Bulls n Bears Daily Market Commentary : 02 April 2024

Wed Apr 3 05:55:38 CAT 2024

 <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 : 02 April 2024

 <mailto:sales at dulys.co.zw?subject=Request%20Quote> 
ZSE commentary

ZSE records gains in month opening session...

The ZSE recorded gains in the first session of the month as the primary All
Share Index ticked up 3.46% to 903,513.36pts while, the Blue-Chip Index
added 3.16% to 410,596.59pts. The Agriculture Index rose 2.86% to
2,245.73pts as the Mid Cap Index firmed up 2.79% to 3,265,124.58pts. ZBFH
and RioZim led the top performers of the day on a similar 15% jump to close
at $6,353.7500 and $1,380.0000 respectively. Seed producer SeedCo and
banking group FBC surged 15.00% again to settle at $3,954.9000 and
$4,714.9847 respectively. Spirit and wine distillers Afdis completed the
risers list of the day on    another 15.00% jump to end the day pegged at
$5,495.0000.

Bridgefort Capital A led the laggards of the day on a 58.82% plunge that
took it to $35.0000. Beverage giant Delta declined 0.37% to close at
$16,590.4170 while, tea producer Tanganda retreated  a  negligible  0.07%
to  end  the  day  pegged  at $5,110.7692. Seventeen counters recorded gains
against three that faltered to leave the market with a positive breadth
offourteen.

Activity aggregates enhanced in the session as volumes traded ballooned
71.97%  to  3.79m  shares  while,  turnover  grew 147 .16% to $14.73bn. Top
volume drivers of the day were Star Africa (39.14%), Econet (34.99%) and
Delta {9.68%).Econet, Delta and BAT drove the value aggregates after
contributing 46.81%, 41.38% and 8.69% respectively. A total of 34,480 units
exchanged hands in the ETF section. Cass Saddle ETF edged up 10.09% to
$9.9077 while, Datvest ETF jumped 15.00% to settle

         at $38.5700. OMTI ETF notched up 0.13% to $170.0000. The Tigere
REIT inched up 6.18% to end pegged at $1,029.1853 while,   the   Revitus
Property   fund   firmed   up  0.13%  to     $559.7368.

Global Currencies & Equity Markets

South Africa

South African rand firms as dollar slips on US jobs data

JOHANNESBURG (Reuters) -The South African rand strengthened on Tuesday after
the dollar slipped on a new report that showed U.S. job openings held steady
at higher levels.

At 1533 GMT, the rand traded at 18.8125 against the dollar, about 0.7%
firmer than its previous closing level.

The dollar index was down 0.2% after the U.S. Labor Department's Bureau of
Labor Statistics said job openings, a measure of labour demand, edged up
8,000 to 8.756 million on the last day of February.

The rand seemed unperturbed by disappointing data at home after a purchasing
managers' index (PMI) survey showed monthly South African manufacturing
activity declined and vehicle sales fell 11.7% year-on-year in March.

The rand like most emerging market currencies, takes cues from global
factors like the direction of the dollar, in addition to local economic
indicators.

Shares on the Johannesburg Stock Exchange fell, with the blue-chip Top-40
index closing 0.1% lower.

South Africa's benchmark 2030 government bond was weaker, with the yield up
1.5 basis points to 10.630%.

Nigeria

Naira sells below 1,280/$ at official, parallel markets

The naira began the new month on a bullish note, appreciating to N1,278.58
against the United States dollar from N1,309.39 per dollar recorded last
week Thursday. This indicates an increase of N30.81 at the close of trading
activity.

According to data from FMDQ Securities, the indicative exchange rate for the
Nigerian Autonomous Foreign Exchange Market closing below the N1,300 ceiling
marks the first instance since January 26 of this year.

The naira depreciated to as low as N1,615/$1 on March 13, 2024.

Since the introduction of a slew of forex policies by the central bank, the
naira has gained over 21 per cent on the dollar since March.

Liquidity in the forex market has been attributed to an array of policies
currently implemented by the CBN.

Key reforms include the unification of exchange rate windows, liberalisation
of the FX market, clearance of FX backlog obligations for banks and
airlines, implementation of a Price Verification System, imposition of
limits on banks' Net Open Position, removal of the daily cap of N2bn on
remunerable Standing Deposit Facility, and overhaul of the Bureau De Change
segment.

Forex turnover is a critical metric in the financial world as it represents
the total value of all foreign exchange transactions completed within a
specific timeframe, providing insights into the liquidity and vibrancy of
the forex market.

