Bulls n Bears Daily Market Commentary : 08 April 2024

Mon Apr 8 18:18:49 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 : 08 April 2024

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

ZSE in marginal gains post the introduction of ZiG currency...

The ZSE recorded marginal gains in the week opening session post the
introduction of the ZiG Currency. All the Indices were rebased to OOpts, to
see the All Share Index closing at 101.28pts having ticked up 1.28% . The
Agriculture Index went up 0.63% to 100.63pts as the Mid Cap Index inched up
0.07% to 100.07pts. Ariston surged 59.05% to close at $4.2500 ZiG cents
while, Star Africa stepped up 47.86% to end the day pegged at 1.0000 ZiG
cents. On the losing side was beverage giant Delta that declined 0.06% to
settle at 680.0000 Zig Cents as paltry 100 shares exchanged hands in the
session. Only two counters recorded gains against one that faltered to leave
the market with a  positive breadth of one.

Activity aggregates were depressed in the session as a volumes traded fell
91.48.% to 125,300 shares yielding a value outturn of ZiG$2,745.0000. Volume
drivers of the day were Star Africa (79.97%), Ariston (19.95%) and Delta
(0.08%) . Ariston, Star Africa and Delta again anchors the value
contributing 38.71%,

36.51% and Delta (24.78%) respectively.There were no trades recorded in the
ETF section. Tigere REIT climbed up 10.97% to end the day pegged at $9.2025
ZiG cents as a total of 10,000 units exchanged hands in the week opening
session.-efe

Global Currencies & Equity Markets

Nigeria

Nigeria Central Bank Offers Dollars at 1,101 Naira to FX Bureaux

The rate is the highest level that the central bank has sold the greenback
to BDCs since February, when it first offered them at 1,301 naira per
dollar. It's also 12% above the 1,251 naira/dollar where the currency closed
on the official market on Friday, which is the most recent indication
available.

Unlock exclusive access to the story of India's general elections, only on
the HT App. Download Now!

That level was already the highest the currency has traded since Jan. 26, on
the eve of a second round of devaluation that has slashed around 63% from
the naira's value against the dollar since President Bola Tinubu eased
foreign exchange controls in June. The moves, designed to attract foreign
capital and boost economic growth, had mixed results initially but have seen
the naira regain ground in recent weeks. 

It has bounced more than 20% from a low of 1,627/dollar on March 8 in
response to aggressive monetary policy tightening, with the central bank
raising interest rates by 600 basis points to 24.75% since the start of the
year. Local dollar liquidity has also been boosted after the central bank
cleared a backlog of overdue dollar purchase agreements estimated at $7
billion.

The offer to the BDCs may indicate mild intervention by the central bank to
guide the naira to stronger levels against the dollar, or that it expects
the currency to continue its rally, which has made it one of the best
performing currencies tracked by Bloomberg in the past month.

Bureaux de Change in Nigeria are allowed to sell foreign currency to
customers at a spread of not more than 1.5% above the purchase price.

This article was generated from an automated news agency feed without
modifications to text.

South Africa

Rand firms after foreign reserves dataIn early trade the rand was at R18.61
to the dollar.

The rand firmed in early trade on Monday, after central bank data showed
that foreign reserves had increased last month.

At 0809 GMT, the rand was trading at R18.61 against the US dollar.

4/8/2024, 5:43:41 PM

The dollar was down about 0.04% against a basket of global currencies.

South Africa's net foreign reserves rose to $57.513 billion at the end of
March, from $56.652 billion in February, central bank data showed. Gross
reserves increased to $62.323 billion in March from $61.653 billion in
February.

More local economic data will be released later this week, including
February gold and mining production and manufacturing figures on Thursday.

On the stock market, the Top 40 index and the broader all-share were up
0.38% in early trade.

South Africa's benchmark 2030 government bond was weaker in early deals,
with the yield up 4 basis points to 10.565%.

 <mailto:info at bulls.co.zw> 

Global Markets

US Dollar steady assessing the start of the week with dust settling over NFP

The US Dollar (USD) is kicking off this Monday with both the Asian and the
European trading session in the green. The Greenback is able to hold on to
the gains it locked in on Friday after a very strong US Nonfarm Payrolls
print that surpassed all expectations by coming in at 303,000 instead of
declining from 275,000 to 200,000. The question will be this week if traders
will start to factor in US exceptionalism, which would mean that the US
economy will thrive further without any rate cuts from the US Federal
Reserve. 

