Bulls n Bears Investors Notebook Issue 190:17 October 2018

Wed Oct 17 10:32:58 CAT 2018

 <http://www.bulls.co.zw/> Bulls.co.zw        <mailto:bulls at bulls.co.zw>
Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts
<http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Bulls n Bears Investors Notebook Issue 190:17 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

Finance minister reassures market

FINANCE minister, Mthuli Ncube has said government has no control over the
parallel market rates of the US dollar, which yesterday soared to about 400%
after tumbling last Friday from 600% to less than 200%, triggering a new
wave of price hikes. Addressing journalists after a Cabinet meeting last
night, Ncube insisted the real time gross settlement (RTGS) and bond notes
were still at par with the US$, officially at least. "Our market rate is 1:1
convertibility to the US$, both for RTGS balances and bond notes. That is
the official exchange rate. So really, we cannot be commenting about
movements in the parallel markets to influence our policy," he said.
<http://www.bulls.co.zw/> Read more >

Business leaders conflicted over imports ban

ZIMBABWE'S business leaders want government to suspend the Statutory
Instrument (SI)22, which is meant to protect local industry from cheap and
non-essential imports, to counter the growing shortages of commodities.
Government promulgated SI64 in 2016 as a measure to limit the inflow of
imports in a bid to grow local industry before consolidating it to SI22 last
year. Zimbabwe National Chamber of Commerce (ZNCC) chief executive
Christopher Mugaga said government must revoke the SI22 that prevents the
importation of certain goods in the country to reduce pressure on locally
manufactured goods which were in short supply, while those available were
selling at exorbitant prices.  <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

Govt unveils price monitoring system   

GOVERNMENT has embarked on a price monitoring system along the production
chain, from manufacturers to retailers, as part of measures to flush out
economic saboteurs. It also resolved that manufacturers and suppliers of
basic commodities and medical drugs should revert to the pricing system that
recognises the guaranteed convertibility of bond notes and RTGS balances to
the US dollars on a 1:1 ratio. Briefing journalists at a joint Press
conference after a Cabinet meeting yesterday, Information, Publicity and
Broadcasting Services Minister Monica Mutsvangwa said action will be taken
against saboteurs. "Cabinet resolved that action be taken against those
value chain players found to be fuelling unjustified price increases,
thereby imposing hardship on the citizens for wanton profiteering," she
said.  <http://www.bulls.co.zw/> Read more >

'Capitalise on mining boom'   

MINES and Mining Development Minister Winston Chitando has challenged the
local manufacturing industry to quickly position itself for anticipated boom
of the mining sector to be able to produce and supply key equipment and
other inputs required by the sector. Minister Chitando last week told
delegates at the 2018 edition of the Mining Engineering and Transport
exhibition (Mine Entra) in Bulawayo that with the mining sector primed for
massive growth there was no reason Zimbabwe should continue importing
certain items needed by mining firms. This is in line with President
Mnangagwa's vision of growing Zimbabwe to middle-income status by 2030, with
per capita income of $3 500. To that end, the mining sector is designated as
one of the key anchors set to drive the short to medium growth through
productivity and beneficiation in among others, gold, platinum, diamonds,
coal and lithium.  <http://www.bulls.co.zw/> Read more >

Agric Trust disburses $87m to agric   

THE Zimbabwe Agricultural Development Trust (ZADT) has disbursed $87,5
million to almost 530 000 small-holder farmers and agribusinesses, as it
seeks to boost their operations. Of the beneficiaries, 26 percent were
women, which is in tandem with Government's drive to economically empower
them. The funds were disbursed between 2012 and August 31 this year. ZADT
chief executive officer Godfrey Chinoera told delegates at an agricultural
stakeholders' conference in Harare recently that the funds were accessed
either directly through participating micro finance institutions (MFIs) and
banks or indirectly through value chain actors. Said Mr Chinoera: "The
objective of the fund is to impact the lives of smallholder farmers that are
engaged in commercial activities and see how they can be uplifted and how
they can break through barriers that keep them mostly as subsistence
farmers."  <http://www.bulls.co.zw/> Read more >

Afreximbank confirms $500m facility talks   

The African Export-Import Bank (Afreximbank) has confirmed holding talks
with a Zimbabwean delegation led by Finance and Economic Development
Minister Professor Mthuli Ncube  in connection with a $500-million nostro
stabilisation facility. Zimbabwe, which is going through a damaging foreign
currency crisis, is looking for stabilisation facilities while at the same
time coming up with long term measures to address its economic challenges.
In a statement released on its website, the regional bank said a delegation
of the Afreximbank led by its President Prof Benedict Orama, held talks with
a team led by Minister Ncube, and the Governor of the Reserve Bank of
Zimbabwe, Dr John Mangudya, to discuss Afreximbank's support to Zimbabwe's
economic recovery. The meeting, which took place on the sidelines of the
2018 International Monetary Fund and World Bank Group Annual Meetings,
highlighted the bank's various facilities currently operational in Zimbabwe.
<http://www.bulls.co.zw/> Read more >

AMA raises $75m for grain procurement   

The Agricultural Marketing Authority has raised $75 million for grain
procurement after the agro-bills it issued last month were fully subscribed,
an official said. Analysts said the overwhelming response is largely
attributed to growing appetite for such instruments in light of perceived
uncertainty over Zimbabwe's currency reforms. AMA, through CBZ Bank issued
the bonds on September 13 and were all subscribed by the third day. The agro
bills are meant for purchasing maize and are guaranteed by the Government.
<http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

