Bulls n Bears Daily Market Commentary : 02 September 2024

Tue Sep 3 03:47:03 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 : 02 September 2024

ZSE commentary 

Mid Cap counters weigh down the market .

The ZSE market commenced the month of September in the red, mainly weighed
down by Mid Cap counters that continued to experience selling pressure
across the board. The All Share Index retreated 0.04% to settle at 200.40pts
while, the Mid Cap Index was 0.62% lower at 170.54pts. The Agriculture Index
parred off 0.93% to end weaker at 186.94pts while, the Blue Chip Index was
0.20% firmer at 207.94pts. Banking group CBZ led the laggards of the day on
a 10.69% drop to $11.0729 while, property concern First Mutual plunged
10.00% to close at $0.3060. General Beltings eased 8.54% to settle at
$0.0503 while, tea producer Tanganda tumbled 7.27% to close at $3.4999. TSL
capped the top five worst performers' list of the day on a 6.67% loss to
$2.8000. Partially offsetting today's losses was ART Corporation that soared
12.00% to $0.2800 while, sugar refiner Star Africa was 9.69% higher at
$0.0110. Retailer OK Zimbabwe charged 9.65% to $0.8001 while, Nampak
garnered 6.00% to close trading at $1.0600. Ecocash Holdings fastened the
top five gainers' list of the day on a 4.67% rise to $0.5061, post the
released of a notice to advise shareholders on the scheme of reconstruction
which obtained exchange control approval. Ecocash shareholders will be given
0.067807 Econet shares for one EcoCash share held and cash equivalent to
0.067807 Econet shares for one EcoCash share held.

Activity aggregates enhanced in the session as volumes traded jumped 168.43%
to 2.34m shares while, turnover ballooned 168.76% to $3.60m. Star Africa led
the volume aggregates of the day as it contributed 43.54% while, other
notable volume drivers were SeedCo Limited, Ecocash and Econet that
contributed a combined 36.5% of the total traded. Turnover drivers of the
day were Delta, SeedCo Limited, Econet Wireless and Hippo that claimed a
combined 91.94% of the aggregate. Morgan & CO Multi Sector ETF was 5.63% up
at $0.4753 while, other funds remained stable at prior session's prices. The
Tigere REIT was 0.15% lower at $1.0011 as a circa of 1.64m shares traded in
the session.

 <mailto:info at bulls.co.zw> 

Global Currencies & Equity 

Nigeria

Naira appreciates against dollar on Monday

The naira appreciated against the dollar at the foreign exchange market to
start the week on a positive note.

FMDQ data showed that the naira appreciated to N1585.77 per dollar on Monday
from N1598.56 exchanged on Friday last week, recording N12.79 gain.

Similarly, at the parallel foreign exchange market, the naira gained N10 to
close at N1635 per dollar on Monday from N1645 recorded on Friday.

South Africa

South African rand little changed ahead of manufacturing PMI

(Reuters) - The South African rand was little changed in early trade on
Monday, ahead of a purchasing managers' index (PMI) survey for the domestic
manufacturing sector.

At 0711 GMT the rand traded at 17.87 against the dollar, about 0.1% softer
than its Friday close.

The Absa PMI for August is set to be released at 0900 GMT and should shed
light on conditions in South Africa's manufacturing sector.

Local investors will focus on the country's second-quarter gross domestic
product data on Tuesday for signs on the health of Africa's most
industrialised economy.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index was down
about 0.4% in early trade.

South Africa's benchmark 2030 government bond was weaker in early deals,
with the yield climbing 4 basis points to 9.24%.

 <mailto:info at bulls.co.zw> 

Global Markets

US Dollar neutral as markets await catalysts

August jobs report on Friday is anticipated to show a significant increase
in Nonfarm Payrolls.

Market expectations for 100 bps of easing from the Fed by year-end remain
unchanged.

On Monday, the US Dollar Index (DXY), which measures the US Dollar's value
against a basket of six major currencies, consolidated above 101.50,
extending after last week's gain of more than 1%. Markets await key labor
data this week, and the August jobs report, due for release on Friday, is
anticipated to show a robust increase in Nonfarm Payrolls (NFP), which might
provide support to the US Dollar.