There is only one big event to look out for this Monday, which is the
participation of  Federal Reserve Bank of Minneapolis President Neel
Kashkari in a Town Hall meeting at the University of Montana in Missoula.
Although Kashkari is a non-voter this year, known for his hawkish stance, a
change in his comments could mean an alteration in market expectations over
the Fed's monetary policy. 

Daily digest market movers: Monday snooze

The US Treasury Department is getting ready for action this Monday with no
less than two auctions: Both a 3-month and a 6-month bill will be auctioned
around 15:30 GMT.

Federal Reserve Bank of Minneapolis President Neel Kashkari will speak in a
Town Hall meeting at the University of Montana in Missoula. Expect any
market-related comments from him to come in around 23:00 GMT. 

A very calm start of the week with Asian equities overall up in Japan and
China by more than 0.50%. Both the European and US equities are taking over
the positive tone by trading in the green.

According to the CME Group's FedWatch Tool, expectations for the Fed's May 1
meeting are at 98.2% for keeping the fed funds rate unchanged, while chances
of a rate cut are at 1.8%.

The benchmark 10-year US Treasury Note trades around 4.48% after it rallied
over 20 basis points in just one week. 

US Dollar Index Technical Analysis: From here...

The US Dollar Index (DXY) broke a lot of pots on Friday after the US Jobs
Report came in with a stellar performance. Questions will start to grow
further now among traders if those awaited Fed rate cuts will be coming, and
the answer will be: probably not. Certainly, June looks more and more likely
not to be the moment, which means a repricing to later 2024 or even 2025.
Speculation of delayed rate cuts should coincide with a bit more US Dollar
strength as all other major central banks are getting ready to cut.

That first pivotal level for the DXY comes in at 104.60, which got broken
last week on Wednesday to the downside, though broken up again from below on
Friday.  Further up, 105.12 is the key point after the DXY failed to break
that level last week. Once above there, 105.88 is the last resistance point
for now before the Relative Strength Index (RSI) will trade in overbought
levels. 

Supports from the 200-day Simple Moving Average (SMA) at 103.81, the 100-day
SMA at 103.43, and the 55-day SMA at 103.89 have shown their importance last
week on Wednesday. Further down, the 103.00 big figure looks to remain
unchallenged for longer with ample support thus standing in the way. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold price touches $2,350 on firm central bank demand

Gold kept its momentum on Monday, hitting $2,350 an ounce for the first time
before paring gains, as investors shift focus to a key US inflation reading
later this week.

By 9:55 a.m. EDT, spot gold was down 0.1% to $2,327.20 per ounce, having
reached a new record $2,351.85 earlier. US gold futures, meanwhile, gained
0.2% at $2,350.80 per ounce.

The slight pause in gold's rally comes as traders assess where US
policymakers now stand on the timing of their pivot to lower borrowing
costs, ahead of the March inflation data Wednesday. The Federal Reserve
expects to cut this year, but has said it needs to see more evidence that
inflation is easing first.

The precious metal remains supported well above $2,300 after notching a
series of fresh all-time highs in recent weeks. Yet, the move has left some
onlookers puzzled amid a lack of any obvious trigger for the sudden rally
that began in mid-February.

Since then, gold has gone up by more than 18%, with at least some of the
gains fueled by optimism that the Fed was getting closer to cutting rates.
For the year, bullion is up by double digits at 13%, despite headwinds from
strong US economic data.

Central bank demand has evidently been a supporting factor, with the
People's Bank of China reporting an addition for a 17th straight month in
March.

"Gold bulls may have taken their latest cues from the People's Bank of China
(PBOC), which extended its buying spree of the precious metal for a 17th
straight month in March," said Han Tan, chief market analyst at Exinity
Group, told Reuters.

Moreover, gold has also benefited from increased demand amid persistent
tensions in the Middle East due to the metal's safe-haven status.

"There're only two buyers in my book that would have that kind of attitude
towards gold. One could be program buying by a central bank. The other
alternative, impervious to market fundamentals, is option buying," said
independent analyst Ross Norman.

Meanwhile, UBS Group has boosted its year-end gold outlook by 11% to $2,500
an ounce, with a revival in demand for gold-backed exchange traded funds set
to support another leg up when the Federal Reserve cuts rates around
mid-year, according to a note from analysts including Giovanni Staunovo.

INVESTORS DIARY 2024

Company

Event

Venue

Date & Time

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/20240408/d2599910/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/20240408/d2599910/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 273846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240408/d2599910/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image006.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240408/d2599910/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130977 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240408/d2599910/attachment-0001.obj>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image007.jpg
Type: image/jpeg
Size: 42761 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240408/d2599910/attachment-0005.jpg>