Bulls n Bears Daily Market Commentary : 26 February 2024

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Bulls n Bears Daily Market Commentary : 26 February 2024

 

 	

 

 

 	

 <https://www.dulys.co.zw/> 
ZSE commentary

 

ZSE rebounds in Monday's trades.

 

The market rebounded in Monday's session as it eked out narrow gains of
0.11% to end pegged at 496,818.79pts while, the Blue-Chip added 0.05% to
settle at 218,347.44pts.  On the contrary, the Agriculture Index dropped
3.17% to close at 1,399.25pts while, the Mid Cap Index faltered 0.99% to end
pegged at 2,105,266.06pts. Headlining the best performer of the day was
apparel retailer Truworths that charged 20.00% to $90.0000 while, Meikles
notched up 11.84% to close trading at $2,742.3462. Conglomerate ART notched
up 11.05% to end at $190.0000 while, tea producer Ariston was 8.30% higher
at $65.6000. Sugar refiners Star Africa closed at a VWAP of $7.3299%
following a 2.79% ascent. TSL led the laggards of the day as it plummeted
15.00% to end at $2,294.9500 while, General Beltings trailed on a 8.33%
retreat to $110.0000. Roofing manufacturer Turnall shed 5.37% to $65.0000 as
7,200 shares exchanged hands in the session while, Apparel Retailer Edgars
that is trading under cautionary pending further announcement about its
anticipated movement to the VFEX, parred off 4.89% to $380.0000. Dairibord
plunged 3.76% to end at $975.0000 as it capped the top five worst performers
of the day. The market recorded a negative breadth of six as eight counters
gained against fourteen that faltered. 

 

Activity aggregates enhanced in the session as volumes traded jumped 198.65%
to see 6.51m shares worth $5.67bn exchange hands in the session. This
represented an 86.73% increase in turnover. The threesome of Econet, Ecocash
and OK Zimbabwe drove the volume aggregates of the day as they contributed a
combined 80.87% of the total. In the turnover category, trading was mainly
confined in Econet and Delta which claimed 51.51% and 33.80% of the turnover
traded in the session respectively. In the ETF category, a total of three
funds recorded negative price movements. Datvest MCS, Morga & Co Made in Zim
and Old Mutual Top 10 lost 2.37%, 0.56% and 0.04% in that order. The Tigere
REIT was 0.27% weaker at $609.3622 as 4.84m units exchanged
hands.-efesecurities

 

 

 

 

Global Currencies & Equity Markets

 

 

South South Africa

 

South African rand extends slide ahead of data-filled week

(Reuters) - South Africa's rand continued its downward slide for another
session on Monday, with analysts citing the negative impact of the 2024
national budget on investor sentiment.

 

At 1602 GMT, the rand traded at 19.3225 against the dollar , 0.16% weaker
than its previous close.

 

The currency also weakened on Thursday and on Friday as the market digested
the finance minister's budget speech last week.

In it, the minister said the government would draw down 150 billion rand
($7.76 billion) from contingency reserves at the central bank over the next
three years to limit rising debt, but offered little in the way of broad
structural reforms.

-

"The negative mood post the budget speech persists and the risk for further
weakness in the short term remains," Andre Cilliers, currency strategist at
TreasuryONE, said in a note.

 

This week, investors will be monitoring trade (ZATBAL=ECI), opens new tab
and budget balance data (ZABUDM=ECI), opens new tab, producer inflation
(ZAPPIY=ECI), opens new tab and private sector credit (ZACRED=ECI), opens
new tab figures.

On the stock market, the Top-40 (.JTOPI), opens new tab and the broader
all-share (.JALSH), opens new tab indexes closed around 0.8% lower.

-

Shares in Sasol (SOLJ.J), opens new tab fell 2% after the petrochemical firm
reported a decline in half-year profit.

South Africa's benchmark 2030 government bond was weaker, with the yield
rising 10.5 basis points to 10.240%.

