Bulls n Bears Investors Notebook Issue 487: 30 April 2020

Thu Apr 30 13:18:09 CAT 2020

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Bulls n Bears Investors Notebook Issue 487: 30 April 2020

 <mailto:info at bulls.co.zw> 

Bulls 'n Bears Investors Diary: Today's Events

Quotable Quote:

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

Miners lobby for reprieve   

Mining firms are preparing a set of proposed interventions by Government
that will allow a fiscal and tax reprieve as well as unhindered operation of
most mining entities and essential service suppliers in the sector. This
comes after some mines cut production or were put under care and maintenance
while essential service suppliers were not allowed to operate freely as part
of lockdown conditions following the global outbreak of the Covid-19
pandemic. <http://www.bulls.co.zw/> Read more >

RBZ reviews forex priority list   

The Reserve Bank of Zimbabwe (RBZ) says financial institutions should
prioritise foreign currency allocation to productive sectors of the economy
as a key response to the coronavirus pandemic. In a strategic use of the
monetary policy to cushion the blow of the current lockdown on critical
manufacturers and other important players, the central bank - through the
Exchange Control Circular 5 of 2020 - has directed banks and bureaux de
change to prioritise forex to the productive sectors and suppliers of "goods
and services not readily available in Zimbabwe". <http://www.bulls.co.zw/>
Read more >

 <mailto:info at bulls.co.zw> 

For more business & financial updates log onto <http://www.bulls.co.zw/>
www.bulls.co.zw

Dairibord profit up 328 percent   

Food and dairy products processor, Dairibord Holdings Limited's profit for
the year ended December 31, 2019 jumped 328 percent to $142 million compared
to $36 million recorded in the previous year. The group achieved an
operating profit of $90 million compared to $55 million in the comparable
year 2018. An operating profit margin of 8,1 percent was attained up from
7,9 percent in prior year. Group chairman, Josphat Sachikonye, attributed
the improved performance to reduced fixed overheads, diligent procurement
practices, and an intensified drive to improve operational efficiencies..
<http://www.bulls.co.zw/> Read more >

Stanbic joins Covid-19 fight   

Leading financial services provider, Stanbic Bank Zimbabwe, has put its
shoulder on the wheel in the fight against Covid-19, pledging an assortment
of equipment worth US$200 000. The Standard Bank Group subsidiary is geared
to donate a total of five ventilators; 32 500 Personal Protective Equipment
(PPEs) in the form of suits, masks, face shields and goggles; 2 400 PCR
tests, 3 000 sanitiser bottles and two boreholes that will be drilled in two
selected high-density suburbs of Bulawayo and Harare. Stanbic Bank Zimbabwe
head of marketing and communications, Mr Palmer Mugavha, said the
institution has taken delivery of materials that are purchased locally such
as hand sanitisers and some PPEs, while those sourced from outside the
country will be delivered in tranches over the coming weeks owing to global
demand. <http://www.bulls.co.zw/> Read more >

Agribank predicts income decline   

State agriculture finance institution, Agribank, expects its 2020 income to
decline on reduced customer activities due to the negative impact of the
Covid-19 global pandemic that has paralysed world economies and disrupted
supply chains. This comes after the national agriculture support bank romped
to a $33 million historical after tax profit, which helped maintain its
profitability streak that saw it declare $5 million dividend, a rare
occurrence among state enterprises in Zimbabwe. The bank said its profit for
the year was mainly driven by growth in non-interest income as well as
interest income, reflecting increased transactions on the ICT delivery
channels and electronic banking. <http://www.bulls.co.zw/> Read more >

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

TianZe complies with sales regulations   

TianZe, one of the major tobacco contracting companies, has pledged to
continue supporting farmers and develop the industry. The company, which
occupies between 15-20 percent of the market share, said it has complied
with the Tobacco Industry and Marketing Board Covid-19 regulations and
preventive measures. These include setting up isolation sites, footbaths,
nurses checking on the farmers and a limited number of staff and farmers who
will come to the floors. In an interview yesterday, TianZe managing
director, Mr Ye Hai, said they were ready for the opening of the 2020
tobacco selling season. <http://www.bulls.co.zw/> Read more >

Impact of Covid-I9 on international trade   

COVID-19 is a global pandemic that has killed over 200 000 people, more than
the World War II as observed by the UN Secretary General Antonio Gueterres.
The IMF has summed the pandemic's economic effects as the Great Lockdown
that far exceeds effects of the 1930s Great Depression. Domestic and
international trade has stalled save for trade in pharmaceuticals,
protective equipment and other life-saving essentials as countries have
closed their borders in an effort to contain the spread of the coronavirus.
<http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

