Bulls n Bears Daily Market Commentary : 02 May 2024

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Bulls n Bears Daily Market Commentary : 02 May 2024

 

 	

 

 

 	


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

 

ZSE falters post workers day holiday break...

 

The ZSE faltered in the penultimate session of the week as the All-Share
Index dropped 0.60% to settle at 98.23pts while, the Blue-Chip Index was
0.48% weaker at 96.45pts.  The Agriculture Index parred off 1.16% to settle
at 92.48pts while, the Mid-Cap Index eased 0.89% to end at 102.97pts.
Roofing and tile producing company Turnall led the laggards of the day as it
plummeted 14.22% to close at $0.0232 while, dairy producer Dairibord was
11.78% weaker  at  $0.9020.  Retailer OK  Zimbabwe  retreated  5.22%  to
end  the  day  trading  at

$0.5402 while, telecommunication group Econet continued on its downward
trend as it lost 3.12% to close at $1.4036. Fintech company Ecocash
succumbed 2.83% to close at $0.2866 as 4,600 shares traded in the counter.
Partially offsetting today's losses  were  hotelier  RTG  that  charged
14.94% to  end  at

$0.2070 while, Zimre Holdings trailed on a 2.34% addition to

$0.3200 . Sugar processor Star Africa advanced 0.87% to end trading at
$0.0074 as small cap counter General Beltings inched up 0.54% to $0.0488.
Beverages producer Delta which is trading in a closed period eked out
negligible gains of 0.03% to close at $7.1074. A total of seventeen counters
exchanged hands, segregated into seven gainers and ten losers, to leave the
market with a negative breadth of seven.

 

 

Activity aggregates were depressed in the session as volume of shares traded
declined by 33.76% to 588,900 while, turnover fell by 13.80% to $621,252.05.
Star Africa led the volume drivers of the day as it contributed 49.67% of
the total, followed by Meikles that claimed 20.80% of the aggregate. In the
turnover category Meikles and Delta drove the daily aggregates as they
claimed a combined 84.01% of the total value. In the ETF category only two
funds registered trades in today's session. The Morgan & Co Made in Zimbabwe
ETF jumped 13.61% to end at $0.0095 while, the Old Mutual Top 10 ETF was
stable as 16,210 units exchanged hands in the name. The Tigere REIT was
2.45% firmer at $0.5641 as 17,805 units traded.

 

VFEX reverses prior session's gains...

 

The VFEX market reversed prior session's gains as it lost 0.92% to end
trading at 98.69pts. Conglomerate lnnscor led the worst performers of the
day as it eased 7.63% to $0.4445 while, Edgars let go 2.00% to $0 .0196.
Fast foods producer Simbisa trimmed 0.38% to end at $0.3646. Trading in the
positive territory were retail and distribution company  Axia that notched
up 19.90% to end at $0.0964 while,  National Foods inched up 1.49% to
$1.3194. Bankers First Capital ticked up 0.40% to close at $0.0248. Hotelier
African Sun was up 0.28% to end at $0.0352, post announcement of its FY23
results in which they reported a loss of $0.36m. Seed technology group
SeedCo International was 0.05% higher at

$0.2206 .

 

 

Activity aggregates faltered in Thursday's trades as volumes traded tumbled
18.59% to 26,921 while, turnover was 20.07% lower at $4,459.27. First
Capital, African Sun, Simbisa and lnnscor drove the volume aggregates of the
day as it contributed 29.35%, 25 .35%, 17.77% and 13.93% respectively. Duo
of Simbisa and lnnscor drove the turnover as they claimed a combined 76.49%
of the total.-efe

 

 

 

 

Global Currencies & Equity Markets

 

South Africa

 

South African rand steady after factory activity improves

(Reuters) - The South African rand was little changed on Thursday after a
purchasing managers' index showed that manufacturing activity had improved
last month.

 

At 1518 GMT the rand traded at 18.6200 against the dollar , compared with
its previous close of 18.6300.

The dollar index was last trading down 0.05% against a basket of currencies.

 

South Africa's manufacturing sector PMI rose to 54.0 points in April from
49.2 in March, rising above the 50-point mark that separates expansion from
contraction, a survey showed.

