Bulls n Bears Daily Market Commentary : 28 September 2023

Fri Sep 29 07:12:13 CAT 2023

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:bulls at bulls.co.zw> Views & Comments
<http://www.bullszimbabwe.com> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:%20bulls at bullszimbabwe.com?subject=Unsubscribe> Unsubscribe

Bulls n Bears Daily Market Commentary : 28 September 2023

ZSE commentary

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

FML highlights the session...

Insurance group First Mutual Holdings highlighted the session after 25.34m
shares worth circa $5.37bn traded. The trade accounted for 79.88% of total
volumes exchanged and 66.02% of the value aggregate. Delta was the other
notable value driver of the day with a 16.67% contribution. The volume
aggregate ballooned 2,482.75% to 31.87m while, market spend surged 1,637.51%
to $8.14bn. Leading the market charge was Truworths that soared 100.00% to
$20.0000.

Trailing was Zimpapers which put on 15.00% to $12.6500 post the release of
their HY23 results in which revenue increased by 59% to $40.72bn. Beverages
giant Delta jumped 9.97% to close at $2,242.5821 while, retailer OKZIM edged
up 7.50% to $129.9743. Dairibord capped the top five risers of the day on a
4.76% lift to $507.6931. Partially offsetting today's gains were losses in
FML that trimmed 14.92% to $211.0034.

Proplastics shed 11.35% to trade at $531.9000 as Mashonaland Holdings
slipped 8.85% to $125.0000. Zimre Holdings Limited declined 0.31% to
$85.0000 as agriculture

concern Ariston retreated 0.15% to $31.9516. The mainstream All Share Index
added 2.35% to close at 124,796.22pts while, the ZSE Top Ten Index gained
4.92% to 55,562.91pts. The Agriculture Index was up 0.73% at 508.69pts
while, contrastingly the Mid Cap Index dropped 1.88% to 493,289.60pts. In
the ETF section, a cumulative of 13,683 units worth $274,041.00 exchanged
hands. The Datvest MCS advanced 10.00% to $6.6000 while, the Old Mutual ETF
ticked up 8.85% to $29.0000. The Tigere REIT

declined 6.57% to $227.4062 as 31,594 units worth $7.18m traded.

Global Currencies & Equity Markets

South Africa

South African rand rises ahead of trade, budget balance data

(Reuters) - The South African rand strengthened on Thursday ahead of a slew
of local economic data including trade and budget balance, which could give
clues on the health of Africa's most industrialised economy.

At 1523 GMT, the rand traded at 19.0525 against the dollar , more than 0.7%
stronger than its previous close.

The dollar last traded around 0.46% weaker against a basket of global
currencies.

The rand seemed little affected by statistics agency data released earlier
on Thursday, which showed South Africa's producer inflation quickened to
4.3% year-on-year in August from 2.7% in July.

Meanwhile, the South African Reserve Bank said in its Quarterly Bulletin
that the country recorded foreign direct investment inflows of 53.8 billion
rand ($2.8 billion) in the second quarter, up from 0.5 billion rand in the
first quarter. The central bank said the acquisition of a domestic beverage
company by a nonresident firm contributed to the increase.

Local investors will turn towards August money supply and private sector
credit growth, trade and budget balance figures due on Friday for fresh
direction.

Shares on the Johannesburg Stock Exchange rose slightly, with the blue-chip
Top-40 index (.JTOPI) ending nearly 0.5% higher.

South Africa's benchmark 2030 government bond slipped, with the yield up 21
basis points to 11.040%.

Nigeria

Naira down to N1005/$ in parallel market

The naira yesterday depreciated to N1005 per dollar in the parallel market
from N995 per dollar on Tuesday.

Similarly, the naira depreciated in the Investors and Exporters, I&E, window
yesterday to N775.31 per dollar.

Data from FMDQ showed that the indicative exchange rate for the I&E window
rose to N775.31 per dollar from N755.08 per dollar on Tuesday, indicating
N20.23 depreciation for the naira.

The volume of dollars traded on the window increased by 6.3 percent to
$144.55 million from $135.98 million on Tuesday.

Consequently, the gap between the official and parallel market exchange
rates the widened to N229.69 per dollar yesterday from N217.92 per dollar on
Tuesday.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar eases from 10-month high but on track for weekly gain

(Reuters) - The dollar index eased from a 10-month high on Thursday but
remained on track for a weekly gain, and investors stayed on guard for
potential intervention in the yen as it holds near 11-month lows against the
U.S. currency.

