Bulls n Bears Investors Notebook Issue 177:28 September 2018

Fri Sep 28 09:22:29 CAT 2018

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Bulls n Bears Investors Notebook Issue 177:28 September 2018

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

Bulls 'n Bears Investors Diary: Today's Events

CBZH

interim dividend of 0.5c per share record date

28/09/2018

Hippo

final dividend of 2c per share record date

28/09/2018

Star Africa

AGM

45 Douglas Road, Workington

28/09/2018 11AM

Quotable Quote:

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

IMF highlights Zim's reform priorities

AN International Monetary Fund (IMF) team of tax experts has completed a
diagnostic assessment of the Zimbabwe Revenue Authority (Zimra)'s tax
administration and pointed out areas where reform is required to bring it in
line with international best practice. Senior economist in Revenue
Administration and Fiscal Affairs department, Rebecca Sparkman, led the IMF
team which conducted a Tax Administration Diagnostic Assessment Tool (TADAT)
from September 10 to 25. Zimra commissioner-general Faith Mazani revealed
that the diagnostic assessment was done at the instigation of Finance
minister Mthuli Ncube, who sees the technical assistance as key to the
development of a new strategic plan for Zimra for the period from 2019 to
2023. <http://www.bulls.co.zw/> Read more >

PPC boss tackles key economic issues

ONE of the country's largest cement producers, Pretoria Portland Cement
(PPC) Zimbabwe, says the liquidity constraints being experienced in the
country have resulted in payments for offshore goods and services becoming
delayed and difficult to make. NewsDay (ND) business reporter Mthandazo
Nyoni speaks with PPC Zimbabwe managing director Kelibone Masiyane (KM) who
reveals that the situation presented significant concerns with regards to
business continuity as a result of the inability to settle foreign
obligations. Find below excerpts from the interview.
<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

OSAZ to increase oil seeds production

The Oil Seed Association of Zimbabwe (OSAZ) is working on boosting
production of oil seeds in the country in order to empower farmers and
reduce the import Bill. The country is producing about 37 440 tonnes against
a national demand of about 600 000 tonnes, bleeding the fiscus of $250
million in soyabean seeds and crude oil imports. This has prompted OSAZ to
come up with a programme where it partners farmers to produce the oil crops.
The association provides farmers with inputs such as seed, fertilisers and
chemicals among others, while the farmer provides the land.
<http://www.bulls.co.zw/> Read more >

Zimplats' latest mineral estimates mixed

Zimbabwe Platinum Holdings (Zimplats) has said it upped its ore resources
tonnage and platinum (Pt) ounces by 37 percent and 33 percent, respectively,
on the back of a board approval for a mining method for the Upper Ores ,
after a successful trial at its Ngezi Mine. But the move to cease a mining
lease area to the Government earlier, had a knock-down effect on the total
Mineral Resource tonnages and Pt ounces. In June this year, the country's
largest platinum producer agreed to release to the Zimbabwean Government of
Zimbabwe land measuring 23 903 hectares within the group's mining lease area
in support of the Government's efforts to enable participation by other
investors in the platinum mining industry in Zimbabwe.
<http://www.bulls.co.zw/> Read more >

Rebound of Irvines' boost Innscor's performance

Industrial conglomerate, Innscor Africa Limited's operating profit shot up
by 18 percent to $77,1 million for the year to June 2018 from $65,5 million
recorded in the prior comparable period. The group's total revenue steadily
increased by 9 percent to $631,2 million in the period under review from
$580,3 million recorded previously. Innscor Africa chairman Addington
Chinake said the group's aggressive performance was driven by the rebound of
Irvines from a severe Avian Influenza epidemic attack which shook the
subsidiary at the end of the prior financial year, coupled with the surge in
bread prices. Bread volumes increased by 12 percent over the comparative
year. The bakery industry is however struggling with wheat supplies.
<http://www.bulls.co.zw/> Read more >

