Bulls n Bears Daily Market Commentary : 23 September 2024

Tue Sep 24 03:54:54 CAT 2024

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Bulls n Bears Daily Market Commentary : 23 September 2024

ZSE commentary 

ZSE commences new week in losses...

The ZSE market commenced the new week in losses as the primary All Share
Index lost 1.63% to 255.98pts while, the Blue-Chip Index fell 1.64% to
276.Ellpts. The Agriculture Index eased a negligible 0.0002% to 211.90pts
while, the Mid Cap Index gave up 1.07% to 196.32pts. ZB Financial Holdings
led the laggards of the day on a 15 .00% slide to $9.2125, followed by
fintech group Ecocash Holdings that dropped 13.63% to $0.3412. Turnall
retreated 13.04% to close at $0.0600 while, brick maker Willdale declined
3.76% to $0.0502. Telecoms giant Econet completed the fallers of the day on
a 2.55% retreat to end the day pegged at $4.8658 . Partially mitigating
today's losses was Star Africa that jumped 14.5 7% to $0.0171 while,
retailer OK Zimbabwe charged 2.67% to $0.9475. FMP firmed up 0.36% to
$0.6900 while, FBC retreated 0.12% to settle at $11.1800. Zimre Holdings
capped the top performers of the day on a 0.10% uplift to end the day pegged
at $0 .3335. The market closed on a negative breadth of three as nine
counters recorded losses against six gainers.

Activity aggregates enhanced in the session as volume traded ballooned
36.35% to 514,600 shares while turnover grew 396.43% to $4.06m . Top volume
drivers of the day were Delta {39.66%), Ecocash {21.53%), Star Africa
{15.90%) and Econet {7.73%). Delta dominated the total value traded after a
lone contribution of 92.31%. Other value drivers of the day were Econet
(4.77%) and Ecocash (0.93%). A total of 8,600 units exchanged hands in the
ETF category. OMTI ETF eased 2.18% to close at $0.1600 as 800 units
exchanged hands in the session . Datvest ETF exchanged 7,800 units to close
flat at $0.0300. Tigere REIT shot up 0.07% to $1.1001 after 721,472 units
exchanged hands in the week opening session.

 <mailto:info at bulls.co.zw> 

South Africa

South African rand softens against the dollar

(Reuters) - South Africa's rand softened against the dollar on Monday,
retreating from a fresh 20-month high it hit earlier in the session.

At 0820 GMT, the rand traded at 17.455 against the greenback ZAR=D3, 0.27%
weaker than its previous close.

The local unit earlier hit 17.37 per dollar, its strongest level since
February 2023, as it continued to rally following strong gains last week
after a super-sized interest rate cut by the Federal Reserve. That was
followed by a rate cut by the South African Reserve Bank (SARB) along
expected lines.

The local currency benefited from the positive sentiment in the wake of the
Fed and SARB rate cuts, said Andre Cilliers, currency strategist at
TreasuryONE.

On the stock market, the Top-40 .JTOPI index was up 0.4%.

South Africa's benchmark 2030 government bond ZAR2030= was flat, with the
yield at 8.88%.

Kenya

Kenyan shilling stable, LSEG data shows

(Reuters) - Kenya's shilling KES= was unchanged against the U.S. dollar on
Monday, data from the London Stock Exchange Group showed.

At 1039 GMT, commercial banks quoted the shilling at 128.50/129.50 per
dollar, the same as Friday's closing rate.

The shilling has been relatively stable for several months, after rallying
in the first half of 2024 as concerns eased that the East African country
would default on a $2 billion Eurobond that matured in June.

 <mailto:info at bulls.co.zw> 

Global Markets

Rupee ends flat after hitting 3-month peak; oil firms' dollar bids weigh

(Reuters) - The Indian rupee ended flat on Monday as dollar demand from
local oil companies pulled the currency off a near three-month high, hit due
to likely portfolio inflows.

The rupee closed at 83.5525 against the U.S. dollar, nearly unchanged from
its close at 83.5625 in the previous session. The currency rose to 83.4450
earlier in the session, its highest since June 28.

Asian currencies were on the backfoot with the Philippine peso down 0.6%,
leading losses. The dollar index rose above the 101 mark and was last quoted
up 0.3% on the day.

The rupee had risen in the last five sessions, benefiting from a pickup in
portfolio inflows and broad weakness in the dollar after the Federal Reserve
kicked off its rate cuts last week.

Overseas investors have net bought more than $7.5 billion of Indian stocks
and bonds over September so far, the highest monthly inflow in 2024.

Given the recent price action on the dollar/rupee pair, "any upward moves
should be seen as an opportunity to sell", Amit Pabari, managing director at
FX advisory firm CR Forex said.

"It will be interesting to see how the Reserve Bank of India plays its
hand," Pabari said, referring to whether the central bank will allow the
rupee to rise further or intervene to limit appreciation.

Meanwhile, dollar-rupee forward premiums rose, with the 1-year implied yield
touching a 17-month peak of 2.38%.

The 1-year yield has risen 22 basis points in September. Given the improved
odds of another 50-bp rate cut by the Fed, bankers expect the rise to
continue.

Investors await remarks from Fed policymakers later in the day to gauge the
future path of policy rates.

 <mailto:info at bulls.co.zw> 

Commodities Markets

Gold price climbs to new record, now up 27% on the year

Gold continued to climb new highs on Monday as traders digested fresh data
showing a moderation in US business activity while awaiting key economic
readings due later this week for clues on the Federal Reserve's next move.

Spot gold maintained above the key $2,600/oz. level set last week, up 0.2%
to $2,627.34/oz. by 12:15 p.m. ET. Earlier, it had hit a new record high of
$2,635.05/oz. US gold futures rose 0.3% to $2,653.70/oz. in New York.

Sign Up for the Precious Metals Digest

Bullion has advanced since the Federal Reserve lowered its benchmark
interest rate by half a percentage point last week, building on what was
already a record-setting year for the precious metal. Rate cuts are often
seen as positive for the non-yielding gold.

Further rate cuts are to be expected, based off the latest comments from Fed
officials.

Federal Reserve Bank of Minneapolis President Neel Kashkari said on Monday
that he expects to lower interest rates by smaller, quarter-point moves at
each of the central bank's two remaining meetings this year.

"After 50 basis points, we're still in a net tight position so I was
comfortable taking a larger first step," Kashkari told CNBC. "As we go
forward, I expect, on balance, we will probably take smaller steps unless
the data changes materially."

Federal Reserve Bank of Chicago President Austan Goolsbee, meanwhile, said
during a Q&A event that interest rates need to be lowered "significantly" to
protect the US labor market and support the US economy.

After scrutinizing the comments from Monday's Fed speakers, traders will
turn their attention to US personal consumption data and jobless claims
later in the week. Those could inform the central bank's thinking on future
rate cuts.

"The market looks increasingly in need of consolidation, but at this point,
a deep one is needed to rattle hedge funds holding the largest bet on higher
prices since 2020," reads a report from Saxo Bank A/S.

Bullion's 27% rally this year has also been supported by robust purchasing
by central banks and haven demand amid ongoing conflicts in the Middle East
and Ukraine.

For Michael Cuggino, president at Permanent Portfolio Family of Funds, these
bullish factors will help gold continue to trend higher over the long term
despite some choppiness in prices in the near term.

INVESTORS DIARY 2024

Company

Event

Venue

Date & Time

Counters trading under cautionary

CBZH

GetBucks

EcoCash

Padenga

Econet

RTG

Fidelity

TSL

FMHL

ZBFH

Invest Wisely!

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