Despite ongoing economic growth that exceeds expectations, the market's
anticipation of aggressive monetary easing appears to have become excessive.
However, a cut by the Federal Reserve (Fed) in September is a done deal, but
its size will depend on the incoming data.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold price stumbles below $2,500 as market participants eye NFP report

Gold prices fall during a quiet North American session with US markets
closed for Labor Day.

Upcoming US economic reports - ISM PMIs, JOLTS job openings, ADP Employment
Change, and Nonfarm Payrolls - set to influence Fed rate decision.

Fed Chair Powell at Jackson Hole noted that inflation was easing but
increasing employment risks, raising recession concerns.

Geopolitical tensions linger as President Biden may propose a ceasefire deal
between Israel and Hamas, potentially affecting markets.

Gold prices dipped during the North American session amid thin volumes due
to US markets being closed during Labor Day observance. 

Conversely, the Greenback remains firm as traders brace for a jobs report
that could influence the Federal Reserve's decision on the size of
September's rate cut. The XAU/USD trades at $2,499, down by 0.14%.

The US economic docket will be busy this week with the release of the
Institute for Supply Management's (ISM) Manufacturing and Services PMIs,
JOLTS job openings, the ADP National Employment Change, and the Nonfarm
Payrolls (NFP) figures.

During his speech at Jackson Hole, Federal Reserve Chairman Jerome Powell
commented that the risks of inflation are skewed to the downside, while the
employment risks are tilted to the upside.

Last Friday, the Fed's preferred inflation gauge, the Core Personal
Consumption Expenditures Price Index (PCE), remained unchanged at around
2.5%, hinting that inflation remains controlled. On the other hand, during
the last four NFP reports, the Unemployment Rate has risen from around 3.8%
to 4.3%, spurring fears among Fed officials that the labor market could be
cooling faster than expected.

That reignited recession fears, which had faded following last week's solid
US data. Initial Jobless Claims fell from their levels in late July, Retail
Sales rose sharply, and the economy grew at a 3% pace, according to the
second estimate of the second quarter's Gross Domestic Product (GDP) print.

After the data, Bullion prices drooped as investors bought the US Dollar on
waning recession fears.

Despite this, geopolitical risks loom even though US President Biden is
considering presenting Israel and Hamas a final proposal for a hostage
release and ceasefire in Gaza deal later this week, according to Axios
sources.

Daily digest market movers: Gold price traders await busy US economic
calendar

ISM Manufacturing PMI for August is expected to improve from 46.8 to 47.8.
The Services PMI is estimated to expand from 51.4 to 51.5

July's JOLTS job openings are expected at 8.10 million, down from 8.184
million in June.

Private hiring, revealed by the ADP National Employment Change report, is
foreseen increasing from 122K in July to 150K in August.

August's NFP figures are expected to rise from 114K to 163K, while the
Unemployment Rate could dip, according to the consensus, from 4.3% to 4.2%.

December 2024 Chicago Board of Trade (CBOT) fed funds future rates contract
hints that investors are eyeing 97 basis points of Fed easing this year.

Gold prices are upwardly biased, though momentum has shifted negatively, as
shown by the Relative Strength Index (RSI). Although the RSI is bullish, its
slope aims downward, approaching the neutral level. Therefore, in the short
term, XAU/USD is downwardly biased.

If XAU/USD drops below $2,500, the next support would be the August 22 low
at $2,470. Once surpassed, the next stop would be the confluence of the
August 15 swing low and the 50-day Simple Moving Average (SMA) near the
$2,424-$2,431 area.

Conversely, if XAU/USD stays above $2,500, the next resistance would be the
ATH, and the following resistance would be the $2,550 mark. A breach of the
latter will expose $2,600.

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/20240903/54233084/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/20240903/54233084/attachment-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 29359 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240903/54233084/attachment-0002.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 37760 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240903/54233084/attachment-0003.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 130912 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240903/54233084/attachment-0001.obj>