Bulls n Bears Investors Notebook Issue 549: 04 August 2020

Tue Aug 4 06:01:44 CAT 2020

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Bulls n Bears Investors Notebook Issue 549: 04 August 2020

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

Bulls 'n Bears Investors Diary: Today's Events

Quotable Quote:

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

Sober bears as bourse opens

The growing success of the foreign currency auctions to stabilise exchange
rates and the consequent dramatic lowering of inflation expectations were
reflected on the Zimbabwe Stock Exchange (ZSE) yesterday when it restarted
trading following a five-week suspension. When trading was suspended, the
ZSE had seen a prolonged bull run as investors saw equities as a hedge
against rising inflation. But yesterday sober bears moved in although falls
in prices were generally small, averaging close to 5 percent with a similar
drop in total market value from $228 billion recorded on 26 June to $218
billion.  <http://www.bulls.co.zw/> Read more >

Exchange rates head for convergence: CZI   

Zimbabwe is slowly heading towards convergence of the official and parallel
market exchange rates, as premiums between the US dollar and local currency
fall, industry has said in a research note. With the formal or auction rate
drifting from $73 to round about $76 to the greenback, the hugely positive
measures taken by the central bank to protect the local currency, have seen
the black market rate glued at US$1 to $90-95 for over five weeks now.
Industrialists have, however, warned against the potential risk of money
supply growth, excessive Government expenditure (including salaries), the
Covid-19 pandemic, inflation and drifting too deep back into multicurrency,
on rate stability.The Zimbabwe dollar, which has taken heavy battering and
lost significant value against the greenback since being reintroduced last
year, has only seen gradual and modest depreciation since the foreign
exchange auction was introduced in June.  <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

100pc salary increment for mine workers   

The Chamber of Mines of Zimbabwe (CoMZ) has agreed to effect a slightly over
100 percent salary increment for mine workers as the mining companies'
representative body moves to cushion workers against inflation. The salary
adjustment is applicable for the third quarter (July 1 to September 30,) and
will see the least paid mine worker getting $14 750 per month. Prior to this
agreement, the least paid worker was getting $7 000. Of the new wage rate,
the equivalent of US$95 will be paid in local currency at the prevailing
interbank exchange rate, which stood at $76,70 to the US dollar as of the
last foreign currency auction.  <http://www.bulls.co.zw/> Read more >

Motorists plead for fuel dual pricing   

Government should come up with legislation that makes it mandatory for
service stations to sell fuel in both foreign and local currency in line
with the prevailing exchange rate, motorists have said. The dual pricing
system, motorists say, would make it easy for people without access to
foreign currency, especially the United States dollar, to also purchase fuel
from any service station based on the prevailing rate. As of yesterday in
Gweru, only foreign currency service stations had fuel, while pumps were dry
at those selling in local currency. This has seen motorists without access
to foreign currency, including the majority of public workers, parking their
vehicles due to non-availability of fuel.  <http://www.bulls.co.zw/> Read
more >

Fresh fuel shortages hit country

FRESH fuel shortages have hit the country and in Bulawayo most service
stations have been dry for the past week. A Chronicle news crew took to the
streets of Bulawayo and observed motorists queueing for refills while at
some service stations there was no fuel. The Chronicle observed over the
past few days that Zimbabwe Prisons and Correctional Services vehicles,
Public Service Commission buses and other Government department vehicles
were also in long fuel queues. Government last month said it was mulling a
fuel facility for essential services and civil servants, but that has not
been effected yet.At service stations the price for petrol was US$$1,28
petrol and US$1,15 for diesel while in local currency it was ranging from
$72 to $84 for petrol and from $64 to $72 for diesel.
<http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

Tobacco sector remains firm despite Covid-19   

Zimbabwe's tobacco production is expected to stand firm in the next cropping
season despite some major markets imposing restrictions on movement, closing
borders and in the case of South Africa banning cigarette sales. Even though
the Zimbabwe Farmers Union and the Tobacco Industry and Marketing Board
(TIMB) could not readily give projections on the likely impact of Covid-19
on tobacco production, the bodies say they don't expect drastic changes in
the country's output. Tobacco farmers and tobacco auctions were exempted
from the lockdown and curfew regulations.  <http://www.bulls.co.zw/> Read
more >

White farmers compensation explained   

The Global Compensation Deed agreement between the Government and white
former farmers whose land was expropriated under land reform makes it clear
that there will be no compensation for the land itself, but, as laid down in
the Zimbabwean Constitution and law, there will be compensation for
improvements, biological assets and land clearing costs. The main sticking
point in the negotiations that led to the agreement was not the land
compensation issue, the farmers having accepted that this was not on the
table, but the actual value of the improvements, with the Government looking
initially at a figure of US$1,2 billion and the farmers at US$5,4 billion.
<http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