-

The improvement in business conditions was largely due to the fact that
there were no rolling power cuts for the whole of last month.

South Africa's vehicle sales also improved in April, showing an uptick of
2.2% year-on-year after months of declining figures.

Globally, the next major economic focus will be Friday's U.S. jobs report
for April, which could move the dollar.

The rand often takes cues from international drivers like U.S. economic data
in the absence of major local data points.

-

On the stock market, the Top-40 (.JTOPI), opens new tab index and the
broader all-share (.JALSH), opens new tab index were both little changed.

South Africa's benchmark 2030 government bond was stronger, with the yield
down 4 basis points at 10.635%.

 

 

Nigeria

 

Naira closes 1,402/$ at official market as dollar demand persists

The naira traded at a loss at the official market, depreciating to N1,402
against the United States dollar on Thursday.

 

According to data from the FMDQ exchange securities, the naira dropped by
N12 or 0.86 per cent from the N1,390 recorded at the close of trading
activity on Tuesday.

 

There was no trading activity on Wednesday due to the Worker's Day
celebration.

 

At the Nigerian Autonomous Foreign Exchange Market, the intraday high closed
at N1,445 on Thursday weaker than N1,450 on Tuesday. The intraday low also
depreciated to N1,299 on Thursday as against  N1,200 on Tuesday.

 

Dollars supply at NAFEX appreciated by 3.1 per cent or $7m to $232 on
Thursday from $225.36m recorded on Tuesday.

 

The naira had depreciated following a renews demand for the greenback at
both the official and parallel market.

 

Based on data from the FMDQ official trading platform, the naira gained
N28.15 on the final trading day of April, settling at N1,390.96/$ as against
N1,419/$ on April 29.

 

The positive trend was also reflected in trading volumes, with a 52.45 per
cent surge in forex turnover, reaching $225.36m, up from the prior volume of
$147.83m.

 

However, compared with the beginning of April, the April 30 rate was a 5.8
per cent depreciation from N1,309.39 seen on April 1.

 

Similarly, Bureau De Change operators said the naira recorded a reduction in
value at the parallel market on Thursday.

 

Abubakar Yahu, a BDC operator in Wuse 2, Abuja, said traders bought the
dollar at N1,310 and sold at N1,360 leaving a profit margin of N50.

 

He said the dollar was rising marginally due to constant demand but not at
the same rate when the naira slid to N1,900 two months ago.

 

He said, "The naira depreciated today. We sell at N1,360 per dollar and we
buy from customers at N1,310 depending on how you bargain. But we are
expecting that the rate will drop tomorrow. Demand is still coming, it is
not like before but it is still high."

 

Another currency trader, Ibrahim Isa, in Ikeja, Lagos, confirmed the rate
while reiterating that the government must stabilise the naira for a long
period.

 

 

"The market is moving slightly but it will be better if we can stay on a
particular amount and stabilise the economy."

 

 

 <mailto:info at bulls.co.zw> 

 

Global Markets

 

Yen higher after suspected intervention

(Reuters) - The yen gained on Thursday, following a sudden rally late on
Wednesday that traders and analysts attributed to intervention by Japanese
authorities, while the dollar was broadly lower before key jobs data on
Friday.

The sharp move in the yen on Wednesday came in a quiet period for markets
after Wall Street had closed, and hours after the U.S. Federal Reserve had
wrapped up its policy meeting.

 

Fed Chair Jerome Powell confirmed the central bank's expectation to cut
rates, but acknowledged such a move would come later than expected due to
stubbornly high inflation.

-

The dollar eased, however, due to the Fed not adopting a more hawkish tone
that included the potential for further rate hikes.

The timing of the intervention was "pragmatic," as "volumes were light,
liquidity was thin, and it's easier to make an impact at that time," said
Brad Bechtel, global head of FX at Jefferies in New York.

The dollar was last down 0.9% at 153.09 yen. .

Japan's vice finance minister for international affairs, Masato Kanda, who
oversees currency policy at the Ministry of Finance, told Reuters he had no
comment on whether Japan had intervened in the market.

-

Wednesday's volatility came after a similar move on Monday, which was also
during a time of light trading.

"Clearly they want to make as much as an impact and do it as efficiently as
possible," said Bechtel.

