Bulls n Bears Investors Notebook Issue 471: 27 March 2020

Fri Mar 27 04:39:55 CAT 2020

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Bulls n Bears Investors Notebook Issue 471: 27 March 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

Zimbabwe cuts rates, fixes exchange rate in fight against coronavirus

(Reuters) - Zimbabwe's central bank cut its main lending rate to 25% on
Thursday and set a fixed exchange rate as part of measures to support the
economy against the coronavirus pandemic. John Mangudya, the central bank's
governor, said in a statement that the bank's monetary policy committee had
decided to cut the main lending rate from 35% and expected banks to cut
lending rates to customers affected by the coronavirus.
<http://www.bulls.co.zw/> Read more >

Zimbabwe reintroduces US dollar amid coronavirus panic

Zimbabwe's government has reintroduced the use of foreign currency as a
stabilising measure as the coronavirus pandemic strikes. Zimbabwe's central
bank has reintroduced the use of foreign currency for the purchase of local
goods and services exactly eight months after it instituted the exclusive
use of the Zimbabwe dollar for local transactions. In a statement released
on Thursday evening, central bank governor Dr John Mangudya said the move
was in response "to the financial vulnerabilities caused by the Covid-19
pandemic". <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

Energy Mutodi pushes for Domboshava to be an urban zone

The Deputy Minister of Information, Media, Publicity and Broadcast services
Dr Energy Mutodi has called on Local Government authorities to turn
Domboshava into an urban zone. Domboshava is classified as a rural district
council area under Goromonzi West constituency. Several urban dwellers have
migrated to Domboshava due to low rental and affordable land in the area as
it is still classified under the rural district council. Dr Mutodi said,
"People are selling land in Domboshava. These sales have been going on for a
long time and that explains why Domboshava has become overpopulated".
<http://www.bulls.co.zw/> Read more >

Free funds usage relaxed, exchange rate fixed   

The official exchange rate has been fixed at $25 to US$1 for the duration of
the Covid-19 emergency by the Reserve Bank of Zimbabwe (RBZ) to stabilise
prices while holders of free funds now have an option to pay for goods and
services in foreign currency. Regulations banning compulsory forex payments,
however, remain in force. To provide further relief to the public, the RBZ
agreed with banks to suspend increases in charges for all electronic
payments during the emergency and was now engaging mobile network providers
to reduce their charges to promote electronic banking.
<http://www.bulls.co.zw/> Read more >

Telcoms revenue jumps 181 percent   

The telecommunications industry's annual revenue for year 2019 surged 181
percent to $4,5 billion compared to $1,6 billion recorded in the prior
driven by inflation induced price hikes. Last year Zimbabwe experienced
rapid price increases for goods and services across sectors as inflationary
pressures set in. The telecoms sector was not spared. According to
regulator, the Postal and Telecommunications Regulatory Authority of
Zimbabwe (Potraz), the sector recorded both growing revenues as well as
rising operating costs during the year. Average quarter on quarter revenue
growth was 87 percent against operating cost growth of 90 percent. During
the year under review, annual operating costs hit $3,3 billion from US$974
million recorded in 2018.. <http://www.bulls.co.zw/> Read more >

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

Bulawayo embraces partial shutdown   

Bulawayo companies have embraced the initiative to partially shut-down
operations as part of measures to curb the spread of Covid-19 (coronavirus)
in the country. Confederation of Zimbabwe Industry (CZI) national vice
president, Joseph Gunda, confirmed yesterday that some city companies have
opted to temporarily suspend operations. "We are observing and seeing what's
happening because this is a pandemic that no-one can predict. It's a very
difficult situation we are in. As we are speaking some companies also have
taken the approach to lock-down and its dependent on each individual
companies to set themselves regarding the directive given by His Excellence
our President (Mnangagwa) and also the guidelines from WHO (World Health
Organisation) in terms of gatherings," he said. <http://www.bulls.co.zw/>
Read more >

Poor liquidity hits National Foods farming scheme   

Agri-industrial concern, National Foods Holdings Limited (NatFoods), says
poor liquidity has had a knock on effect on its contract farming projects,
although the agro-processing giant is continuing its support to increase
food production in the country. As such, support for the contract scheme was
lower in 2019 as compared to the prior year. During the 2019 winter wheat
season the NatFoods funded 2 495 hectares of local wheat that produced 10
374 tonnes. "The group continues to support local farming, although the
schemes were heavily curtailed compared to last year due to the shortage of
bank funding on the back of constrained market liquidity," said chairman
Todd Moyo in a statement accompanying the group's financials for the half
year to December 31, 2019. <http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

