Bulls n Bears Daily Market Commentary : 05 August 2024

Tue Aug 6 08:14:24 CAT 2024

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Bulls n Bears Daily Market Commentary : 05 August 2024

ZSE commentary

ZSE The market falters in new week ...

The ZSE market slipped into the red in Monday's session as the All Share
Index slipped 0.37% to close at 198.20pts . The Blue Chip Index let go 1.45%
to end at 204.00pts while, the Agriculture Index trimmed 0.50% to 186.0lpts.
The Mid Cap Index was the only riser amongst the indices we review as it put
on 2 .54% to 178.lOpts . General Belting was the worst faller of the day on
a 13.60% decline to $0.0502,followed by CBZ that dipped 13.33% to $13.0000.
OKZIM shed 6.01% to settle  at  $0.7516  as  SeedCo  Limited  retreated
5.76%  to $3.2046. Conglomerate Meikles capped the top five shakers of the
day on a 5.72% loss to $6.5995. Logistics group Unifreight surged 14.97% to
end pegged at $1.0635 while, Proplastics jumped 14.94% to $2.6145. Zimre
Holdings went up 14.19% to $0.3200 while, banking group FBC charged 13.62%
to $3.9200. ART completed the top five winners of day on a 11.07% to $0.1405
. Econet, Tanganda, TSL, BAT and Hippo claimed a shared 78.39% of the value
aggregate. The Cass Saddle ETF slid 1.62% to $0.0200 while, the Old Mutual
ETF  declined  0.02% to $0.1800. The  Datvest  MCS went  up 0.03% to
$0.0300. A total of 37,219 units worth $3,892 .78

VFEX rebounds in new week...

The VFEX All-Share Index added 0.87% to close at 104.91pts. First Capital
charged 12.43% to $0.0398 while, Zimplow edged

lnnscor was up 0.02% to $0.4610. The fallers of the day were led by National
Foods that dropped 5.71% to $1.6500 as Padenga fell 2.54% to $0.1650.
Simbisa parred off 1.32% to $0.3502.

Volume of shares traded ballooned 129.27% to 143,580 shares while, value
outturn grew 19.20% to $13,890.15. Volume drivers of the day were First
Capital (67.01%) and African Sun (13.31%) . Value drivers of the day were
lnnscor, First Capital and Simbisa that claimed a combined 91.60% of the
outturn..-efesecurities

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity 

South Africa

South African rand, stocks sink as US recession fears hit riskier assets

(Reuters) - South African stocks and the rand tanked on Monday as global
investor sentiment soured towards riskier assets due to growing fears over a
possible recession in the United States.

At 1206 GMT, the rand traded at 18.5825 against the dollar, about 1.7%
weaker than its previous close and near a two-month low. The rand had lost
more than 2% against the greenback in earlier trade.

On Johannesburg Stock Exchange, the Top-40 index was down about 2.3%,
mirroring a sell-off on global stock markets.

Markets have been hit by Friday's weak U.S. July payrolls report, which
showed the unemployment rate had risen to 4.3%, stoking concerns the world's
biggest economy may be heading for a recession.

"The ongoing equity market correction provides a glimpse of the kind of
volatility that can be expected through the months ahead . (but) it will
eventually trigger more aggressive rate cuts in the world's top economies,"
said Danny Greeff, co-head of Africa at ETM Analytics.

Traders are pricing in a near 100% chance that the Federal Reserve will cut
interest rates by a full 50 basis points in September to rescue growth,
compared with an 11.5% chance a week earlier, according to the CME FedWatch
tool.

Rate cuts in the world's biggest economies should lead to corrections in
overvalued major currencies, Greeff added.

"The rand is thus still expected to strengthen through the coming quarters,
but it will be far from smooth sailing," he said.

Like other risk-sensitive currencies, the rand often takes cues from global
drivers such as U.S. economic data and monetary policy in addition to local
factors.

South Africa's benchmark 2030 government bond was also weaker, as the yield
gained 9.5 basis points to 9.345%.

Nigeria

Naira depreciates to N1,600/$ in parallel market

The Naira yesterday depreciated to N1,600 per dollar in the parallel market
from N1,590 last weekend.

However, the Naira yesterday appreciated to N1,607.15 per dollar in the
Nigerian Autonomous Foreign Exchange Market, NAFEM.

Speed Painting, like medicine, leaves no room for error - Dr. Ojeabuo, A
Speed Painter0:00 / 0:00

Data from FMDQ showed that the indicative exchange rate for NAFEM fell to
N1,607.15 per dollar from N1,617.08 per dollar last week Friday, indicating
N9.93 appreciation for the naira.

The volume of dollars traded in the market declined by 41.3 per cent to
$77.09 million from $131.55 million traded last weekend.

Consequently, the margin between the parallel market and NAFEM rate narrowed
to N7.15 per dollar from N27.08 per dollar last week Friday.

 <mailto:info at bulls.co.zw> 

Global Markets

Global Canadian Dollar twists as markets struggle to pick a direction

The Canadian Dollar (CAD) tumbled against the Greenback early Monday before
a mid-session recovery. The CAD is holding in positive territory against the
US Dollar to kick off the new trading week, but market flows remain thin
with Canadian markets shuttered for the August Civic Holiday.

