Bulls n Bears Daily Market Commentary : 27 March 2025

Thu Mar 27 19:32:31 CAT 2025

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Bulls n Bears Daily Market Commentary : 27 March 2025

ZSE commentary

Delta steals the limelight...

Beverages group Delta stole the limelight in the session as circa 1.08m
shares worth $16.64m exchanged hands in the name. The trade accounted for
94.84% of total volumes traded and 99.48% of the value aggregate. Volume of
shares tradedwent down by 69.53% to 1.18m while, turnover declined 40.10% to
$16.72m. The Tigere REIT ticked up 1.02% to close at $1.5200 on 2,000 units.
No trades were recorded in the ETF category.

Leading the risers of the day was TSL that garnered 10.29% to $1.9300 while,
RTG jumped 5.85% to end pegged at $0.7000.Brick makers Willdale charged
4.78% to $0.0368 as Ecocash put on 1.28% to settle at $0.1745. Banking group
NMB closed0.20% firmer at $3.7325. The worst faller of the day was Star
Africa that declined 5.94% to $0.0370, trailed by Ariston which slid 0.79%
to $0.0502. Beverages giant Delta trimmed 0.18% to $15.2733 with Econet
retreating 0.02% to $3.5923. The market recorded marginal gains in the
session under review as the mainstream All Share Index added 0.24% to
205.71pts. The Blue Chips Index rose 0.15% to 200.53pts while, the

Agriculture Index edged up 0.91% to 181.29pts. The Mid CapIndex improved
0.51% to close at 249.02pts.-efsecrities 

 <mailto:info at bulls.co.zw> 

South Africa

South African rand wobbles as markets await Trump's tariffs

(Reuters) - South Africa's rand weakened on Thursday as markets fretted over
U.S. President Donald Trump's tariffs due next week.

At 1407 GMT, the rand traded at 18.3375 against the U.S. dollar , about 0.4%
weaker than its previous close.

The dollar was last down about 0.3% against a basket of currencies.

Trump on Wednesday announced 25% tariffs on all vehicles and foreign-made
auto parts imported into the U.S. to go into effect after midnight on April
3.

These tariffs are the latest salvo in an escalating global trade war which
investors worry will hurt growth and could stoke inflation in the world's
biggest economy.

Like other risk-sensitive currencies, the rand often takes direction from
global drivers like U.S. economic policy in addition to local factors.

Domestic-focused investors looked to South Africa's producer inflation data
(ZAPPIY=ECI), opens new tab on Thursday, which was at 1.0% year on year in
February, down from 1.1% in January, statistics agency data showed.

Data released by the South African Reserve Bank on Thursday showed foreign
direct investment inflows of 7.5 billion rand in the fourth quarter,
compared to outflows of 3.2 billion in the third quarter.

On the Johannesburg Stock Exchange, the blue-chip Top-40 index last traded
down about 0.4%.

South Africa's benchmark 2030 government bond was weaker, with the yield up
3.5 basis points at 9.145%.

Our Standards: The Thomson Reuters Trust Principles.

Nigeria

Naira Depreciates Against Dollar Amidst Fresh FX Sales

The naira slumped against the US dollar in the foreign exchange market
despite sustained FX intervention sales by the Central Bank of Nigeria
(CBN). Latest spot data showed that the local currency lost N5.23 to close
at N1,537.62 per US dollar in the official market as total intervention for
the month crossed $1 billion.

In March, the CBN stepped up US dollar sales to authorised dealer banks to
stem negative tide against the naira, having noted sustained increase in
foreign currency demand. The monetary authority has keep FX intervention
flowing, selling $29.70 million in latest round, according to TrustBanc
Financial Group Limited.

In the forex market on Wednesday, the USD/NGN pair fluctuated between
N1,528.00 and N1,541.00 before settling at N1,537.62.

Meanwhile, accretion into external reserve remained tight as oil prices and
volume production fluctuate. "If reserves continue to dwindle on the back of
USD supply into NAFEM, this will inevitably reach a breaking point - all
else being equal", Verto said in a macro update on Nigeria.

Latest data from the CBN revealed that Nigeria recorded inflows into
external reserves as gross balance increased to $38.315 billion this week
from $38.303 billion. However, oil prices climbed on Wednesday, supported by
a drop in U.S. crude and fuel inventories and concerns over tighter global
supply following U.S. tariff threats on nations purchasing Venezuelan oil.

Brent crude rose 82 cents, or 1.12%, to $73.84 per barrel, the highest since
February 27. WTI crude gained 82 cents, or 1.19%, to $69.82.

Meanwhile, gold prices dipped as the dollar and U.S. bond yields
strengthened, though uncertainty over new tariffs from the Trump
administration kept prices above $3,000. Spot gold fell 0.1% to $3,015.50 an
ounce, while U.S. gold futures dropped 0.1% to $3,022.10. #Naira Depreciates
Against Dollar Amidst Fresh FX Sales Foreign Investors Bet on Nigerian Tops
Stocks

 <mailto:info at bulls.co.zw> 

Global Markets

Dollar mixed, Mexican peso and Canadian dollar drop on auto tariffs

(Reuters) - The dollar was mixed on Thursday as traders mulled how severe
tariffs scheduled to be revealed by U.S. President Donald Trump next week
are likely to be, while the Canadian dollar and Mexican peso weakened after
Trump announced auto trade levies.

Rising optimism that Trump will be flexible in determining tariffs boosted
risk sentiment and the greenback earlier this week, but traders remain
nervous ahead of his planned April 2 announcement on reciprocal tariffs.

