Bulls n Bears Daily Market Commentary : 05 August 2025

Wed Aug 6 09:40:50 CAT 2025

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Bulls n Bears Daily Market Commentary : 05 August  2025

ZSE commentary

ZSE closes in the red...

The ZSE ended Tuesday's session in the red to see the All-Share Index
falling 0.62% to 205.89pts while, the Top Ten Index retreated 0.63% to
200.76pts. The Agriculture Index lost 0.34% to 176.52pts while, the Mid Cap
shed 0.59% to 246.03pts. The top contributor to the session's losses was
Ariston Holdings that sank 10.34% to end pegged at $0.0301 with First Mutual
Properties trailing on a 9.51% loss to close at $1.4750. ZB Financial
Holding parred off 5.86% to $3.0145 while, Mashonaland Holdings dropped
4.27% to $1.6025. Seed Co limited capped the top five losers of the day on a
1.86% decline to land at $3.7000. Partially mitigating today's losses was
ART Corporation Holdings that gained 6.23% to finish at $0.1546 as sugar
refiner Star Africa followed on a 1.21% increase to $0.0424. General
Beltings edged up 0.33% to close at $0.1000 while, telecoms company Econet
added 0.09% to $4.6057. Hippo Valley Estates completed the top five gainers
list of the day on a negligible 0.01% lift to end pegged at $6.5005.

Activity aggregates faltered in the session as turnover plunged 42.51% to
$5.24m while, volumes traded dipped 6.10% to 1.42m shares. Proplastics,
Hippo Valley and Delta drove the volumes traded in the session as the duo
claimed 75.94% of the total. Top value divers in the session were Delta
(42.20%), Hippo Valley (21.72%), Proplastics (18.48%), and CBZ Holdings
(11.07%). The ETF category registered trades as Cass Saddle discarded 3.47%
to $0.1250 as 100 units traded while, Morgan

& Co Made in Zimbabwe lowered 11.11% to $0.0400 as 200 units exchanged
hands. Datvest MCS was stable at $0.0300 as 7,150 units were traded and the
Tigere REIT trimmed 1.31% to $1.3059 as 96,326 units were exchanged.

 <mailto:info at bulls.co.zw> 

South Africa

South African rand flat as tariff concerns weigh

(Reuters) - The South African rand was little changed in muted trade on
Tuesday even after the release of a positive purchasing managers' index
survey as investors continued to wait for tariff updates ahead of the United
States' August 8 deadline.

The rand was at 17.9225 against the dollar by 1533 GMT, a whisker away from
Monday's close.

South Africa's private sector expanded slightly in July, marking the third
consecutive month of growth helped by renewed sales growth and sustained
employment increases, a survey showed on Tuesday.

This was, however, overshadowed by tariff concerns after the United States
imposed a 30% duty on goods imported from the country, the highest rate
among Sub-Saharan African countries.

South Africa has tried for months to negotiate a deal with U.S. President
Donald Trump's administration and offered to buy U.S. liquefied natural gas
and invest in its industries in exchange for a lower tariff.

But Trump's team was unresponsive to the proposal, which came amid tensions
between Washington and Pretoria over South Africa's foreign policy and
domestic affirmative action laws, which Trump disapproves of.

"More threats loom, and one may be a further rise in U.S. tariffs based on
SA's membership of BRICS (grouping Brazil, Russia, India, China and South
Africa)," said ETM Analytics in a note.

"Over time, SA will diversify its trade links away from the U.S. and reduce
any future leverage the U.S. may hold over SA, but for now, SA needs to
brace for more disruption, which at the margin will impact the economy
negatively and limit the full extent of rand appreciation," it said.

The Johannesburg Stock Exchange's Top-40 index (.JTOPI), opens new tab was
last up 0.4%

South Africa's benchmark 2035 government bond was weaker, as the yield rose
4.5 basis points to 9.675%.

