Bulls n Bears Daily Market Commentary : 04 June 2025

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Bulls n Bears Daily Market Commentary : 04 June 2025

 

 	



 

 	


ZSE commentary

 

ZSE continues to falter...

 

The ZSE continued to falter in mid-week session as selected heavies dragged
down the market. The All-Share Index declined 0.30% to 198.95pts while, the
ZSE Top 10 Index shed 0.22% to 192.94pts. The ZSE Agriculture Index went
down 3.86% to settle at 182.08pts on the back of losses in Seed Co, BAT and
TSL. The Mid-Cap Index slipped 0.54% to 244.61pts. Leading the laggards for
the day was SeedCo Limited that dipped 10.17% to close at $2.6500 while, BAT
followed with a 9.09% retreat to $90.0000. TSL eased 3.46% at $2.7998,
trailing behind was banking group CBZ Holdings with a 2.71% slip to $6.8100.
Capping the top five laggards of the day was Turnall Holdings with a 1.42%
slump to close at $0.0690. On the other hand, at the top of the gainers'
list was Willdale which soared by 50.00% to $0.0600 while,
telecommunications giant Econet rose 3.33% to $3.5037. Rounding up the top
five performers of the day was Star Africa with a 0.18% at $0.0501.

 

Volume of shares traded ballooned 841.96% as 34.45m shares exchanged hands
in today's session while, turnover increased by 102.99% at $40.06m. OK
Zimbabwe was the top traded stock by volume claiming 84.63%. Notably NMB
accounted for 9.56% of the volume aggregate. However, Delta, NMB and OK
Zimbabwe accounted for a combined 94.48% of the value aggregate. Datvest MCS
traded 8,600 units as it maintained a price level of $0.0300. The Tigere
REIT rose 0.07% to $1.2158 as 26,801 units exchanged hands.-EFESEC

 

 <mailto:info at bulls.co.zw> 

 

South Africa

 

South African rand gains as parliamentary committee backs budget

(Reuters) - The South African rand maintained early gains on Wednesday after
a key parliamentary committee backed the long-delayed national budget, which
has been tied up in political wrangling for months.

 

At 1448 GMT, the rand traded at 17.7875 against the dollar , about 0.4%
stronger than Tuesday's closing level.

 

A majority of members on the Standing Committee on Finance supported the
budget's fiscal framework and revenue proposals, clearing the path for a
vote in the lower house of parliament on June 11.

 

The budget has had to be revised twice because of disagreements in the
ruling coalition.

But its path now looks clear after the finance minister backtracked on its
most contentious element, raising value-added tax, and the second-biggest
party in the multi-party government welcomed a third version.

Johann Els, chief economist at Old Mutual, said he expected more rand
strength in the short-term given there was less uncertainty over the budget.

Casparus Treurnicht, portfolio manager at Gryphon Asset Management, said
there was a sense of certainty in local politics which was favourable for
the rand.

 

The positive sentiment prevailed following mixed economic data.

A purchasing managers' index survey on Wednesday showed business activity
(ZAPMIM=ECI), opens new tab grew at its fastest pace in four years in May,
but gross domestic product data on Tuesday pointed to stagnation in the
first quarter (ZAGDPN=ECI), opens new tab.

The Johannesburg Stock Exchange's Top-40 index (.JTOPI), opens new tab was
last up about 0.9%.

The benchmark 2035 government bond price rose, with the yield falling 11
basis points to 10.00%.

 

 

Ghana

 

Ghana Inflation Falls to 18.4% as Soaring Cedi Eases Import Costs

Ghana's annual inflation rate dropped to 18.4% in May, its lowest level in
over three years, driven by a strong rally in the cedi and lower global oil
prices, the Ghana Statistical Service said Wednesday. Inflation has now
slowed for five consecutive months, down from 21.2% in April.

 

Prices rose 0.7% month-on-month, according to Government Statistician
Alhassan Iddrisu. Food inflation remained high at 22.8%, while non-food
prices rose by 14.4%.

 

The decline comes as Ghana's currency-the cedi-has appreciated 44%
year-to-date, making it the world's best-performing currency as of Tuesday.
The rally is supported by a surge in gold prices, as Ghana remains Africa's
largest gold producer.

 

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Key Takeaways

With inflation easing and the cedi gaining strength, pressure is mounting on
Ghana's central bank to cut interest rates from the current 28%. Economists,
including Courage Boti of GCB Bank, expect a cut of up to 200 basis points
in the coming months. "A wide gap between inflation and the policy rate is
no longer tenable," Boti said, suggesting monetary easing may be necessary
to stimulate domestic demand and reduce borrowing costs amid improving
macroeconomic conditions.