CAD traders will be waiting in the wings with meaningful Canadian economic
data slated for Friday with July's updated labor figures. A smattering of
mid-tier data from Canada is due throughout the midweek, but impact is set
to be limited.

Daily digest market movers: CAD flows take a backseat amid US data fears

US S&P Global Composite Purchasing Managers Index (PMI) figures in July
eased to 54.3, missing the forecast hold at 55.0.

Further downside misses added to fears of a US recession after last Friday's
miss in US Nonfarm Payrolls (NFP) sparked an extended risk-off decline
across global markets.

Market expectations for a Federal Reserve (Fed) rate cut in September are
fully pinned to the ceiling.

Despite wide misses in recent US data, Monday's July ISM Services PMI rose
to 51.1, beating the forecast 46.5.

Later in the week, CAD traders will be looking for a recovery in Canada's
Net Change in Employment on Friday. June's headline figure reported a net
contraction of -1.4K.

Canadian Dollar PRICE Today

The table below shows the percentage change of Canadian Dollar (CAD) against
listed major currencies today. Canadian Dollar was the strongest against the
British Pound.

        USD   EUR   GBP   JPY     CAD   AUD   NZD   CHF

USD           -0.33%        0.41%         -1.50%        -0.18%        0.32%
0.41%         -0.56%

EUR  0.33%                  0.66%         -1.33%        0.03%         0.67%
0.64%         -0.33%

GBP  -0.41%        -0.66%                 -1.90%        -0.60%        0.00%
-0.02%        -0.99%

JPY    1.50%         1.33%         1.90%                  1.39%
1.81%         1.97%         0.99%

CAD  0.18%         -0.03%        0.60%         -1.39%                 0.54%
0.59%         -0.56%

AUD  -0.32%        -0.67%        -0.01%        -1.81%        -0.54%
-0.03%        -0.98%

NZD  -0.41%        -0.64%        0.02%         -1.97%        -0.59%
0.03%                  -0.97%

CHF  0.56%         0.33%         0.99%         -0.99%        0.56%
0.98%         0.97%         

The heat map shows percentage changes of major currencies against each
other. The base currency is picked from the left column, while the quote
currency is picked from the top row. For example, if you pick the Canadian
Dollar from the left column and move along the horizontal line to the US
Dollar, the percentage change displayed in the box will represent CAD
(base)/USD (quote).

Canadian Dollar technical outlook: USD/CAD sets new 2024 high as Greenback
tests high end

The Canadian Dollar (CAD) eased early Monday before recovering back into the
green against the US Dollar. A Canadian market holiday leaves the CAD in a
mixed stance to kick off the new trading week, up three-tenths of one
percent against the Greenback but down around six-tenths of one percent
against the Japanese Yen.

USD/CAD briefly rallied into a fresh high bid for 2024, falling just shy of
1.3950 before turning around and slumping back below 1.3850. The pair
chalked in an outside candle on daily charts as price action gets frothy,
but bidders are struggling to develop enough momentum to break the pair into
an extended bull run. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold price falls over 1% as wider market crash spills over

Gold prices fell more than 1% on Monday as the metal was caught in a global,
wider market sell-off driven by mounting economic concerns.

Spot gold fell as much as 3.2% to $2,365.55 per ounce, the biggest
single-day drop since early June. By 12:55 p.m. ET, it had recovered half of
the loss to $2,403.37 per ounce.

Sign Up for the Precious Metals Digest

US gold futures were also lower by 1.0% at $2,445.10 per ounce in New York,
but maintained above the $2,400 level throughout the session.

Despite Monday's sharp drop, gold is still up by about 18% year to date. It
hit an all-time high in July, aided by central bank buying and Asian
consumers. Last week, it crossed the $2,500 mark for the first time ever.

Expectations of rate cuts by the US Federal Reserve, along with rising
geopolitical tensions in the Middle East, have provided strong support for
bullion, which is often considered a safe haven during times of uncertainty.

Column: Gold's run to record high may crimp demand

But those bullish factors were overshadowed on Monday by pressure on
positions from the global stock market selloff triggered by fears of the US
tipping into recession following weak economic data last week.

"Margin calls ahead of the New York opening have forced traders to liquidate
winning positions in gold to cover their losses on stocks," said Adrian Ash,
director of research at BullionVault, in a Bloomberg note.

In a stock market crash it's common for gold to drop as equities plunge,
"but it falls less and from higher ground before finding its floor sooner,"
he explained.

However, analysts believe the precious metal could regain its footing, given
the persistent economic and political uncertainties looking ahead, and also
on expectations of interest rate cuts, which should bode well for the
zero-yield bullion.

"Virtually every time there is marked equities weakness, investors who hold
gold as a risk hedge will liquidate part of their holdings to raise
liquidity against any potential margin calls," said Rhona O'Connell, an
analyst at StoneX Financial.

"When the dust settles, they almost invariably buy it back," she added. 

INVESTORS DIARY 2024

Company

Event

Venue

Date & Time

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
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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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for guideline purposes only and sourced from third parties.

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