Cement sector has excess capacity: Lafarge   

Zimbabwe cement industry has excess capacity to meet the 1,3 million tonnes
annual domestic demand as the sector has an installed capacity of 2,4
million tonnes, an official has revealed. Last month the market experienced
cement shortage, which the country's largest cement producer, PPC Zimbabwe,
attributed to annual maintenance works at its factories in Harare and
Bulawayo. As a result of the temporary shortage some hardware shops, despite
the improvement in cement supply, increased the price of the commodity from
$11 for a 50 kilogramme to $15 depending on the brand. There are reports
that some dealers are also demanding US$12 per 50kg bag of cement, while
others are charging 25 bond notes.  <http://www.bulls.co.zw/> Read more >

Wheat supply remains critical   

Zimbabwe's wheat supplies remain critical due to logistical challenges
arising from failure by the National Railway of Zimbabwe to speedily move
the grain from Beira, Mozambique. The Grain Millers Association of Zimbabwe
said nearly 180 wagons were stuck in Beira, blaming the NRZ for the slow
movement of the commodity. NRZ, however, said the delay in the movement of
wheat was beyond the company control. Zimbabwe is faced with inconsistent
supplies of bread as flour millers have cut on production due to wheat
shortages.  <http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

The EIA and small scale artisanal miners   

Zimbabwe is endowed with vast mineral resources, especially along the Great
Dyke. As such, the mining industry has expanded over the years and is a
significant contributor towards the nation's Gross Domestic Product. The
mining industry is characterised by large, medium and small scale miners.
The Agency uses various tools to achieve sustainable mining, including the
Environmental Impact Assessment. Sustainable mining is usually an issue with
the small scale and artisanal miners. However, the Government has recognised
that the artisanal and small scale mining sector is contributing
significantly to economic growth hence the need to make legal provisions
which ensures that they do their operations in a sustainable manner.
<http://www.bulls.co.zw/> Read more >

Pick n Pay sees smaller stores as key to unlocking Africa growth

Pick n Pay sees the potential for expansion in sub-Saharan African countries
such as Zambia and Zimbabwe if the Cape Town-based supermarket chain sticks
to smaller stores with lower prices. A cautious approach is required as the
grocer explores options for international growth, Chief Executive Officer
Richard Brasher said in a phone interview on Tuesday. "Its a long journey,"
he said. "No one doubts at the potential - the question is when." The CEO is
preparing Pick n Pay for the next phase of development after reducing the
workforce by 10% last year and cutting prices on shop shelves. That led to a
growth in earnings, sales and market share in South Africa in the first half
through August 26, even as a "tough economy" creates challenges in its home
market.  <http://www.bulls.co.zw/> Read more >

Government to flush out economic saboteurs   

GOVERNMENT has embarked on a price monitoring system along the production
chain from manufacturer to the retailer in a move meant to flush out
economic saboteurs unjustifiably profiteering from basic commodities. It
also resolved that manufacturers and suppliers of basic commodities and
medical drugs should revert to reasonable pricing systems that recognise the
guaranteed convertibility of bond notes and RTGS balances to the US dollar
on a 1:1 ratio. Briefing journalists during a joint press conference after
Cabinet meeting yesterday, Information, Publicity and Broadcasting Services
Minister Monica Mutsvangwa said action will be taken against the saboteurs.
<http://www.bulls.co.zw/> Read more >

Banks comply with RBZ directive

HARARE - Local banks have started  creating separate Nostro Foreign Currency
Accounts (FCAs) and Real Time  Gross Settlement (RTGS) FCAs in line with a
directive issued by the  Central Bank early this month. The Reserve Bank of
Zimbabwe (RBZ) gave banks until mid this month to  separate the two accounts
as part of measures to preserve value for  foreign currency earners.
Monetary authorities expect the measure to strengthen the  multi-currency
system for financial and price stability and to increase  inflows of foreign
currency. CABS managing director Simon Hammond said the bank was already
processing the opening of accounts denominated in Rand, United States
dollar, Euro, British Pound and Pula.  <http://www.bulls.co.zw/> Read more >

Mangudya curbs money in circulation

The level of money circulating in the economy declined in the first quarter
of the year as strategies put in place by the Reserve Bank of Zimbabwe to
curb excess liquidity began to take effect. Financial experts say when too
much money is in circulation then the supply of money is greater than the
demand and the money tends to lose its value (read "inflation"). "Reserve
money fell, largely due to mopping of excess liquidity through the issuance
of the Savings Bonds," said central bank governor Dr John Mangudya in his
first quarterly economic review of 2018. Reserve money holds a critical
position in monetary policy. And to the extent that it is mostly currency in
circulation with the people, reserve money decides the level of liquidity
and price level in the economy.  <http://www.bulls.co.zw/> Read more >

Zim seeks debt write-off under HIPC

FINANCE minister Mthuli Ncube is actively seeking to have the Zimbabwe
foreign debt forgiven under the Highly Indebted Poor Countries (HIPC)
programme by the International Monetary Fund (IMF), a move.
<http://www.bulls.co.zw/2018/10/16/zim-seeks-debt-write-off-under-hipc/>
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 

Telephone:      <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181017/3c62c0fc/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 35469 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181017/3c62c0fc/attachment-0004.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 29134 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181017/3c62c0fc/attachment-0005.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 29401 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181017/3c62c0fc/attachment-0006.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.jpg
Type: image/jpeg
Size: 4846 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20181017/3c62c0fc/attachment-0007.jpg>