Nigeria

Naira Falls at Official, Parallel Markets on Higher FX Demand

The naira fell from the rally tarmac at the Central Bank of Nigeria (CBN)
official exchange rate platform on increased demand for US dollars amidst
tight supply. The local currency also lost weight against the greenback at
the parallel market, widening the FX spread.

According to FX update from the authority, the spot rate at the Nigeria
Foreign Exchange Market (NFEM) depreciated to N1533.10 from N1531.95 at the
previous close in the absence of fresh dollar injection.

The forex market has remained sufficiently liquid with inflows across
sources, including foreign portfolio investors and exporters. Analysts
observed a moderate rise in FX demand on Tuesday from companies seeking
foreign payments.

The Naira USD/NGN pair traded within a range of $/N1,532.0 to $/N1,534 at
the official window amidst bullish predictions of a strong year-end close.
At the end of the trading session on Tuesday, the naira depreciated slightly
by 7 basis points to settle at $/N1,533.10 with the expectation that the
spot rate will maintain its current trading range in the near term.

At the parallel market, the local currency fell to N1550 from N1510 due to
increased pressure from holiday-bound FX users. Elsewhere, oil prices edged
lower as rising OPEC+ supply and worries of weaker global demand countered
concern about U.S. President Trump's threats to India over its Russian oil
purchases.

Brent crude and U.S. West Texas Intermediate slipped 1.17 cents each to
settle at $67.59 and $65.12 per barrel, respectively.

Gold prices climbed to a near two-week high, supported by growing
expectations of U.S. interest rate cuts, while investors awaited President
Donald Trump's decision on Federal Reserve appointments. Spot gold gained
0.2% to $3,380.08 per ounce; futures settled at $3,433.77. #Naira Falls at
Official, Parallel Markets on Higher FX Demand Nigerian Exchange Surpassed
N91trn as BUA, Dangote Rally

 <mailto:info at bulls.co.zw> 

Global Markets

Most Asian share indexes edge up, dollar struggles for direction

(Reuters) - Most share indexes edged up in Asia on Wednesday as investors
looked through weak U.S. data and corporate warnings about the hit from
tariffs, while the dollar struggled to gain ground amid growing Federal
Reserve rate cut expectations.

European stocks are bracing for a higher open, with EUROSTOXX 50 futures up
0.5%. Wegovy-maker Novo Nordisk (NOVOb.CO), opens new tab reported
second-quarter sales growth of 18%, below initial analyst expectations.

Wall Street futures recovered from an earlier dip, with Nasdaq futures up
0.3% and S&P 500 futures rising 0.4%. Shares of AI chip stock Advanced Micro
Devices (AMD.O), opens new tab slid 6.6% after the bell on disappointing
data centre revenue.

"We see risk assets in a tug-of-war between solid U.S. corporate earnings,
powered by the artificial intelligence (AI) theme, and tariffs hurting
growth while lifting inflation," said analysts at BlackRock Investment
Institute.

"We stay overweight U.S. stocks but get granular while assessing the tariff
fallout."

Overnight, U.S. stocks finished lower after the services sector activity
unexpectedly flatlined in July. Employment further weakened and input costs
climbed by the most in nearly three years, underscoring the impact from
President Donald Trump's tariff policy.

While U.S. earnings have been generally upbeat in the second quarter, they
are starting to show the impact of tariffs.

Taco Bell parent Yum Brands (YUM.N), opens new tab missed expectations as
steep trade duties dented consumer spending, while Caterpillar (CAT.N),
opens new tab warned that U.S. tariffs would cost it up to $1.5 billion this
year.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan
(.MIAPJ0000PUS), opens new tab slipped 0.1%, while Japan's Nikkei (.N225),
opens new tab gained 0.6%. Australia's resource-heavy shares (.AXJO), opens
new tab rose 0.8%.

Both Chinese blue chips (.CSI300), opens new tab and Hong Kong's Hang Seng
index (.HSI), opens new tab were up 0.1%.

Trump on Tuesday said it would announce tariffs on semiconductors and chips
in the next week or so, while the U.S. would initially impose a "small
tariff" on pharmaceutical imports before increasing it substantially in a
year or two.