Steelmakers resumes operations   

REDCLIFF-based manufacturer, Steelmakers, has resumed operations on a lower
scale following Government's waiver of total lockdown on key industries. The
company had ceased operations at the commencement of the initial 21-day
lockdown on March 30, as a measure to curb the spread of the coronavirus.
The pandemic has resulted in the global economy coming to a standstill. In
an interview, Steelmakers operations director, Mr Alamwar Upendra, said the
company had resumed production. <http://www.bulls.co.zw/> Read more >

Edgars, Jet file for voluntary business rescue   

Struggling retailer Edcon, which owns Edgars and Jet, is set to commence
with voluntary business rescue proceedings according to a letter sent by its
CEO Grant Pattison to creditors and suppliers. The letter is dated April 29.
In the letter, Mr Pattison writes that about R2 billion in lost sales due to
the nationwide lockdown caused by the coronavirus pandemic had consumed the
group's remaining cash. The R2,7 billion in cash provided to the retailer
during its last restructuring had been "substantially utilised" in funding
the losses for the financial years ended March 2019 and 2020.
<http://www.bulls.co.zw/> Read more >

New rent regulations gazetted   

President Mnangagwa has invoked his temporary powers to allow rent payments
for residential property and mortgage payments to be deferred during the
lockdown because many people are not earning income during the period.
Deferred rent for residential property or deferred mortgage payments have to
be made when the lockdown ends, but in three equal monthly payments for each
month of lockdown. So, if the lockdown lasts two months, the tenant has six
months to make the back payments of the unpaid rent, and if it lasts three
months, the tenant has nine equal monthly payments to pay the backdated
rent. These payments become due in the month immediately following the month
during which, or at the end of which, the lockdown ends, but legal
proceedings can only start 14 days after the due date.
<http://www.bulls.co.zw/> Read more >

RBZ staffers in soup over leaked 'classified' document   

TWO Reserve Bank of Zimbabwe (RBZ) economists have appeared in court for
leaking a confidential document on the de-dollarisation of the economy to
unauthorised persons, resulting in it going viral on social media. Smart
Manda (44) and Philton Makena (40) were charged with contravening Section 60
(1) of the RBZ Act Chapter 22:15 which requires "preservation of secrecy by
bank employees." The two appeared before Harare magistrate Mrs Vongai
Muchuchuti-Guwuriro, who freed them on $2 000 bail each with the State's
consent. As part of their bail conditions, the pair was ordered to report
once a week to police, not to interfere with witnesses and to reside at
their given addresses until the matter is finalised.
<http://www.bulls.co.zw/> Read more >

Indaba to seek solution to price hikes   

Some retailers have reduced prices in line with a moratorium announced by
the Government while others continue to increase prices beyond the reach of
many, Industry and Commerce Minister Dr Sekai Nzenza has said. A meeting
involving the Government, manufacturers, wholesalers and retailers, has
since been scheduled to find lasting solutions to the price issue. Prices
started going up rapidly in mid-March as rumours started circulating that
Zimbabwe was headed for a 21-day lockdown to prevent the spread of
coronavirus. <http://www.bulls.co.zw/> Read more >

Tobacco fetches US$4/kg on opening day   

The 2020 tobacco marketing season opened yesterday, amid calls for farmers
to draw lessons from the lucrative and successful tobacco industry and apply
their skills towards production of other crops to boost food production and
uplift the people's livelihoods. Tobacco is largely funded through private
contractors and loans, and tobacco farmers are considered among the most
skilled in Zimbabwe, hence the calls for them to expand operations into
other crops and for other farmers to emulate their skills. Lands,
Agriculture, Water and Rural Resettlement Minister Perrance Shiri opened the
selling season at Tobacco Sales Floor (TSF) at a ceremony witnessed by his
deputies - Cdes Vangelis Haritatos and Douglas Karoro - Tobacco Industry and
Marketing Board (TIMB) officials, farmers' unions, merchants and some
farmers. Minister Shiri announced the opening price of US$6 per kg, with the
first bale selling at US$4 per kg. <http://www.bulls.co.zw/> Read more >

Tobacco industry must allay farmer fears   

The 2020 tobacco marketing season opened yesterday, starting with the
auction sales and the larger contracted crop following. Farmers are always
nervous over two factors they cannot control, the weather and the prices
buyers will pay. Having managed, despite the far-from-ideal rainfall this
season, to produce a respectable crop, farmers are now biting their nails
over prices. Controls required to combat Covid-19 make this nervousness far
more severe, since most growers are not allowed to be physically present
when their bales are sold. Changes brought to this year's marketing season
mean most farmers will neither be able to escort their crop nor witness the
price determination process. They will have to contend with a single
representative for hundreds of individuals to keep numbers at the floors to
bare minimums. <http://www.bulls.co.zw/> Read more >

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

REST OF AFRICA

Counters Trading Under Cautionary

 Bindura Nickel Corp

CBZH

Dawn

Delta

Falgold

Fidelity

MedTech

Meikles

Turnall

Unifreight

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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