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‘VFEX widens capital inflows into the economy’ – Chronicle

The Chronicle

Sikhulekelani Moyo, Business Reporter

 CAPTAINS of industry and commerce have commended the impressive growth of the Victoria Falls Stock Exchange (VFEX), which continues to attract high-value counters, saying the young bourse has become a critical platform in widening capital inflows into the economy.

The Confederation of Zimbabwe Industries (CZI) has since rallied its members to invest in the bourse to benefit from its incentives, including being able to raise capital in foreign currency.

This comes at a time when the VFEX has registered an 18-fold jump in trade volumes to close 2022 at US$12 million compared to US$619 000 in the prior year.

The bourse experienced rapid growth in the last quarter of 2022 injecting much-needed confidence and cementing the country as a safe investment destination.

The USD-denominated VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE) launched in 2020 as an off-shore financial services center.

Its main objective is to attract global capital and restore foreign investor confidence in Zimbabwe’s capital markets while helping companies raise capital in foreign currency.

Its establishment is largely expected to go a long way in buttressing the Victoria Falls Special Economic Zone.

VFEX is fast attracting listings as it offers a raft of incentives including tax exemptions on capital gains and the ability to repatriate funds from a country where foreign exchange is in short supply to attract global capital.

For instance, investors who participate in the VFEX benefit from the ability to move their capital and dividends in and out freely, low transaction costs, and tax incentives that include a five percent dividend withholding tax for foreign investors, as well as exemption from capital gains withholding tax for all investors and minimal currency risks.

In written responses CZI president, Mr Kurai Matsheza, said the creation of VFEX was a great idea that will help Zimbabwe in addressing some of the economic challenges related to raising capital for business expansion.

“Considering the forex challenges bedeviling our economy, the introduction of VFEX was a wonderful innovation,” he said.

“This obviously widens the capital flows and it’s easy to attract foreign direct investments. Entities that require United States dollar capital are encouraged to list on VFEX because there are numerous benefits.

“Some of the benefits of listing on VFEX include attraction of international capital, repatriation of dividends are easier, forex retention levels are better than for ordinary exporters operating in Zimbabwe and corporate tax rates are lower.”

Commenting on the same, Zimbabwe National Chamber of Commerce southern region chairperson, Mr Mackenzie Dongo, said VFEX was a place where international investors’ long-standing concerns of repatriation challenges have finally been addressed.

Zimbabwe National Chamber of Commerce chairman Mr Mackenzie Dongo

“To the companies listed on the VFEX, there are benefits where the money raised is not subjected to immediate liquidation and there are also tax benefits/incentives such as tax-free incentives on tax heads such as dividends and capital gains,” said Mr Dongo.

“We encourage more businesses to join VFEX and tap on the above-mentioned benefits.”

At its inception, skeptics were quick to claim the bourse would suffer a stillbirth citing a lack of perceived investor confidence.

Beginning with a single counter, SeedCo International in October 2019, VFEX has grown to list seven companies by December 2022, while several more have joined the queue after issuing notices to shareholders.

Others include Nedbank Zimbabwe, Caledonia Mining, Padenga Holdings, Simbisa Brands, Karo Mining, and Bindura Nickel Corporation.

Already, National Foods Holdings Limited, SeedCo Limited and Axia Corporation Limited boards have approved the migration to VFEX from ZSE. Financial services group GetBucks has also indicated plans to migrate to the VFEX

— @SikhulekelaniM1

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How do you win in binary options trading? – Bulawayo24 News

Binary options have entered the stock market and taken beginners by storm. For those who have always been wary and just a little afraid of traditional stock markets like Forex, this new instrument allows you the flexibility and ease that you have always wanted.

With time and plenty of advancement in the latest technology, binary investments are now available anytime, anywhere, and have become pretty popular among stock market enthusiasts. If you are a beginner in the stock market industry and want to try something easy to get into, then this article will let you in on all the details as to how you can win big returns in binary options trading.

Great Returns
When compared to more conventional trading markets, the biggest benefit of this instrument is the high returns it can generate. You can earn up to 95% returns in just one investment. That is not all, because binary options trading information reveals that you can invest every 60 seconds. The payouts are also fast and almost instantaneous.