He also said the U.S. was close to a trade deal with China and that he would
meet his Chinese counterpart Xi Jinping before the end of the year if an
agreement was struck. However, he threatened to further raise tariffs on
goods from India over its Russian oil purchases.

The Reserve Bank of India kept its key interest rate steady at 5.50% on
Wednesday, in line with expectations, but the odds of another cut have risen
after the steep U.S. tariffs on Indian exports last week.

In currency markets, the dollar consolidated after sliding from two-month
highs last Friday on a weak jobs report that had markets price in a
near-certain chance of a Fed interest rate cut in September.

The dollar index , which measures the U.S. currency against six
counterparts, was flat at 98.73 and little changed this week after Friday's
1.4% fall.

Fed funds futures imply a 94% chance of a rate cut next month, with at least
two cuts priced in for this year, according to the CME's FedWatch.

Investors are waiting for Trump's pick to fill a coming vacancy on the Fed
Board of Governors. Trump said the decision will be made soon, while ruling
out Treasury Secretary Scott Bessent as a contender to replace current chief
Jerome Powell, whose term ends in May 2026.

Treasury yields edged up after a $58 billion auction of three-year notes
went poorly, but still hovered near multi-month lows. More supply will hit
the market this week with $42 billion in 10-year notes on Wednesday and $25
billion in 30-year bonds on Thursday.

Two-year Treasury yields rose 2 basis points to 3.7323%, having risen 3.5
bps overnight, while benchmark 10-year yields ticked up 3 bps to 4.2217%,
after holding steady overnight.

In commodity markets, oil prices rose after four straight sessions of
declines. U.S. crude rose 0.6% to $65.57 per barrel, while Brent was at
$68.07 per barrel, up 0.6%.

Trump said on Tuesday he will decide on whether to sanction countries that
purchase Russian oil after a meeting with Russian officials scheduled for
Wednesday.

Spot gold prices slipped 0.3% to $3,370 an ounce.

 <mailto:info at bulls.co.zw> 

Commodities

Gold Gold inches lower as dollar gains, markets await Fed appointments

(Reuters) - Gold prices edged lower on Wednesday due to a slightly firmer
dollar, while investors held back from making big bets ahead of U.S.
President Donald Trump's decision on appointments to the Federal Reserve.

Spot gold was down 0.1% at $3,376.69 per ounce, as of 0631 GMT, after
hitting a near two-week high on Tuesday. U.S. gold futures fell 0.1% to
$3,432.40.

The dollar (.DXY), opens new tab rebounded from a one-week low hit in the
previous session following weak U.S. jobs data that raised rate-cut hopes in
September, reducing gold's appeal to holders of other currencies.

"Gold has been caught between conflicting forces. The drop in yields has
helped, but the U.S. dollar has managed to hold up well despite Friday's
selloff. That has produced the range we're now seeing, as prices wait for
conviction across the catalysts," said Ilya Spivak, head of global macro at
Tastylive.

Trump on Tuesday said he would soon announce a short-term replacement for
Fed Governor Adriana Kugler, who announced her resignation on Friday, as
well as his pick for the next Fed chair.

The CME FedWatch tool, opens new tab now puts the odds of a September cut at
nearly 88%, after Friday's weaker-than-expected employment growth data,
following which Trump fired the commissioner of the U.S. Bureau of Labor
Statistics (BLS).

On the trade front, Trump again threatened to raise tariffs on goods from
India over its Russian oil purchases, while New Delhi called his attack
"unjustified" and vowed to protect its economic interests, deepening the
trade rift between the two countries.

Elsewhere, Perth Mint's gold product sales fell 33% in July from the
previous month, while silver sales slipped to a six-month low, the refiner
said on Wednesday.

Spot silver was steady at $37.85 per ounce, platinum slipped 0.1% to
$1,319.35 and palladium fell 0.6% to $1,168.17.

INVESTORS DIARY 2025

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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