Bulls n Bears Daily Market Commentary : 10 Jul 2025

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Bulls n Bears Daily Market Commentary : 10 Jul 2025

 

 	



 

 	


ZSE commentary

 

Losses persist on the ZSE ...

 

Losses persisted on the ZSE as all the four major indices we review closed
in the red. The All!-Share Index was 0.21% weaker at 195..94pts while, the
Blue-Chip Index was 0.27% lower at 189.88pts. The Mid Cap Index lost a
negligible 0.02% to en-d pegged at 241.45pts while, the Agriculture Index
was 0.85% down at 152.35pts on the back of loss.es in Hippo. Leading the
laggards of the day was Star Africa that plunged 15.12% to $0.0426 while,
logistics company Unifreight trailed behind on a 14.38% decline to close at
$1.3100. Sugar processor Hippo continued to lose ground in the session as it
eased 9.84% to settle at a VWAP of $3.6091 while, Proplastics dropped 6.23%
to, $1.2190. Banking group Ecocash capped the top five worst performers of
the day as it retreated by 2.69% to $0.1358. PartiaUy offsetting today's
losses was Zimre Holdi11gs that charged 12.73% to $0.2800 while, agriculture
concern Ariston advanced 7.01%_ to close at $0.0375. Tea producer Tanganda
was 6.67% higher at $0.9600 while, seed technology company SeedCo Limited
added 0.48% to $2.4148. Property compa11y Mashonaland fastened the top five
gainers' list of the day as it rose 0.18% to $1.5779.

 

 

Activity aggregates improved in the session as volumes traded charged 33.37%
to $1.80m shares whille, turnover increased by 175.55% to $13.51m. De.lta
was the top traded counter in the session as it co11tr buted 43.72% of the
volume traded and 76.60% of the total value traded. Other notable volume
drivers of the day were Proplastics (18.66%), Econet (11.05,%), Hippo Valley
(10.94%) and CBZ {10.58%). In the REIT category, the Tigere REIT was 0.63%
higher at $1.3562 as 1,439 units exchanged hands in the name. Ellsewhere,
the ZSE Holdings has suocessfully self-listed on the Zimbabwe Stock Exchange
(ZSE), marking a significant milestone for Zimbabwe's capital markets and
trading in the company's shares will commence tomorrow. As a self-listed
entity, ZSE Holdings will be regulated by the Securities and Exchange
Commission (SEC) and will be subject to the same disclosure requirements and
corporate governance standards as other listed companies.

 

 

 

 

 <mailto:info at bulls.co.zw> 

 

South Africa

 

Rand Strengthens Ahead of Manufacturing Report

 

The South African rand saw early gains on Thursday, ahead of the release of
new domestic manufacturing data. Investors were also closely watching trade
negotiations following U.S. President Donald Trump's latest tariff threats.

 

As of 0635 GMT, the rand was trading at 17.7350 against the dollar, marking
an increase of roughly 0.6% from its closing position on Wednesday.

 

In April, production had seen a significant 6.3% year-on-year drop. However,
analysts polled by Reuters and economists at Nedbank are anticipating a
smaller decline this time, forecasting decreases of 1.5% and 0.5%,
respectively.

 

 

Despite potential improvements in the upcoming monthly data, Nedbank
economists cautioned in a note that "While the monthly data may show some
improvement, underlying conditions remain weak."

 

Their note also referenced a purchasing managers' index from last week,
which indicated a slight uptick in manufacturing sentiment, though output
remains low and logistics issues persist.

 

The economists added that "The sector continues to grapple with excess
capacity amid subdued global and domestic demand and weak commodity prices."

 

South Africa's benchmark 2035 government bond showed little change in early
trading, with its yield rising by half a basis point to 9.845%.

 

 

 <mailto:info at bulls.co.zw> 

 

Global Markets

 

Dollar Losing Allure for Chinese Traders Creates Runway for Yuan

 

Chinese traders are pulling back from the dollar, helping ease a shortage
that has rattled the banking system and setting the yuan up for further
gains.

The dollar's premium over the yuan has narrowed by 25% since the end of
December, as Chinese state-owned banks have shifted from wanting dollars to
offering them out, according to traders.

 

Analysts expect dollar-yuan swaps to rise further, with Citigroup
forecasting that 12-month swap points will climb to -1,500 pips in the
coming months, and Guotai Junan's Hao Zhou echoing this forecast contingent
on the Fed kicking off rate cuts.

Chinese traders are pulling back from the dollar, helping ease a shortage
that has rattled the banking system and setting the yuan up for further
gains.