Before the market closes, you will be able to determine how much return you might get. Trading binary options is a great way to invest because you can easily predict your profits without the help of a third party.

Make sure you check how volatile your assets are beforehand. Also, take a look at where the general demand stands when it comes to the asset.

Less Risk
With binary options trading, you can invest as little as $5 and still get returns. Moreover, you will not lose more than the amount you invest, which is a distinct possibility for traditional investment opportunities.

When you know the risk you have to take, it is always easier, especially for beginners who do not want to lose out on too much money right at the very start of their journey. With binary options, you can learn and earn money without going bankrupt.

Trade on Your Own Terms
You can employ different trading strategies when it comes to binary options. No special skills are required. You have to simply select the asset and decide how much you are willing to invest.

Research the kinds of strategies available and learn the bare minimum about them. Start with the basics. Maintain personal goals and a trading timeline for your binary options trading. This will help you keep track of your finances and your returns (including the profits). Follow financial papers and blogs to stay up to date on market trends.

The best strategies include the Rainbow, RSI Indicator, Candlestick, Money Flow Index and Bollinger Band.

Rainbow Strategy: Here, the investment is in multiple assets over a long period of time.

RSI Indicator Strategy: The Relative Strength Index (RSI) Strategy helps determine which assets are stable and oversaturated in the market.

Candlestick Strategy: This strategy is used to figure out which stock market trends are still going on and which ones have stopped.

Money Flow Index Strategy: This one helps in looking at the amount of money that is entering and leaving a market.
Bollinger Band Strategy: This technique enables you to predict market situations and trends.

Free Accounts
You can practice trading strategies and use a variety of tools by setting up a demo account or a free account on a number of different trading platforms before you actually start making investments. By using these accounts, you will be able to practice trading with virtual funds before you commit to using actual cash.

You Can Leave When You Want
You do not have to see a binary options investment through to the end. If you get the feeling that your prediction is not going to get you any returns, then you can back out anytime you want to. Just cancel the trade and leave. There will be no fines imposed on you.

Invest as Much as You Want

Binary options trading supports very small investments as well. This means that you do not have to have a huge bank account to start investing. You can begin your investment journey with binary options for just $5-10.

Beginner traders who do not want to lose all of their money at once will find this to be an excellent choice. Learn to trade and get some easy money without being penalized or going bankrupt.

Conclusion
Get the basics of binary options trading strategies at the tips of your fingers and opt for this instrument with just the amount of money you want to invest. Learn and grow along with your investments, and get acquainted with the world of the stock market, which will neither terrify you nor end with your becoming bankrupt.

Binary options trading enables fast payouts, higher returns, 24×7 investment options, and keeps all the cards in your hands. What more can investors even want?

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Bank of England raises rates, signals end to hikes – Yahoo News UK

LONDON (Reuters) – The Bank of England raised interest rates for the 10th time in a row on Thursday, but dropped a pledge to keep increasing them “forcefully” if needed and said inflation had probably peaked, sending the pound to session lows in volatile trade.

Softening their forecasts of recession this year, the BoE’s nine interest rate-setters voted 7-2 to increase Bank Rate to 4.0% – its highest since 2008 – from 3.5%.

MARKET REACTION:

STOCKS: The FTSE 100 dipped initially before bouncing back, and was last up 0.6% on the day, compared with a gain of 0.5% before the decision. The mid-cap index jumped 2.1%.

FOREX: Sterling briefly turned positive, but surrendered those gains and was last down 0.6% at $1.2298 and down 0.7% against the euro at 89.43 pence.

BONDS: The yield on Britain’s 10-year government bond initially spiked but then fell below levels seen before the decision. It was last down 15 basis points to 3.156%.

COMMENTS:

DANIELE ANTONUCCI, CHIEF ECONOMIST, QUINTET PRIVATE BANK, LONDON:

“There’s still some risk that the Bank could go for further interest rate rises if inflation news were unfavourable. After all, the Committee still sees risks to the inflation outlook as skewed to the upside.