 

 

 <mailto:info at bulls.co.zw> 

 

Global Markets

 

Australian Dollar treads water as US Dollar rises ahead of Initial Jobless
Claims

The Australian Dollar (AUD) maintains its position against the US Dollar
(USD) on Thursday. The AUD/USD pair remains in positive territory following
the release of domestic trade balance and China's Caixin Services Purchasing
Managers' Index (PMI) data.

 

Australia's Trade Balance posted a 5,413M surplus month-over-month in April,
below the 6,100M expected and 6,892M (revised from 6,900M) in the previous
reading. Exports declined by 2.4% MoM in April, against a 7.2% rise prior
(revised from 7.6%). Meanwhile, Imports rose by 1.1%, compared to a decline
of 2.4% (revised from -2.2%) seen in March. China's Caixin Services PMI rose
to 51.1 in May as expected, from 50.7 in April.

 

The AUD/USD pair also gained ground as the US Dollar faced challenges
following the weaker economic data and rising economic uncertainty in the
United States (US). The US Balance of Trade and the weekly Initial Jobless
Claims will be eyed later in the North American session. Focus will shift
toward Friday's Nonfarm Payrolls to gain further insights into the Fed's
policy outlook.

 

Australian Dollar steadies as US Dollar recovers losses

The US Dollar Index (DXY), which measures the value of the US Dollar against
six major currencies, is trading at around 98.80 at the time of writing,
after recovering its daily losses. The Greenback receives downward pressure
from dampened risk sentiment amid rising tariff uncertainty and its
potential to hurt growth in the US economy.

 

Institute for Supply Management's (ISM) Services Purchasing Managers Index
(PMI) declined to 49.9 in May, from 51.6 in April. This reading surprisingly
came in weaker than the expected 52.0. Meanwhile, US ADP private sector
employment rose 37,000 in May, against a 60,000 increase (revised from
62,000) recorded in April, far below the market expectation of 115,000.

 

US President Donald Trump called upon, in a post published on Truth Social
on Wednesday, Federal Reserve (Fed) Chairman Jerome Powell to lower the
policy rate. "ADP NUMBER OUT!!! "Too Late" Powell must now LOWER THE RATE.
He is unbelievable!!! Europe has lowered NINE TIMES," Trump said.

 

On Wednesday, Minneapolis Fed President Neel Kashkari noted that the labor
market is showing some signs of slowing down. However, persistent
uncertainty prevails over the economy, and the Fed must stay in wait-and-see
mode to assess how the economy responds to the uncertainty.

 

House Republicans passed Trump's "Big Beautiful Bill," a
multitrillion-dollar tax and spending package, which could increase the US
fiscal deficit, along with the risk of bond yields staying higher for
longer. This scenario raises concerns over the US economy and prompts
traders to sell American assets under the "Sell America" trend. Policy
experts anticipate Senate changes as GOP lawmakers aim to finalize the "big
bill" by July 4.

 

Last week, Trump accused China of breaching a truce on tariffs reached
earlier this month. Washington and Beijing agreed to temporarily lower
reciprocal tariffs in a meeting in Geneva. Trump said that China had
"totally violated its agreement with us." US Trade Representative Jamieson
Greer also said that China had failed to remove non-tariff barriers as
agreed. In response, a spokesperson from China's Ministry of Commerce said
on Monday that China had complied with the agreement by cancelling or
suspending relevant tariff and non-tariff measures aimed at US "reciprocal
tariffs."

 

China's Caixin Manufacturing Purchasing Managers' Index (PMI) unexpectedly
fell to 48.3 in May from 50.4 in April, falling short of the market
expectations of a 50.6 expansion. However, the weekend data showed that the
National Bureau of Statistics (NBS) Manufacturing PMI rose to 49.5 in May,
from April's 49.0 reading. Meanwhile, the Non-Manufacturing PMI declined to
50.3 from the previous 50.4 figure, falling short of the expected reading of
50.6. The Aussie Dollar could be impacted by Chinese economic data as both
countries are close trading partners.

 

The Australian Bureau of Statistics (ABS) showed that Gross Domestic Product
(GDP) grew by 0.2% quarter-over-quarter in Q1, declining from the previous
0.6% growth. Australia's economy fell short of the expected 0.4% rise.
Meanwhile, the annual GDP growth rate remained consistent at 1.3%, below the
expected 1.5%.

 

The S&P Global Australia Composite Purchasing Managers' Index (PMI) fell to
50.5 in May from April's 51.0 reading, expanding for the eighth successive
month. However, the pace indicates marginal growth in business activity,
albeit the slowest so far in 2025.

