Bulls n Bears Daily Market Commentary : 13 March 2024

Thu Mar 14 08:16:03 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 : 13 March 2024

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

ZSE advances further as demand in selected heavies increase.•.

The ZSE advanced further in Wednesday's trades, buoyed by increased demand in selected heavies. The All-Share Index was 2.13% firmer  at  548,400.18pts  while, the  Blue-Chip  Index

was 1.87% up at ,235.99pts. Trading in the negative was the Mid-Cap Index that shed 0.43% to settle at 2,162,494. 19pts. The duo of Fidelity and Tanganda led the gainers of the day as they  charged   15.00%  to  end  at  circuit  breaker  limit  of

$715 .3000 and $2,242 .5500 apiece. Telecommunications group Econet trailed on a 14.82% jump to trade at a VWAP of

$2,270.1067, post announcement of a USO.SS cents dividend, with the last payout having been done in 2021. Conglomerate Meikles edged up 12.56% to close at $3,940.0000 while, bankers ZB fastened the top five gainers list of the day on a 11.11% gain to $2,000.0000. Partially weighing down the market was NMB that eased 15.00% to $2,422.5000, followed by  Mashonaland  Holdings  that  lost  13.04%  to  settle  at

$300 .0000 as 600 shares traded in the name. Sugar processor Star Africa reversed prior sessions' gains as it declined 1.40% to end at a VWAP of $9 .2187 while, General Beltings tumbled 0.66% to $136.0000. Fintech group Ecocash parred off 0.18% to trade at $552.0920.

Activity aggregates faltered fn the session as volume traded fell by 36.79% to 4.33m shares while, turnover declined by 63.23% to end at $6.20bn. The duo of Ecocash and NMB led the volume driver of the  day as they claimed a combined 91.31% of the aggregate. In the turnover category, trading was mainly confined in NMB, Ecocash and BAT as they claimed

46.19%, 24.09% and 20.58% respectively. In the ETF category, the Old Mutual Top 10 ETF inched up 1.62% to $92.0000 while, Datvest MCS rose 0.21% to close at a VWAP of $19.9922. The Cass Saddle ETF was 6.64% weaker at $7.2818 as 2.2m units traded. The Tigere REIT edged up 3.63% to $700.4296. Elsewhere, the tobacco auctions opened today and the first bale was sold for $4.92/kg

Global Currencies & Equity Markets

South Africa

South African rand strengthens as dollar drifts lower

(Reuters) - The South African rand strengthened in afternoon trade on Wednesday as the U.S. dollar drifted lower on global markets.

At 1605 GMT, the rand traded at 18.5600 against the dollar ZAR=D3, up 0.5% on its previous close.

The dollar index =USD was down about 0.1% against a basket of global currencies, as traders shrugged off hotter-than-anticipated U.S. inflation and still expected a Federal Reserve interest rate cut in June.

No major South African economic data was released on Wednesday, but on Thursday mining ZAMNG=ECI and manufacturing ZAMAN=ECI production figures for January will be published, which could provide a local driver to the currency.

On the Johannesburg Stock Exchange, the Top-40 index .JTOPI closed up 1.15%.

South Africa's benchmark 2030 government bond ZAR2030= was weaker, with the yield up 4.5 basis points to 10.210%.

Nigeria

Naira stabilizes at N1,615/$1 across both official and parallel markets amid CBN’s new duty rate 

The official market witnessed a slight depreciation in the Naira-dollar exchange rate, closing at N1,615.94 to $1, a 0.78% decrease from the previous rate of N1,603.38 to $1. 

Following the naira’s devaluation against the dollar, the Central Bank of Nigeria (CBN) adjusted the customs clearance exchange rate at seaports from N1,593.9/$1 to N1,624.7/$1 on March 12, 2024. 

The recent dip in the naira-dollar closing rate halted a two-day streak of gains but remained above the N1,600 to $1 threshold since the previous Tuesday. 

Data from NAFEM also revealed a substantial surge in forex transactions by 103.59%, amounting to $248.75 million compared to $122.18 million recorded previously. 

More Insights   

On Wednesday, the naira experienced varied outcomes against key global currencies within the Investors and Exporters (I&E) window. 

Notably, the I&E FX window documented a peak of N1635/$1 and a nadir of N1,500.00, signifying a variance of N135/$1. 

At the parallel market, the naira closed flat in value relative to the US dollar, trading at N1,615 per dollar, the same rate as traded in the previous trading day. 

The naira also saw a modest downturn against the pound sterling by 0.25%, closing at N2,040/£1 versus the prior rate of N2,035/£1. 

