Bulls n Bears Daily Market Commentary : 28 February 2024

Thu Feb 29 07:46:18 CAT 2024

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Bulls n Bears Daily Market Commentary : 28 February 2024

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

REITs turnover highlights ZSE as equities remain tepid

HARARE - Zimbabwe Stock Exchange shares were higher after gains in select
heavyweight stocks. However, volume momentum remained tepid with only 675
100 shares trading as caution continues to prevail ahead of the Monetary
Policy Statement whose date of announcement is still to be announced.

Turnover was at $614.2 million in 196 trades. Foreign participation was
insignificant with only purchases of $180 000. 

The All Share Index rose 2.87% to 516 753.82 as investor focus is now on key
inflation data expected to be released tomorrow.  Inflation is expected to
continue to accelerate in light of the sustained depreciation of the local
currency both on the official and alternative markets.

The Top Ten Index added 3.99% to 230 902.14 taking its gains in the year to
date to 156.31%.  EcoCash led the risers, gaining 14.62% to 60963.23c and
Delta was 6.67% higher to 826 395.26c with a market cap of US$892.33
billion.

CBZ put on 3.93% to 795 000c as investors continue to await the finalisation
of its acquisition of a controlling stake in ZB Financial Holdings.

Econet, however, lost 2.43% to 180 000c.

The Medium Cap Index lost 0.44% to 2 080 237.44 weighed down by Nampak's
10.91% fall to 44545.45c while fractional losses were seen in Meikles
(-0.85%), Masimba (-0.43%) and Zimre Holdings (-0.4%).

There were gains, however, in Star Africa, which put on 13.91% to 830.48c
and Tanganda recovered 5.065 to 194 250c.

The REITs saw strong turnover of $4.92 billion after 8.2 million shares
traded in the Tigere REIT.

The VFEX All Share was near flat after moving up 0.01% to 98.79. First
Capital led the risers, putting on 19.34% to 2.53 US cents while small gains
were seen in National Foods, Padenga and Simbisa Brands.

Only Innscor traded in the red, losing a marginal 0.11% to 44.82 US cents.

First Capital supported volume at 1.02 million shares while total turnover
was at US$191 533.finx

-finx

Global Currencies & Equity Markets

South South Africa

South African rand weakens against dollar

(Reuters) -South Africa's rand weakened on Wednesday, taking its cues from
the dollar in the absence of major economic data releases.

At 1523 GMT, the rand traded at 19.2375 against the dollar ZAR=D3, about
0.8% weaker than its previous close.

The dollar index =USD was last trading up 0.1% against a basket of
currencies.

The rand, like most emerging market currencies, takes direction from the
dollar when there are no clear domestic indicators.

South African investors will turn their focus towards a slew of economic
data releases on Thursday with money supply, producer price inflation, trade
and budget balance figures due.

On the stock market, the Top-40 .JTOPI index closed down 1.4% while the
broader all-share .JALSH was 1.3% weaker.

South Africa's benchmark 2030 government bond ZAR2030= was slightly
stronger, with the yield down 1 basis point to 10.190%.

Zambia

"Kwacha Will Stabilize"

Standard Chartered Bank says economic measures which the government and the
Bank of Zambia have put in place will result in the stability of the Kwacha
in the medium and long term.

Standard Chartered Bank Chief Executive Officer SONNY ZULU the recent
developments in which capital has been injected in the mining sector is
expected to make the national currency stronger in the long run.

Mr. ZULU says the mining sector is a huge contributor to the nation and
recent pronouncement on the direction for the sector will result in the
kwacha strengthening in the long run.

Speaking at a media briefing in Lusaka, Mr. ZULU said some developments in
the mining sector may not result in immediate results because the sector
operates in the long run.

Meanwhile, Mr. ZULU has disclosed that Standard Chartered Bank recorded
income of one point five billion kwacha in 2023.

Mr. ZULU said the achievement represents a growth of 27 percent which is the
highest for the bank since 2013.

He has further disclosed that the bank recorded profit before tax of 918
million kwacha which is an increase of 145 percent.

 <mailto:info at bulls.co.zw> 

Japanese Global Markets

Dollar bounces before inflation data, bitcoin hits two-year high

(Reuters) - The dollar jumped against the euro and yen on Wednesday as
investors positioned for U.S. and European inflation data due on Thursday,
with month-end portfolio rebalancing also likely to sway market direction.

Bitcoin hit a more than two-year high, benefiting from strong overall market
liquidity.

Brad Bechtel, global head of FX at Jefferies in New York, noted that foreign
exchange volatility picked up on Wednesday, which may be "hedging in front
of the inflation data," and also because of month-end flows.

