Bulls n Bears Investors Notebook Issue 123:26 October 2018

Fri Oct 26 10:53:16 CAT 2018

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Bulls n Bears Investors Notebook Issue 123:26 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

Zimbabwean banks on Negative Rating Watch-GCR

Harare, - The Global Credit Rating Company (GCR)  has placed the national
scale ratings of Zimbabwean financial institutions on Negative Rating Watch
citing potentially adverse impact from the recently announced Fiscal and
Monetary Policies as well as the Transitional Stabilisation Programme. GCR
cited among other things the negatively received 2% Intermediated Transfer
Tax, separation of bank balance sheets into local RTGS foreign currency
accounts (FCA) and NOSTRO FCAs in a bid to protect foreign currency earners
from the severe foreign currency shortages in the country. The above
developments were negatively received by the market and sparked a huge
discount trade in the parallel markets between the RTGS and USD, hoarding of
basic commodities, flight to shelter on the stock exchange or in fixed
assets, and some retailers refusing to accept local RTGS for transactions
opting rather for forex or temporarily shutting down.
<http://www.bulls.co.zw/2018/10/25/zimbabwean-banks-on-negative-rating-watch
-gcr/> Read more »

Merlin squabbles stall progress

SQUABBLES between shareholders and judicial manager of struggling Bulawayo
textile manufacturer, Merlin, are stalling the disbursement of a $5 million
recapitalisation facility secured from the Zimbabwe Asset Management
Corporation (Zamco), NewsDay can reveal. Merlin judicial manager Cecil
Madondo, of Tudor House, told a creditors’ meeting in Bulawayo recently that
he had submitted an application for funding assistance to the
government-owned asset manager through the Industry, Commerce and Enterprise
Development ministry.  <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

Import with your own forex, Mangudya says

Companies and individuals seeking to import basic commodities following the
lifting of the import ban will have to use free funds, freeing the central
bank from having to raise funds for the imports, Reserve Bank of Zimbabwe
governor John Mangudya has said. With most basic commodities in short
supply, while the prices of those available are shooting up daily,
government sought to mitigate the scarcities by lifting the suspension of
imports by suspending Statutory Instrument (SI) 122 of 2017, which regulated
the importation of certain basic goods. <http://www.bulls.co.zw/> Read more
»

‘Opening of borders to stabilise prices, but

GOVERNMENT’s lifting of the import ban on selected goods will stabilise
prices and contain the rising inflation in the short term, but keep the
economy in inflationary mode due to the high money supply in the market, an
expert has said. Since Tuesday, when government lifted the import controls
found in Statutory Instrument (SI) 122 of 2017, experts seem to have
downgraded the country’s annual inflation in the short term but warned the
high inflationary mode was still there. “Will this help the inflationary
mode we are in, yes, in terms of making goods available.
<http://www.bulls.co.zw/> Read more »

Natfoods bosses accused of looting trust shares

National Foods Limited (NFL) workers have accused their management of
‘looting’ their trust shares amounting to 0,15% of the company’s entire
issued share capital.  According to the settlement on the National Foods
Workers’ Trust, NFL undertook to ”give and donate, or procure the donation,
to the trust from reserves of the group an initial sum of $1 600 000; in
respect of each financial year commencing with that ending 31 March, 1984, a
sum equal to 10% of the dividends, before withholding or other taxes
thereon, declared and paid or due and payable by the parent company for each
year
”. <http://www.bulls.co.zw/> Read more »

ZMDC top brass grilled over dormant mines

LEGISLATORS from the Mines Parliamentary Portfolio Committee on Tuesday
grilled the Zimbabwe Mining Development Corporation (ZMDC) over its mines
that have been dormant for decades at a time the country is experiencing
economic difficulties, partly due to failure to utilise its resources.
Chairperson of the portfolio committee, Temba Mliswa, said some of the mines
like Jena and Sabi Gold mines were important for economic recovery and yet
they had become comatose. ZMDC chairperson Peter Chimboza said the
parastatal owned 22 mines and that some of them were now closed.
<http://www.bulls.co.zw/> Read more »

Zim ramps up efforts to boost trade   

Zimbabwe is working on several economic initiatives aimed at boosting the
country’s competitiveness in the region, facilitate trade and attract the
much needed foreign direct investment (FDI). This was said by Finance and
Economic Development Minister Professor Mthuli Ncube, who also said that
establishment of one-stop border posts had potential to enable smooth flow
of trade in the region, enhance investment and help unlock millions of
dollars in export earnings for Zimbabwe. The minister said Zimbabwe was
strategically located in the Southern Africa region and its reform
initiatives should enhance ease of doing business and promote smooth flow of
traffic at border posts.. <http://www.bulls.co.zw/> Read more »

 <mailto:info at bulls.co.zw> 

Seed Co promotion delivers weighty results   

Listed seed processor, Seed Co’s Eleven Tonne Plus Club Promotion, is
delivering significant results, with maize farmers under the promotion
achieving significant yields. The Eleven Tonne Plus Club Promotion is a
programme targeting commercial farmers for soya bean, maize and other seeds
in a bid to boost food security. This year over 50 farmers entered the
competition and achieved between 11 and 22 tonnes of grain per hectare. Seed
Co CEO Mr Denias Zaranyika, said Zimbabwe has the capacity to be
self-sufficient in grains production as long as they received the requisite
support. <http://www.bulls.co.zw/> Read more »

‘Domestic resource mobilisation key to middle income economy’   

