Bulls n Bears Investors Notebook Issue 183:08 October 2018

Mon Oct 8 11:09:20 CAT 2018

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Bulls n Bears Investors Notebook Issue 183:08 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

Worried Zimbabweans fill up cars and stockpile goods, bank sees improvement
soon

HARARE (Reuters) - Zimbabwe's central bank governor sought to reassure the
public on Saturday as people again formed long queues to fill up their cars
in the capital, with others panic-buying basic goods like cooking oil and
sugar. The panic has been caused by recent changes introduced by the
government and a worsening U.S. dollar crunch, but the governor, John
Mangudya, told Reuters that people should not be worried and that he
expected an improvement in the next 48 hours. "The problem is that we did
not explain things. This economy is a sentiment driven economy so we need to
communicate more with the society," he said.  <http://www.bulls.co.zw/> Read
more >

Zimbabwe puts troubled national airline under administration

HARARE (Reuters) - Zimbabwe has appointed an independent administrator to
run its loss-making national airline to try and revive its fortunes,
according to an official notice. Air Zimbabwe has been struggling with a
$300 million debt, including to foreign creditors. Only three of its planes
are operational, with another three grounded, which has forced it to abandon
international routes. Justice Minister Ziyambi Ziyambi appointed
Harare-based chartered accountant Reggie Saruchera as administrator with
powers to "raise money in any way without the authority of shareholders for
the purposes of the reconstruction," according to a government gazette
published late on Friday.  <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

Ncube in tax climbdown

FINANCE Minister Mthuli Ncube yesterday unveiled several exemptions to the
tax on monetary transfers saying the 2 cents per dollar tax will only apply
to transactions of $10 and above while intra-company transfers as well as
transfers of salaries, tax payments, foreign currency-related payments and
transfer of funds by the government will also be exempted. Ncube said the
tax review, which comes in the wake of sweeping measures made on Monday,
will be effective once the relevant regulations have been gazetted. "At the
occasion of the presentation of the 2018 Mid-Term Monetary Policy, I
announced a review of the Intermediated Money Transfer Tax from the current
5 cents per transaction to 2 cents per every dollar transacted," he said in
a statement last night.  <http://www.bulls.co.zw/> Read more >

Newcastle outbreak scare in Midlands

A SUSPECTED outbreak of the deadly Newcastle disease has been reported in
the Midlands district of Mvuma with farmers having already lost a number of
chickens in the past six days. Some farmers who spoke to Southern Eye said
the disease had wiped out chickens from several homesteads, leaving the
chicken runs virtually empty in the past few days. They said the chickens
were showing signs of watery droppings, mucus and ruffled feathers which are
synonymous with the symptoms of the disease. Newcastle disease is a
contagious viral bird disease affecting domestic and wild avian species.
<http://www.bulls.co.zw/> Read more >

RBZ moves to stabilise prices

PANIC-buying amid price hikes of basic commodities peaked at the weekend in
response to the Reserve Bank of Zimbabwe (RBZ)'s monetary policy statement,
which economists argued failed to stem public distrust in government's
financial management systems. RBZ governor John Mangudya, in a statement
yesterday, said the central bank had started initiating the price
stabilisation plan by drawing down on the $500 million lines of credit aimed
at bringing sanity to the economy. "The bank has noted that increase of
prices of certain goods has followed the spike in foreign currency parallel
market rates, which is being caused by some people bent on duping the public
of their hard-earned income," Mangudya said.  <http://www.bulls.co.zw/> Read
more >

2% tax illegal: Law society

FINANCE minister Mthuli Ncube's nightmarish start at the helm of Treasury
worsened at the weekend, with the Law Society of Zimbabwe (LSZ) accusing him
of violating provisions of the Finance Act by introducing the new 2% tax for
each dollar on electronic transactions without seeking the necessary
amendment to the Act. This came amid reports that the new tax regime was not
sanctioned by the Reserve Bank of Zimbabwe, as required at law. The LSZ, in
a statement, urged Ncube to rescind the decision and follow proper
procedures.  <http://www.bulls.co.zw/> Read more >

Speculation fuelling panic buying, black market

IT would appear Zimbabweans have not learnt their lessons from the past as
seen in the panic buying of basic commodities that started early this week.
This has, in some cases, consequently created artificial shortages as people
hoard basic goods in their homes. But the truth of the matter is that no
matter how much you can store, it will always run out as long as there is a
genuine shortage on the market.  It would appear that government's past
record of failing to properly communicate some of its decisions - an art
that Finance minister Mthuli Ncube needs to consider - often fuel public
speculation and drive people to behave irrationally, as in the current case
where they are hoarding basic commodities which they would still exhaust.
And what happens after that?  <http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

Telcom revenues jump 20pc   

Zimbabwe's mobile operators have continued on a growth trajectory with 2018
second quarter revenue increasing by 19,7 percent to $292,9 million compared
to the previous quarter on growth across the board. Figures from regulator,
Postal and Telecommunications Regulatory Authority (Potraz) show that mobile
internet, data traffic, mobile money and mobile voice traffic experienced
growth during the quarter under review. Voice and mobile money accounted for
41,5 percent and 27,2 percent,  respectively, of the total revenue achieved
during the quarter.  <http://www.bulls.co.zw/> Read more >

