Bulls n Bears Daily Market Commentary : 17 May 2024

Fri May 17 17:30:42 CAT 2024

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Bulls n Bears Daily Market Commentary : 17 May 2024

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

ZSE recovers from prior sessions' losses...

The market rebounded in Friday's session as selected heavies lifted the ZSE.
The All-Share Index and the ZSE Top Ten Index rose by a similar 0.71% to
close at 94.65pts and 92.76pts respectively. The ZSE Agriculture Index rose
0.41% to 90.58pts while, Mid Cap Index was the top gainer amongst the
indices we review as it inched up 0.99% to end at 97.63pts. Property concern
FMP led the gainers of the day as it surged 15.00% to settle circuit breaker
limit of $0.2760 while,  banking  group NMB grew 14.97% to $1.6590. SeedCo
Limited garnered 9.42% to end at a VWAP of $1.6768 while, beverages concern
Delta jumped 2.36% to $7.1099. Spirit and wines manufacturer Afdis completed
the top five winners of the day on a 2.16% uplift to $2.2500. Ecocash le.d
the fallers of the day as it succumbed 10.15% to $0.2112 while, Proplastics
dropped 5.90% to close at $0.3825. Cigarette manufacturer  BAT trimmed
3.85% to $24.9995 as FML slipped 2.89% to $1.8500. Banking group CBZ shed
2.60% to end the day pegged at $3 .6038.

Volume of shares traded tumbled 89.30% to 1.36m shares while, turnover
dipped  99.89% to $901,040.98. Star Africa, OKZIM and Econet claimed a
combined 72.99% ofthe volume traded. Value leaders of the day were Delta
(28.88%), Econet  20.07%),  OKZIM  (16.77%)  and  BAT  (11.38%). Cass
Saddle ballooned 14.04% to close at $0.0065 as other four ETFs remained
stable. A total of 15,766 units worth $263.57 exchanged hands in the
session. The Tigere REIT parred off 0.72% to $0.6300 while, the Revitus
Property Opportunities ticked up 0.09% to ehd the day pegged at $0.2150.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity Markets Ghana

Cedi now selling at GH¢15.05 to $1

Note that these rates may differ at a forex bureau near you. Our forex
bureau rates are provided by Afriswap Bureau De Change in Osu, Accra.

The Interbank forex rates from the Bank of Ghana today, May 17, 2024, have
shown that the Ghana Cedi is trading against the dollar at a buying price of
13.7641 and a selling price of 13.7779.

At a forex bureau in Accra, the dollar is being bought at a rate of 14.70
and sold at 15.05.

Against the Pound Sterling, the Cedi is trading at a buying price of 17.4474
and a selling price of 17.4662.

At a forex bureau in Accra, the pound sterling is being bought at a rate of
18.30 and sold at a rate of 18.80.

The Euro is trading at a buying price of 14.9673 and a selling price of
14.9822.

At a forex bureau in Accra, the Euro is being bought at a rate of 15.70 and
sold at 16.30.

The South African Rand is trading at a buying price of 0.7565 and a selling
price of 0.7571.

At a forex bureau in Accra, the South African Rand is being bought at a rate
of 0.40 and sold at a rate of 1.20.

The Nigerian Naira is trading at a buying price of 110.3762 and a selling
price of 110.8133.

At a forex bureau in Accra, Nigerian Naira is being bought at a rate of 9.00
Naira for every 1 Cedi and sold at a rate of 13.00.

For the CFA, it is trading at a buying price of 43.7824 and a selling price
of 43.8260.

At a forex bureau in Accra, CFA is being bought at 22.00 CFA for every 1
Cedi and sold at a rate of 24.50 CFA for every 1 Cedi.

Our forex bureau rates are provided by Afriswap Bureau De Change in Osu,
Accra.

South Africa

South African rand firms to five-month high on Fed rate cut bets

(Reuters) - The South African rand strengthened to a five-month high on
Thursday, as risk sentiment improved on growing bets the Federal Reserve may
cut interest rates in September.

At 1518 GMT, the rand traded at 18.2250 against the dollar , 0.25% stronger
than its previous close. It briefly hit 18.1775 earlier in the day, a level
not seen since mid-December.

The dollar index was up 0.27% against a basket of currencies.

-

Data released on Wednesday showed April U.S. core inflation eased to its
slowest pace in three years, pulling forward expectations for rate cuts in
the world's biggest economy.

"Risk sentiment has improved on the back of the rate cut optimism, and we
have the rand trading below the 18.30 mark ... which is in line with
stronger EM markets," said Andre Cilliers, currency strategist at
TreasuryONE.

