Bulls n Bears Daily Market Commentary : 19 June 2024

Thu Jun 20 00:19:47 CAT 2024

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Bulls n Bears Daily Market Commentary : 19 June 2024

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

Heavies anchor  the    market in mid-week trades ...

Heavy cap counters anchored the market in mid-week trades

Blue-Chip Index was 2.04% higher at 118.76pts mainly buoyed by Tanganda and
Ecocash. The Agriculture Index was 1.82% up

0.38% weaker at 110.24pts. Spir it and wines manufacturer AFDIS led the
gainers of the day as it charged 15.00% to settle at circuit breaker limit
of $3.4385. Dairy processor Dairibord notched up 14.81% to $0.9300 while,
tea producer Tanganda was 13.07% higher at $1.4925. Fintech group Ecocash
advanced 9.42% to close at $0.2305 while, Turnall added 6.67% to end at
$0.0320 as it fastened the top five winners of the day. Retailer OK Zimbabwe
led the laggards of the day as it parred off 13.33% to $0.4419 while, Zimre
Holdings shed 9.15% to $0.3020. Cigarette producer BAT dropped 3.89% to
settle at $20.9995 while, sugar processor Star Africa eased 2.42% to
$0.0070. Banking group ZB was 0.24% lower at

$1.7900.

Activity aggregates improved in the session as volumes traded jumped 143.26%
to see 2.64m shares exchange hands while, turnover surged 124.69% to $1.40m.
Volume drivers of the day were Star Africa and OK Zimbabwe that contributed
a combined 86.53% of the total. OK Zimbabwe, Delta, Econet and Meikles
anchored the turnover aggregate as they claimed 30.34%, 29.17%, 18.37% and
16.79% respectively. In the ETF category, the Cass Saddle  ETF surged 14.78%
to close at $0.0092 as 20,000 units traded in the name. The Datvest MCS and
OMTT ETFs were stable  at $0.0200 and $0.1100 apiece. The Tigere REIT
trimmed  1.21% to end at $0.6304 as 51,135 units worth  $32,235.90  traded.

VFEX rebounds in the session ...

The  VFEX market recovered in the session as the All-Share

Index was 0.95% up at 100.60pts. lnnscor led the gainers of the day as it
advanced 6.81% to end pegged at $0.4500 while, banking group First Capital
rose 5.39% to $0. 0352. Partially weighing down the market was agriculture
concern Zimplow that slid 10.61% to $0.0160 while, fast foods processor
Simbisa Padenga slipped  to $0.1595.

Volumes ballooned 2,507.50% to 2.42m shares while, turnover ballooned
182.83% to $138,162.43. Zimplow led the volume drivers of the day as it
contributed 87.30% of the total traded while, Simbisa claimed 12.47% of the
aggregate. Simbisa and Zimplow were the turnover drivers of the day as they
claimed a combined 99.79% of the aggregate.-efesecurities

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity 

Ghana

Ghana’s Cedi Drops 21% Against US Dollar

The Ghana cedi continues to face challenges against major currencies,
registering a 3.88% decline against the US dollar over the past week.

This latest drop brings the Cedi’s year-to-date depreciation to 21.20%.
Reports attribute the cedi’s weakening to a stronger US dollar and increased
local demand for foreign exchange.

Starting the week of June 18, 2024, the cedi remained stable, trading at
GH¢15.70 to $1 at major forex bureaus.

In efforts to bolster the US dollar, the US Federal Reserve surprised
markets by signalling only one policy rate cut this year, diverging from
expectations of two cuts. This move boosted the US dollar index by
approximately 100 basis points week-on-week, contributing to the Cedi’s
depreciation against the dollar and other major currencies.

Ghana's Cedi Drops 21% Against US Dollar

During the same period, the cedi also saw a decline of 2.43% against the
British Pound and 2.87% against the Euro.

Despite these challenges, there is optimism that the Ghanaian government’s
agreement with official creditors on debt restructuring terms will
strengthen the cedi. This agreement paves the way for Ghana to receive the
next tranche of the IMF bailout, amounting to $360 million.

Analysts predict that this development will enhance foreign exchange
reserves, improve FX liquidity, and aid in stabilising the cedi in the short
term.

Nigeria

Naira’s depreciation against dollar continues at FX  

The naira depreciated slightly against the dollar at the official foreign
exchange market after the Eid el-Kabir holiday.