Unemployment rate at its lowest since 1969   

The United States Labour Department released its official hiring and
unemployment figures for September on Friday, providing the latest snapshot
of the American economy. An eight-year recovery makes the labour market
tight. The unemployment rate fell to a nearly five-decade low in September,
punctuating a remarkable rebound in the ten years after the collapse of
Lehman Brothers set off a global financial crisis. The 134 000 jobs that
employers added in September reflected the slowest pace of growth in a year,
and the growth in wages cooled slightly from August.
<http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

Zim engages Dutch to boost flower exports

Zimbabwe has engaged a Dutch trade facilitation body to help boost flower
exports to European countries, including the Netherlands, according to
Harare's State international trade promotion agency, Zimtrade, as the
Southern African country bids for exports driven economic growth. According
to international financial news group, Bloomberg, quoting Zimtrade acting
chief executive Allan Mujuru, Zimbabwe has engaged Netherlands based Centre
for Promotion of Imports to help floriculture producers grow exports. The
southern African country used to export about 70 percent of its cut flowers
to the Netherlands.  <http://www.bulls.co.zw/> Read more >

Stabilisation, growth a priority: CZI

The Confederation of Zimbabwe Industries (CZI) has put forward a five-point
resolution to help prop up the national economy and drive the
re-industrialisation agenda.

In key resolutions passed at its annual congress in Bulawayo last week, the
CZI noted the economy was going through teething challenges after an
extended period of low inflation and macro-economic instability. Accelerated
money supply growth, unsustainable fiscal deficit and a constant trade
deficit, have resulted in significant financial sector imbalances resulting
in forex and cash shortages. This is threatening recovery prospects while a
growing parallel currency market continues to impede growth. Also retarding
growth prospects are high fees charged by various regulators seemingly not
to be aligned to improving ease of doing business.
<http://www.bulls.co.zw/> Read more >

Resettled farmers risk losing land

Farmers resettled on farmland developed by white former commercial farmers
risk losing their land if they fail to contribute towards compensation for
improvements, but could take advantage of measures put in place by
Government to generate income to meet their compensation obligations, a
Cabinet minister said yesterday. Perrance Shiri, Minister of Lands,
Agriculture, Water, Climate and Rural Resettlement, told Parliament on
Wednesday the farmers who benefited under land reform programme since 2000
would bear the "mandatory" cost for compensation. The Government embarked on
the land reform programme, an exercise meant to redress colonial land
ownership imbalances by redistributing land from about 4 500 minority white
former commercial farmers to indigenous people. "There are improvements,
which were done on the farms and the new farmer is utilising those
improvements," Shiri said.  <http://www.bulls.co.zw/> Read more >

Govt austerity measures target State enterprises

State enterprises and parastatals that had become dependent on perennial
handouts from Treasury, will be the first to feel the heat of Government's
acute austerity measures amid indications Treasury will cut further
financial support as part of bold measures to rein in fiscal disequilibrium.
Parastatals or state entities have for a long time been regarded a drag on
the economy over their insignificant contribution, poor performance, weak
capacity to collect revenue, chronic losses and dependence on financial
support from central Government. To keep them on their feet, Government
continued to bail out the State entities, which saw its expenditure rising
by 5,9 percent annually between 2011 and 2014 while the public entities
yearly revenue grew by just 2,9 percent.2018.  <http://www.bulls.co.zw/>
Read more >

Over 4 000 big firms evade tax: Govt   

OVER 4 000 big businesses in Zimbabwe are not registered with the Zimbabwe
Revenue Authority (Zimra) for tax purposes, Finance and Economic Development
Minister Professor Mthuli Ncube revealed last Friday. Presenting the
Government's Transitional Stabilisation Programme (TSP), the minister said
robust tax administration measures had been adopted to increase compliance
and widen domestic revenue mobilisation, which is critical for oiling
economic growth. The interventions come at a time when Zimra is sitting on a
tax debt of close to $4 billion, 23 percent or about $1 billion of it in
interest, while 27 percent, amounting to $1,1 billion related to penalty
charges, said Treasury.  <http://www.bulls.co.zw/> Read more >

Mnangagwa says he will support Mthuli Ncube's plan

President Emmerson Mnangagwa says he will provide the much-needed political
will to give currency to the far-reaching economic reforms that have been
proposed by new Finance and Economic Development Minister Professor Mthuli
Ncube. In a foreword accompanying Prof Mthuli's Transitional Stabilisation
Plan, which was launched in Harare this morning, President Mnangagwa
reiterated that he is fully aware that the policy prescriptions that have
been proposed "will entail pain and need for sacrificing short-term gains
for longer term prosperity". He implored Zimbabweans to put their shoulders
to the wheel in helping in the current economic reconstruction efforts.
<http://www.bulls.co.zw/> Read more >

'No diaspora tax,' says Mthuli Ncube

THE Zimbabwe government has rubbished as "fake news" reports it was planning
to introduce a diaspora tax in a bid to increase much-needed foreign
currency, NewZimbabwe.com reported. Social media was last week awash with
allegations that President Emmerson Mnangagwa's government would soon
proclaim a tax targeting the Zimbabweans in the Diaspora. The claim was
however dismissed outright by Treasury.  <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.

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