Bulls n Bears Investors Notebook Issue 179:02 October 2018

Tue Oct 2 08:57:46 CAT 2018

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Bulls n Bears Investors Notebook Issue 179:02 October 2018

 <http://www.nicozdiamond.co.zw/> 

Bulls 'n Bears Investors Diary: Today's Events

Quotable Quote:

Relations are all about: Winning, Losing & Sharing.
Winning Trust, Losing ego

RBZ negotiates US$500m facility to buttress FCAs   

The Reserve Bank of Zimbabwe is finalising discussions with the African
Export-Import Bank towards a US$500 million Nostro Stabilisation Guarantee
Facility to provide foreign currency account (FCA) holders with assurance
that foreign currency shall be available on request. This was announced by
RBZ governor Dr John Mangudya in his mid-term Monetary Policy Statement for
2018 this afternoon. <http://www.bulls.co.zw/> Read more >

Economic challenges surmountable   

THE economic challenges being experienced in the country are surmountable,
but call for urgent reforms, Finance and Economic Development Minister
Professor Mthuli Ncube has said. Prof Ncube said this while announcing a
raft of fiscal measures to be taken as the country seeks to reverse fiscal
dis-equilibrium. Chief among the challenges faced by the economy is a high
budget deficit mainly financed through domestic borrowing with the use of
instruments such as Treasury bills, overdraft and cash advances from the
central bank, arrears and loans from the private sector.
<http://www.bulls.co.zw/> Read more >

 <http://www.firstmutualproperties.co.zw/> 

For more business & financial updates log onto <http://www.bulls.co.zw/>
www.bulls.co.zw

Monetary Policy Statement to address wanton price hikes   

THE monetary policy to be issued by Reserve Bank of Zimbabwe Governor Dr
John Mangudya today will address prices that have been going up and announce
measures to create financial stability in the economy. Speaking on the
monetary policy in an interview yesterday, Dr Mangudya said it was meant to
deal with all the various challenges facing the economy. "The monetary
policy statement will be issued tomorrow (today) and is aimed at addressing
price and financial stability in the economy," said Dr Mangudya.
<http://www.bulls.co.zw/> Read more >

No more flour for confectioneries from Grain Millers   

The Grain Millers Association of Zimbabwe has suspended supply of bread and
self-raising flour to biscuit and confectionery firms to ensure continuous
supply for bread. The suspension will be reviewed after 14 days when local
and imported wheat supplies are expected to have improved. In a notice to
all millers, GMAZ chairman, Mr Tafadzwa Musarara said flour supplies had
remained critically low and  it was important that priority for flour be
given to major bread bakers. <http://www.bulls.co.zw/> Read more >

Mthuli Ncube dissolves Zimra board

Finance Minister Mthuli Ncube has terminated the term of the current Zimra
Board with immediate effect. Effectiveness and Efficiency in Revenue
Collection. "In order to enhance governance at ZIMRA, I hereby terminate the
term of the current Board with immediate effect. I have proposed names of
new Board members which are currently being cleared."
<http://www.bulls.co.zw/> Read more >

Government slashes fishing permits

The government has slashed fishing licences for co-operatives in Kanyemba
while granting special wildlife hunting permits in response to pleas by the
local community. In a move set to resuscitate the Kanyemba fishing industry,
the Ministry of Environment, Tourism and Hospitality has slashed fishing
licenses for co-operatives from $800 to $15 per year. The government also
granted Chief Chapoto a special hunting permit for 1 elephant, 2 buffalos
and 2 impala for rain making ceremonies, and a quota for heroes and
independence celebrations <http://www.bulls.co.zw/> Read more >

Banks Given Two Weeks To Separate Nostro Foreign Currency Accounts And RTGS
Deposits

Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has ordered banks to
separate Nostro foreign currency accounts (FCAs) from the real-time gross
settlement (RTGS) deposits. This effectively means the Nostro FCA will be
for actual United States Dollars while the RTGS accounts will be for
electronic money and bond notes. According to the governor, the Nostro
foreign currency accounts will be used to stamp out the leakages of foreign
currency leakages onto the black market. <http://www.bulls.co.zw/> Read more
>

 <mailto:info at bulls.co.zw> 

Do Not Peg The Exchange Rate Of The Bond Note Government Told

Ashok Chakravarti   a University of Zimbabwe economics professor and former
government advisor, has told the government not peg the exchange rate of the
bond note but should allow it to float freely within the multi-currency
system as a first step towards the introduction of a proper local currency.
Addressing delegates at the just-ended Confederation of Zimbabwe Industries
annual congress in Bulawayo Chakravarti said that the bond note was a
surrogate local currency and not an alternate to the US dollar.
<http://www.bulls.co.zw/> Read more >