Preparations for tobacco season off to flying start   

At least 7 000 tobacco farmers in Mashonaland East and Manicaland have
received inputs from Voedsel Contract Floors as preparations for the 2021
tobacco season gather momentum. The company is targeting to contract 17 000
tobacco farmers from the two provinces. Farmers contracted to Voedsel
Contract Floors who spoke to The Herald, paid tribute to the company for
assisting with inputs and other support, which would ensure that they
recorded significant yields. Despite the risk of drought, Voedsel Contract
Floors, one of the leading tobacco firms in Mashonaland East has taken the
bold step of supporting the new tobacco farmers saying without inputs there
is no crop potential.  <http://www.bulls.co.zw/> Read more >

Ministry cracks whip on council land deals   

The Ministry of Local Government and Public Works has directed all local
authorities to submit information relating to land deals conducted under the
current crop of Councillors whose tenure expires in 2023. The directive was
issued by Secretary for Local Government and Public Works Mr Zvinechimwe
Churu through a circular addressed to all town clerks and town secretaries
dated July 28, 2020 with the reference "Information on estate management".
He said in light of the numerous, recent cases reported on and uncovered by
investigations, each council was required to submit a number of documents to
the ministry by today, including "a printout from the Estates Account of all
persons paying for land acquired from council".  <http://www.bulls.co.zw/>
Read more >

Bread Price Hike Looming As Zimbabwe Dollar Plummets

Wheat milliers have expressed concern over the depreciating Zimbabwe dollar
which they say is now making it difficult for them to operate. As a result,
they are considering a hike in the price of flour and consequently an
increase in the price of bread. A miller who is a member of the Grain
Millers Association of Zimbabwe (GMAZ), told NewZimbabwe.com that the
foreign currency auction-rate has coincided with a 20 per cent reduction in
the price of flour, a development that has increased production costs.
<http://www.bulls.co.zw/> Read more >

POSB Employees Down Tools

Workers at People's Own Savings Bank (POSB) are on strike over poor
remuneration, with reports claiming that each worker takes home between
ZWL$2 000 - ZWL$3 000 per month. In US dollar terms, this is less than $40
and the situation has left the workers disillusioned as they can no longer
afford the basics such as food and rent.  The Zimbabwe Banks and Allied
Workers Union (ZIBAWU) confirmed the strike action by POSB employees. It
said: POSB workers are on strike from today and customers are stranded in
long queues they are among the worst remunerated and are now failing to pay
rentals, buy food and other necessities.  <http://www.bulls.co.zw/> Read
more >

New pension law on the cards

THE Government has proposed a new law that compels employers to remit
pension contributions deducted from their employees within 14 days of the
end of each month lest they will.
<http://www.bulls.co.zw/2020/08/03/new-pension-law-on-the-cards/> Read more
>

Mining sector adjusts operations amid Covid-19

Mining companies are being forced to adjust their operations so as to remain
afloat despite the threat of Covid-19, as well as keeping focused towards
attaining the US$12 billion mining.
<http://www.bulls.co.zw/2020/08/03/mining-sector-adjusts-operations-amid-cov
id-19/> Read more >

'Women entrepreneurs hardest hit by Covid-19'

WOMEN-LED businesses are more vulnerable to closure than those led by men in
the era of the novel coronavirus, due to women's limited access to finance,
shifts in consumer behaviour,. Read more
<http://www.bulls.co.zw/2020/08/03/women-entrepreneurs-hardest-hit-by-covid-
19/> >.
<http://www.bulls.co.zw/2020/07/27/refurbished-zimalloys-furnace-to-ignite-o
utput/> Read more >

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

FCB

AGM

virtual

06  August 2020 | 3pm

Zimbabwe

National Heroes Day

Zimbabwe

10  August 2020

Zimbabwe

Defence Forces' Day

Zimbabwe

11  August 2020

Old Mutual Zimbabwe

AGM

Virtual

12  August 2020 | 3pm

CBZ

AGM

Virtual

14  August 2020 | 6pm

Lafarge

AGM

virtual

18  August 2020 | 12pm

REST OF AFRICA

Counters Trading Under Cautionary

Africansun

RioZim

CBZH

Turnall

Dawn

Unifreight

Falgold

Zimplow

Zimre

Fidelity

FM Holdings

ZPI

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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