FMDQ data showed that the naira weakened to N1,483.02 against the dollar on
Wednesday from N1,482.72 traded last Friday.

This represents a slight N0.3 depreciation against the dollar compared to
the N1,482.72 traded last Friday.

However, the naira appreciated further to N1,470 against the dollar at the
parallel market on Wednesday from N1,480 traded on Tuesday.

Nigeria’s FX market has continued to experience fluctuations since mid-April
2024.

The FX crisis has been a source of concern for financial experts. The
director of the Centre for the Promotion of Private Enterprise, Muda Yusuf,
said the fluctuation of the naira against the dollar is a contributing
factor to Nigeria’s soaring inflation, which rose to 33.95 per cent in May
2024. 

MA

 <mailto:info at bulls.co.zw> 

Global Markets

Canadian Dollar churns in the middle ground amidst thin holiday Wednesday
markets

The Canadian Dollar (CAD) is treading water on Wednesday, trading within a
scant tenth of a percent against its largest peer — the US Dollar (USD). US
markets are shuttered for the midweek Juneteenth holiday, thinning out
market volumes as investors look ahead to key data prints on Friday.

Canada has only mid-tier data releases on the docket for the remainder of
the trading week. Wednesday’s latest Summary of Deliberations from the Bank
of Canada (BoC) delivered no major revelations, as expected. With US markets
shuttered for the holiday, trading volumes are thin and investors will be
returning to the fold in force to hunker down and wait for Friday’s US
Purchasing Managers Index (PMI) print.

Daily digest market movers: Canadian Dollar treads water on quiet Wednesday

The Canadian Dollar has been on a slow grind this week, finding thin gains
against the Greenback. From the week's opening bids, the CAD is up a scant
fifth of a percent against the USD.

The BoC’s Summary of Deliberations, released midway through the US Wednesday
session, didn't bring any new details to the BoC’s policy stance, though
Governing Council concerns about reigniting inflation have surfaced.

BoC Summary of Deliberations acknowledges widening divergence with US on
policy

Risk appetite is stubbornly holding on balance as investors brush off a wave
of cautious talking points from Federal Reserve (Fed) officials this week.
Policymakers still want to see more signs of cooling inflation in the US
before committing to even discussing rate cuts.

Interest rate markets are still staunchly committed to hopes for a September
rate cut. According to the CME’s FedWatch tool, rate traders are pricing in
nearly 70% odds of at least a quarter-point rate trim from the Federal Open
Market Committee (FOMC) at the September 18 meeting.

Before Friday’s US PMI print, Thursday will deliver a week-on-week update to
US Initial Jobless Claims, a popular bellwether for near-term economic
performance.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold gains traction on weak US economic data

(Reuters) - Gold prices edged up on Wednesday after data suggesting
lacklustre U.S. economic activity kept alive hopes for at least one interest
rate cut this year.

Spot gold was up 0.1% at $2,330.23 per ounce as of 12:32 p.m. ET (1632 GMT).
Most of the markets in the U.S. are closed for the Juneteenth holiday.

U.S. retail sales barely rose in May and figures for the prior month were
revised considerably lower, data showed on Tuesday, suggesting economic
activity remained lacklustre in the second quarter.

That slightly boosted the odds of a Federal Reserve rate cut in September to
67% from 61% a day earlier, the CME FedWatch tool showed.

The main drive for gold's price action remains the market expectations over
the Fed's monetary policy and despite prices creeping up, the move is quite
subdued as the market waits for more substantial news, said Ricardo
Evangelista, senior analyst at ActivTrades.

Lower interest rates reduce the opportunity cost of holding non-yielding
bullion.

"Market expectations point to at least one rate cut from the Fed. That
scenario has been fully priced in the value of the dollar. Government
purchases (of gold) remain stable as well. So, unless there is any
significant change in this scenario, prices are expected to remain supported
above the $2,300 level," Evangelista said.

Gold prices rose about 1.3% last Friday on signs of inflation cooling in the
United States amid a selloff across European equities as French stocks were
battered by political turmoil.

Political uncertainty surrounding Europe can be a positive, with elections
in France and the UK nearing, Kinesis Money market analyst Carlo Alberto De
Casa said.

The more immediate focus, however, is on the U.S. weekly jobless claims data
on Thursday and flash purchasing managers' indexes on Friday.

Spot silver was up 0.6% at $29.69 per ounce, platinum rose 0.8% to $977.49
and palladium gained 2.1% to $905.51.

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 

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