Bulls n Bears Daily Market Commentary : 20 June 2024

Fri Jun 21 09:42:05 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 : 20 June 2024

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

EcoCash, Art deals support volume as ZSE inches higher

HARARE - Zimbabwe Stock Exchange traded higher on Thursday in elevated
turnover following deals in three stocks as ZiG liquidity continues to rise
in select sectors of the broader economy.  

The All Share Index was 1.17% higher to 115.11 but investors continue to
await the legal instrument to support the removal of the 180-day vesting
period on shares and the lowering of the capital gains tax. These events are
expected to improve ZSE liquidity as well as support intra-day trading that
the exchange wants to introduce soon.

Volume traded was at 24.1 million shares supported by trades in EcoCash and
Art Holdings. EcoCash contributed the most to volume at 15.72 million shares
worth ZiG3.36 million as a foreign investor continued to exit the stock. The
shares were bought by a local institutional investor.  Art saw a 1.68% trade
after 7.35 million shares exchanged hands after a former board member sold
to an existing shareholder who consolidated his investment into the firm.

Turnover amounted to ZiG9.74 million with Delta contributing the most at
ZiG5.68 million. Foreigners were net buyers at ZiG4.28 million against
disposals of ZiG2.62 million. Total trades were recorded at 172.

The Top Ten Index added 1.19% to 120.19. CBZ Holdings put on 10.86% to 450c
and Econet added 4.4% to 191.76c.

There were losses in EcoCash, down 7.39% to 21.35c - the day's worst - and
in Delta, which pared 0.14c to 923.39c. 

The Medium Cap put on 0.47% to 110.82. Star Africa led the risers, putting
on 14.63% to 0.81c and Tanganda added 13.23% to 169c. Art Holdings was
11.25% higher to 8.9c ahead of the release of its March interims and OK
Zimbabwe, which is set to release its March finals, added 8.92% to 48.14c.
Zimpapers put on 7.3% to 5c in a low value trade worth ZiG55.

Zimre Holdings dropped a fractional 0.66% to 30c.

On the VFEX, Zimplow lifted volume after 2.43 million shares traded bringing
the total to 2.78 million shares. Turnover was at US$118 386 with Simbisa
contributing the most at US$64 644. The All Share closed 1.40% lower to
99.19.

First Capital was the worst performer, losing 11.65% to 3.11 US cents and
Axia fell 8.44% to 8.90 US cents. Innscor Africa shed 2% to 44.10 US cents.
The group's PHI/Agrowth unit says it secured contracts with farmers for 5
415 hectares of wheat, while the Food Crop Contractors Association
contracted 19 800 hectares of wheat and 6 500 hectares of barley.  

Despite the agricultural season being influenced by the El Nino phenomenon,
PHI/Agrowth projected a wheat harvest of approximately 36,000 tonnes, which
would provide a substantial contribution to the country's food security.
Meanwhile, FCCA anticipated a total wheat production of approximately
120,000 tonnes, owing to their broad contracts with farmers.

Simbisa dropped a marginal 0.15% to 34.45 US cents. The group said it is on
track to achieve its pipeline for 14 new stores in this current quarter
(Q4). In responses to FinX, Simbisa said of the targeted openings, 10 will
be in Zimbabwe and four of the stores will be in Kenya. This will bring the
total store openings in the current financial year to 68. The group said
project capital expenditure on the 54 counters opened in the nine months to
March was around US$17m.-finx

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity 

South Africa

South African rand slips, focus on president's cabinet picks

(Reuters) - South Africa's rand slipped on Thursday, as investors turned
cautious ahead of newly re-elected President Cyril Ramaphosa's cabinet
appointments under a unity government.

At 1521 GMT, the rand traded at 18.0625 against the dollar , about 0.6%
weaker than its previous close. The rand had weakened more than 1% against
the dollar earlier in the day.