Wanted: A solution to currency crisis

The latest decision by the US Federal Reserve to hike interest rates by 25
basis points to a new range of 2 to 2,25 percent comes as a threat to the
country's continued use of the multi-currency system anchored on the US
dollar. There are winners and losers from having a strong dollar. Among the
winners are importers, who would benefit from lower prices for imported
products. But Zimbabwe exporters would be hurt because the country's
products would become more expensive. Exports would be adversely affected
and jobs in exporting industries would be at risk. This is at a time export
proceeds or foreign currency is in great demand. <http://www.bulls.co.zw/>
Read more >

A to-do list for Industry and Commerce Minister

Zimbabwe's new Cabinet sat for the first time this week and each portfolio
minister should now identify a minimum of five quick-win and high impact
projects in order that work on them commences in earnest. Plans are also
going to be put in place to make sure that four or five ministers will make
presentations during the course of a Cabinet meeting. Following the
presentation, the decision taken by Cabinet will be communicated to the
nation every Wednesday, after Cabinet meetings. With such moves, it is
expected Cabinet will speak with one voice. President Mnangagwa said such an
initiative will also entrench transparency and a culture of responsiveness.
<http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

EcoFarmer addresses farmers' needs

It was once said that at some point technology will come to a halt when
there is nothing new to invent.  But with Econet Wireless Zimbabwe that
statement does not hold true. Just as we now know, that the Stone Age did
not end because of a shortage of stones, the company's relentless innovation
continues to simplify people's lives through new products that offer
unparalleled convenience to the user. With the country's economy based on
agriculture, it would have been amiss not find an Econet product that does
not seek to solve problems, as well as explore the opportunities that the
sector offers. Farmers have often struggled to find markets to sale their
produce and at the right price.  <http://www.bulls.co.zw/> Read more >

RTG reverses prior year losses to $1,1m PBT

Hospitality group, Rainbow Tourism Group (RTG) swung back to profitability
after its profit before tax jumped 364 percent to $1,1 million for the six
months to June 30, 2018, from a loss position of $416 000, thanks to
restructuring and growth in conferencing business. The group reversed its
comparative prior year losses by 173 percent to $213 993 profit compared to
a $290 451 loss recorded in the comparable prior year period. Revenue for
the period grew 18 percent to $13,7 million from $11,6 million as all hotels
recorded growth. Its two Harare hotels recorded a 42 percent increase in
revenue to $6,4 million from $4,5 million, as the economy is opening up to
travel business. <http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

Strong US$ not necessarily a problem for Zim

The United States central bank, the Federal Reserve, this week put up
interest rates by 25 basis points to a new range of 2 to 2,25 percent, a
move analysts say may complicate Zimbabwe's continued use of the
multicurrency system that is currently anchored on the American dollar.
Analysts and other market players including Zimbabwe's Finance and Economic
Development Minister Mthuli Ncube believe the rate hike is likely to see the
US dollar (US$) strengthening, putting a dent on economic growth and
development for most emerging and frontier markets. A strong dollar,
analysts believe, will also weaken regional currencies as well as
international commodity prices, with gold which is often regarded as a store
of value and safe haven, the biggest casualty. <http://www.bulls.co.zw/>
Read more >

TBs pile pressure on banks

The Government has issued a staggering $8 billion in Treasury Bills (TBs)
since dollarisation in 2009 to fund its expenditure gaps, but this has
inadvertently driven money supply and unsustainable demand for cash and
foreign currency from banks, according to well-placed sources. Business
Weekly is also reliably informed that the $8 billion TBs used to plug the
budget gaps as the economy floundered, were over the $1,6 billion overdrafts
Treasury accessed from the central bank to finance budget overruns from
inevitable public expenditure. The Government's stock of Treasury Bills
(TBs) reached a whopping $2,079 billion in just the 2 years to March 2017
amid concerns public borrowing was beginning to crowd out private sector
lending by local banks. Specifically, the TBs were issued for RBZ debt
assumption, Government expenditure, Zamco bad loans cleansing and
capitalisation of State institutions.
<http://www.bulls.co.zw/2018/09/26/retirement-planning-ensures-old-age-is-en
joyed/> Read more >

