Bulls n Bears Daily Market Commentary : 24 June 2024

Tue Jun 25 09:01:29 CAT 2024

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Bulls n Bears Daily Market Commentary : 24 June 2024

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

Stocks edge higher as heavies lead the market charge...

The ZSE market continued to edge higher in the session as the All-Share
Index  rose  1.12% at 117.81pts while, the Blue-Chip Index  was  1.21%
firmer  at  123.22pts.  

Mid Cap Index was 0.26% weaker at 111.22pts. Tea producer Tanganda  led the
gainers of the day on a 14.98% surge to $2.1065 while, TSL trailed  behind
as  it  soared  14.42% to $1.2587. Telecommunications group Econet
buttressed prior session's gains as it advanced 9.34% to $2.2001 while,
banking group ZB Financial Holdings ticked up 2.71% to $1.9000. FBC to
$1.9988. Partially weighing down the market was sugar proces_sor Star Africa
that  plummeted  13.43% to settle at

$0.0070 while, property concern First Mutual Properties slipped 9.52% to
$0.3800. Ecocash trimmed 7.48% to end pegged at $0.1851 as retail group
Meikles dipped 3.26% to close trading at a VWAP of $4.6920. General Beltings
capped the top five worst performers of the day as it tumbled 0.79% to
$0.0500.

Activity aggregates continued to falter in the session as volume traded
tumbled 60.43% to 6.36m shares while, turnover was 32.12% lower at $5 .63m.
The duo of Star Africa and Ecocash drove the volume aggregate as they
contributed a combined 86.22% of the total. In the turnover category,
activity was mainly confined in Delta that claimed 82.88% of the total
traded. In the ETF category, only two funds registered price movements,
despite having traded mixed. The Old Mutual Top Ten ETF was 2.88% lower at
$0.1117 as it postponed its EGM which was scheduled last week, where it
intended to seek approval to delist the fund from the bourse. The Morgan &
CO Made in Zim ETF notched up 11.11% to $0.0100. In the REIT category, the
Tigere REIT dropped 1.48% to $0.6207 on 173,833 units.-efesecurities

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity 

South Africa

South African rand falls, focus on cabinet announcement

(Reuters) - The South African rand slipped on Monday, as markets waited for
President Cyril Ramaphosa to announce the cabinet lineup of his government
of national unity.

At 1100 GMT, the rand traded at 18.1275 against the dollar, about 0.9%
weaker than its previous close.

"Perceived friction between the GNU (government of national unity) partners
is playing a role in today's decline, although the rand was due for a
technical correction in any case," Danny Greeff, co-head of Africa at ETM
Analytics, said.

The African National Congress lost its parliamentary majority in an election
last month, the first time in 30 years, which forced it to seek coalition
partners.

Nine other parties have joined the ANC, including the pro-business
Democratic Alliance (DA), which is favoured by investors.

"By adding more parties to the coalition, the ANC is walking a fine line
between forming an inclusive government and losing investor confidence by
diluting the DA's influence," Greeff said.

Investors want the ANC and the Democratic Alliance to play a leading role in
the new government and will be watching Ramaphosa's cabinet picks for
insights into the balance of power within the coalition, he said.

Ramaphosa said in his weekly newsletter on Monday that the government's top
priority was economic growth to create jobs.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index traded around
1.2% stronger than its previous close.

South Africa's benchmark 2030 government bond was weaker, with the yield up
15 basis points to 9.835%.

Nigeria

Naira down to N1,505/$ in parallel market

The Naira yesterday depreciated in the parallel market to N1,505 per dollar
from N1,495 per dollar last weekend. Similarly, the Naira depreciated to
N1,490.2 per dollar in the Nigerian Autonomous Foreign Exchange Market,
NAFEM.

Data from FMDQ showed that the indicative exchange rate for NAFEM rose to
N1,490.2 per dollar from N1,485.53 per dollar last weekend, indicating N4.67
depreciation for the naira. The volume of dollars traded (turnover) in the
market fell by 21.4 per cent to $152 million from $193.5 million traded last
week Friday.

How 'pregnant' passenger stole my car, made me unconscious - 43-yr-old man
narrates experience0.00 / 0.00

Consequently, the margin between the parallel market and NAFEM rates widened
to N14.8 per dollar from N9.47 per dollar last weekend.

MA

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar Dollar subdued near 160 yen level as threat of intervention looms

(Reuters) - The dollar attempted to break above the key 160 yen level on
Tuesday but with little success as fears of currency intervention from
Japanese officials kept the yen marginally supported against its peers.

Elsewhere, bitcoin recovered some lost ground after its worst day in over
two months at the start of the week, in part due to flows out of bitcoin
exchange-traded funds (ETFs), analysts said.

