday at the Lagos Business School (LBS), where he
highlighted some of the steps needed for the type of growth that creates
economic opportunity for the Nigerian people.

Enase Odu Okonedo, vice chancellor of the Pan Atlantic University (PAU)
moderates a session with Adeyemo.

The US official said Nigeria needs to invest in digital infrastructure,
improve its macroeconomics as well and create a conducive economic
environment, to attract foreign investments.

"First, Nigeria needs a stable naira. Unifying Nigeria's foreign exchange
rate will also create the kind of macroeconomic stability that is essential
to attracting foreign investment," he said. 

"We commend the difficult steps your government has already taken to
accomplish this goal. The path to unification is not an easy one as everyone
is experiencing, but going backwards would be even worse.

"Second, the government needs to articulate and implement a credible fiscal
strategy that will provide the resources to make critical investments.

Adewale "Wally" Adeyemo,

The agricultural sector remains Nigeria's top employer.

"I recognise the decision to end fuel subsidies is hard for many Nigerian
households. But it was an important early step to create resources that the
government can use to invest in physical and digital infrastructure,
education, and a strong small business environment.

"There is nowhere this need is greater than the agricultural industry,
which, despite the digital revolution going on in Nigeria, remains Nigeria's
top employer.

"Its full potential, of course, is held back by issues like access to
fertilisers, limited use of new technology, access to water and land and the
availability of credit and high market entry costs."

Speaking further, Adeyemo said Nigeria needs to root out corruption and its
perception in the business environment.

This, he said, would go a long way in removing fears from potential
investors.

The US official believes that creating economic opportunity would require a
government-wide drive to address these fears, "by shining a light on
corruption, holding people accountable, and taking meaningful steps to
improve the business climate".

"Nigeria is a hotbed for digital entrepreneurs taking simple steps by moving
government functions online," he said.

"So Nigerians can apply for business licenses and visas using their
smartphones and computers will help improve services productivity, and
reduce opportunities for fees to go to the pockets, rather than government
coffers."

Adeyemo said protecting the integrity of Nigeria's financial system was also
imperative in sustaining economic growth.

"The cowardly kidnapper, corrupt official, and fraudster all are seeking to
launder their money," he said.

"Taking steps to make your banking system more secure will help reduce the
ability of criminals, terrorists, and others to illicitly use the Nigerian
financial system."

Adeyemo applauded the leadership of President Bola Tinubu for the effort so
far.

He added that the US government is committed to working with the Financial
Action Task Force to tackle money laundering and terrorist financing in
Nigeria.

"Our government stands ready to help work with them to take these steps as
quickly as possible," he added.

He also said Biden's administration believes deeply in the importance of
deepening the relationship with Nigeria.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar eases as traders eye upcoming central bank decisions

(Reuters) - The U.S. dollar eased against a basket of currencies on Monday
but remained near a six-month high in muted trading as traders awaited
interest rate decisions this week by the Federal Reserve, Bank of England
and Bank of Japan.

"The plethora of event risk and central bank meetings coming up is keeping a
lid on volatility, and with traders really not wanting to chase moves or
take on significant risk before the FOMC, BoE, BoJ, etc.," said Michael
Brown, market analyst at Trader X.

The U.S. dollar index , which measures the currency against six major
counterparts, was down 0.1% at 105.15, not far from the six-month high of
105.43 touched on Thursday. The index rose for its ninth straight week last
week, its longest winning streak in nearly a decade.

U.S. Treasury Secretary Janet Yellen said on Monday she saw no signs the
U.S. economy is entering a downturn.

Resilient U.S. growth has fueled a rebound in the dollar in recent weeks
though the rally will likely be tested by a gauntlet of data and Wednesday's
Fed interest rate decision.

Data on Monday showed U.S. homebuilder confidence fell for a second month in
September, with optimism dropping to the lowest since April as high interest
rates cut into affordability for prospective buyers.

"The Fed should stay on hold in terms of rates, and personally I don't
anticipate too much of a significant shift in terms of the statement, with a
data-dependent tightening bias maintained," Brown said.

"The balance of risks does tilt a little to the dovish side in terms of the
dots, given recent rhetoric, though this shouldn't significantly dent the
dollar's longer-run bullish trend given the FX market's apparent focus on
relative growth dynamics, where the U.S. remains by far the best of a bad
G10 bunch," he said, referring to the Fed's interest rate forecasts to be
released with the statement.

Fed fund futures show investors expect the Federal Reserve to keep interest
rates on hold in the 5.25% to 5.5% range on Wednesday.

The euro was up 0.23 % against the dollar at $ 1.0683 . The European Central
Bank raised interest rates to 4% last week, but said this hike could be its
last.

The common currency rose to a new record high against the Swedish crown days
before the Riksbank is expected to raise interest rates again.

Traders think Sweden's central bank is highly likely to raise interest rates
on Thursday by 25 basis points to 4%, piling more pressure on the economy.

The yen was up about 0.15% against the dollar at 147.62 to the dollar, with
traders out for a Japanese public holiday.

They broadly expect the Bank of Japan to leave rates on hold at -0.1% on
Friday, but will watch closely for hints about the policy outlook after
Governor Kazuo Ueda stoked speculation of an imminent move away from
ultra-loose policy.

Traders remained on high alert for possible intervention to support the
battered yen.

The pound was 0.02 % lower at $ 1.23805 . Traders see the Bank of England
raising rates by 25 basis points to 5.5% on Thursday, in what could be its
final hike.

In cryptocurrencies, bitcoin rose 1.02% to $26,806, a more than two-week
high.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold prices firm as US dollar eases, Fed meeting looms

(Reuters) - Gold prices gained on Monday, helped by a slight pullback in the
dollar as investors awaited a series of key central bank policy meetings
this week, with the U.S. Federal Reserve widely expected to hit pause on
interest rate hikes.

Spot gold was up 0.5% to $1,932.49 per ounce by 1:42 p.m. ET (1742 GMT).
U.S. gold futures settled 0.4% higher at $1,953.40.

The U.S. dollar slipped 0.3% against its rivals, making gold less expensive
for other currency holders.

"The market is becoming very focused on central bank requisitions ... the
expectations are that they (Fed) will push the higher for longer narrative
and that should keep investors concerned," said Edward Moya, senior market
analyst at OANDA.

The Fed's policy decision is due on Wednesday, with traders pricing in a 99%
chance of the central bank keeping interest rates steady in the 5.25% to
5.5% range, according to CME's FedWatch Tool.

The Bank of England is seen raising rates by 25 basis points to 5.5% on
Thursday. The Bank of Japan's meeting is on Friday, with investors seeking
more cues on outlook from Governor Kazuo Ueda after recent comments on
ending negative rates.

Non-yielding gold tends to fall out of favour among investors when interest
rates rise.

Chinese gold prices hit record highs last week, extending a months-long
rally as consumers snap up the safe-haven asset to offset a depreciating
yuan. Physical gold premiums also soared to new highs.

"While the developments in China are worth watching, we currently do not
believe that this will change the outlook for the gold market," said Julius
Baer analyst Carsten Menke.

Spot silver rose 0.9% to $23.21 per ounce, platinum gained 0.9% to $932.89,
while palladium slipped 0.4% to $1,243.83.

.

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
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subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
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opinions expressed and recommendations made are subject to change without
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