The S&P Global Australia Services PMI came at 50.6 in May, marking a 16th
straight month of expansion but at the slowest pace in six months. The Ai
Group Manufacturing PMI posted a -23.5 reading, an improvement from the
previous -26.5. Manufacturers experience delays in major projects and rising
market hesitation due to global and domestic uncertainty.

 

Reserve Bank of Australia (RBA) Minutes of its May monetary policy meeting
suggested that the board viewed the case for a 25 basis point cut as
stronger, preferring a policy to be cautious and predictable. The
policymakers highlighted that US trade policy posed a significant and
adverse impact on the global outlook, but had not yet affected the
Australian economy. However, they did not believe that a 50 bps rate
increase was needed.

 

RBA Assistant Governor Sarah Hunter expressed caution on Tuesday that
"higher US tariffs will put a drag on the global economy." Hunter noted that
higher uncertainty could dampen investment, output, and employment in
Australia. However, she also added that Australia's exporters are relatively
well-placed to weather the storm and assumes that Chinese authorities will
support their economy through fiscal stimulus.

 

Australian Dollar challenges 0.6500 barrier ahead of seven-month peak

The AUD/USD pair is trading around 0.6500 on Thursday, with a persistent
bullish bias. The daily chart's technical analysis indicates that the pair
remains within the ascending channel pattern. The short-term price momentum
remains stronger as the pair stays above the nine-day Exponential Moving
Average (EMA). Additionally, the 14-day Relative Strength Index (RSI) is
positioned above the 50 mark, suggesting a bullish outlook.

 

On the upside, the AUD/USD pair may target a seven-month high of 0.6537,
which was recorded on May 26. Further advances explore the region around the
upper boundary of the ascending channel around 0.6670.

 

The primary support appears at the nine-day EMA of 0.6468, aligned with the
ascending channel's lower boundary around 0.6460. A break below this crucial
support zone could dampen the bullish bias and lead the AUD/USD pair to test
the 50-day EMA at 0.6400.

 

 

 <mailto:info at bulls.co.zw> 

 

 

Gold price surges on poor ISM data, rising trade tensions

 

Gold price rallied over 0.80% on Wednesday during the North American
session. The release of weaker-than-expected economic data from the United
States (US) pushed XAU/USD higher as business activity softened and the jobs
market added fewer people to the workforce. The golden metal trades at
$3,382 after hitting a daily low of $3,343.

 

Sino-US tensions had driven Bullion prices higher. Uncertainty about the
outcome of the trade discussions between the White House and China and
softer economic data in the US would underpin Gold prices.

 

In the meantime, US President Donald Trump signed an executive order
increasing the levies on steel and aluminum from 25% to 50%, effective June
4, ahead of a scheduled phone call between Trump and China's President Xi
Jinping later this week.

 

 

US economic data revealed that the economy is cooling, which could warrant
further action by the Federal Reserve (Fed). The Institute for Supply
Management (ISM) showed that business activity in the services sector
contracted for the first time in almost a year. At the same time, private
hiring in the country slowed sharply in May, according to the ADP National
Employment Change data.

 

Following the data release, Trump complained about Fed Chair Jerome Powell
being too late to lower borrowing costs. During the week, Fed officials
expressed that they're patient regarding resuming the ongoing easing cycle
that started in the second half of last year, adding that the impact of
tariffs is unknown, which could fuel a persistent rise in prices.

 

Ahead this week, traders are eyeing US Initial Jobless Claims for the week
ending May 31, followed by Nonfarm Payroll figures on Friday.

 

Gold daily market movers: XAU/USD soars as US Treasury yields plummet,
weighing on the US Dollar

Gold price rallies as the US Dollar dives. The US Dollar Index (DXY), which
tracks the value of the Greenback against a basket of six currencies, fell
0.44% down to 98.81.

US Treasury bond yields are falling. The US 10-year Treasury yield plunges
7.5 basis points to 4.383%. US real yields have followed suit and are also
down by the same amount at 2.063%, a tailwind for Bullion prices.

The ADP National Employment Change figures for May rose by 37K, missing
estimates of 110K and below the previous month's revised 60K print.

The ISM Services PMI tumbled from 51.6 in April to 49.9 in May, below
forecast of 52.0.

Money markets suggest that traders are pricing in 54 basis points of easing
toward the end of the year, according to Prime Market Terminal data.

 

 

 

 

 

 

 


 

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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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
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any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 

 	

 

 

 	


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79 993 5557 | +263 71 944 1674

 

 	

 

 

 	
							

 

 

 

 

 

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