Bulls n Bears Daily Market Commentary : 02 July 2024

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Bulls n Bears Daily Market Commentary : 02 July 2024

 

 	



 

 	


ZSE commentary

 

Bullish sentiment propels ZSE upward...

Surging demand across the board propelled the market upward as the All-Share
Index charged 5.05% to 137.88pts. Heavies continued on the positive run as
their Index rose 5.93% to settle at 147.05pts while, the Agriculture Index
was 3.35% higher at 113.99pts. The Mid Cap Index continued to ride on the
rising momentum from the market as it added 1.59% to l19.36pts. The trio of
ZB, CAFCA and BAT led the gainers of the day as they garnered 15% to end at
respective circuit breakers of $3.7030, $8.7400 and $26.3378. Hotelier RTG
soared 14.82% to close at $0.2440 while, Nampak fastened the gainers' list
of the day as it inched up 14.71% to $0.5850. Partially offsetting today
gains was logistics company Unifreight that parred off 34.97% to $0.2835 in
a negotiated trade that saw 19.49m shares exchange hands. Agriculture
concern Ariston trailed on a 12.21% drop to $0.0351 while, digital media
group Zimpapers retreated 8.24% to $0.0460 where demand could be found.
Retailer OK Zimbabwe continued to lose ground as it slipped 1.94% to $0.5182
while, Zimre Holdings was 1.87% lower at $0.3042 as it capped the worst
performers list of the day.

 

Activity aggregates faltered in the session as volume traded fell by 15.77%
to 21.78m shares while, turnover was 41.65% lower at $12.14m. Volume was
mainly confined in Unifreight that contributed 89.48% of the volumes traded.
In the turnover category, the tripartite of Unifreight, Econet and Delta
drove the turnover aggregate as they claimed 96.42% of the total value
traded. In the ETF category, the Old Mutual Top Ten ETF was up 4.31% to
$0.1361 while, the Morgan & Co MCS slipped 1.90% to $0.4120. In the REIT
category, the Tigere REIT was 0.87% up at $0.7061 while, the Revitus REIT
rose 1.35% to $0.3450 on scrappy 61 shares.-efesecurities

 

 

 

 <mailto:info at bulls.co.zw> 

 

 

Global Currencies & Equity South Africa

 

South African rand extends losses on concerns over unity government
obstacles

(Reuters) - The South African rand extended losses early on Tuesday on
concerns over future challenges for the government of national unity (GNU)
and after trading turbulently on Monday following the announcement of
President Cyril Ramaphosa's cabinet.

 

At 0641 GMT, the rand traded at 18.44 against the dollar , almost 0.5%
weaker than its previous close. The dollar was up around 0.09% against a
basket of global currencies.

 

 

"The rand is trading weaker... this morning on what seems to be a 'buy the
rumour, sell the fact' move," Andre Cilliers, currency strategist at
TreasuryONE, said.

 

"The GNU remains a fragile agreement and investors are concerned over the
many obstacles that need to be overcome going forward," Cilliers added.

 

Ramaphosa's African National Congress (ANC) lost its parliamentary majority
for the first time in 30 years in the May 29 election and has formed a unity
government with former rivals as a way to stay in power.

 

South African assets gave up some gains on Monday as the initial optimism
shown by the markets waned a day after the new cabinet was formed. It
included former opposition leader John Steenhuisen as agriculture minister.

 

The U.S. Federal Reserve's Jerome Powell will speak later on Tuesday and
markets will listen for hints on the future interest rate path of the
world's biggest economy.

 

The risk-sensitive rand often takes cues from global drivers like U.S.
monetary policy in addition to local factors.

boosted by gains in Tesla and megacap growth stocks.

 

 

South Africa's benchmark 2030 government bond was weaker in early deals,
with the yield up 5 basis points to 10.005%.

 

 

Nigeria

 

Naira continues depreciation streak against dollar despite CBN policy

The Naira has continued its depreciation streak against the dollar in the
foreign exchange market despite the Central Bank of Nigeria's policy
interventions.

 

FMDQ data showed that the Naira slightly depreciated to N1509.45 against the
dollar on Tuesday from N1508.99 traded on Monday.

 

This represents a marginally N0.46 loss compared to the N1508.99 per dollar
it traded on Monday.

 

Meanwhile, at the parallel market, the Naira traded flat against the dollar
at N1515 on Tuesday.

 

This is as the foreign exchange transactions turnover at the official FX
market stood at $213.31 million on Tuesday.

 

The development comes after the Central Bank of Nigeria in a circular signed
by its acting Director of Currency Operations Department, Solaja Olayemi
warned banks and licensed Bureau De Change operators against the rejection
of lower or old denomination of Dollar notes.

 

 

MA

 <mailto:info at bulls.co.zw> 

 

Global Markets

 

Australian Dollar holds gains despite the improved US Dollar

The Australian Dollar gains ground due to the release of solid economic data
on Wednesday.

Australia's Retail Sales rose by 0.6% MoM in May, surpassing both the
anticipated 0.2% rise and the prior 0.1% gain.

Fed Chair Jerome Powell wants to see further evidence before cutting
interest rates.

 

The Australian Dollar (AUD) appreciates for the second successive day on
Wednesday. This upside is attributed to the Judo Bank's Australia Purchasing
Managers Index (PMI) figures, which showed a slight improvement in June.

 

Australia's Retail Sales, a measure of the country's consumer spending,
increased by 0.6% MoM in May, up from the previous month's 0.1% rise. This
figure exceeded market expectations of a 0.2% increase.

