Bulls n Bears Investors Notebook Issue 188:15 October 2018

Mon Oct 15 10:16:52 CAT 2018

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Bulls n Bears Investors Notebook Issue 188:15 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

First Capital Bank to focus on growing lending book

First Capital Bank Limited Zimbabwe will focus on aggressive lending going
forward to grow its net interest income, its managing director Samuel
Matsekete has said. On Tuesday, the bank started operating under its dual
brand name, First Capital Bank Limited in association with Barclays, to
reflect the Mauritian-based FMB Capital Holdings majority shareholding in
the local bank following a 42,7% acquisition of shares from United
Kingdom-based banking group Barclays Plc. <http://www.bulls.co.zw/> Read
more >

Inconsistent policies draining Zim business confidence: Hanke

Renowned American economist, Steve Hanke says Zimbabwe's new fiscal and
monetary measures have left the market in a state of confusion, and opined
that the country's annual inflation rate had topped 200%. Finance minister
Mthuli Ncube on October 1 raised tax on electronic transactions to 2% from a
flat five cents per transaction as a way of levying the informal sector to
raise cash for infrastructure, but business and the public objected, saying
they would be paying for the government's unrestrained spending.
<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

Speculation drives ZSE bull-run

Bulls continued to charge on the Zimbabwe Stock Exchange (ZSE) as stocks hit
record highs last week on speculative buying, in a throwback to the
hyper-inflationary madness of 2008. In the week to Thursday, total market
value had reached $22,9 billion as share prices went haywire. This means the
stock market now accounts for 89 percent of the country's gross domestic
product (GDP). Finance and Economic Development Minister, Professor Mthuli
Ncube said the official $18 billion GDP was not reflective of the real size
of the economy and rebased it to $25,7 billion. Government recently
announced monetary and fiscal measures aimed at improving the economy in
line with Vision 2030. As part of the broader fiscal stabilization measures,
Prof Ncube announced an Intermediary Money Transfer Tax of two (2) cents,
which will widen room for capital funding.  <http://www.bulls.co.zw/> Read
more >

Chinese deals with Zim: raw or fair for the economy?

Given the recent developments in Zimbabwe and the African continent, it is
worthy assessing how Chinese investments can affect the local economy going
forward. Critical for Zimbabwe is how the country can turn its close Sino
relationship into a mutually beneficial cooperation relationship, not an
exploitative one. China surpassed the United States in 2009 to become
Africa's largest trading partner. The import and export value of
China-Africa trade has grown from US$10 billion in 2000 to over US$170
billion in 2017. China's exports to Africa reached $94,74 billion, while
imports from Africa reached US$75,26 billion, thus generating a trade
surplus of $19,48 billion in a single year.  <http://www.bulls.co.zw/> Read
more >

Govt working on new energy plan

GOVERNMENT intends to adopt an energy mix-based tariff structure as opposed
to the prevailing commodity-based tariff for mining companies to ensure
production efficiency, Energy and Power Development minister Joram Gumbo has
said. A commodity-based tariff is the one which is linked to the commodity
prices whereas an energy mix-based tariff looks at all forms of energy and
it determines the overall average tariff in the end. The energy mix-based
tariff allows cost recovery for a utility so that it remains profitable and
commodity-based tariff is used to support industry in times of difficulty.
Addressing delegates attending the Mine Entra 2018 conference held in
Bulawayo on Thursday, Gumbo said there was need to ensure that the energy
industry continued to operate efficiently and effectively by providing
adequate and reliable energy through charging of cost-reflective tariffs.
<http://www.bulls.co.zw/> Read more >