No major economic data releases are scheduled in South Africa until
Wednesday, when local inflation figures are due.

-

However, economists warned that despite the rand's recent gains, markets
remain cautious ahead of a national election on May 29.

"We think risks around the upcoming election in South Africa, among other
factors, will cause renewed weakness in the currency before long," said
Jonathan Petersen, senior markets economist at Capital Economics.

In the stock market, the Top-40 (.JTOPI), opens new tab index closed 0.10%
higher and the broader all-share (.JALSH), opens new tab index rose 0.19%.

South Africa's benchmark 2030 government bond was stronger, with the yield
down 2.5 basis points at 10.365%.

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar edges up but still set for weekly decline

(Reuters) - The dollar edged up against major currencies on Friday but was
still headed for a weekly fall, as market speculation continues to swirl
about the timing of Federal Reserve rate cuts amid signs of cooling
inflation and a softening U.S. economy.

Data on Wednesday showed consumer prices rose more slowly than expected in
April, but various policymakers have given little away on when rates may
fall, limiting the dollar's declines this week.

The dollar index - which tracks the U.S. currency against six peers - was up
0.2% on Friday at 104.73, but was still on track for around a
half-percentage-point weekly decline.

Futures markets are currently pricing in 46 basis points of Federal Reserve
rate cuts by the end of this year.

"The comments this week from Fed officials were in our view still indicative
of a Fed that would be willing to turn and cut relatively quickly if the
evidence becomes available to back it up," currency analysts at MUFG said in
a note.

Even though markets price European rate cuts beginning in June, recent data
has shown some upside surprises. Germany's economy grew more than expected
last quarter and investor morale is at a two-year high.

Euro zone consumer inflation data on Friday came in at 2.4% year-on-year in
April, in line with a Reuters poll.

The euro dipped 0.2% on the day to $1.0844. It is still up around 0.7% on
the dollar this week.

Euro zone policymakers have increased confidence that inflation will ease
back to target next year due to easing price pressures, ECB Vice-President
Luis de Guindos said on Friday.

Largely disappointing Chinese data on Friday helped keep market risk
sentiment in check. Factory output topped forecasts but retail sales slowed
and home prices fell at their fastest pace in more than nine years.

Sterling edged 0.1% lower to $1.26555. The dollar gained 0.3% on the
Japanese yen at 155.9.

In cryptocurrency markets, bitcoin was up 1.6% at $66,322.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold Gold heads for second weekly gain, silver hits 11-year high

(Reuters) - Gold prices were on track for a second consecutive weekly gain
on Friday due to improved interest rate cut expectations, providing support
to silver which broke through the $30 milestone and hit an 11-year high.

Spot gold rose 0.9% to $2,396.81 per ounce by 1304 GMT. Bullion prices are
up 1.5% so far this week after hitting a one-month high on Thursday.

"Signs that inflation may be slowing down raise the prospect of interest
rate cuts in the coming months, which tend to support gold and silver
prices," said Frank Watson, market analyst at Kinesis Money.

-

On the demand side, expectations of continuing strong demand in China got a
boost after the country announced more efforts to stabilise its crisis-hit
property sector.

Demand in China, which contributed to the gold price rally in recent months,
is becoming more crucial as the market is waiting to see if high gold prices
prompt some central banks to slow down purchases and as outflows from
physically backed gold exchange-traded funds continue.

-

Global central banks actively bought gold in 2022-2023, but the largest
purchaser among them, China's central bank slowed down buying in April when
spot gold prices hit a record high of $2,431.29.

"Central banks these days are much more nuanced in their buying behaviour
and will alter the programme to be more opportunistic - that is to say
buying on dips and scaling back on rallies," independent analyst Ross Norman
said.

In the physical market, dealers were offering lower premiums in China and
deeper discounts in India this week.

On the supply side, the 15% increase in gold price since the start of 2024
keeps margins robust for gold miners. According, opens new tab to the World
Gold Council, gold miners' global average total expenses were at $1,342 per
ounce in the last quarter of 2023.

Meanwhile, silver and platinum got support from higher prices for gold and
base metals.

-

Spot silver rose 2.7% to $30.39 per ounce after breaking above a major
resistance level of $30. The last time silver hit the $30 price level was in
early 2021, but sustaining it for an extended period has eluded silver for
more than a decade.

Platinum added 0.8% to $1,065.60, after hitting a one-year high on Thursday.
The metal is up 7% so far this week due to continued structural deficits.

Palladium dropped 0.4% to $990.00, under pressure from rising market share
of electric vehicles.

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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