Bulls n Bears Daily Market Commentary : 12 May 2025

Tue May 13 03:54:02 CAT 2025

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Bulls n Bears Daily Market Commentary : 12 May 2025

ZSE commentary

ZSE rebounds in Monday's session...

The ZSE recorded marginal gains in the week opening session as the primary
All Share Index rose 0.13% to 192.90pts. The Agriculture Index added 0.03%
to 203.18pts while, the Mid Cap Index firmed up 0.58% to 236.35pts.
Contrastingly, the Blue-Chip Index eased 0.02% to end at 187.29pts. Nampak
headlined the top performers of the day on a 9.95% jump to $1.0995, followed
by Zimre Holdings Limited that charged 2.80% to $0.2200. Telecoms giant
Econet ticked up 0.60% to close at $2.7192 while, Star Africa edged up 0.32%
to $0.0310.

Tea producer Tanganda capped the top five performers of the day on a 0.18%
lift to end the day pegged at $0.8521. Trading in the negative territory was
Zimpapers that slipped 7.52% to $0.1803 while, Ecocash trimmed 0.73% to
$0.1325. Banking group CBZ Holdings parred off 0.55% to $7.0857 while,
beverages giant Delta completed the fallers of the day on a 0.10% retreat to
end the day pegged at $13.4169. The market closed with a positive breadth of
two as six counters recorded gains against four that faltered. Activity
aggregates were depressed in the session as total volume traded declined
94.14% to 640,000 shares while, turnover dropped 91.53% to $3.58m. Top
volume drivers of the day were Econet (33.66%), Delta (29.17%) and Tanganda
(11.67%). Delta and Econet were the top value drivers of the day as they
contributed 69.89% and 16.34% respectively. The Datvest ETF was stable at
$0.0300 on 10,450 units. The Tigere REIT inched up 0.36% to end the day
pegged at $1.1700 as 5.07m shares exchanged hands in the name.

VFEX extends losses into new week...

The VFEX market extended losses into the new week as the AllShare Index fell
0.64% to 112.16pts. Fast foods group Simbisa dropped 3.77% to settle at
$0.3115 while, banking group First Capital tumbled 1.34% to $0.0516.
Activity aggregates were depressed in the session as volumes plummeted
33.20% to 13,800 shares while, turnover

succumbed 19.20% to $3,642.84. Volume drivers of the day were Padenga
(80.56%) and First Capital Bank (18.73%). Simbisa anchored today's turnover
after contributing 95.07% to the total.efesecurities

 <mailto:info at bulls.co.zw> South Africa

South African rand stable; local jobs and mining data due this week

(Reuters) - The South African rand was steady on Monday at the start of a
week in which unemployment and mining figures are likely to be the main
focus locally.

At 0910 GMT, the rand traded at 18.22 against the dollar, little changed
from Friday's closing level.

The rand held steady despite the dollar surging on global markets as U.S.
and Chinese officials pledged to slash reciprocal tariffs.

South Africa's first-quarter unemployment data is scheduled for publication
on Tuesday, followed by March mining production on Thursday.

Oxford Economics said both releases were likely to disappoint, in line with
its below-consensus forecast that gross domestic product would grow only 1%
this year.

South Africa's benchmark 2030 government bond was also little changed, with
the yield up 1 basis point at 8.835%.

Nigeria

Naira bounces back, clocks N1,600.44 to Dollar after stunning Market rally

The Naira appreciated on Monday, May 12, 2025, closing at N1,600.44 per US
dollar on the official foreign exchange market, according to data published
by the Central Bank of Nigeria (CBN). Nigeria: Nigerian fashion

This marks a gain of N5.71 or 0.35 per cent compared to the previous rate of
N1,606.15 per dollar recorded on Friday, May 9.

The Naira had shown signs of recovery toward the end of last week,
rebounding from earlier losses.

On Thursday, May 8, the exchange rate stood at N1,609.64, before
strengthening by N3.48 to end Friday at N1,606.15.

Monday's appreciation continues the Naira's positive momentum, offering a
potential signal of stabilisation in the foreign exchange market after
recent volatility.

Analysts attribute the currency's improvement to sustained policy measures
by the Central Bank, improved market liquidity, and increased foreign
exchange inflows.

Market watchers will be monitoring whether the trend continues throughout
the week as the CBN maintains tight monetary policies to support the
currency and control inflation. (NAN)

 <mailto:info at bulls.co.zw> Dollar strengthens after China-US truce eases
growth fears

(Reuters) - The dollar surged on Monday as the United States and China
reached a deal to temporarily cut reciprocal tariffs and tamped down
concerns that a trade war between the world's two biggest economies could
lead to a global recession.

The U.S. will reduce extra tariffs it imposed on Chinese imports in April to
30% from 145% and Chinese duties on U.S. imports will fall to 10% from 125%,
effective for 90 days. The de-escalation surpassed investor expectations,
with many expecting an introductory round of talks with few, if any,
agreements.