The dollar has jumped on expectations that the U.S. economy will remain more
resilient to higher interest rates than other economies, after the Federal
Reserve last week warned that it may hike rates further and is likely to
hold them higher for longer.

"The dollar in this environment is benefiting from both higher yields but
also more jittery risk sentiment," said Vassili Serebriakov, an FX
strategist at UBS in New York.

"Global yields are rising, but with the U.S. economy outperforming the U.S.
dollar still looks attractive."

U.S. benchmark 10-year yields hit 4.688% on Thursday, their highest since
2007.

The dollar index , which tracks the unit against six other majors, was down
0.40% on the day at 106.21, but is on track for an 11th straight week of
gains, and just off its 10-month high of 106.84 hit on Wednesday.

The euro rebounded 0.50% on the day to $1.0554, but was still not far from
its January low of $1.0482, which if broken would be the lowest since
December.

"If that (January low) goes then we could go a bit closer to euro/dollar
parity, but our base case scenario is that unless there's another negative
shock for Europe then that won't be sustained," said Lee Hardman, senior
currency analyst at MUFG.

Hardman said the euro was weakening partly because of the stronger dollar on
the back of higher U.S. yields, and also because of "the cyclical divergence
story: the U.S. economy has been more resilient while the European economy
has been weaker."

Data on Thursday showed the U.S. economy maintained fairly strong growth in
the second quarter at an unrevised 2.1% annualized rate.

A second report showed initial claims for state unemployment benefits rose
2,000 to a seasonally adjusted 204,000 for the week ended Sept. 23.
Economists had forecast 215,000 claims for the latest week.

Contracts to buy U.S. existing homes also fell more than expected in August,
tumbling by the most in nearly a year as high mortgage rates erode
affordability.

Personal consumption data due on Friday is the next focus for further clues
on U.S. inflation.

The Fed may be on the cusp of "something rare" by lowering inflation without
a major blow to jobs and growth, and must be "extra careful" about relying
too much on the history of past inflation fights in plotting further policy
moves, Chicago Fed President Austan Goolsbee said on Thursday.

Fed Chairman Jerome Powell is due to speak later on Thursday.

The yen remains in focus as it trades near the 150 level, which is viewed as
potentially spurring intervention from Japanese authorities.

Finance Minister Shunichi Suzuki said on Thursday that Japan would not rule
out any options if there was any excessive volatility in currency moves,
warning against speculative yen moves amid the currency's fall.

The dollar was last down 0.27% against the Japanese currency at 149.23 yen,
easing from an 11-month high of 149.71 on Wednesday.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold price in China reaches record highs

The gold price in China surged this month, at times reaching a record
premium over international prices of more than $100. Over the past decade,
the Shanghai premium has averaged less than $6. The price increase has been
caused by a response to the challenging economic conditions in China.

Rory Green, chief China economist at GlobalData TS Lombard, said: "The main
factor driving higher gold prices in China is weak consumer sentiment.
Households are still deeply scarred by the combined shocks of covid-19, the
property slump and regulatory shocks of the past few years. With the economy
in a post-Covid hangover, individuals are investing in gold as a safe asset.
Precious metals also have the added benefit of providing a hedge against a
weaker currency."

Investment in gold as a safety strategy marks a change in behaviour from
earlier in the year when consumers opted to hold cash in response to the
uncertain economy.

Ray Jia, senior analyst at the China World Gold Council, said the price rise
is also caused by the scarcity of gold in China and import costs. During the
pandemic, 60% of the country's gold came from imports as domestic production
did not fulfil demand. In August 2023, China stopped granting quotas to
banks for international gold imports to dissuade a rush in purchasing hedges
against a weaker domestic currency. This further constricted the supply of
gold, causing the price to rise.

The World Gold Council said: "Improving gold demand and relatively tepid
imports in recent months may have led to local demand and supply conditions
tightening, pushing up the local gold price premium."

Chinese regulators claim that the gold import ban has prevented the Yuan
from further depreciation as a potential gold buying frenzy in dollars would
cause further capital outflows, putting the domestic currency under
pressure.

.

INVESTORS DIARY 2023

Company

Event

Venue

Date & Time

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 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> bulls at bullszimbabwe.com  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com  

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

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.

(c) 2023 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> bulls at bullszimbabwe.com Tel: +263 4 2927658 Cell:
+263 77 344 1674

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230929/40a05e96/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230929/40a05e96/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 102299 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230929/40a05e96/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 30502 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230929/40a05e96/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230929/40a05e96/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130923 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20230929/40a05e96/attachment-0001.obj>