Similarly, it weakened against the euro by 0.29%, continuing a downward trend for the fourth consecutive trading day, settling at N1,730/€1 from N1,725/€1 posted on Tuesday. 

The nation’s external reserves experienced an increase of N130.79 million as of March 11, 2024, reaching $34.34 billion. This marks a 0.38% growth from the preceding day’s reserves of $34.21 billion. 

Since February 13, 2024, Nigeria’s external reserves have seen a consistent upward trend. 

 <mailto:info at bulls.co.zw> 

Global Markets

US dollar drifts lower, market consolidates gains post-inflation data

(Reuters) - The dollar slipped on Wednesday, a day after rising on hotter-than-expected U.S. inflation data, as investors consolidated gains ahead of this week's economic data that could shed light on when the Federal Reserve might start cutting interest rates this year.

In afternoon trading, the dollar index , which measures the greenback against a basket of six currencies, slipped 0.1% to 102.85. Last week it recorded its biggest weekly decline since early January. This year, however, the greenback has posted gains of 1.5%.

-

"DXY (dollar index) continues to be largely a bet on Fed easing; in recent weeks there has been growing concern that Fed cuts will be pushed further into 2025 or that inflation will reaccelerate, forcing the Fed to hike again," wrote Skylar Montgomery Koning, director of macro strategy at TS Lombard, in a research note.

"In other words, 'no landing' fears have returned," she added, referring to a scenario in which the U.S. economy avoids recession with above-trend growth and above-trend inflation.

-

Koning further pointed out that with the U.S. economy consistently outperforming expectations, "the bias is for dollar strength, even if there are bumps along the way."

Markets fretted that inflation could remain sticky for some time. The U.S. consumer price index (CPI) released on Tuesday increased solidly in February, beating forecasts and suggesting some stickiness in inflation.

Although the CPI rose 0.4% in February in line with forecasts, a 3.2% year-on-year gain came in just ahead of an expected 3.1% increase. Core figures also topped estimates.

Markets see little chance of a Fed cut before the summer, but expectations for rate cuts in June have eased only a touch to about a 67% likelihood versus 71% earlier in the week, according to LSEG's rate probability app.

The Fed is expected to hold rates steady at its meeting next week.

Investors are now looking to Thursday's U.S. retail sales data, the producer prices index (PPI) report, and jobless claims for more evidence that the economy is slowing down.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Price Gold ticks lower as dollar firms, traders await more US data

(Reuters) - Gold prices edged lower on Thursday as the U.S. dollar gained, though bullion remained near record-high levels as traders awaited more economic data out of the U.S. that could steer hopes for a mid-year rate cut by the Federal Reserve.

Spot gold fell 0.2% to $2,171.05 per ounce as of 0426 GMT. U.S. gold futures also dipped 0.2% to $2,175.40.

The U.S. dollar index (.DXY), opens new tab gained 0.1%. A firmer dollar makes gold more expensive for other currency holders.

-

Investors await U.S. retail sales data, the producer prices index (PPI) report and jobless claims due later in the day to gauge the U.S. economy's health and if it will deter the Fed from cutting rates in June.

"There was a mini pullback in gold prices after U.S. CPI data release, but it doesn't change the market's view by much on U.S. monetary policy, and with today's PPI data - if the core annual figure reading appears near expectations, I still reckon that gold price could remain supported," Kelvin Wong, a senior market analyst for Asia Pacific at OANDA, said.

-

Traders see a 67% chance of a June rate cut, according to LSEG's interest rate probability app, down from 72% before data suggested some stickiness in inflation.

The Fed will release its latest 'dot plot' projections at its policy meeting next week. The December meeting projected three-quarter-point rate cuts for 2024.

Other catalysts that could move gold prices could be further bad news on China's housing market and its local government funding mechanism, and trends in consumer demand, Nicholas Frappell, global head of institutional markets at ABC Refinery, said. Frappell expects official sector demand to remain supportive for gold prices this year.

Spot platinum fell 0.3% to $935.50 per ounce, palladium shed 0.3% to $1,056.24 and silver dropped 0.3% to $24.95, after hitting a more than four-month high earlier in the session.

-

INVESTORS DIARY 2024

Company

Event

Venue

Date & Time

Good Friday

march 29

Easter Monday

1 April

Independence Day

April 18

Workers day

1 May

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/20240314/6c70c993/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/20240314/6c70c993/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 135717 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240314/6c70c993/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 40113 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240314/6c70c993/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/20240314/6c70c993/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130910 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240314/6c70c993/attachment-0001.obj>