Bulls n Bears Investors Notebook Issue 537: 16 July 2020

Thu Jul 16 07:07:53 CAT 2020

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Bulls n Bears Investors Notebook Issue 537: 16 July 2020

 <mailto:info at bulls.co.zw> 

Bulls 'n Bears Investors Diary: Today's Events

BAT

AGM

Cresta Lodge, Msasa

16 July 2020 | 10am

African Sun

AGM

Virtual

16 July 2020 | 12pm

Quotable Quote:

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

Shutdown of Zimbabwe exchange seen as risk to new bourse

The government shuttered the Zimbabwe Stock Exchange on June 28 as part of
an effort to stabilise its collapsing currency. Government also wants Old
Mutual to be de-listed.  The measures undermine investor confidence in
government proposals to start a foreign-exchange denominated stock exchange
in Victoria Falls, according to analysts. Zimbabwe's closing of its stock
exchange risks upending plans to start a new equity market in the northwest
of the country, according to Renaissance Capital. The government shuttered
the Zimbabwe Stock Exchange on June 28 as part of an effort to stabilise its
collapsing currency. Since then, the nation's ruling party has demanded the
listing of Old Mutual, the biggest company by market value, be terminated
because the insurer's share price is used to determine a future rate for the
Zimbabwean dollar.  <http://www.bulls.co.zw/> Read more >

Budget: Govt needs to promote Zimdollar use   

Finance and Economic Development Minister Professor Mthuli Ncube, is today
expected to present the 2020 Mid-Term Budget Review that economic players
say should focus on measures that create an appetite for the Zimbabwe
dollar, a move that will stabilise the exchange rate, economic agents have
said. The Reserve Bank of Zimbabwe has been running foreign currency
auctions for the past four weeks with the local unit settling at $68,8 to
US$1 during Tuesday's sale. The 2020 mid-term budget review statement is
coming at a time the economy is facing headwinds on several fronts with the
Covid-19 pandemic coupled with a sharp fall in exchange rate, and a spike in
inflation making the 2020 National Budget Statement presented in November
last year academic.  <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

Banks have capacity to lend corporates   

Local banks have significant financial capacity to lend to corporates that
require working capital to support recovery from the Covid-19 pandemic,
recent economic research findings have revealed. The latest available
banking sector statistics show the sector has potential to play a key role
in supporting the recovery of the corporate sector from the impact of
Covid-19, the Zimbabwe Economic and Policy Research Unit (Zeparu) said. "At
38,82 percent against a benchmark of 70 percent, the loan-to-deposit ratio
suggests that banks have room to increase credit for those companies that
may need working capital," Zeparu said in its Economic Barometer Volume 21.
<http://www.bulls.co.zw/> Read more >

Tobacco firm unveils $660m inputs scheme   

One of the country's major tobacco contract companies, Ethical Leaf Tobacco,
has unveiled a $660 million input facility called the Gold Class Scheme. The
scheme, which was launched on Friday last week, is fragmented into four
groups namely gold class for farmers who produce 1 000kg and above, diamond
700kg, silver 500kg and bronze for those producing less than 500kg. The
company's group managing director Andrew Mupfawa, said the launch was
historic. "This is a historic moment for Ethical Leaf Tobacco and the
indigenous owned tobacco contract farming sector, because of the fact that
no other indigenous company has launched an input scheme this huge," he
said.  <http://www.bulls.co.zw/> Read more >

TelOne centre reduces service disruptions   

In a move that will result in a significant reduction in internet service
disruptions, TelOne has launched a Network Operations Centre (NOC). The
central facility will work to support the infrastructure and services
provided by the state-owned entity as it involves detecting and resolving
service incidents and issues, thus assisting in the reduction of network
downtime. Managing director Chipo Mtasa, said the facility is an extension
of the wider National Broadband Project.  <http://www.bulls.co.zw/> Read
more >

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

June inflation races to 31,66pc as prices of goods skyrocket   

Prices of goods and services in the country skyrocketed in the month of June
with the month-on-month inflation rate for the month racing to 31,66
percent, according to Zimstat. This is a gain of 16,53 percentage points on
the May 2020 rate of 15,23 percent. However, the widely used year on year
inflation rate for the period under review as measured by all items Consumer
Price Index (CPI) stood at 737,26 percent, which is lower than the May rate
of 785,55 percent. The CPI continued on an upward trajectory closing at 1
445,21 for the month ending June 2020 compared to 1 097,65 in May 2020 and
172,61 in June 2019.  <http://www.bulls.co.zw/> Read more >

'Mid-term budget need to tackle economic shocks'   

FINANCE and Economic Development Minister Professor Mthuli Ncube will today
present the Mid-Term fiscal policy statement with business leaders stressing
the need to address the economic shocks inflicted by the Covid-19 pandemic
and exchange rate volatility. Zimbabwe's economy like the rest of the globe
has been adversely affected by the pandemic which has seen many countries
enforcing lockdowns as part of measures to curb the spread of the pandemic.
The situation in Zimbabwe has been compounded by the drought which has
resulted in shortages of raw materials to produce basic commodities. It is
against this background that the private sector expects Government to come
up with strategies to address some of these challenges that are not just
threatening the viability of businesses but are also affecting consumers who
are grappling with shortages and price increases. Government has announced
an ZW$18 billion stimulus package and ZW$1 billion of this amount will be
channelled to industry.  <http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