The Bank of Japan's official data indicated Japan may have spent 3.66
trillion yen ($23.59 billion) on Wednesday and 5.5 trillion yen ($35.06
billion) supporting the currency on Monday to pull it back from new 34-year
lows.

While the supposed interventions may buy Japan some time, the trend is
likely to remain negative for the Japanese currency until the U.S. economy
slows and as long as the Bank of Japan disappoints traders on how far it is
willing to raise rates.

The dollar remains up more than 10% against the yen this year, as traders
push back expectations on the timing of a first Fed rate cut, while the BOJ
has signaled it will go slow with further policy tightening after raising
rates in March for the first time since 2007.

-

The next major U.S. economic focus that could drive further moves in
dollar/yen will be Friday's jobs report for April, which is expected to show
that employers added 243,000 jobs during the month. (USNFAR=ECI), opens new
tab

"A lot hinges on tomorrow's jobs report," said Marc Chandler, chief market
strategist at Bannockburn Global Forex in New York.

A weaker number would give Japanese authorities relief, and likely pull
Treasury yields and the dollar lower. A strong report, however, could send
yields and the greenback higher and increase the risk of further
interventions.

If 10-year Treasury yields approach the 5% region, "I'd say the dollar/yen
is going to come under more pressure," said Chandler. "It's all about what
happens with U.S. rates - we're sort of the big moving piece."

Benchmark 10-year Treasury yields were last at 4.57%.

Data on Thursday showed that the number of Americans filing new claims for
unemployment benefits held steady at a low level last week.

The dollar index fell 0.38% to 105.31, while the euro gained 0.17% to
$1.0728.

The dollar weakened 0.59% to 0.91 Swiss francs after Swiss annual inflation
in April accelerated faster than expected.

In cryptocurrencies, bitcoin gained 3.56% to $59,319.

 

 

 <mailto:info at bulls.co.zw> 

 

 

 

 

Commodities Markets

 

Gold prices stabilize as Fed signals pause in rate hikes

Featuring views and opinions written by market professionals, not staff
journalists.

 

As of 5:10 PM ET, gold futures for the most active June contract traded
lower by -$1.40, settling at $2,309.60. The session saw prices range from a
low of $2,294.30 to a high of $2,336.10.

 

The Federal Reserve's latest policy statement offered some respite to the
precious metal. While the Fed kept interest rates unchanged, as widely
expected, it signaled  potential  for a continued pause, tempering
expectations of higher-for-longer U.S. rates.

 

The Fed was less hawkish than expected and Powells press conference provided
a glimmer of hope for gold investors, as Chairman Jerome Powell stated that
further rate increases are unlikely, despite acknowledging the lack of
progress in bringing inflation down to the 2% target. This stance alleviated
some pressure on the yellow metal, which has faced headwinds from the
prospect of persistently high U.S. interest rates.

 

"The Fed's official statement did acknowledge a 'lack of further progress'
in inflation reduction in recent months. Powell expressed the strong belief
that current monetary policy is sufficiently restrictive to return inflation
to the Fed's 2% target eventually... therefore, it's unlikely the next
policy move will be a hike," said Preston Caldwell, chief U.S. economist at
Morningstar.

 

Despite the challenges, gold demand marked its strongest first quarter in
eight years, buoyed by "healthy investment" from the over-the-counter market
and robust central bank purchases, which saw their best start to any year on
record, according to a report from the World Gold Council.

 

Investors now turn their attention to the closely watched nonfarm payrolls
data on Friday, which could provide further insights into the labor market's
resilience and the Fed's future rate path. Additionally, weekly jobless
claims and March factory orders data, was released today.

 

The Labor Department reported that unemployment claims for the week ending
April 27 remained unchanged at 208,000, reflecting the continued tightness
in the job market. However, there are signs of potential softening, with the
government reporting 8.5 million job openings in March, the lowest number of
vacancies in three years.

 

As the tug-of-war between inflationary pressures and economic growth
continues, gold's performance will hinge on the Fed's ability to navigate
the delicate balance of taming inflation while avoiding a severe economic
downturn.

 

Wishing you as always good trading,

 

 


 

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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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
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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

 

 	

 

 

 	
							

 

 

 

 

 

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