($1 = 19.3213 rand)

 

 

 

 

Nigeria

 

Naira appreciation continues against USD at foreign exchange marketPublished
on February 27, 2024By Ogaga Ariemu

 

The Naira continued to appreciate against the US Dollar at the foreign
market on Monday amid the Central Bank of Nigeria Monetary Policy Committee
meeting.

 

Data from FMDQ showed that the Naira appreciated significantly to N1,582.94
per USD on Monday from N1,665.50 on Friday.

 

This represents N72.56 or 3.4 per cent appreciation compared to the
N1,665.50 recorded at the close of trading on Friday.

 

Meanwhile, the Naira was exchanged for N1,600 per USD on Monday at the
parallel market from an average of N1,500 on Sunday.

 

DAILY POST recalls that Naira recorded a massive gain at the parallel
foreign exchange market at the weekend.

 

The development showed that the gap between the official and unofficial
exchange markets is almost closing.

 

However, the turnover of USD at the FMDQ market stood at $154.16 million on
Monday.

 

The development comes as CBN governor, Olayemi Cardoso and other members of
MPC meet in Abuja.

 

 <mailto:info at bulls.co.zw> 

 

Japanese Global Markets

 

Dollar dips at the start of heavy week of data

(Reuters) - The dollar was mostly lower on Monday ahead of U.S. durable
goods orders and an inflation reading this week that could provide more
information on how soon the Federal Reserve may begin cutting interest
rates.

 

The dollar index , a measure of the greenback against a basket of
currencies, was last down 0.2% at 103.78 - though the U.S. currency
strengthened 0.1% to 150.71 against the Japanese yen .

 

In cryptocurrencies, ether rose 8% at $3,177, while bitcoin gained 6.89% at
$54,506.

 

 

U.S. durable goods data is due Tuesday, while January's U.S. personal
consumption expenditures price index, which is the Fed's preferred measure
of inflation, will be released Thursday.

The market has recently reduced expectations for the size and how soon it
expects the Fed to cut rates, as the U.S. economy remains strong.

Markets have all but ruled out a cut at the Fed's March meeting and have
recently pushed back expectations for a cut to June from May, CME's FedWatch
Tool showed, following strong U.S. consumer and producer price data.

 

Inflation figures in the euro zone, Japan and Australia also land this week,
alongside a rate decision from the Reserve Bank of New Zealand (RBNZ) and
China PMI surveys.

"The market is a bit cautious and the key driver for dollar/yen is U.S.
yields," Marc Chandler, chief market strategist at Bannockburn Global Forex
in New York, said.

"In Q4 of last year, the market got very aggressive about the Fed easing and
in the first half of Q1, the market adjusted, interest rates rose and the
dollar rose. That adjustment is over, and I think we'll begin seeing weak
economic data beginning with tomorrow's durable goods orders."

Japan's nationwide consumer prices also are due on Tuesday and are forecast
to show core inflation slowed to an annual rate of 1.8% in January, the
lowest since March 2022.

That would complicate the Bank of Japan's (BOJ) plans to end negative
interest rates in coming months, keeping the yen under pressure in the near
term.

The euro was last up 0.3% at $1.0852, after gains against the dollar in
eight of the last nine trading sessions.

 

European Central Bank officials have reiterated their focus on inflation in
the euro zone, particularly the service sector and wage growth.

Reuters Graphics

ECB President Christine Lagarde told European lawmakers in Strasbourg that
wage growth remains robust across the euro zone but firms may be absorbing
some of this increase via lower profit margins rather than raising prices.

A major driver behind the euro's strength has been the narrowing gap between
where traders believe U.S. and euro zone interest rates will finish the
year.

Only two weeks ago, investors were assuming the Fed would cut rates by
around 80 basis points this year, compared with around 100 bps from the ECB.
By Monday, that gap had all but disappeared.

