Bulls n Bears Daily Market Commentary : 27 August 2024

Wed Aug 28 07:51:45 CAT 2024

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Bulls n Bears Daily Market Commentary : 27 August 2024

ZSE commentary 

Heavies Ecocash highlights activity aggregates ...

Ecocash highlighted activity aggregates of the day as 53m shares worth circa
$22.14m exchanged hands in the name.The fintech group claimed 97.42% of the
total volumes traded and 75.47% of the value traded . Activity aggregates
enhanced in the session as volume traded ballooned 928.10% to 54.42m shares
while, turnover surged 663.26% to $29.91m. A total of 6,300 units exchanged
hands in the ETF category. OMTI ETF tumbled 6.67% to $0.1400 while, Morgan &
Co Multi sector ETF shed 10.00% to end the day pegged at $0.4500 . The
Tigere REIT charged 2.01% to $0.9521 as 595,760 units exchanged hands in the
session while, the Revitus REIT dropped 14.63% to $0.8025 on scrappy 18
units.

Banking group FBC headlined the top performers of the day on a 13.60% jump
to $5 .6500,  followed by RTG that surged 12.82% to close at $0.4400 .
Mashonaland Holdings ticked up 4.99% to settle at $0.6200 while,
construction company Masimba stepped up 0.89% to $2.3205 . Beverage giant
Delta capped the top performers of the day on a 0.11% uplift to end the day
pegged at $13.9522. Contrastingly, sugar processor Hippo led the laggards of
the day on a 14.44% drop to $7.7000 while, FMP slipped 4.89% to $0.3994. NMB
trimmed 4.76% to settle at $3.0000 while, Star Africa eased 2.65% to
$0.0095. Retailer OK Zimbabwe completed the top five fallers of the day on a
1.66% retreat to end the day pegged at $0.9563. The primary All Share Index
added 0.47% to 204.31pts while, the Blue-Chip Index firmed up 0.62% to
211.59pts. The Agriculture Index lost 3.28% to 187.02pts while, the Mid Cap
Index shed 0.22% to 175.93pts.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity 

South Africa

South African rand stable ahead of data-filled second half of week

(Reuters) - The South African rand was broadly steady on Tuesday, ahead of
several local data releases later this week.

At 1532 GMT, the rand traded at 17.75 against the dollar , near its Monday
closing level of 17.7575.

South African investors will focus on July's producer inflation data on
Thursday and money supply, budget and trade balance data on Friday, which
could give clues on the health of Africa's most industrialised economy.

Like other risk-sensitive currencies, the rand could also take direction
from global drivers.

"The dollar-rand has encountered tough support around the 17.7000 mark... It
is as if the currency pair is waiting for a catalyst that will open the door
for another leg of rand appreciation," said ETM Analytics in a research
note.

"In the short term, it is unclear what that might be."

On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI),
opens new tab closed about 0.5% higher.

South Africa's benchmark 2030 government bond was weaker, as the yield
climbed 3 basis points to 9.115%.

Nigeria

Naira records appreciation against dollar as FX turnover 

The naira recorded its first gain against the dollar on the foreign exchange
market on Tuesday as FX transaction turnover increased.

The FMDQ data showed that the naira gained N2.33 at N1594.27 per dollar on
Tuesday from N1596.60 exchanged on Monday.

At the black market, the naira remained flat at N1620 per dollar on Tuesday,
the same as on Monday.

This comes as foreign exchange transaction turnover increased to $156.94
million on Tuesday from $102.93 million on Monday.

The Central Bank of Nigeria on Monday raised the Standing Lending Facility
rate to 31.75 per cent to boost stability within the financial sector.

 <mailto:info at bulls.co.zw> 

Global Markets

US dollar retreats, sterling hits more than two-year high

(Reuters) - Sterling climbed to its highest against the U.S. dollar in more
than two years on Tuesday, while the greenback dropped to a more than
one-year low after gains the previous session, as investors awaited key
economic data this week and next.

Currency moves remained driven by the prospect of upcoming U.S. interest
rate cuts, which has pressured the dollar in recent weeks. Investors see a
rate cut at the Federal Reserve's September meeting as all but certain, with
debate now focused on the possibility of a 50-basis-point (bp) cut instead
of 25.

The rate futures market has attached a 37% probability that the Fed will
raise rates by 50 bps, unchanged from late on Friday, according to LSEG
calculations. About 106 bps of cuts in 2024 are priced in by futures
traders.