Commercial Farmers Union Says White Farmers Are Willing To Work With Govt

The Commercial Farmers Union (CFU) which is predominantly made up of white
farmers has pledged to work with and to support the government of President
Emmerson Mnangagwa. CFU President Peter Van Zyl said, We want to be part of
the new Zimbabwe and we want to assist in a process that creates space for
all who want to be involved in agriculture and that simultaneously sees all
resettled farmers transitioning from being dependent on the State, to being
the pillars of the country's recovery through a transfer of skills.
<http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

Bond Notes Not The Problem, Issue Is Too Much Money Chasing Too Little
Forex: Mangudya

Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has dismissed claims
that the bond notes are behind the economic problems in Zimbabwe. Instead,
the governor blamed the economic woes on the lack of foreign currency which
resulted in too much money chasing too little foreign currency. Mangudya who
is set to deliver his first post-election monetary policy statement today
told NewsDay, <http://www.bulls.co.zw/> Read more >

Foreigners Can Only Buy Fuel Using Cash Not Swipe Or Bond- RBZ

Presenting the Midterm Monetary Policy on Monday afternoon, Reserve Bank of
Zimbabwe (RBZ) governor John Mangudya said foreigners will now pay for goods
and services in hard foreign currency.  Mangudya said this will apply to
foreign truck drivers plying the Zimbabwean routes and foreign traders
buying goods in the country. He said the measure is meant to stop foreign
truckers and traders from selling foreign currency on the black market. Said
Mangudya:
<http://www.bulls.co.zw/2018/09/26/retirement-planning-ensures-old-age-is-en
joyed/> Read more >

Govt Increases Tax On Money Transfers With Immediate Effect

Finance Minister Mthuli Ncube announced that Government has with immediate
effect reviewed the amount charged for every money transfer transaction from
5 cents per transaction to 2 cents for every dollar per transaction to widen
tax base. Ncube said the increase was due to an increase in informalisation
of the economy and huge increase in electronic and mobile phone based
financial transactions and RTGS transactions. he also said so far in 2018
1.7 billion transactions went through as compared to 50 million four years
ago. Said Ncube: <http://www.bulls.co.zw/> Read more >

Mangudya Accuses Banks Of Fuelling Black Market

Reserve Bank of Zimbabwe (RBZ) governor John Mangudya blamed banks for
fuelling the black market adding that the central bank does not participate
in the parallel market. In July 2017, Stanbic Bank Zimbabwe manager Tariro
Nyazema appeared in court for swapping 30 000 in bond notes for US dollars.
Mrs Nyazema allegedly instructed her colleagues at the branch to exchange
her bond notes to US dollars that the branch had received from the bank's
cash depot for tobacco farmers. The Herald reports that Nyazema had a group
of "money changers"at Roadport whom she supplies with US dollars from
Stanbic in exchange for bond notes. <http://www.bulls.co.zw/> Read more >

Zimbabwe's Economy Expected To Grow By More Than 5%

Finance Minister Mthuli Ncube has said that the Zimbabwean economy might
grow faster than initially expected .He pegged the growth at more than five
percent in 2018 against earlier projections that estimated a 4.5 percent
growth. Ncube claimed that the growth would be backed by the strong
performance in agriculture and mining. The Finance Minister also mentioned
that he is worried by the inflationary pressures piled against the economy.
<http://www.bulls.co.zw/> Read more >

Sable Chemicals Seeks Help From Government To Secure Foreign currency

Sable Chemicals the sole ammonium nitrate producer has appealed asked the
Government to help it in securing foreign currency so that it increases
production so as to meet demand ahead of the 2018 to 2019 summer cropping
season. Dr Shingi Mutasa who is the company's board chairman revealed that
the company was being affected by serious production challenges as a result
of foreign currency shortages.  <http://www.bulls.co.zw/> Read more >

Foreign currency shortages erode RioZim earnings

RESOURCES group RioZim Limited's profit after tax dropped by 86% to $406 000
in the six months to June 30, from $2,9 million last year, despite higher
gold production after the central bank failed to pay foreign currency earned
from gold exports. The miner's gold output was 20% higher at 1 050kg from
873kg over the same period last year but only received 15% of foreign
currency earned from the exports.  <http://www.bulls.co.zw/> Read more > 

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

REST OF AFRICA

Counters Trading Under Cautionary

NicozDiamond

Ariston

Barclays

Dawn

Unifreight

Hwange

RTG

Post your event (AGM, EGM, Analysts Briefing, etc) on the Investor Diary
free of charge and reach out to the market. We have annual gold prices since
1900, monthly since January 1971 and daily prices since January 2000. We
also provide historical ZSE prices on request.

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
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls 'n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
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.

Invest Wisely!

Bulls n Bears 

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