Govt relaxes stance on Beitbridge road

Government has relaxed its previous position to have the entire 585km
Harare-Beitbridge Highway dualised, amid indications that it is open to
having contractors partially dualise and widen the major road. This comes as
construction experts told Business Weekly that full dualisation of the
highway was uneconomic due to the required capital outlay and "low volumes
of traffic". It is understood that between 2 500 and 3 000 vehicles pay at
tollgates along the Harare-Beitbridge Highway per day, making little
business sense to dualise the road as it will take "forever" to recoup the
estimated $1,7 billion investment under a self-financing model where debts
is repaid from toll fees.  Assuming all the vehicles pass through the four
tollgates (Skyline, Mushagashi, Chivi and Lutumba) along the
Harare-Beitbridge Highway and pay a minimum of $2 each, the country can
collect $744 000 per month. <http://www.bulls.co.zw/> Read more >

Blocked funds may ruin foreign flights into Zim

Zimbabwe risks reversing gains it had registered towards destination
accessibility, through its Open Skies policy, as it emerged this week some
foreign airlines were contemplating cancelling flights over blocked funds
from revenue earned in the country, now amounting to a cumulative $132
million, an official has said. Alexandru Stancu head of account management,
South East Africa International Air Transport Association (IATA) told a
Tourism Business Council of Zimbabwe (TBCZ) conference in Victoria Falls
this week that foreign airlines had been crippled by the inability to
repatriate their funds from Zimbabwe.  <http://www.bulls.co.zw/> Read more >

National Foods forecasts better prospects   

DIVERSIFIED conglomerate, National Foods Limited, has forecast better
economic fortunes for its business on the back of the new political
dispensation ushered in November last year and confirmed at this year's
general elections. In its results for the year ending June 30, 2018, and
signed off by the group's chairman Todd Moyo, which saw the group pocketing
profit before tax of $21,21 million signifying a 23 percent jump compared to
the previous year, the group notes better prospects. Profit for the year
rose to $17,174 million up from $13,706 million the previous year. The
country's largest milling company, however, noted that for the prospects to
yield fruit, authorities should immediately redirect efforts to solving all
the problems bedevilling the economy. <http://www.bulls.co.zw/> Read more >

Govt moves to stabilise prices   

Government has started working on a cocktail of measures to ensure
stabilisation of prices of essential commodities and their availability, an
official said yesterday. Early this month, Government set up a technical
committee co-chaired by the National Competiveness Committee (NCC), the
Ministry of Industry and Commerce and the Reserve Bank of Zimbabwe (RBZ) to
look into prices and make recommendations on tackling the challenge. NCC
chairman Kumbirai Katsande yesterday said the technical committee's brief is
also to establish the availability of basic goods. Mr Katsande said this
while addressing delegates during at this year's Confederation of Zimbabwe
Industries (CZI) conference. He said the committee will also look into
foreign currency allocations in light of shortages that have seen businesses
struggling to import critical raw materials and spare parts.
<http://www.bulls.co.zw/> Read more >

Strict measures needed to protect tobacco exports   

Government should introduce stiff penalties for tobacco growers who are
non-compliant to set rules and regulations if it is to stop the spread of
diseases that could potentially affect the country's tobacco exports. This
was revealed at a workshop held by the Tobacco Research Board yesterday
which was running under the theme, "Tobacco Production: An industry under
threat". Tobacco is the country's highest foreign currency earner followed
by gold. Last year tobacco exports topped $900 million, which was a marginal
decrease from $933 million from the previous season. Across the country, the
area put under tobacco has slightly decreased from 110 518 hectares last
year to 104 397 hectares. <http://www.bulls.co.zw/> Read more > 

INVESTORS DIARY 2018

Company

Event

Venue

Date & Time

CBZH

interim dividend of 0.5c per share record date

28/09/2018

Hippo

final dividend of 2c per share record date

28/09/2018

Star Africa

AGM

45 Douglas Road, Workington

28/09/2018 11AM

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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