Best farm model earns ZimTrade global award   

ZIMBABWE'S trade development and promotion agency, ZimTrade, has been
nominated for the World Trade Promotion Organisation (WTPO) awards in
recognition of its outstanding efforts in developing and facilitating the
country's exports. This is the first time ZimTrade and the country have been
nominated for such an award. In a statement, the trade development and
promotion organisation said it has been nominated under the "Best Use of
Partnership" category. "ZimTrade, the national trade development and
promotion organisation, has been nominated for the WTPO awards in
recognition of its contribution to the development and facilitation of
Zimbabwe's exports," it said.  <http://www.bulls.co.zw/> Read more >

Freda Rebecca complies with cadestre system   

GOLD mining company, Freda Rebecca has started a process of updating its
tribute claims and has invited tributors to submit their records. The mining
company has allocated some of its land to individuals, syndicates, trusts
and companies to mine on its behalf. In a public notice, Freda Rebecca said
the tributors should ensure that their claim records were submitted by the
5th of next month. "The mine is in the process of updating the electronic
tribute claims records.  <http://www.bulls.co.zw/> Read more >

Mining group commends Govt   

ZIMBABWE mining group, Premier African Minerals, which owns RHA Tungsten
project in Hwange, has commended the Government for facilitating progress
towards operationalising the tungsten investment.In 2019, Premier announced
that it had signed an agreement with the National Indigenisation and
Economic Empowerment Fund (NIEEF), and the deal was expected to see
Government advancing US$6 million to commence production at the RHA Tungsten
project. The mining group holds 49 percent in RHA Tungsten mine while the
Government, through NIEEF, controls 51 percent. Early this year, the mining
group announced that NIEEF was re-evaluating its ongoing involvement in the
RHA Tungsten project.  <http://www.bulls.co.zw/> Read more >

POSB seeks shareholder approval for $17mln dividend payment   

THE People's Own Savings Bank (POSB) directors are seeking shareholder
approval for dividend payment amounting to ZWL$17,9 million. According to a
notice on the financial institution's Annual General Meeting slated for the
end of the month, POSB said,among other resolutions wound be: "To approve
that a dividend of ZWL$0,7661 per share totaling ZWL$17,889,385,00 be
payable to the shareholders for the year ended 31st December, 2019 as
proposed by the directors." In the six months period ended June 30, 2019,
the bank posted a net profit of $24,70 million up from $8,11 million
recorded in the comparative period ended June 30, 2018. Net operating income
for the half year increased by 99 percent to $43,33million from $21,74
million achieved in 2018, attributed to fair value gain on investment
properties.  <http://www.bulls.co.zw/> Read more >

New bridge boosts Mash Central economy   

Mashonaland Central is set to become the centre of economic activities
following yesterday's commissioning of the $16 million Pembi Bridge in
Mvurwi by President Mnangagwa to boost road transport. The commissioning set
the tone for the province's enhanced tapping into its rich mineral,
agriculture and tourism resources in line with Vision 2030. Pembi Bridge
replaces the old low lying single-carriage bridge constructed around 1974
that was making road transport very difficult and effectively unfriendly to
investment. In a speech read on his behalf by Vice President Kembo Mohadi,
President Mnangagwa stressed that the provision of modern infrastructure was
essential in facilitating the country's economic growth and drive to become
a middle income economy.  <http://www.bulls.co.zw/> Read more >

Tips on business evolutions   

Businesses are valued to address acquisitions, mergers, shareholding
disputes, divorce litigation, admission of new partners, estate
administration, etc. Business valuation is judgemental and can be complex.
The estimated values can vary considerably depending on methods, data and
assumptions used. Value has different meanings. For example enterprise value
("EV") is the total value of the business assuming no debt while value to
ordinary shareholders is EV minus debt. The most common valuation methods
are the market approach, earnings approach and asset approach.
<http://www.bulls.co.zw/> Read more >

Tiger appoints new CFO   

Tiger Brands announced yesterday that Deepa Sita has been appointed as its
new chief financial officer. Sita is currently serving as vice president of
integration and strategy at Massmart Wholesale. The chartered accountant,
who holds an MBA from the Gordon Institute of Business Science, will be
taking over the reins from acting CFO Pamela Padayachee. Padayachee was
appointed in an acting capacity on February 1. She will continue in this
role until September 30, after which she will assume a senior finance role
in the company, a notice to shareholders read.  <http://www.bulls.co.zw/>
Read more >

INVESTORS DIARY 2020

Company

Event

Venue

Date & Time

BAT

AGM

Cresta Lodge, Msasa

16 July 2020 | 10am

African Sun

AGM

Virtual

16 July 2020 | 12pm

Masimba

AGM

Virtual

21 July 2020 | 12pm

Proplastics

AGM

Virtual

23 July 2020 | 10am

NMB

AGM

Virtual

28 July 2020 | 10am

FMP

AGM

Ground Floor, First Mutual Park, 100 Borrowdale Road, Borrowdale

29 July 2020 | 9:30am

FML

AGM

Ground Floor, First Mutual Park, 100 Borrowdale Road, Borrowdale

29 July 2020 | 11:30am

ZBFH

AGM

Board Room, 21 Natal Road, Avondale

30 July 2020 | 10:30am

OK Zimbabwe

AGM

Virtual

30 July 2020 | 3pm

ZHL

AGM

virtual

31 July 2020 |

Delta

AGM

Virtual, Head Office, Northridge Close, Borrowdale

31 July 2020 | 12:30pm

Zimbabwe

National Heroes Day

Zimbabwe

10  August 2020

Zimbabwe

Defence Forces' Day

Zimbabwe

11  August 2020

CBZ

AGM

Virtual

14  August 2020 | 6pm

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 

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

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