High turnover rates indicate a highly active market with numerous
participants engaging in buying and selling currencies, which can signal
investor confidence and economic stability.

In the last two weeks, the Central Bank of Nigeria and other banking
institutions improved dollar supply to the foreign exchange market by
$2.5bn.

Similarly, forex transactions between willing sellers and buyers at the
Nigerian Autonomous Foreign Exchange Market reduced by 106 per cent to
$111.18m on Tuesday from $857m at the close of trading activity last week
Thursday.

The summary of the FX trading revealed that the intraday high closed at
N1,312 from 1392 per dollar on last Thursday. Also, the intraday low
remained at N1,250 it traded last Thursday.

The foreign exchange resumed on Tuesday after the Easter holiday with the
Naira appreciating at the parallel market to N1,220. Bureau De Change
operators bought at N1,220 per dollar and sold either through cash or
transfer to customers at N1,265/$ with a profit margin of N30.

This represents 1.99 per cent appreciation over N1,280 closed last week.

The Naira strengthened in both the official and parallel market segments
following the Central Bank of Nigeria's move to clear all verified FX
backlogs (final tranche of $1.5bn).

The Naira which appreciated by 21.8 percent month-on-month in March 2024 is
expected to maintain the trend in April, following the policy measures of
the Central Bank.

Currency traders, who spoke to The PUNCH attributed the naira appreciation
to waned demand for the greenback note and the decision of the apex bank to
sell foreign exchange to operators.

A BDC operator at Wuse Zone 4, Ibrahim Yahu, stated, "The demand for dollars
has really gone down and the naira is appreciating because of the new rate
determined by the CBN for traders.

The CBN initially started selling to us at N1,251 but they gave another rate
last week Thursday at N1,190 and that is the reason for new fresh drop of
the dollar. The CBN selling directly to us has really helped trading
activities."

Another trader, Malam Yunusa, stated that the naira was poised to maintain
its gain against the dollar adding that operators also want the naira to
grow.

The President of the Association of Bureaux de Change Operators of Nigeria,
Aminu Gwadabe, recently noted that apart from the tightening of monetary
policy resulting in interest rate hikes, increased investment in government
instruments, and the clearance of $7 billion forex backlog forward
commitments, the reactivation of the BDCs has notably enhanced dollar
liquidity in the retail segment of the forex market.

Analyst at Afrinvest also predicted that the naira would trade within
similar band in the month of April as the CBN continues its activities to
mop up liquidity and attract more capital.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar dips while jawboning supports yen

(Reuters) - The U.S. dollar was down on Tuesday after earlier hitting its
highest in almost five months, following a new report that showed U.S. job
openings held steady at higher levels in February.

The Japanese yen was last up at 151.605 per dollar, after earlier dipping to
151.79. It has traded in a tight range since reaching a 34-year trough of
151.975 on Wednesday, which spurred Japan to step up warnings of
intervention.

The dollar index rose to 105.1 on Tuesday, its highest level since Nov. 14,
adding to sharp gains on Monday after U.S. data unexpectedly showed the
first expansion in manufacturing since September 2022, causing traders to
pare rate bets.

The dollar index last stood at 104.81, down 0.181% after a report from the
Labor Department showed that job openings edged up to 8.756 million on the
last day of February, slightly higher than expectations, as traders also
digested a February increase in factor orders.

The Commerce Department's Census Bureau on Tuesday said new orders for
U.S.-manufactured goods rebounded more than expected in February, boosted by
demand for machinery and commercial aircraft as manufacturing regains its
footing.

Monday's U.S. ISM manufacturing survey data featured a sharp rise in a
measure of prices in the sector, adding to investors' concerns that
inflation will be slow to fall back to 2%, delaying the Federal Reserve's
first rate cut.

"Really the dollar over the last nine months or so has been driven by Fed
policy expectations -- when the probability of a cut increases sooner, the
dollar tends to weaken, and vice versa," said John Velis, Americas macro
strategist at BNY Mellon.

Fed Chair Jerome Powell on Friday said the central bank was in no hurry to
lower borrowing costs after data showed a key measure of inflation rose
slightly in February.

On Tuesday, Japanese Finance Minister Shunichi Suzuki reiterated that he
would not rule out any options to respond to disorderly currency moves.

Japanese authorities intervened in 2022 when the yen slid toward a 32-year
low of 152 to the dollar.

The yen's decline has come despite the Bank of Japan's first interest rate
hike since 2007 last month, with officials cautious about further tightening
amid a fragile exit from decades of deflation.