That said, today’s decision raises the possibility that the Bank rate may have already peaked or be close to peaking, undershooting the 4.5% level priced in by financial markets prior to this announcement.”

WES MCCOY, SENIOR INVESTMENT DIRECTOR AT STANDARD LIFE INVESTMENTS, ABRDN:

“When you read the commentary around it (rate hike) the Bank of England seemed more hawkish and still more concerned about inflation. The language around it was a 50 bps rise but also around that they still need to stay on the pressure against inflation. Whereas, the interpretation from the U.S overnight was there are reasons to step away from that pressure.”

DEAN TURNER, CHIEF EUROZONE AND UK ECONOMIST, UBS GLOBAL WEALTH MANAGEMENT, LONDON:

‘As expected, today’s 50 basis-point hike was a split decision. It looks as though the appetite for further outsized hikes is fading but given the BoE’s revised outlook for growth and inflation, this hiking cycle is unlikely to be over just yet. We look for one further increase of 25 basis points in March which should mark the top of the cycle. Furthermore, we believe the door remains open for rate cuts before the year is out.

PIOTR MATYS, SENIOR FX ANALYST, INTOUCH CAPITAL MARKETS, LONDON;

“There seems to be a preference to sell sterling especially against the euro and investors adopted such a preference back in December when the BOE delivered a dovish 50 bps bike and on the same say President Lagarde sounded significantly more hawkish, and we may witness similar situation today.

The outlook for the UK economy is still quite challenging compared to the euro zone and U.S., that is why GBP, after a knee-jerk reaction, resumed its decline.”

“The biggest risk to EURGBP today is if President Lagarde suddenly changes her tome and sounds far less hawkish following a widely expected 50 bps hike.”

BEN LAIDLER, GLOBAL MARKETS STRATEGIST, ETORO, LONDON:

“This is clearly the last big hike from the Bank of England, we’re on track for this rate cycle to finish in March or May.”

“They’re very much following the Fed’s lead in getting rates to a high enough level where they’re comfortable waiting to see what happens.”

“They’ve got some quite aggressive assumptions though, and there’s uncertainty around them… They’re looking for a very sharp fall in inflation to 4% by the end of the year, from 10.5% now… so that remains to be seen. The initial spike (in the pound) is always the machines rather than the humans.”

MICHAEL BROWN, MARKETS STRATEGY, TRADERX, LONDON:

“The move in the pound was the vote split. I think market participants were expecting at least one to go for a more modest 25 basis points and that may have been one of the reasons why we saw cable come off.”

“They dropped the ‘forcefully’ out of the language. That pretty much nails on the fact that March is probably going to be the last rate hike and, of course, the longer-run inflation forecasts have come quite sharply lower as well.”

“So it’s a bit more surprising in terms of votes – a bit more hawkish than we’d expected – but everything else is pretty much in line and mostly implying that the ‘Old Lady’ is very, very close to the end in terms of raising rates.”

SIMON HARVEY, HEAD OF FX ANALYSIS, MONEX EUROPE, LONDON:

“This is as straight down the line as you can get in terms of matching expectations from ahead of the meeting. They pretty much matched the market implied forecasts for rate increases, removed language saying they “will respond forcefully, as necessary” to signs of further inflation pressure and there was no increase in dovish dissenters.” (Two members of the rate-setting committee voted to keep rates on hold as expected)”

“We think they will step down to 25 basis points in March, but the question is what tone of the press conference will be like, that’s where markets are really trying to suss out the underlying feel of how they are thinking about monetary policy.”

JEREMY BATSTONE-CARR, EUROPEAN STRATEGIST AT RAYMOND JAMES INVESTMENT SERVICES, LONDON:

“More noteworthy is the corresponding Monetary Policy Report, which has revealed that the Bank now expects a shorter and shallower recession – a far cry from the rather dire predictions of only a few weeks ago.

“Yet for the Bank of England and the MPC, this good news is a wolf in sheep’s clothing. The economy’s unexpected resilience is keeping the inflationary fuel flowing, putting more pressure on the Bank to raise rates in its attempts to stem the flow. With the Bank’s upward revisions, the MPC may have to do the work they had hoped a lacklustre economy would achieve on its own.”