"The pendulum that seems to be swinging right now for markets is initially
having a knee-jerk reaction to the worst possible kind of expression of
whatever's announced, and then slowly digesting the fact that it might not
be as bad as feared and it might not even be as announced because it's part
of a broader negotiation," said Eric Theoret, FX strategist at Scotiabank in
Toronto.

Trump on Wednesday placed a 25% tariff on imported cars and light trucks due
to take effect next week and governments from Ottawa to Paris threatened
retaliation.

The Mexican peso weakened 1.04% to 20.337 per U.S. dollar. The Canadian
dollar fell 0.31% to C$1.43 per dollar.

The U.S. imported $474 billion of automotive products in 2024, including
passenger cars worth $220 billion. Mexico, Japan, South Korea, Canada and
Germany were the biggest suppliers.

The euro, meanwhile, was stronger on the day and is on track to end a
bearish streak of six consecutive days of losses against the dollar. It was
last up 0.25% at $1.0779, after earlier dropping to a three-week low of
$1.0731.

The single currency bounced earlier this month as German government debt
yields surged on German plans to increase spending and overhaul borrowing
limits. The euro has retraced some of that gain in the past week.

Central banks including the European Central Bank are also signalling that
they are less likely to cut rates in the near term as they gauge the
economic impact of tariffs, which could hurt growth but also increase
inflation.

"The ECB is getting a little more forceful in terms of wanting to move to a
pause. I think they're starting to communicate that they're done with easing
for now in the absence of major developments," said Theoret.

A trade war with the United States could have a fleeting impact on euro zone
inflation but a far more detrimental effect on economic growth, ECB Vice
President Luis de Guindos said on Thursday.

The dollar gained 0.17% to 150.83 Japanese yen and earlier reached a
three-week high of 151.09 as benchmark 10-year U.S. Treasury yields also
reached a one-month high of 4.40%.

There was little reaction to U.S. data on Thursday showing that the number
of Americans filing new applications for unemployment benefits slipped last
week.

Sterling strengthened 0.32% to $1.2926, recovering from the previous
session's fall as traders weighed the spring statement from Finance Minister
Rachel Reeves.

Reeves said on Thursday that Britain was working to secure an exemption from
U.S. auto tariffs and could review subsidies offered to Tesla (TSLA.O),
opens new tab, owned by top Trump adviser Elon Musk, to better support its
industry.

Elsewhere, the Norwegian crown strengthened against the dollar after the
central bank kept interest rates on hold on Thursday, as an unexpected
resurgence of inflation led policymakers to postpone their previously stated
plan for a cut.

The U.S. currency fell 0.21% at 10.508 crown .

In cryptocurrencies, bitcoin dropped 0.90% to $86,487.

Reporting by Karen Brettell; Additional reporting by Ankur Banerjee and
Yadarisa Shabong; Editing by Bernadette Baum, Chizu Nomiyama and Sharon
Singleton

Our Standards: The Thomson Reuters Trust Princ

 <mailto:info at bulls.co.zw> 

Gold price soars to new high as Goldman ups target to $3,300

Gold soared to a new record on Thursday as investors sought refuge amid
escalating global trade tensions after US President Donald Trump's
announcement of new auto tariffs.

Spot gold rose 1.2% to $3,055.87 per ounce by 11:30 a.m. ET, after scaling a
new peak of $3,059.48 earlier. US gold futures traded 1.5% higher at
$3,068.80 per ounce, having also hit an all-time high.

"Looks like we're going to see (gold futures hit) $3,100 here shortly, and
the main catalyst is safe-haven buying," said Bob Haberkorn, senior market
strategist at RJO Futures, referring to market uncertainty driven by Trump's
tariff plans.

Governments from Ottawa to Paris have threatened retaliation after Trump
unveiled a 25% tariff on imported vehicles, set to come into effect the day
after he plans to announce reciprocal tariffs, aimed at the countries he
says are responsible for the US trade deficit.

Global stock markets fell as shares in some of the world's biggest carmakers
tumbled.

Following the Federal Reserve's decision last week to hold its benchmark
interest rate steady, while indicating potential rate cuts later this year,
investors are now awaiting the US Personal Consumption Expenditures data due
on Friday to gauge the trajectory for further rate cuts.

"If (the PCE data) comes out better-than-expected, it might signal more
upside for gold. because the Fed would be in a better position to start
cutting rates," Haberkorn added.

Goldman forecast

Coinciding with gold's new record, analysts at Goldman Sachs once again
bumped up their price forecast for the yellow metal, now anticipating $3,300
an ounce by the end of this year.

The new projection, says Goldman analysts Lina Thomas and Daan Struyven,
reflects a pick-up in gold purchases by central banks, which have bought
over 1,000 tonnes for three straight years and are on track to repeat the
same feat in 2025.

Citing strong central bank buying, the Goldman team already raised its
year-end price target once this year, lifting it from $2,890 to $3,100 per
ounce in late February.

"Central banks - particularly in emerging markets - have increased gold
purchases roughly fivefold since 2022, following the freezing of Russian
reserves," Thomas and Struyven wrote in a note. "We view this as a
structural shift in reserve management behavior, and we do not expect a
near-term reversal."

They also noted that flows into gold-backed exchange-traded funds (ETFs)
"surprised to the upside," with renewed investor demand for hedges likely
driving the expansion, while reiterating their view for two rate cuts from
the US Federal Reserve this year.

"While ETF flows generally track Fed policy rates, history shows they can
overshoot during extended periods of macro uncertainty - such as during the
covid-19 pandemic," the bank's analysts said.

Should accelerating demand for hedging boosts ETF holdings toward the
pandemic-level heights seen in 2020, prices may hit $3,680 an ounce by
year's end, they added.

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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