"Since Jackson Hole, the dollar has been grinding lower, but I would argue
it's more sideways than anything else," said Eugene Epstein, head of
structured products, North America at Moneycorp in New York, referring to
last week's Kansas City Fed's Jackson Hole, Wyoming, symposium.

"(Fed Chair Jerome) Powell's comments were ultimately seen as dovish in
every way. Non-U.S. dollar stores of wealth such as crypto recovered a
little bit too. So this is all perceived as a dovish follow-through from
Friday's Jackson Hole."

Sterling has been one beneficiary of the weakness in the U.S. currency, and
on Tuesday the pound hit its highest since March 2022 at $1.3246. It was
last up 0.3% at $1.3226.

The pound garnered support from the contrast between Friday's remarks by
Powell, which underscored market pricing for meaningful U.S. rate cuts
starting next month, and the more cautious comments of Bank of England
Governor Andrew Bailey.

DOLLAR'S BIG MONTHLY DECLINE

The dollar index was down 0.3% at 100.53 , after earlier dropping to its
lowest since July last year. For the month of August, the dollar has fallen
3.2%, on track for its biggest monthly decline since November 2022.

The greenback edged lower after data showed U.S. house prices dipped 0.1% on
a month-on-month basis after being unchanged in May. They increased 5.1% in
the 12 months through June, the smallest year-on-year rise since July 2023,

Tuesday's report also showed U.S. consumer confidence rose in August. The
Conference Board' consumer confidence index increased to 103.3 this month
from an upwardly revised 101.9 in July. The market though showed little
reaction to the data.

Investors are awaiting data on the preliminary estimate for gross domestic
product in the second quarter, jobless claims, and personal consumption
expenditures (PCE) index, the Fed's preferred inflation gauge.

The euro gained 0.2% versus the dollar to $1.1181, just off Monday's
13-month top.

"After a strong rally since early August, it looks like euro/dollar could be
due some consolidation," Chris Turner, global head of markets at ING, said
in a note to clients.

"The run-up in oil prices on the back of increased Middle East tension and
Libyan supply challenges will not be helping."

Oil prices also paused recent advances to trade more than 2% lower on
Tuesday, after a surge of more than 7% in the previous three sessions, on
supply concerns prompted by fears of a wider Middle East conflict and the
potential shutdown of Libyan oilfields.

One currency boosted by the surge in oil prices was the Canadian dollar,
which rose against the U.S. currency, having touched a five-month peak
earlier in the session. The U.S. dollar was last down 0.3% at C$1.3449 .

Elsewhere, the Australian dollar rose 0.3% to US$0.6791, not far from a
one-month high of $0.6799 hit on Friday.

Against the Swiss franc, the dollar fell to its lowest since early January
and was last down 0.7% at 0.8414 franc .

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold rises on softer dollar; market awaits further Fed guidance

(Reuters) - Gold prices rose on Tuesday driven by a weaker dollar, with
investors awaiting inflation data that might provide insights on the scale
of an expected interest rate cut by the Federal Reserve next month.

Spot gold rose 0.3% to $2,524.94 per ounce, as of 2:57 p.m. ET (1857 GMT),
shy of the record high of $2,531.60 hit last week. U.S. gold futures settled
0.1% lower to $2,552.90.

The dollar index fell 0.3%, making gold more attractive for other currency
holders .

"Biggest thing right now is the drop in the U.S. dollar that we've seen over
the last hour has given gold a little bit of a push here, and you're seeing
a lot of buying on this dip," said Bob Haberkorn, senior market strategist
at RJO Futures.

Investors now await the release of the Personal Consumption Expenditures
(PCE) data, a key inflation report and the Fed's preferred inflation gauge,
scheduled for Friday.

A surprise of hotter-than-expected inflation data could slightly influence
the Fed's policy, but its assured they will cut interest rates in September
and possibly again this year, Jim Wyckoff, senior market analyst at Kitco
Metals, said.

Traders see a 63.5% chance of a 25-basis-point (bp) rate cut in September
and about a 36.5% probability of a bigger 50-bp reduction, according to the
CME FedWatch tool, opens new tab.

Bullion remains above the $2,500 per-ounce psychological level and is
heading for its best year since 2020, driven by investor optimism about
upcoming U.S. rate cuts and lingering concerns about the Middle East
conflict.

"Much of the positive news for gold may therefore already have been priced
in. We feel vindicated in our view that gold has no significant upside
potential for the time being," Commerzbank wrote in a note.

"We see more room for the three other precious metals that have not caught
up with gold in recent weeks"

Among other metals, spot silver rose 0.6% to $30.07 per ounce, while
platinum fell 0.1% $960.90 and palladium gained 1.8% to $975.58.

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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