-

The implied volatility used by banks to price three-month options on the
euro against the dollar reached 6.01 on Wednesday, the highest since Feb.
15, and was last at 5.74. Volatility in major currency pairs has been
declining, with the euro/dollar measure falling to the lowest since January
2022 on Tuesday.

Traders are focused on data to give further clues on when the Federal
Reserve is likely to begin cutting rates. Those expectations have been
pushed to June, from May, on strong economic growth, sticky inflation and
more hawkish commentary from Fed officials.

-

Thursday's U.S. Personal Consumption Expenditures release is expected to
show that headline prices rose 0.3% in January for an annual gain of 2.4%.
The core index is forecast to rise by 0.4% for the month, and 2.8% on the
year. (USPCE=ECI), opens new tab, (USPCEY=ECI), opens new tab, (USPCEM=ECI),
opens new tab, (USPCE2=ECI), opens new tab

Consumer price data for Germany, France and Spain is also due on Thursday,
ahead of euro area figures on Friday.

"There's more chance of disinflation ongoing in the euro area, which perhaps
could open the door for an earlier cut from the European Central Bank," said
Danske Bank FX and rates strategist Mohamad Al-Saraf.

"We think if inflation is stickier in the U.S. than it is in the euro area,
then the dollar has to be strong."

The dollar index was last up 0.12% at 103.96. The euro dipped 0.11% to
$1.0832.

Data on Wednesday showed the U.S. economy grew at a solid clip in the fourth
quarter with robust consumer spending.

New York Fed President John Williams said that even as there is still some
distance to cover in achieving the U.S. central bank's 2% inflation target,
the door is opening to interest rate cuts this year depending on how the
data come in.

-

Boston Fed President Susan Collins said the Fed will likely need to start
cutting rates later this year.

The yen also weakened against the greenback, approaching the 150.88 level
reached on Feb. 13, which was the weakest since Nov. 16.

Strength in the dollar against the yen is "an indicator of carry trades" and
reflects "a very 'risk on,' high-liquidity type of environment that seems to
be driving FX at the moment," Bechtel said.

Traders will watch for any signs of intervention by the Bank of Japan and
Ministry of Finance if the Japanese currency continues to weaken.

The dollar was last up 0.12% at 150.68 yen .

The kiwi dropped 1.23% to $0.6094 after reaching $0.6083, the lowest since
Feb. 15.

The Reserve Bank of New Zealand held rates steady on Wednesday, which was in
line with forecasts but defied some outlying market bets for a rate rise.

The RBNZ's rate forecast track and commentary were also slightly more dovish
than some traders had anticipated.

The Aussie fell 0.75% to $0.6493 after hitting $0.6488, the lowest since
Feb. 15.

Australia's consumer price inflation held at a two-year low in January
despite forecasts for an uptick, reinforcing expectations that rates are
unlikely to increase further.

In cryptocurrencies, bitcoin breached $60,000 for the first time since
November 2021 and came close to $64,000, boosted by the launch of new U.S.
spot bitcoin exchange-traded products.

Bitcoin was last up 6.5% on the day at $60,334.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold Gold Gold holds ground as traders buckle in for Fed cues

"The Fed is in the driver's seat for the gold market. We can see all-time
highs in prices when they say something more concise on when the rate cuts
are coming," said Bob Haberkorn, senior market strategist at RJO Futures.

-

"Gold is having a quiet session ahead of tomorrow's data. We need to see
significantly better data that shows inflation is cooling for prices to move
above the $2,050 mark."

Data showed the U.S. economy grew at a solid clip in the fourth quarter amid
strong consumer spending but appeared to have lost some speed early in the
new year.

The Federal Reserve's preferred gauge of inflation - the core personal
consumption expenditures (PCE) price index due on Thursday.

-

Recent Fed commentary and hot inflation data has pushed bets of Fed's first
rate cut to June, compared to March at the start of the year. Higher rates
tend to discourage investment in non-yielding bullion.

Fed's John Williams said "while the economy has come a long way toward
achieving better balance and reaching our 2% inflation goal, we are not
there yet."

"Signs of a weaker economy would be expected to support gold as they imply
greater pressure on central banks to cut interest rates," Frank Watson,
market analyst at Kinesis Money, said in a note.

Spot platinum fell 1.1% to $878.47 per ounce, palladium dropped 1.2% to
$924.65.

Citi Research in a note said it considers any resultant price rallies as
opportunities for producers to build up hedging positions and for
speculators to open fresh short positions, as palladium's long-term demand
outlook remains very negative.

Silver lost 0.2% to $22.37.

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 

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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
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
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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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