 

The dollar's premium over the yuan, as reflected in 12-month swap points,
has narrowed by 25% since the end of December. Chinese state-owned banks
have gradually shifted from wanting dollars to reducing their demand for it,
to offering it out, according to traders who declined to be identified as
they're not authorized to speak publicly.

 

The change underscores how a shift in the dollar's fortune - it posted a
10.7% slide in the first six months as Donald Trump's tariff and fiscal
policies fueled uncertainty - is easing the pressure on the Chinese yuan.
That's giving Beijing room to ease up on their efforts to support the
currency.

 

"The swap points reflect decreasing demand for the dollar as well as
optimism toward the room for yuan to strengthen," said Hao Zhou, chief
economist at Guotai Junan Hong Kong Ltd. Swaps might have also gained
support from easing expectations of interest-rate cuts in China amid upbeat
economic data, he said.

 

 

 

Foreign-exchange swaps have surged in popularity in China's tightly
controlled financial system. More companies and banks now use them to hedge
risks and manage dollar holdings for operations or investment needs.

 

 

State-owned banks have been major players, using swaps to defend the yuan -
borrowing dollars and selling them back at maturities. At their peak, these
swap positions exceeded $100 billion and attracted offshore hedge funds into
profitable trades involving Chinese short-term debt.

 

By borrowing dollars to buy yuan via swaps trades, Chinese banks essentially
supported the yuan exchange rate, while foreign investors gave the Chinese
banks dollars and got the equivalent in the yuan to invest in the local bond
market.

 

Chinese state-owned banks had been cutting their greenback borrowings via
one-year swaps since the second quarter, according to traders. They're now
offering short-term greenback via swaps, and that may also dampen foreign
appetite for banks' negotiable certificate of deposits.

 

>From a market pricing perspective, swap points tend to shrink when the
interest rate outlook between the US and China starts to align. That
possibility has grown stronger, with markets anticipating a Federal Reserve
rate cut in September and China's recent economic data exceeding
expectations - strengthening the belief the People's Bank of China can
afford to delay further easing.

 

The PBOC set the yuan's reference rate at 7.1475 per dollar on Friday, the
strongest level since November even as the greenback advanced. Global banks,
including Goldman Sachs and Morgan Stanley, recently forecast a modest gain
for the Chinese currency toward 6.9 to 7.1 yuan per dollar in the next 12
months.

 

Citigroup Inc. strategists highlighted that foreign-currency deposits in
China are now at around a three-year high, suggesting dollar reserves are
ample. Some companies may have repaid foreign-currency loans, allowing banks
to accumulate more dollars, strategists Rohit Garg and Philip Yin wrote in a
recent note. And these larger deposit pools often coincide with rising
dollar-yuan swap points.

 

 

 

Looking ahead, analysts expect dollar-yuan swaps to rise further.

 

 

Citigroup is forecasting that 12-month swap points will climb from the
current -1,866 pips to -1,500 pips in the coming months, a level last seen
in early 2023.

 

Guotai Junan's Zhou echoed this forecast, contingent on the Fed kicking off
rate cuts.

 

 

 

 

 <mailto:info at bulls.co.zw> 

 

Gold Minerals

 

Gold price breaches a bearish correctional trend line-Analysis-11-07-2025

Clearing overbought conditions on RSI opens way for more gains and
continuation of rise in upcoming moves

 

The (Gold) price rose in its last intraday trading, after surpassing the
negative pressure that comes from EMA50, providing a positive momentum that
assisted it to breach a bearish correctional bias that has restricted its
move on the short-term basis.

 

 

This rise came after offloading the clear overbought conditions on the
(RSI), opening the way for the return of the positive signals gradually,
which provides bigger space for achieving more of the gains, reinforcing the
possibilities for the continuation of the rise in its upcoming moves.

 

 

 

The (EURUSD) declined in its last intraday trading, affected by the
continuation of the bearish correctional trend on the short-term basis, and
its move alongside a bearish bias line, breaking the key support at 1.1685,
which represents the target we mentioned in yesterday's forecast, indicating
the continuation of the selling pressure.

 

 

This decline comes due to the downside movements below EMA50, besides the
continuation of the negative signals on the (RSI), despite reaching oversold
levels, indicating the weakness of the bullish momentum and opens for
downside movements on the near-term basis.

 

 

 

 

 

 

 

 

 

 

 


 

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 

 

 

 Invest Cellphone:            +263 71 944 1674 | +27 79 993 5557 

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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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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) 2025 Web: www.bullszimbabwe.com Email: bulls at bullszimbabwe.com Tel: +27
79 993 5557 | +263 71 944 1674

 

 	

 

 

 	
							

 

 

 

 

 

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