The Reuters Tariff Watch newsletter is your daily guide to the latest global
trade and tariff news. Sign up here.

"It's 90 days and so this basically buys some more time, I sort of think the
U.S. blinked," said Marc Chandler, chief market strategist at Bannockburn
Global Forex in New York.

"I'm not a big fan of the tariffs in the first place, but once they were in
place, the U.S. seemed to back down without getting much in exchange. That
is, we stopped with our reciprocal tariffs on China and so they unwind their
reciprocal tariffs on us, but we're still back at square one," Chandler
said.

The dollar index , which measures the greenback against a basket of
currencies including the yen and the euro, rose 1.5% to 101.91, with the
euro down 1.54% at $1.1074 and on track for its biggest one-day decline
since November 6.

The risk-on mood propelled U.S. stocks sharply higher, with the S&P 500 up
more than 3%, and weighed on safe-haven currencies, with the dollar up 2.19%
against the Japanese yen to 148.50 after reaching 148.64, its highest level
since April 3.

Against the Swiss franc , the dollar rose 1.86% to 0.847 after reaching
0.8475, its highest since April 10.

Sterling weakened 1.07% to $1.3162 and was on track for its biggest daily
drop since April 7.

While the greenback has strengthened for three straight weeks on growing
optimism over potential trade deals, the dollar is still down 2.2% since
April 2, when Trump announced sweeping tariffs as his uneven rollout of
policies and exemptions shook confidence in U.S. assets.

The focus this week will also be on U.S. Consumer Price Index (CPI) figures
on Tuesday and on April retail sales due on Thursday for indications of how
the global trade conflict has impacted the economy and expectations for
further interest rate cuts by the U.S. Federal Reserve.

and it was seemingly not going to stop.

Traders on Monday dialed back on rate cut expectations by the Fed and
European Central Bank as economic prospects improved after the Sino-U.S.
trade deal. Markets now see the first cut of at least 25 basis points (bps)
from the Fed as likely to come at the central bank's September meeting,
compared with the July view last week.

Analysts at Wells Fargo said the deal supports the firm's near-term view for
U.S. dollar strength, buttressed by a Fed that would be slow to cut rates.

This chart depicts the change (as percentages) in U.S. stock index futures
and dollar index from April 1 to May 12, 2025.

The Chinese yuan strengthened 0.52% against the greenback to 7.201 per
dollar. Meanwhile, geopolitical tensions also appeared to ease over the
weekend, further buoying risk sentiment.

India and Pakistan announced a ceasefire following four days of fighting
between the nuclear powers which had rattled markets.

Ukrainian President Volodymyr Zelenskiy said he was ready to meet Russian
leader Vladimir Putin in Turkey on Thursday for direct talks. That would be
the first negotiations between the two countries since the early months of
Russia's 2022 invasion.

 <mailto:info at bulls.co.zw> 

Gold Gold falls 3% as US and China strike tariff deal

(Reuters) - Safe-haven gold fell 3% on Monday as risk sentiment crept in
following the announcement of a temporary deal between the United States and
China to reduce tariffs.

Spot gold was down 3% at $3,225.28 an ounce, as of 1344 ET (17:44 GMT).
Bullion, considered a hedge against economic and geopolitical turmoil, hit a
record high of $3,500.05 last month amid increased tariff uncertainty.

The Reuters Tariff Watch newsletter is your daily guide to the latest global
trade and tariff news. Sign up here.

U.S. gold futures settled 3.5% lower at $3,228.

"Gold's feverish response to last month's chaotic headlines from the White
House made the precious metal vulnerable to Trump back-tracking," said
Adrian Ash, BullionVault director of research.

"Now that the mood music is more hopeful, gold is likely to find upside
potential on setbacks to this optimism."

The U.S. will cut extra tariffs it imposed on Chinese imports in April this
year to 30% from 145% and Chinese duties on U.S. imports will fall to 10%
from 125%, the two sides said. The new measures are effective for 90 days.

In other markets following the deal, the U.S. dollar surged to over a
one-month high, and global shares rallied. A stronger greenback makes gold
more expensive for foreign investors.

"June gold futures bulls have lost their overall near-term technical
advantage. Bulls' next upside price objective is to produce a close above
solid resistance at $3,350. First resistance is seen at $3,250 and then at
$3,275," said Jim Wyckoff, senior analyst at Kitco Metals.

Traders now await the U.S. Consumer Price Index data, due on Tuesday, to get
direction on the Federal Reserve's policy path. Other key data sets due this
week include the Producer Price Index and retail sales.

Lower interest rates raise the appeal of non-yielding bullion.

Spot silver slid 0.9% to $32.4 an ounce, platinum fell 1.9% to $976.06 and
palladium dipped 3.4% to $942.69.

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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