Bulls n Bears Daily Market Commentary : 23 January 2024

Wed Jan 24 07:31:26 CAT 2024

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Bulls n Bears Daily Market Commentary : 23 January 2024

ZSE commentary

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

Market maintains rising impetus.

The ZSE continued with its rising momentum in Tuesday's session as firming
demand continued in selected counters across the board. The mainstream All
Share Index ticked up a further 3.88% to see it closing at 380,299.32pts as
the Top Ten Index firmed up 3.16% to close at 174,244.55pts. The ZSE
agriculture Index added 8.41% to 960.49pts while, the Mid Cap Index rose
6.05% to 1,271,588.07pts. Leading the risers of the day was apparel retailer
Truworths that went up 29.79% to $51.9149, albeit on scrappy 4,7000 shares.
Following waw Turnall Holdings that surged 16.19% to end the session at
$45.8084 as 26,100 shares exchanged hands. The trio of Hippo, Meikles and
FBC went up by a similar 15% to settle at $3,220.0000, $3,450.0000 and
$1,495.8000 where supply could be found in that order. Other notable gains
were seen in BAT (14.99%), EcoCash (14.26%), Dairibord (14.99%), ZB (14.98%
and Fidelity (14.88%).

Overall, twenty-nine counters gained against a mere one faller as the market
registered a wide positive breadth. Star Africa was the sole faller of the
day after dropping 2.10% to close at $8.9616 where demand could be found.
The Morgan and Co Multi sector ETF was the only faller amongst the ETF as it
lost 0.1750% to end at $513.0000, closing well offered at 512.9800. The Cass
Saddle ETF rose 14.82% at $7.2700 while, the Morgan and Co made in Zimbabwe
11% to settle at $10.5451. Old Mutual ETF ticked up 10.8016% to $56.9481
with the Datvest ETF adding 7.95% to $13.0000. Activity aggregates closed
mixed in the session as reflected in volumes which went down 40.65%,
yielding a value outturn of $7.17 billion. Econet and Delta emerged the top
volume and value movers of the day, claiming a combined 56% and 89.18% of
the aggregates respectively. Foreign trades remained depressed in the
session as inflows of $ 31.75m were registered against outflows of $255.efe

Global Currencies & Equity Markets

Zambia

K30 to a dollar is just 2 weeks away - Haabazoka

ECONOMIST Lubinda Haabazoka says the Kwacha is just two weeks away from
hitting the K30 against US$1 psychological barrier. And Dr Habaazoka says
some businessmen have run away from transacting in Zambia because the
economy is tense and being policed. The Kwacha is facing a deep depreciation
against major convertible currencies as it is racing towards hitting the K27
mark against US$1. According to yesterday's Bank of Zambia market rates, at
15:30, the local currency was buying at K26.6081 and selling at K26.6500.
While the average market rate was K26.3238 for buying and K26.8446 for
selling. Commenting on this in an interview, Tuesday, Dr Haabazoka said K30
to a dollar was just two weeks away, when asked whether he thought....

South Africa

South African rand recovers from three-month lows

JOHANNESBURG (Reuters) -South Africa's rand firmed against the dollar on
Tuesday, recovering from the lows hit a day earlier, ahead of local
inflation data.

South African rand recovers from three-month lows

At 1548 GMT, the rand traded at 19.0625 against the dollar, 0.74% stronger
than its previous close. On Monday it sunk to its lowest against the
greenback in more than three months.

The dollar was last up 0.3% against a basket of global currencies.

On Wednesday, investor focus will be on Statistics South Africa, which will
release consumer inflation data for December.

Producer price inflation figures for December are also due on Thursday,
which will be released ahead of the South African Reserve Bank's rate
decision.

Shares on the Johannesburg Stock Exchange rose, with the blue-chip Top-40
index closing 1.5% higher.

South Africa's benchmark 2030 government bond was weaker, with the yield up
4.7 basis points to 9.762%.

 <mailto:info at bulls.co.zw> 

Global Markets

Stocks gain slightly, dollar rises against yen after BoJ decision

(Reuters) - MSCI'S global equities index gained very slightly as investors
digested a mixed crop of earnings reports and waited for key economic
releases due later in the week while the yen fell after the Bank of Japan
left monetary policy unchanged.

While the dollar index climbed to a six-week high, U.S. Treasury yields rose
as investors waited for economic growth and inflation data for clues on when
the Federal Reserve will decide to cut interest rates.

Oil prices on Tuesday handed back some of the previous day's gains, as
traders weighed production outages in the U.S. and tensions in the Middle
East and Europe against rising crude supply in Libya and Norway.

The MSCI world equity index (.MIWD00000PUS), opens new tab, which tracks
shares in 49 nations, gained 0.14% after hitting its highest level since
late December on Monday. The Dow Industrial Average was down while the
Nasdaq rose slightly.

"It's not surprising markets are taking a step back today and hitting the
pause button," said Anthony Saglimbene, chief market strategist at
Ameriprise Financial, citing recent market strength and caution ahead of
economic data releases and earnings reports from megacap technology
companies.