The dollar was last 0.08% lower at 159.42 yen , having traded in a tight
range throughout the Asian session as traders were leery of testing the key
resistance level that had prompted a 9.79 trillion yen ($61.33 billion)
currency intervention from Tokyo in late April and early May.

That prevented the yen from notching fresh lows against other currencies,
with sterling sitting just below a 16-year high at 202.38 yen .

The Aussie similarly retreated from a 17-year top against the yen and last
stood at 106.21 .

"The market is showing ... that they are nervous, and they are very much on
edge about this situation," said Chris Weston, head of research at
Pepperstone.

"There are inherent risks to being short the Japanese yen now as a carry
trade, which is of course what (authorities) want to see.

"The first port of call is to tell currency speculators and people holding
for carry that you're on notice, if you hold those positions now, you run
the risk of a 400-, 500-pip drop in dollar/yen."

The latest decline in the yen has come on the back of the Bank of Japan's
(BOJ) June policy meeting, where policymakers disappointed investors who
were betting on an immediate reduction of the BOJ's massive bond purchases.

Minutes of the meeting out on Monday showed the central bank debated the
chance of a near-term interest rate hike with one policymaker calling for an
increase "without too much delay".

In the broader market, the dollar eased slightly ahead of Friday's release
of the U.S. personal consumption expenditures (PCE) price index - the
Federal Reserve's preferred measure of inflation.

Sterling ticked 0.09% higher to $1.2696, while the Australian dollar rose
0.1% to $0.6663.

The New Zealand dollar was little changed at $0.6124.

Politics were also at the forefront of investors' minds, with the first U.S.
presidential debate between President Joe Biden and his predecessor Donald
Trump set for Thursday and French elections due to kick off this weekend.

The euro , which has come under pressure amid political turmoil in France in
the wake of President Emmanuel Macron's shock snap election call earlier
this month, gained 0.06% to $1.0741.

Still, the common currency was headed for a monthly loss of roughly 1%,
owing to the political turmoil.

Against a basket of currencies, the dollar dipped 0.1% to 105.39.

"France's election will commence on June 30, hence EUR will be affected by
political concerns," said analysts at Sumitomo Mitsui Banking Corporation in
a note. "If the unstable political situation continues, EUR will weaken
further against USD."

In cryptocurrencies, bitcoin jumped more than 3% to $61,319, recovering some
of its sharp 6.65% fall in the previous session and having hit an over
one-month low. FTX

"We've seen drawdown, we've seen six days in a row of funds coming out of
the bitcoin cash ETFs," said Pepperstone's Weston.

"Bitcoin, for me, is ... a momentum vehicle, and momentum works both ways.
If it's going in one direction and the rate of change is picking up, for me,
you stand aside and let the selling happen until it can form a base. And
right now, the momentum's to the downside."

($1 = 159.6300 yen)

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold gains on dollar retreat, focus now on US inflation data

(Reuters) - Gold prices rose on Monday, helped by a pullback in the dollar,
while investors looked forward to U.S. inflation data due later this week
that could influence the Federal Reserve's monetary policy path.

Spot gold was up 0.5%, to $2,332.62 per ounce, as of 02:02 a.m. ET (1802
GMT). U.S. gold futures settled 0.6% higher, to $2,344.40.

The dollar fell 0.3% against its rivals, making gold attractive for holders
of other currencies.

Gold is in consolidation mode and there is active buying on dips, said David
Meger, director of alternative investments and trading at High Ridge
Futures, adding that investors are looking for the trajectory of interest
rates moving forward and the timing of those potential rate cuts.

The focus this week will be on the U.S. Personal Consumption Expenditures
(PCE) data, the Fed's preferred measure of inflation, due on Friday.

Also on the radar are at least five Fed officials, including San Francisco
Fed President Mary Daly and Fed Governors Lisa Cook and Michelle Bowman, who
are scheduled to speak this week.

Traders are currently pricing in a 66% chance of a Fed rate cut in
September, according to the CME FedWatch Tool.

"We believe gold can hit $3,000/oz over the next 12-18 months, although
flows do not justify that price level right now," BofA said in a research
note.

"Achieving this would require non-commercial demand to pick up from current
levels, which in turn needs a Fed rate cut to happen. An inflow into
physically backed ETFs and a pick-up in LBMA clearing volumes would be an
encouraging first signal."

Lower rates reduce the opportunity cost of holding bullion.

Elsewhere, spot silver was steady, at $29.49 per ounce, and platinum gained
0.5%, to $997.80.

Palladium climbed 3.2%, to $979.17. Prices hit a one-month high in the
previous session, breaking above the key level of $1,000 per troy ounce in
volatile trading as some investors covered their short positions and the
market was tight for nearby physical supply.

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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