"Today's depreciation might suggest some profit taking in the rand on
markets caution ahead of newly re-elected President Cyril Ramaphosa's
cabinet appointments," Shaun Murison, senior market analyst at IG, told
Reuters.

The longer-term momentum of the rand appeared to be that of further gains,
he added.

The local currency had strengthened to a near 11-month high of 17.9200 on
Wednesday after five political parties joined the African National Congress
last week in forming a government of national unity, after it lost its
absolute majority in a general election.

The dollar also gained on Thursday against a basket of currencies , "so the
rand weakening is in part attributable to macro factors rather than purely
those which are local," Murison said.

On the stock market, the Top-40 (.JTOPI), opens new tab index closed 0.72%
lower.

South Africa's benchmark 2030 government bond was weaker, with the yield up
4 basis points at 9.785%.

Kenyan Shilling, Ghanaian Cedi Brace For Weakening; Naira And Kwacha Stay
Calm

What's going on here?

The Kenyan shilling and Ghanaian cedi are facing downward pressures, while
Nigeria's naira and Zambia's kwacha are holding steady in response to
fluctuating demand in the foreign exchange markets.

What does this mean?

The Kenyan shilling looks set to weaken as manufacturers and importers
scramble for dollars to cover mid-month and month-end needs, currently
quoted at 128.50/129.50 per dollar. Despite strengthening by 22% this year,
increasing demand hints at further depreciation next week. On the flip side,
Nigeria's naira is benefiting from slow foreign exchange demand and reduced
central bank interventions, maintaining stability at an official rate of
1,481 per dollar. The Zambian kwacha is similarly projected to stay stable
with reduced demand for hard currency, currently trading at 25.45 per
dollar. Meanwhile, Ghana's cedi is under pressure from local firms demanding
more dollars for imports, with the rate now at 15.10 per dollar. Despite IMF
disbursements and central bank interventions, the cedi is likely to see
continued weakness due to limited foreign-currency flows.

Why should I care?

For markets: Currency volatility shapes market strategies.

The weakening Kenyan shilling and Ghanaian cedi highlight the pressures
faced by emerging markets, influencing investor strategies and regional
trade dynamics. The stable conditions of Nigeria's naira and Zambia's kwacha
demonstrate how reduced demand and prudent central bank interventions can
stabilize currencies. Traders and investors in these markets should be
vigilant of currency fluctuations and their broader economic implications.

The bigger picture: Global economic shifts spotlighted.

Currency movements in Kenya, Ghana, Nigeria, and Zambia reflect broader
trends in global trade and economic policy. As inflation and demand
pressures vary across regions, these currencies' behaviors underscore the
complexities facing emerging markets. Monitoring these shifts offers
insights into how countries manage economic stability amid diverse
challenges, from import demands to international monetary policies.

MA

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar extends gains against yen with US economic strength in focus

NEW YORK, June 20 (Reuters) - The dollar rose to a seven-week high against
the yen on Thursday, while the sterling and euro fell amid on the U.S.
economy is coming off the boil while traders watch for more data bolstering
the case for a Federal Reserve rate cut this year.

May retail sales released this week were tepid and the labor market appears
to be weakening. The number of Americans filing new claims for unemployment
benefits fell last week, but was still more than expected, data released on
Thursday showed, indicating the jobs market remained strong despite a
gradual cooling.

Advertisement . Scroll to continue

"U.S. (purchasing managers' index) tomorrow could provide more of a catalyst
for a higher volatility day, so we'll be keeping our eyes on that to wrap up
the week," said Helen Given, associate director of trading at Monex USA, in
Washington.

The dollar hit its highest since April 29 against the yen and was last up
0.51% at 158.89 yen in New York trading. Traders remain on alert for signs
of continued intervention by the Bank of Japan to boost a currency that hit
34-year lows in late April.

Yen markets have been rattled since a dovish Bank of Japan last week
maintained its policy target and said it intends to soon release a plan to
trim bond buying.