MIKE COOP, CHIEF INVESTMENT OFFICER UK, MORNINGSTAR INVESTMENT MANAGEMENT, LONDON:

“While the highest point of inflation is likely behind us, today’s rate rise shows that the year ahead will be a difficult one with the unusual cocktail of high inflation, rising rates and recession. Inflation outlook can change quickly and investors need to prepare portfolios for a range of inflation scenarios. The good news is that at current yields bonds are less sensitive to further rate rises, recession is cooling demand led inflationary pressures and gas prices have fallen sharply.”

(Reporting by Susan Mathew, Harry Robertson, Alun John, Joice Alves and Amanda Cooper and Shashwat Chauhan; Editing by Dhara Ranasinghe)

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Global stocks rise after Fed sees inflation improving – The Zimbabwe Mail




BEIJING (AP) — Global stock markets and Wall Street futures rose Thursday after the Federal Reserve said the U.S. economy is moving toward lower inflation but more interest rate hikes are planned.

London and Frankfurt opened higher. Shanghai and Tokyo advanced. Oil prices rose.

Wall Street’s benchmark S&P 500 index rose after the Fed increased its key lending rate by 0.25 percentage points, smaller than previous hikes. Chair Jerome Powell said the “disinflationary process has started” but “ongoing increases” in rates will be needed.

Traders hope central banks that raised rates repeatedly over the past year will scale back plans for more hikes as inflation eases. Some expect a U.S. cut before 2024, though Powell said he anticipates none this year.

Markets put a “dovish interpretation” on Powell’s comments despite his warning that it was too early to declare victory, said Venkateswaran Lavanya of Mizuho Bank in a report.

The gap between market pricing and Fed plans “appears to have widened,” Lavanya wrote. “This leaves room for a rude shock down the road.”

In early trading, the FTSE 100 in London rose 0.6% to 7,808.83. The DAX in Frankfurt gained 1.4% to 15,396.36 and the CAC 40 in Paris was up 1% at 7,148.88.

On Wall Street, the S&P 500 future was up 0.4%. That for the Dow Jones Industrial Average was off 0.1%.

On Wednesday, the S&P 500 gained 1% after Powell’s news conference for its highest close in two months.

“We can now say, I think for the first time, that the disinflationary process has started,” Powell said. He said his “base case” is that the Fed’s inflation target of 2% can be achieved “without a really significant downturn or really big increase in unemployment.”

That appeared to encourage investors who worry central banks might be willing to push the global economy into recession to cool inflation that is near multi-decade highs.


The Dow recovered from a loss to gain less than 0.1%. The Nasdaq composite jumped 2%.

On Thursday, the Shanghai Composite Index gained less than 0.1% to 3,285.67 and the Nikkei 225 in Tokyo added 0.2% to 27,402.05. The Hang Seng in Hong Kong shed 0.5% to 21,958.36.

The Kospi in Seoul was up 0.8% at 2,466.03 and Sydney’s S&P-ASX 200 added 0.1% to 7,511.60.

India’s Sensex shed less than 0.1% to 59,664.17. New Zealand and Jakarta advanced while Singapore, Bangkok and Kuala Lumpur declined.

Wednesday’s announcement raised the Fed’s overnight lending rate to a 16-year high of 4.5% to 4.75%, up from close to zero early last year.

Data on Wednesday gave a mixed picture of the U.S. job market, a factor in inflation expectations.

Hiring is resilient despite repeated rate hikes. While that helps workers, it adds to worries that wage gains could add to upward pressure on prices.

Private payrolls rose by 106,000 in January, according to ADP, a payroll processor. That was a smaller gain than the previous month and below forecasts.

A separate U.S. government report indicated more strength. It said the number of job openings increased to 11 million in December, better than expected.

In energy markets, benchmark U.S. crude rose 42 cents to $76.83 cents to $77.07 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $2.46 on Wednesday to $76.41. Brent crude, the price basis for international oil trading, added 39 cents to $83.23 per barrel in London. It lost $2.62 the previous session to $82.84 a barrel.

The dollar was unchanged at 128.57 yen. The euro rose to $1.1001 from $1.0979.


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