Bulls n Bears Daily Market Commentary : 10 January 2024

Thu Jan 11 06:03:39 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 : 10 January 2024

ZSE commentary

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

ZSE closes 1.77% higher anchored by heavies.

The ZSE maintained an upward trend in Wednesday's trades as it closed 1.77%
higher at 262,251.14pts. The Top 10 Index added 1.86% to 117,474.07pts
anchored by gains in Meikles, Econet and RTG while, the Agriculture Index
was stable at 677.47pts. The Mid Cap Index jumped 1.38% to breach the one
million points mark as it close pegged at 1,004,706.37pts. Retailer Meikles
led the gainers of the day as it jumped 14.57% to $1,730.0000 while,
telecommunications group Econet garnered 13.11% to close at a VWAP
$1,199.5452. Hotelier RTG advanced 5.13% to settle at $184.0000 as scrappy
500 shares exchanged hands while, packaging company Nampak put on 4.17% to
end pegged at $350.0000. Retailer OKZimbabwe fastened the gainers list of
the day as it added 3.88% to close at a VWAP of $234.4749. Partially
offsetting today's gains were Proplastics and Star Africa that dropped 2.62%
and 1.23% respectively, to see the former settling at $633.0000 and the
latter at $9.6796. Beverages producer Delta retreated 0.39% to settle at
$5,004.1201, where demand could be found while, Fintech company Ecocash
extended prior session's loses as it shed 0.28% to $214.3958. Zimre Holdings
Limited lost 0.17% to $174.7021 as it capped the top five worst performers
of the day. 

Activity aggregates improved in the session as volumes traded jumped 103.98%
to 5.91m shares while, turnover ballooned 73.50% to $4.11bn. The duo of OK
Zimbabwe and Econet drove the volume aggregates of the day as they
contributed a combined 89.99% of the total traded. In the turnover category,
trading was mainly confined in Econet that claimed 77.52% of the turnover.
The other notable value driver was OK Zimbabwe that contributed 15.19%. In
the ETF category, only two funds registered price movements. The Datvest MCS
was 1.71% higher at $11.8100 while, Old Mutual Top 10 gained a negligible
0.028% to settle at $43.0012. In other news, the newly listed REIT Revitus
registered its first trade today as it jumped 50% to $600.0000 on 18,028
units.-efe

Global Currencies & Equity Markets

South Africa

South African rand unchanged ahead of US inflation data

(Reuters) - South Africa's rand took a breather on Wednesday after declining
since the start of the week as traders awaited U.S. inflation data due on
Thursday.

At 1539 GMT, the rand traded at 18.7000 against the dollar , unchanged from
its previous close.

The dollar was last down around 0.07% against a basket of global currencies.

Investors' focus this week is the December U.S. inflation reading, which is
expected to provide some clarity on the Federal Reserve's monetary policy
outlook.

In the absence of local economic data, the rand often takes its cues from
global factors such as U.S. monetary policy.

The South African currency has had a lacklustre start to the year, after
losing more than 7% against the dollar in 2023.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI)
closed 0.31% lower.

South Africa's benchmark 2030 government bond was weaker, with the yield up
2 basis points to 9.740%.

Kenya

Kenya Shilling Among the Worst Performers in Africa

Nairobi - The Kenyan shilling was among the worst-performing currencies on
the continent last year, data compiled by Bloomberg shows.

The finding placed the Kenyan currency at number seven in Africa after
shedding 20.9 percent against the American dollar.

However, the Nigerian naira plunged the steepest, having depreciated by 55
percent.

The Malawian national currency (kwacha) depreciated by 39.1 percent, while
its Zambian counterpart followed at 29.5 percent in depreciation.

Other currencies on the list include the Burundi and Congolese francs, which
have depreciated by 27.6 percent and 24 percent, respectively.

Central Bank of Kenya governor Kamau Thugge disclosed that the shilling will
continue to depreciate if need be until it reaches its true value.

"The interest rates dropped because there was a better understanding by
foreign investors," Thugge added.