S&P 500 was barely higher for much of the session but still managed to
register its third consecutive record closing levels. Economic data due out
later this week includes fourth-quarter GDP and the December reading of
Personal Consumption Expenditure (PCE), Federal Reserve's favored inflation
measure.

The Dow Jones Industrial Average (.DJI), opens new tab fell 96.36 points, or
0.25%, to 37,905.45. It was dragged down by a 11% drop in 3M MMM.N shares
after it forecast dour annual earnings due to weak demand. In contrast
Verizon Communications (VZ.N), opens new tab shares rose 6.7% after it
released a strong annual profit forecast.

The (.SPX), opens new tab gained 14.17 points, or 0.29%, to 4,864.60 and the
(.IXIC), opens new tab gained 65.66 points, or 0.43%, to 15,425.94. Earlier
Europe's STOXX 600 (.STOXX), opens new tab index had closed down 0.28%.

Currency trading was volatile after the Bank of Japan kept interest rates in
negative territory, but signalled conviction that conditions for phasing out
its ultra-loose monetary policy were falling into place.

In afternoon trading the dollar was up 0.18% against Japan's yen at 148.35 .
Earlier in the day the greenback had fallen to a low of 146.97 yen.

The dollar index (.DXY), opens new tab, which tracks the U.S. currency
against a basket of six currencies, after hitting its highest level since
Dec. 13, was last up 0.17% at 103.54.

In Treasuries, the yield on benchmark 10-year Treasury notes rose to 4.1378%
compared with its U.S. close of 4.094% on Monday. The two-year yield , which
rises with traders' expectations of higher Fed fund rates, touched 4.3784%
compared with a U.S. close of 4.376%.

The European Central Bank (ECB) meets on Thursday and is expected to hold
monetary policy steady. The Fed is also expected to keep rates steady when
it meets next week, but investors will watch for clues on the timing of rate
cuts.

Investors will also monitor U.S. Treasury's announcement of funding needs
for the coming quarter next week.

U.S. crude settled down 0.5% to $74.37 a barrel. Brent crude finished down
0.64% at $79.55 per barrel.

Spot gold rose 0.33% to $2,027.99 an ounce investors waited for economic
data and clarity on Fed policy.

Earlier, Hong Kong stocks (.HIS), opens new tab staged a rebound to close up
2.6% after slumping the previous session, when foreign outflows gathered
pace and short selling surged.

After China's cabinet pledged to take measures to stabilise market
confidence, the Shanghai SE composite index (.SSEC), opens new tab showed a
muted recovery, rising 0.5%, after touching a five-year low on Monday. One
option is mobilising some 2 trillion yuan ($278.53 billion) to support the
stock market, Bloomberg News reported.

"The one positive for the market today was the suggestion China would be
moving towards supporting their stock market," said Rick Meckler, partner at
Cherry Lane Investments, a family investment office in New Vernon, New
Jersey.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold edges up as traders eye cues on US rate cuts

(Reuters) - Gold prices inched higher on Tuesday, as investors awaited a
slew of U.S. economic data this week for more cues to the Federal Reserve's
timeline for interest rate cuts.

Spot gold was up 0.2% to $2,025.09 per ounce by 2:00 p.m. ET (1900 GMT).

Gold futures settled 0.2% higher at $2025.8.

"The gold market is just above the $2,000 mark and it seems to be a neutral
market. Every time we start to break higher, we come back down," said Daniel
Pavilonis, senior market strategist at RJO Futures.

"There is a lot of uncertainty on what is going to happen here economically
in the United States."

Focus this week will be on the U.S. flash PMI report on Wednesday,
fourth-quarter advance GDP estimates due on Thursday, and personal
consumption expenditures data on Friday.

Fed officials last week said the U.S. central bank needs more inflation data
in hand before any rate cut judgment could be made and that the baseline for
cuts to start was in the third quarter.

Markets are pricing in the U.S. central bank to hold rates unchanged at the
end of the policy meeting on Jan. 30-31 and have pared back the timing of
the first interest rate cut, according to CME's FedWatch Tool.

Recent rebounds (in gold) appear to be getting shallower, which raises the
prospect of further weakness if central banks continue to push back on
market expectations of rate cuts, Michael Hewson, chief market analyst at
CMC Markets, wrote in a note.

Lower interest rates decrease the opportunity cost of holding bullion.

Meanwhile, the European Central Bank meets on Thursday and is expected to
hold monetary policy steady.

On the physical front, India increased the import duty on gold and silver
findings, used in making jewellery.

Spot silver rose 1.2% to $22.35 per ounce, platinum climbed 0.7% to $898.41
and palladium gained 0.9% to $944.42.

INVESTORS DIARY 2024

Company

Event

Venue

Date & Time

Counters trading under cautionary

CBZH

GetBucks

EcoCash

Padenga

Econet

RTG

Fidelity

TSL

FMHL

ZBFH

Invest Wisely!

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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
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been compiled from sources believed to be reliable, but no representation or
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opinions expressed and recommendations made are subject to change without
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