Bulls n Bears Daily Market Commentary : 28 August 2024

Thu Aug 29 09:42:31 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 : 28 August 2024

ZSE commentary 

ZSE records a 0.44% loss in mid-week session ...

The ZSE registered losses in mid-week session to see the All- Share index
dropping 0.44% to settle at 203.41pts. The Mid Cap Index was 1.10% weaker at
174.00pts while, the Blue-Chip Index retreated 0.15% to 211.26pts. On the
contrary, the ZSE

company First Mutual Properties led the laggards of the day as it plunged
14.88% to $0.3400 while,  retailer OK Zimbabwe

concern Ariston tumbled 8.44% to end pegged at $0.0400, where demand be
found. Spirits and wines producer AFDIS closed the day pegged at $7.0000
following a 6.67% decline while, Willdale fastened the top five worst
performers list of the day on a 4.64% retreat to $0.0381. Partially
offsetting today's losses was Nampak that charged 12.40% to $0.8655 while,
milk processor Dairibord garnered 8.55% to settle at a VWAP of $3.1481.
Roofing sheets producer Turnall edged up 1.40% to $0.0700 while, Zimre
Holdings Limited added 0.17% to close at $0.2800. Seed technology company
SeedCo Limited gained a negligible 0.0010% to end at $4.0000

Activity aggregates faltered in the session as volumes traded fell by 95.93%
to see 2.21m shares worth $4.4Sm exchange hands in the session. This
represented a 85 .13% decline in turnover. Volume drivers of the day were
Dairibord and Star Africa that contributed a combined 78.8% of the total
traded. Dairibord again emerged as the top value driver claiming 63.22% of
the outturn while, the other notable turnover driver was Delta which
accounted for 18.38% of the total. Foreign participation remained depressed
as no foreign trades were recorded in the session.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity 

South Africa

South African rand firms ahead of producer inflation data

JOHANNESBURG (Reuters) - The South African rand strengthened early on
Thursday, ahead of the release of domestic producer inflation data.

At 0630 GMT the rand traded at 17.7575 against the dollar, 0.4% stronger
than its previous close.

The dollar index, measuring performance against a basket of currencies, was
last down 0.08%.

Statistics South Africa will release the July producer price index at 0930
GMT. Economists polled by Reuters expect the year-on-year figure to be at
4.5%.

South Africa's central bank will hold an annual lunch with journalists in
Johannesburg on Thursday, with the bank's governor, Lesetja Kganyago,
expected to speak on the health of the domestic economy.

Local investors will then shift focus to July money supply, trade and budget
balance data on Friday.

South Africa's benchmark 2030 government bond was stronger in early deals,
with the yield down 1.5 basis points at 9.125%.

Nigeria

Naira loses N12.29 on Wednesday 

The naira fell against the dollar on the foreign exchange market on
Wednesday, 24 hours after appreciation.

FMDQ data on Wednesday showed that the naira depreciated by N12.29 to
N1606.56 per dollar on Wednesday from N1594.27 on Tuesday.

Meanwhile, at the black market, the naira remained unchanged at N1620 per
dollar, the same rate exchanged on Tuesday.

This comes as foreign exchange transaction turnover increased to $160.94
million on Wednesday from $156.94 million the previous day.

DAILY POST reports that despite interventions by the Central Bank of
Nigeria, including the recent Retail Dutch Auction System, the naira has
continued to fluctuate against the dollar and other foreign
currencies.dailpost

 <mailto:info at bulls.co.zw> 

Global Markets

Kiwi rises, dollar struggles to stay afloat ahead of US inflation test

(Reuters) - The New Zealand dollar made solid gains on Thursday in the wake
of an upbeat business outlook survey, while the U.S. dollar failed to
sustain its bounce in the run up to a key U.S. inflation reading at the end
of the week.

Friday's release of the core personal consumption expenditures (PCE) price
index - the Federal Reserve's preferred measure of inflation - headlines a
week that's otherwise been lacking on major market moving data, leaving
currencies mostly rangebound.

Advertisement . Scroll to continue

Still, the kiwi was a notable outperformer in the Asian session, scaling an
eight-month top $0.6295 after a survey out on Thursday showed New Zealand's
business confidence jumped in August to the highest level in a decade. It
was last up 0.73% at $0.6291.