Secretary for Finance and Economic Development George Guvamatanga says
domestic resource mobilisation will play a pivotal role towards attainment
of an upper middle income economy by 2030. Domestic resource mobilisation
refers to the generation of savings from domestic resources and their
allocation to economically and socially productive investments. Mr
Guvamatanga revealed this while addressing delegates at the reception hosted
for Chartered Financial Analysts (CFA) president and chief executive officer
Paul Smith who is in the country. <http://www.bulls.co.zw/> Read more »

 <mailto:info at bulls.co.zw> 

Govt fight forex outflows   

Soya bean hactarage has been increased by 11 000 hectares in the 2018 /2019
cropping season from the almost 22 000ha planted in the prior season, as
Government battles to stem surging demand for foreign currency. Government
is spending an average of $20 million per month in the importation of soya
for the manufacture of cooking oil, prompting the need to ramp up local soya
bean growing to preserve the little foreign currency available. Deputy Chief
Secretary in the Office of the President and Cabinet Justin Mupamhanga, who
is chairman of the Command Agriculture programme, told Business Weekly on
Wednesday that 33 000ha of land have been put under soya in this cropping
season.  <http://www.bulls.co.zw/> Read more »

Zimbabwe was also voted third in terms of safety out of the 10 countries
observed.

Zimbabwe was voted third after Sri Lanka and Germany, and was followed by
Panama, Kyrgyzstan, Jordan, Indonesia, Belarus, São Tomé and Príncipe and
Belize. “While it may be known for making the headlines for all the wrong
reasons, Zimbabwe has always been a country that travellers on the ground
have raved about. Not only is it one of Africa’s safest destinations, it’s
one blessed with ultra-friendly locals, Big Five-filled national parks,
World Heritage-listed archaeological ruins, forested mountains and, of
course, the mighty Victoria Falls,” Lonely Planet said.
<http://www.bulls.co.zw/> Read more »

Inside Lancashire Steel’s stinking deal

INVESTIGATIONS into the deal signed between government-owned Lancashire
Steel and Whinstone Enterprises, a Botswana registered Indian firm, expose
an underlying plot to strip the national asset as well as poor deal-making
skills by the parastatal’s board. Sources say the deal, which has been
roundly opposed by management and is reportedly being pushed by board
chairman Ngwabi Bhebhe, gives Whinstone Enterprises unfettered access to
scrap metal and pig iron held at Ziscosteel, which they can export and then
use the proceeds to ramp up production at Lancashire Steel without injecting
any capital. It’s not clear where the scrap metal will be exported to.
<http://www.bulls.co.zw/> Read more »

Chitando appoints new MMCZ board   

Mines and Mining Development Minister Winston Chitando has appointed a new
seven-member board for the Minerals Marketing Corporation of Zimbabwe
(MMCZ). The board will be chaired by Mr David Murangari. Other notable
appointments include Chamber of Mines of Zimbabwe chief executive Mr Isaac
Kwesu and former Hwange Colliery Company Limited board member Mr Jermister
Chininga. The appointments are with immediate effect.
<http://www.bulls.co.zw/> Read more »

RBZ suspends four top managers indefinitely   

Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya yesterday
indefinitely suspended four senior managers on allegations of corruption
raised against them by the then chairperson of the Finance and Economic
Development Communication Taskforce, Mr Acie Lumumba. The managers are
Messrs Mirirai Chiremba (Director Financial Intelligence), Norman Mataruka
(Director Bank Supervision), Gresham Muradzikwa (Head of Security) and
Azvinandawa Saburi (Director Financial Markets). “The RBZ wishes to advise
members of the public that following allegations of impropriety levelled
against senior officials of the Bank namely, Messrs Mirirai Chiremba, Norman
Mataruka, Gresham Muradzikwa and Azvinandawa Saburi, by Mr Lumumba, the Bank
has found it necessary, for the sake of transparency and good corporate
governance, that the allegations be followed through and investigated in
line with the Bank’s Employment Code of Conduct.  <http://www.bulls.co.zw/>
Read more »

‘Cash barons’ get the chop

HEADS have started rolling at the Reserve Bank of Zimbabwe (RBZ), with four
top executives being suspended yesterday less than 24 hours after Finance
ministry communications taskforce chairperson William “Acie Lumumba”
Mutumanje implicated them as the brains behind the cash crisis in the
country. In a live Facebook recording on Sunday night, Mutumanje cited that
the country was being held hostage by a cartel, including the RBZ quartet,
which he said was enjoying a monopoly in the country’s fuel business and
other corrupt deals. Mutumanje was appointed to head the taskforce on Friday
by Finance minister Mthuli Ncube.  <http://www.bulls.co.zw/> Read more »

TM Supermarkets lifts ‘Rest of Africa’

Tm Supermarket boosted profits in the 26-weeks to August 26, 2018,
contributing significantly to South African retailing giant’s Pick n Pay
Stores’ financial performance during the period. Group management attributed
TM Supermarkets’ strong sales and profit growth to competitive promotions
and improved on-shelf availability. The Zimbabwean operation was the best
performer within the Rest of southern Africa division (the group has an
established presence in Botswana, Lesotho, Namibia, Swaziland, Zambia and
Zimbabwe). “Profit before tax was up 7,3 percent to R136,1 million, driven
by an outstanding performance from the group’s associate in Zimbabwe, TM
Supermarkets (TM),” said Pick n Pay chief executive officer Richard Brasher
in an analysis of the results for the 26-weeks period.
<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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