"I think the market was kind of disappointed in the Bank of Japan's actions.
It felt a bit like kicking the can down the road again for the yen for the
market," said Amo Sahota, director, Klarity FX, in San Francisco.

"Well, in that case, we'll just carry on with a very simple carry trade that
we've been doing. The Bank of Japan and the Ministry of Finance must be
getting a little nervous or focusing back on the intervention risks."

Japan's top currency diplomat Masato Kanda said earlier on Thursday there is
no limit to the resources available for foreign exchange interventions, Jiji
News Agency reported.

Along with yen weakness, downturns in the euro and sterling have supported
the dollar index , which tracks the currency against six peers, rise 0.4% to
105.61.

The euro was last down 0.34% against the dollar at $1.0708. It hit a session
low of 1.0706, but remained above the six-week low of $1.0667 hit on Friday.

Sterling fell 0.42% to $1.2667, after hitting a five-week low in afternoon
trading. Earlier in the day, the Bank of England left rates on hold, with
some policymakers saying their decision not to cut was "finely balanced".

The Swiss franc also fell after the Swiss National Bank lowered interest
rates to 1.25%, following a cut in March.

The dollar climbed 0.7% to 0.8909 francs as the Swiss currency fell from
around a three-month high after the rate cut, which came with forecasts
predicting a further fall in inflation to 1.1% in 2025.

The dollar index rose after a volatile 10 days, with mixed U.S. economic
data and political uncertainty in France that rocked European markets.

"All told, it looks like the dollar is going to head toward its fifth
straight week of gains simply because the U.S. economic situation is not as
bad as that of many of its peers," said Given.

In cryptocurrencies, bitcoin rose about 0.4% to $65,105.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold set for weekly gain on US rate-cut optimism, geopolitical woes

(Reuters) - Gold prices were poised for a second consecutive weekly gain on
Friday, driven by safe-haven demand amid tensions in the Middle East and
rising bets that the U.S. Federal Reserve might reduce interest rates later
this year.

Spot gold was up 0.1% at $2,362.60 per ounce as of 0516 GMT, after hitting a
two-week high in the previous session.

Bullion has gained over 1% so far for the week, adding to their 1.7%
increase last week.

U.S. gold futures rose 0.3% to $2,376.50 on the day.

"In the short-term perspective, the current movement driver of this bullish
going gold is primarily driven by rising geopolitical tensions, especially
after the news on the attack on Gaza," said Kelvin Wong, a senior market
analyst for Asia Pacific at OANDA.

On Thursday, several Israeli air strikes in the Gaza Strip killed at least
14 people and wounded dozens of others.

"The market is now looking for what is the possibility of another (U.S.)
rate cut after September, which could be supportive of gold, keeping it
above that $2,300 level," said Wong.

Data on Thursday showed first-time applications for U.S. unemployment
benefits fell moderately last week, while new housing construction dropped.
This, along with tepid retail sales last month, keeps the chance of a
September rate cut on the table.

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

The market's next focus is on the U.S. flash purchasing managers' indexes
due at 0145 GMT.

"While corrections are possible, the support level around $2,300 remains
crucial for gold, with any significant downturn likely influenced by shifts
in economic indicators or sudden market movements," ACY Securities analyst
Luca Santos said.

Spot silver fell 0.3% to $30.61 per ounce, platinum was up 0.7% at $984.95
and palladium gained 0.8% to $930.75. All three metals are headed for weekly
gains.

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

Website:            www.bullszimbabwe.com 

Blog:                 www.bullszimbabwe.com/blog

Twitter (X):        @bullsbears2010

LinkedIn:           Bulls n Bears Zimbabwe

Facebook:          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: www.bullszimbabwe.com Email: bulls at bullszimbabwe.com Tel: +27
79 993 5557 | +263 71 944 1674

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240621/015bb530/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/20240621/015bb530/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 273846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240621/015bb530/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 27362 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240621/015bb530/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/20240621/015bb530/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130907 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240621/015bb530/attachment-0001.obj>