Demand for property soars   

FIRMS in the real estate sector say demand for properties continues to rise
as individuals and companies seek sanctuary in property assets to hedge
against spiralling inflation. On the other end property owners are said to
be holding on to their properties amid strong fears that they might not be
able to replace them due to the continuous price increases. Zimbabwe's
inflation has been on an upward trajectory since the implementation of a
myriad of monetary and fiscal reforms by the Government and the Reserve Bank
of Zimbabwe last year. As it stands, inflation has climbed to over 500
percent as of February 2020 compelling individuals with huge sums of money
to invest it in property so as to maintain the value of their money.
<http://www.bulls.co.zw/> Read more >

30-day financials reprieve for listed firms   

The Zimbabwe Stock Exchange (ZSE) has given a 30-day reprieve to listed
firms whose publication of financial results was initially due the end of
this month, as businesses across sectors have been severely disrupted by the
outbreak of the coronavirus (COVID-19). This means companies whose half year
or full year results to December 31, 2019 that were supposed to release
results by March 31, 2019 can now do so by April 30, 2019. This also comes
as listed companies have been issuing cautionary statements warning that
they may not be able to meet financial reporting deadline of March 31, due
to disruptions caused by Covid-19, prompting the local bourse to issue out
another 30 days for companies to finalise their financials.
<http://www.bulls.co.zw/> Read more >

Mine loses land dispute   

PINKSTONE Mining (Pvt) Ltd's request to have an interim interdict granted
against LafargeHolcim Cement Zimbabwe from mining lime on a piece of land in
Pfura Rural District in Mashonaland Central Province has failed after the
High Court turned down the injunction confirmation. The interim relief in
March 2018 was granted following an application by Pinkstone Mining, African
Mills and Minerals and Timothy Matangi, a director in both companies,
claiming ownership to the piece of land. An interim interdict is a
restoration of the specific scenario until a final decision relating to the
rights of the parties can be made by the court. <http://www.bulls.co.zw/>
Read more >

Airzim suspends flights   

Air Zimbabwe (Airzim) has cancelled all regional and domestic flights with
immediate effect to combat the spread of coronavirus. In a travel advisory
issued yesterday, the national airline said one flight, which was scheduled
for March 28, will fly to Dar es Salaam to assist returning residents. The
decision to suspend flights is in line with directives on travel
restrictions issued by Government to curb person-to-person contact and
spread of the coronavirus. <http://www.bulls.co.zw/> Read more >

Failure to switch off street lights bleeds city   

Lack of basic switches to turn off street lights during the day maybe
costing Harare City Council thousands of dollars monthly. The Herald
observed that street lights in Harare's central business district (CBD)
were always switched on during the day. Further, in residential areas when
there is no Zesa load-shedding, tower lights are always on.  In most cases
where tower lights are off, it's either due to a mechanical fault or the
bulbs have reached the end of their lifespan. The most affected suburbs are
Warren Park, Southerton, Highfield, Kuwadzana, Mufakose, Tafara, Chitungwiza
and Budiriro. Years of neglect have led to the deterioration of street
lighting in the city. <http://www.bulls.co.zw/> Read more >

Industry hails ZIDA appointments   

Captains of industry and investors have lauded President Mnangagwa's
appointment of top executives from the private sector to head the new
Zimbabwe Investment and Development Agency (ZIDA). The appointees bring in a
wealth of experience that enables them to articulate investors' concerns.
ZIDA has the mandate to ensure that Government's policy on ease of doing
business is implemented in the new one-stop environment in line with the
"Zimbabwe is Open for Business" policy. Mr Busisa Moyo, the CEO of United
Refineries, was appointed advisory board chair, while Mr Douglas Tawanda
Munatsi, a top private sector investment executive, is the new ZIDA chief
executive officer.  <http://www.bulls.co.zw/> Read more >

SA lockdown slows local firms   

THE 21-day lockdown in South Africa due to the outbreak of Covid-19 is
likely to constrain local industry operations as the country depends on
imports from the neighbouring country, the Confederation of Zimbabwe
Industries (CZI), has said. Already local companies have started adjusting
their operations in line with protective guidelines with some Bulawayo firms
opting for a temporary shutdown or partial closure. CZI national vice
president, Mr Joseph Gunda, confirmed yesterday that some city companies
have opted to suspend operations. "We are observing and seeing what's
happening because this is a pandemic that no-one can predict. It's a very
difficult situation we are in. As we are speaking some companies also have
taken the approach to lockdown and its dependent on each individual
companies to set themselves regarding the directive given by His Excellency
our President (Mnangagwa) and also the guidelines from W.H.O (World Health
Organisation) in terms of gatherings," he said. Given that South Africa is
Zimbabwe's biggest trading partner where the local industry secures most of
its raw materials, Mr Gunda said the lockdown in the neighbouring country
will force many local firms to also lockdown. <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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