"Business confidence has lifted sharply in the wake of the Reserve Bank's
turnaround on monetary policy," said Michael Gordon, a senior economist at
Westpac in New Zealand.

Advertisement . Scroll to continue

The Reserve Bank of New Zealand had earlier this month delivered its first
rate cut in over four years and signalled more to come.

"We wouldn't suggest that a single OCR (official cash rate) cut could make
this degree of difference to the economic outlook. Rather, we think this
shows how downbeat firms had become earlier in the year," said Gordon.

In the broader market, the dollar was struggling to find a floor, after
having risen 0.48% in the previous session which analysts partially
attributed to month-end demand.

The euro inched back toward its 13-month high and last bought $1.1135.
Sterling rose 0.14% to $1.3209 and was not far from Tuesday's peak of
$1.3269, its strongest level since March 2022.

The Australian dollar hovered near an eight-month top, gaining 0.27% to
$0.6803.

"PCE is definitely this week's most important print in the U.S., but I doubt
it will materially move market expectations for FOMC policy unless there is
a significant miss," said Carol Kong, a currency strategist at Commonwealth
Bank of Australia.

Markets have fully priced in a 25-basis-point rate cut from the Fed next
month, with a 34.5% chance of an outsized 50bp reduction, according to the
CME FedWatch tool.

Investor bets for imminent U.S. rate cuts were further cemented by Fed Chair
Jerome Powell's remarks at Jackson Hole last week that the "time has come"
to cut rates, joining a chorus of Fed policymakers who have signalled the
same in recent times.

The prospect of lower U.S. rates next month has toppled the dollar, which
had, for the most part of the past two years, been boosted by the Fed's
aggressive tightening cycle and expectations of how much higher rates could
rise.

The greenback has since fallen some 2.9% for the month thus far , putting it
on track for its steepest monthly decline in nine months.

The dollar index was last 0.07% lower at 100.94, having fallen to a 13-month
low of 100.51 on Tuesday.

The yen was little changed at 144.67 per dollar and was eyeing a 3.7% gain
for the month.

Contrasting with an imminent Fed easing cycle, policymakers at the Bank of
Japan (BOJ) have signalled that the central bank would continue to raise
interest rates if inflation stayed on course, offering some relief to the
Japanese currency which had come under immense pressure owing to stark
interest rate differentials.

"With the Fed now closer to cutting rates and the BOJ normalising
still-negative real policy rates, the USD/JPY should decline closer to its
fair value of around 135," said strategists at Lombard Odier in a note.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold price retreats as traders await more US data

Gold slid nearly 1% on Wednesday but remains above the key $2,500 level as
traders await more clues later this week on the Federal Reserve's rate cut
path.

Spot gold was down 0.9% at $2,501.87 per ounce by 1:10 p.m. ET, about $30
off its record high set last week. US gold futures fell 0.7% to $2,535.80
per ounce in New York.

Meanwhile, the US dollar index strengthened by 0.5%, making gold more
expensive for most buyers. Still, bullion has been on an uptrend in recent
weeks, recording a near 2% gain over the previous three sessions alone.

Want to capitalize on all-time high gold price? You could be in business by
2040!

"The dollar is the trigger that has been brewing all week," said Ole Hansen,
head of commodities strategy at Saxo Bank A/S, in a Bloomberg note.

"US data has failed to give gold any further lift, so the temptation for
traders to book some profit after a long run has been rising."

Traders are shifting attention to inflation figures due Friday, which may
offer clues on how rapidly rates will be cut after Fed Chair Jerome Powell
last week confirmed the "time has come" to ease policy.

The report is forecast to show the three-month annualized rate of core
inflation fell to 2.1%, just above the central bank's 2% goal. Lower
interest rates are often seen as positive for non-interest bearing gold.

Bullion has surged by more than 20% so far this year, boosted by rate cut
expectations and robust purchasing by central banks. It has also been
supported by haven demand amid ongoing conflicts in the Middle East and
Ukraine.

"A punch to an all-time high last week for gold prices seems to call for a
near-term breather," said Jun Rong Yeap, a market strategist with IG Asia
Pte. "We may need to see softer economic data ahead to justify much lower
rates, which may see gold prices well-supported."

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 

 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/20240829/d4e9a5e9/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/20240829/d4e9a5e9/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 29359 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240829/d4e9a5e9/attachment-0002.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240829/d4e9a5e9/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130915 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240829/d4e9a5e9/attachment-0001.obj>