 

The AUD/USD pair may limit its upside as the US Dollar (USD) halts its
four-day losing streak due to a recovery in yield on a 2-year Treasury bond,
which stands at 4.75% at the time of writing. Traders will be looking for
further direction from the US ADP Employment Change, ISM Services PMI for
June, and the FOMC Minutes, all of which are scheduled for release later on
Wednesday.

 

Daily Digest Market Movers: Australian Dollar appreciates due to higher PMI

Judo Bank's Australia Services PMI increased to 51.2 MoM, up from the
previous month's 51.0, surpassing the forecasted drop to 50.6. Meanwhile,
the Composite PMI rose to 50.7 MoM, compared to 50.6 in the previous month.

 

China's Services Purchasing Managers' Index (PMI) fell from 54.0 in May to
51.2 in June, according to the latest data released by Caixin on Wednesday.
The market forecast was for a 53.4 figure in the reported period.

 

The Federal Reserve (Fed) Chair Jerome Powell turned slightly dovish on
Tuesday. Powell said that the Fed is getting back on the disinflationary
path. However, Powell wants to see further evidence before cutting interest
rates as the US economy and the labor market remain strong, per Reuters.

 

The Reserve Bank of Australia's (RBA) June monetary policy meeting minutes,
released on Tuesday, indicated that the "board judged the case for holding
rates steady stronger than hiking." The board emphasized the need to remain
vigilant regarding upside risks to inflation, noting that data suggested an
upside risk for May's Consumer Price Index (CPI).

 

The Reserve Bank of Australia's (RBA) Index of Commodity Prices fell by 4.1%
YoY in June, following an upwardly revised 6.0% decline in the previous
month. The June decline marks the mildest deflation in sixteen consecutive
months.

 

The Melbourne Institute's Monthly Inflation Gauge has heightened concerns
that the RBA might raise interest rates again in August. The gauge increased
by 0.3% in June, maintaining the same pace as in May, marking the fourth
consecutive month of rises and remaining at the highest since January.

 

On Tuesday, Chinese state media outlet Securities Daily quoted the chief
economist at CITIC Securities, suggesting that the People's Bank of China
(PBOC) might consider measures like reducing the reserve requirement ratio
(RRR) to inject liquidity into the market. Any potential economic shift in
China could notably influence the Australian Dollar (AUD), given the close
trade ties between the two nations.

Technical Analysis: Australian Dollar holds ground above 0.6650

 

The Australian Dollar trades around 0.6670 on Wednesday. The analysis of the
daily chart shows a symmetrical triangle, which represents a pause in the
trend as traders reach an equilibrium. However, once the price breaks out
decisively from the triangle, it would signal a clear directional trend.
However, the 14-day Relative Strength Index (RSI) is slightly above 50
level, indicating a bullish bias.

 

The AUD/USD pair is likely to test the upper boundary of the symmetrical
triangle at around 0.6680, followed by the psychological level of 0.6700.
Additional resistance is located at 0.6714, the highest level since January.

 

On the downside, the AUD/USD pair could find the key support around the
lower boundary of the symmetrical triangle at 0.6630, followed by the 50-day
Exponential Moving Average (EMA) at 0.6625.

 

AUD/USD: Daily Chart

 

 

 

 

 

 

 <mailto:info at bulls.co.zw> 

 

 

 

 

Commodities Markets

 

Gold down as elevated bond yields weigh, US jobs data in focus

 

(Reuters) - Gold prices edged lower on Tuesday as Treasury yields held firm,
while investors digested comments from Federal Reserve Chair Jerome Powell
and looked forward to U.S. jobs data due later this week for more signals on
U.S. interest rate cuts.

Spot gold was down 0.3% at $2,324.88 per ounce by 14:01 p.m. (1801 GMT).
U.S. gold futures settled 0.2% lower at $2,333.40.

 

 

The benchmark 10-year Treasury yield hit a one-month high on Monday and
stayed elevated on Tuesday, making non-yielding bullion less attractive.

 

 

"The market is still highly sensitive to any discussion about interest rates
or anything with regards to Fed policy. So, I think it's more still in a
wait-and-see type momentum," said Phillip Streible, chief market strategist
at Blue Line Futures.

The U.S. central bank still needs more data before cutting interest rates to
ensure recent weaker inflation readings give a true picture of what is
happening to underlying price pressures, Powell said.

 

Data on Tuesday showed U.S. job openings rose to 8.14 million in May.

Focus now shifts to Friday's non-farm payrolls, which will be crucial in
assessing whether the U.S. labor market remains resilient against the
backdrop of decades-high interest rates.

 

Gold is down 5% from a record high of $2,449.89 per ounce it touched on May
20, a rally caused by safe-haven demand driven by geopolitical and economic
uncertainty as well as persistent central bank buying, a crucial category of
demand.

 

"Physical demand is still subdued in major markets like India and Turkey but
there are signs of recovery there as consumers are keen to protect against
other factors like local inflation which still remains high," one trader
said.

 

Elsewhere, spot silver eased 0.2% to $29.39 per ounce.

 

Platinum gained 1.6% to $993.36 per ounce and palladium jumped over 4% to
$1,010.50 with the focus on improved prospects for hybrid car sales versus
slower growth of the palladium-free electric vehicles market.

 

 

 


 

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

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DISCLAIMER: This report has been prepared by Bulls 'n Bears, a division of
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for guideline purposes only and sourced from third parties.

 

 	

 

 

 	


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79 993 5557 | +263 71 944 1674

 

 	

 

 

 	
							

 

 

 

 

 

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