Forex shortages hit Western Union

MONEY transfer firm Western Union says Zimbabwe's ongoing foreign currency
shortages are presenting some "unique challenges" amid growing reports that
outlets in the country are disbursing only part of the remittances received
from outside the country. Remittances are the country's second major source
of foreign currency, with $440 million in diaspora remittances and about
$400 million in non-governmental proceeds in the year to September 21 this
year. Surveys done by Standardbusiness in the past few weeks show that
queues at Western Union branches have been growing steadily, with some
clients only being given part of their dues and being told to collect the
rest at a later date.  <http://www.bulls.co.zw/> Read more >

Retailers rip off panic-stricken consumers

Retailers reportedly ripped off panic-stricken consumers by arbitrarily
hiking the cost of basic commodities despite getting supplies from
manufacturers at normal prices. Moreover, tariffs for major cost drivers in
industry - fuel and electricity - remained stable. Last week, many retailers
increased prices of goods after unprecedented trading of the bond note
against the United States dollar on the black market. Some business placed
mark-ups of more than 400 percent, while others demanded payments in foreign
currency. However, the Retailers Association of Zimbabwe says locally
produced commodities occupy 62 percent of supermarket shop shelf space. Oil
Expressers Association of Zimbabwe chairperson Mr Busisa Moyo, who is the
CEO of United Refineries Limited, said it was baffling to see a 2-litre of
cooking oil going for as much as $15.  <http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

First Mutual engaging Finance Minister for allocation of foreign currency

First Mutual Health Care has said it is engaging Finance minister Mthuli
Ncube for the allocation of foreign currency  to healthcare service
providers for drugs and consumables. This the organisation revealed in its
communication to its clients leaked to this publication. "You may be aware
that over the past few days, some service providers have been demanding a
co-payment in hard currency before rendering service. This has particularly
been prevalent in some pharmacies and specialist physicians," reads the
communication.  "We wish to advise that as First Mutual Health we are
actively pursuing initiatives to ensure that our members continue to receive
service from health providers. Negotiations are in progress with various
providers and members will be updated as arrangements are put in place."
<http://www.bulls.co.zw/> Read more >

High profile arrests over black market imminent

LOCAL commercial banks and senior figures within the Reserve Bank of
Zimbabwe (RBZ) are either involved in fanning the black market activities
that reached alarming levels last week or incompetent to the point of
failing their mandate, it has emerged. Reports yesterday showed that arrests
of high-profile people were imminent after President Emmerson Mnangagwa
convened a security cluster meeting to deal with the currency parallel
market that wreaked havoc last week, with the United States dollar at some
point trading at $1 to $6 with the surrogate bond note or electronic
transfers. In an update on the state of the economy, Mnangagwa yesterday
warned the black market had become a threat to national security, which
demands a "bold response". <http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

Mthuli Ncube says Zimbabwe economy will stabilise, price shocks are
transitory

Finance and Economic Development Minister Professor Mthuli Ncube has said
the price shocks that were recently experienced by the market are temporary
as the economy adjusts to the new policies, which he has described as
"bitter medicine" that will help the economy stabilise. Prof Ncube said
consumers and retailers resorting to panic buying and speculative activities
are likely to incur heavy loses. In an interview from Bali, Indonesia, where
he was attending the IMF and World Bank meetings, Prof Ncube said there is
need for the market to be patient. "Ordinary Zimbabweans should not go into
panic buying of goods and commodities, as prices will drop and they will
lose money. Likewise, wholesalers and retailers should not hoard goods in
anticipation of obtaining higher prices in future. They will incur loses. I
urge everyone to be patient. We will turn around the fundamentals of the
economy through various measures contained in the Transitional Stabilisation
Programme," he said.  <http://www.bulls.co.zw/> Read more >

Cabinet approves $2m SMEs facility   

CABINET has approved a $2 million facility to capacitate small to medium
enterprises (SMEs) through linkages with bigger businesses, Women's Affairs,
Community, Small to Medium Enterprises Development Minister, Sithembiso
Nyoni, has said. She told scores of representatives of cooperatives, small
businesses, women and youth at a business linkages meeting organised by the
ministry in Lupane last Thursday that the money was readily available.
Minister Nyoni said the fund was part of her ministry's 100-day programme to
deliver on community projects in line with vision 2030. She said at least
100 SMEs countrywide, making 10 per province were earmarked to access the
fund if they establish linkages with bigger businesses and submit proposals
to Government. <http://www.bulls.co.zw/> Read more >