"The fact that they didn't last week to me suggests that it's going to take
a break above 152 for Japanese policymakers to start getting involved, and
in retrospect, I think maybe that's prudent of them because intervention
loses its significance each time you enter the market," said Matt Weller,
head of market research at StoneX.

Still, officials are "wary of backing themselves into a corner by drawing a
line in the sand at 152," said Nicholas Chia, Asia macro strategist at
Standard Chartered.

"The rationale of jawboning and intervening in FX markets is mainly to buy
time for the JPY in the hopes that USD strength wanes and recedes," he said.

Elsewhere, China's yuan fell to a 4-1/2-month low as a strong dollar offset
selling of the U.S. currency by state-owned banks. The yuan fell to a low of
7.2364 per dollar on the day, its weakest level since mid-November.

The euro fell to its lowest since mid-February at the end of the Asian
session but was last up at $1.0763 . Data on Tuesday showed that the euro
zone factory downturn deepened again in March.

Sterling ticked up from near its lowest since December to $1.2569 after data
showed its manufacturing sector brightened last month.

Bitcoin declined 5.36% to $66,027 after earlier declining to as low as
$64,550.

The Swiss franc hit its lowest since the start of November at 0.909 to the
dollar. It has dropped around 2.5% since the Swiss National Bank
unexpectedly cut interest rates on March 21.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold shatters new records as Mideast tensions add to bullish mix

(Reuters) - Gold scaled yet another record peak on Tuesday as traders
snapped up the safe haven asset amid growing Middle East tensions, largely
ignoring a stronger dollar and tempered bets for U.S. rate cuts.

Spot gold was up 0.8% at $2,268.44 per ounce by 2:07 p.m. EDT (1807 GMT),
after hitting an all-time high of $2,276.89.

U.S. gold futures settled 1.1% higher at $2,281.8.

"We're seeing some safe-haven demand flowing into gold, which relates to the
Israeli strikes on Iran's embassy in Syria," said Daniel Ghali, commodity
strategist at TD Securities.

The latest leg up in gold prices is probably also associated with short
covering from family offices and proprietary trading shops, Ghali added.

Iran vowed to take revenge on Israel for an airstrike on the Iranian embassy
compound in Damascus.

Saxo Bank's Ole Hansen said an underlying bid from retail and central banks
was being joined by momentum-following speculators who have extended their
already elevated longs following gold's break above $2,200.

The mix of bullish tailwinds has driven bullion nearly 10% higher so far
this year.

"What makes the gold rally so unusual is that it is occurring despite
significant traditional headwinds with the U.S. dollar rising, Treasury
yields rising, the likelihood of higher for longer U.S. rates increasing,"
said independent analyst Ross Norman.

The dollar jumped after Monday's data showed U.S. manufacturing grew for the
first time in 1-1/2 years in March.

Traders pared bets of a June interest rate cut to 58% versus around 60%
before the data, which under normal circumstances, would pressure zero-yield
bullion.

But while the gold market remains in a "highly bullish mood", it probably
needs to consolidate amid a shift back to a more hawkish view of Federal
Reserve policy, said Tai Wong, a New York-based independent metals trader.

Silver rose 3.2% to $25.89 per ounce, platinum added 2.4% to $923.00 and
palladium climbed 0.1% to $996.88.

INVESTORS DIARY 2024

Company

Event

Venue

Date & Time

Good Friday

march 29

Easter Monday

1 April

Independence Day

April 18

Workers day

1 May

Counters trading under cautionary

CBZH

GetBucks

EcoCash

Padenga

Econet

RTG

Fidelity

TSL

FMHL

ZBFH

Invest Wisely!

Bulls n Bears 

 Invest Cellphone:            +263 71 944 1674 | +27 79 993 5557 

Email:               bulls at bullszimbabwe.com

Website:            www.bullszimbabwe.com 

Blog:                 www.bullszimbabwe.com/blog

Twitter (X):        @bullsbears2010

LinkedIn:           Bulls n Bears Zimbabwe

Facebook:          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) 2024 Web: www.bullszimbabwe.com Email: bulls at bullszimbabwe.com Tel: +27
79 993 5557 | +263 71 944 1674

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240403/f1c4f96e/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/20240403/f1c4f96e/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 135717 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240403/f1c4f96e/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 40113 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240403/f1c4f96e/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/20240403/f1c4f96e/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130909 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240403/f1c4f96e/attachment-0001.obj>