 

 

 

 <mailto:info at bulls.co.zw> 

 

 

 

 

Commodities Markets

 

 

Gold Gold back in favor as Gen Z buys

Gold is witnessing a resurgence in popularity, with the precious metal
reclaiming its allure this year, driven by the country's younger generation.

 

Consumption of the yellow metal, whose appeal had once waned as Chinese
consumers favored diamonds and other gems, has remained robust during the
Spring Festival holiday despite elevated prices.

 

As the world's largest precious metals market geared up for the Chinese New
Year celebrations this year, gold jewelry and the Year of the Dragon gold
bars have emerged as the most popular products, according to the China Gold
Association.

 

Boosted by a series of policies aimed at stimulating consumption, the
domestic consumer market has recovered steadily, with gold and silver
jewelry emerging as the fastest-growing categories among various retail
segments through last year, it said.

 

The domestic gold consumption market has shown signs of improvement since
last year as China's central bank and retail consumers alike turned to the
safe-haven asset, said Zhang Yongtao, vice-president and secretary-general
of the China Gold Association.

 

Gold jewelry processing and retail enterprises in China have also
continuously innovated in the design of gold products, driving the increased
demand for gold jewelry. Gold bars and coins with relatively lower premiums
have also been favored by consumers seeking physical gold investments, said
Zhang.

 

While the Spring Festival holiday has always been a peak season for gold
sales, gold jewelry featuring the zodiac sign of the dragon has been
especially popular this year, and the rising gold prices have not deterred
consumers' purchasing enthusiasm, according to the Beijing Caishikou
Department Store.

 

Several Chinese gold jewelers are designing various jewelry products bearing
traditional Chinese cultural elements to satisfy the aesthetic needs of
young consumers.

 

Shandong Gold Group, for example, said it has been actively engaged in
exchanges and cooperation with universities, inheritors of intangible
cultural heritages, and cultural and art institutions, to better explore the
integration of traditional culture with innovation in gold jewelry designs
and techniques, in order to inject vitality into the gold industry.

 

Fashionable and lightweight gold jewelry has gained significant favor among
consumers, contributing to the overall increase in gold jewelry consumption,
said the association.

 

Young Chinese aged between 25 and 34 have become the main force of gold
consumption, with their proportion at 59 percent in 2023. In the future,
consumers under the age of 25 will become new major gold buyers, it said.

 

Gold jewelry, once considered old-fashioned, is now drawing interest from
younger Chinese. Demand has been pretty decent, considering where the price
is, said Nikos Kavalis, managing director at consultancy Metals Focus Ltd.

 

In the not-too-distant past, gold symbolized the taste of the older
generations, but it is now a statement of Generation Z's identity that
represents both personal style and cultural loyalty, said Wang Zhongwu,
professor at the School of Philosophy and Social Development of Shandong
University.

 

Wang Lixin, CEO of the World Gold Council (China), has said previously that
the introduction of various economic stimulus measures with a focus on
consumption has also contributed to the growth in purchases of gold jewelry
since last year.

 

The country's gold consumption rose 8.78 percent year-on-year to 1,089.69
metric tons in 2023, according to the association.

 

Of the total, gold jewelry consumption hit 706.48 tons, a year-on-year
increase of 7.97 percent, while gold bars and coins touched 299.6 tons, up
15.7 percent year-on-year, it said.

 

Gold production, meanwhile, rose 0.84 percent year-on-year to 375.155 tons,
it said.

 

The council believes gold output and consumption will remain in the positive
territory and continue to garner attention from global investors in 2024,
fueled by economic recovery and sustained purchases by the central bank.

 

 


 

INVESTORS DIARY 2024

 


Company

Event

Venue

Date & Time

 

 	

 

 

 

 

 

 	

Nampak

AGM

Virtual (FTS Platform)

28 Feb 9am

 

 	

Art

AGM

virtual (escrow platform)

March 7. 2:30

 

 	

 

2024 auction tobacco marketing season opens

 

13 march

 

 	

 

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

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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
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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

 

 	

 

 

 	
							

 

 

 

 

 

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