ZTA allays tourism sector fears   

THE Zimbabwe Tourism Authority (ZTA) has urged players in the tourism
industry not to panic over the prevailing economic situation as efforts are
being made to stabilise the environment and thereby protect the sector. This
comes amid reports that some local conference organisers had cancelled
meetings in Victoria Falls recently owing to the effects of the parallel
market. Zimbabwe has recently been experiencing a sharp increase in prices
of mainly basic commodities which has sparked inflation and panic buying, on
the back of spiralling parallel market exchange rates between the US dollar
and bond notes or electronic/mobile money.  <http://www.bulls.co.zw/> Read
more >

Zimbabwe sits on 13m tonnes gold reserves   

ZIMBABWE is sitting on an estimated 13 million tonnes of unexploited gold
reserves and only 580 tonnes have been exploited since 1980, an official has
said. Speaking during last week's Mine Entra indaba in Bulawayo, head of
Gold Development Initiative Fund (GDIF) at Fidelity Printers and Refiners,
Mr Matthew Chidavaenzi, told delegates who attended the women in mining
forum that vast opportunities exist in the gold sector and urged women to
seek their slice. "The country is currently sitting on 13 million tonnes of
gold deposits and this is proven. Since 1980 only 580 tonnes have been
exploited. So, as Zimbabwe we still have a long way to go," he said. "Women
in mining should grow and expand within the mining sector as there is enough
room for them to do so."  <http://www.bulls.co.zw/> Read more >

$20 million for women in mining   

SOLE gold buyer Fidelity Printers and Refiners has set aside $20 million to
capacitate women in mining projects under its Gold Development Initiative
Fund (GDIF). The GDIF was launched by the Reserve Bank of Zimbabwe (RBZ) in
2016 as part of initiatives to capacitate small scale miners and boost gold
production. The initiative has seen small scale miners break production
records and delivering more gold than large-scale mining companies. Speaking
during the Mine Entra indaba in Bulawayo last week, GDIF head Mr Matthew
Chidavaenzi said the loan facility also caters for women hence $20 million
was set aside for women in mining.  <http://www.bulls.co.zw/> Read more >

No one will lose their money, says President   

PRESIDENT Mnangagwa has assured the nation that no one will lose their money
in banks as Government continues to work flat out to protect consumers
through defending wage values and securing their savings. In the first
instalment of his new weekly column in our sister paper, The Sunday Mail,
President Mnangagwa said Government is in the process of putting mechanisms
in place to protect earnings and savings both in local and foreign currency,
including $9 billion in real-time gross settlement (RTGS) deposits.
"Government continues to work flat out to protect consumers, defend wage
values and secure savings. This includes the $9 billion in RTGS deposits in
our banks. We are already putting in place legally enforceable measures to
protect such earnings and savings, whether in local or foreign currency. No
one will lose their money," he said in the column published yesterday.
<http://www.bulls.co.zw/> Read more >

Vast Resources to develop SPV for Marange diamond fields   

Diversified mining group, Vast Resources, has said Botswana Diamonds has
signed on to develop the Heritage concession in the Marange diamond fields,
which will see the development of a special purpose vehicle (SPV). Earlier
in May the two parties signed a Memorandum of Understanding (MoU) on the
proposed project, which will eventually be a 50 /50 joint venture (JV)
project. According to Vast Resources, a separate agreement will be concluded
with Botswana Diamonds in due course for the joint development of diamond
properties outside the Marange diamond fields. The SPV by Botswana Diamonds
and Vast Resources is for the purpose of developing diamond resources within
the Marange fields.  <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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