"So that is one window of where the foreign exchange can come in through
portfolio because these people are now satisfied that the economy is better
than other economies."

-Capital FM.

 <mailto:info at bulls.co.zw> 

Global Markets 

Dollar hovers near three-week high ahead of inflation data

Dollar rose in European trade on Wednesday against a basket of major rivals,
maintaining gains for the second straight session and approaching three-week
highs amid improving demand on the greenback.

Recent bullish remarks by several Fed officials hurt the odds of early US
interest rate cuts this year as the economy proves resilient. 

Now investors await important US inflation for December later this week,
which will provide clues on the progress made by the Fed in its fight
against inflation so far. 

The Index

The dollar index rose 0.2% to 102.64, with a session-low at 102.37, after
rising 0.25% on Tuesday, resuming gains and moving off a three-week high at
103.1. 

Fed Remarks  

Atlanta Fed President Raphael Bostic said he expects the first interest rate
cuts to occur in the third quarter of the year, which is much later than
expected. 

He said that inflation has fallen in the US faster than expected but
employment remained strong.

Fed member Michelle Bowman said that current policies are tight enough to
achieve the 2% inflation target, however she doesn't believe current
conditions are appropriate for rate cuts year.

US Rates  

Current pricing for a US interest rate cut by the Federal Reserve at the
March 2024 meeting stands at 65%, while odds for such a cut at the May
meeting stood at 95%. 

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold subdued as traders gear up for US inflation print

Gold prices eased on Wednesday ahead of U.S. inflation data that could shape
the Federal Reserve's outlook on interest rate cuts this year, although a
softer dollar kept a floor under prices.

Spot gold was down 0.4% at $2,021.39 per ounce by 2:25 p.m. ET (1925 GMT).
U.S. gold futures settled 0.3% lower at $2027.8.

Reuters Graphics

Cooler-than-expected inflation data will give the Fed more reason to cut
rates this year, which should move gold prices higher, said Bob Haberkorn,
senior market strategist at RJO Futures, adding that he expected "a quiet
session with a little bit of back and forth."

   -

U.S. consumer inflation data is due on Thursday. Economists polled by
Reuters see year-on-year inflation at 3.2% in December, but think core
inflation likely fell to 3.8%, its lowest since mid-2021. (USCPI=ECI),
(USCPNY=ECI)

A New York Federal Reserve report revealed that consumers expect a decline
in inflation, while Fed Governor Michelle Bowman on Monday stated that the
U.S. central bank's monetary policy seems "sufficiently restrictive".

   -

Benchmark 10-year U.S. Treasury yields ticked up, denting bullion's appeal.
Higher interest rates raise the opportunity cost of investing in
non-yielding bullion.

"If markets have to dilute bets for a March rate cut, spot gold may see a
brief stint back in the sub-$2k domain," said Han Tan, chief market analyst
at Exinity Group.

"Still, bullion bulls would have no qualms restoring spot gold back above
that psychologically important mark once markets get a firmer grasp on the
Fed's policy pivot."

   -

The dollar index (.DXY) ticked down about 0.2%, making greenback-priced
bullion more affordable for buyers holding other currencies.

In other metals, spot silver fell 0.3% to $22.91 per ounce, set for its
third consecutive session of declines.

Platinum lost 1.3% to a near one-month low of $917.55, while palladium rose
1.8% to $995.69, snapping an 11-sesion losing streak.

Reporting by Anushree Mukherjee and Sherin Elizabeth Varghese in Bengaluru;
Editing by Jan Harvey, Emelia Sithole-Matarise and Shailesh Kuber

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 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> bulls at bullszimbabwe.com  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com  

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
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: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> bulls at bullszimbabwe.com Tel: +263 4 2927658 Cell:
+263 77 344 1674

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240111/37aec749/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/20240111/37aec749/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 89604 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240111/37aec749/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 22694 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240111/37aec749/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240111/37aec749/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130911 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240111/37aec749/attachment-0001.obj>