Bulls n Bears Investors Notebook Issue 498: 18 May 2020

Mon May 18 10:23:50 CAT 2020

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Bulls n Bears Investors Notebook Issue 498: 18 May 2020

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Bulls 'n Bears Investors Diary: Today's Events

Quotable Quote:

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

Kombis To Go For Good: Government Says Private Kombis Will Remain BANNED
Even After Lockdown

The government has dealt a huge blow to commuter omnibuses, Kombis in local
parlance, after announcing that they will not be allowed back on the roads.
According to the government, the kombis will remain banned even after the
lockdown has ended because the government wants to bring sanity to the
transport sector. The weekly publication the Sunday News reports that Local
Government and Public Works Minister July Moyo confirmed to the publication
that the ban on private commuter omnibuses will be made permanent. The only
way the kombis will be allowed to operate is if they register with and fall
under the Zimbabwe United Passenger Company (Zupco).
<http://www.bulls.co.zw/> Read more >

High Court Says USD Debts Must Be Paid In USD

In a potentially far-reaching judgment, the High Court has declared INVALID
the RBZ Exchange Control Directive No. R120/2018. The directive which
created FCA "nostro" accounts (as distinct from "RTGS" accounts) was
declared unconstitutional on the grounds that it's irrational to change the
currency of a bank account by simply renaming it. This means that USD debts
have to be paid in USD. This comes after Penelope Douglas Stone from The
Stone/Beattie Studio represented by Tendai Biti took CABS, RBZ and ministry
of finance to court over a US$142 000 deposit.  <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

'Zim can outpace South Africa'   

Zimbabwe has potential to be an investment hub for platinum mining ahead of
South Africa, which can enhance export earnings and drive economic growth,
according to analysts. Fermain Limited mining and finance officer, Roy
Pitchford, said the country's platinum deposits are shallow and easy to
extract as compared to South Africa. Mr Pitchford is a mining expert who
sits in numerous boards of local and foreign mining giants. In South Africa,
deposits start at about 3 000 metres deep against 800 metres in Zimbabwe,
which gives the country a competitive advantage over neighbours on the other
side of Limpopo. <http://www.bulls.co.zw/> Read more >

ZSE capitalisation hits $83bn   

The Zimbabwe Stock Exchange (ZSE) reached an all-time market capitalisation
high last Thursday  as the stock market remained the most rewarding and easy
to access market for cash rich investors. The ZSE has been bullish for most
part of the year and last Thursday reached a market capitalisation of $83,8
billion, an all-time high in local dollar terms. In real terms, the equity
market is now valued at US$3,35 billion using the pegged exchange rate of 25
and US$1,67 billion using a parallel market rate of 50. The local currency
has been on a downward path and is now worth only 2 percent of its value
from a fixed rate of 1:1 before February 22, 2019.
<http://www.bulls.co.zw/> Read more >

SMEs eligible for Covid-19 tenders: Minister   

Government has assured small companies of fair treatment during tendering
processes as it tightens screws around procurement of items required in the
fight against Covid-19. Recently, Cabinet agreed that only "reputable and
established companies" will be contracted to supply Covid-19 materials but
small genuine companies are still eligible since the ban is for briefcase
companies without premises and without a track record. In an interview,
Women Affairs, Community, Small and Medium Enterprises Development Minister
Sithembiso Nyoni, said all companies that meet the criteria will have equal
opportunities to secure tenders.  <http://www.bulls.co.zw/> Read more >

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

SA's Impala closes mine due to coronavirus cases   

JOHANNESBURG. - South Africa's Impala Platinum said at the weekend it would
temporarily close its Marula mine after detecting 19 coronavirus cases among
workers reporting back for duty at the site in northern Limpopo province.
"Implats has identified 19 positive cases during the week, all of them
asymptomatic. Of these cases, 14 were identified as the result of proactive
testing of employees returning to work. None of these employees had started
work at the mine," the company said in a statement. It said the site would
not reopen until the appropriate health measures had been put in place.
<http://www.bulls.co.zw/> Read more >

$18bn should prioritise economic stability: CZI   

Government should prioritise economic stability and proceed with extreme
caution, ready to stop if evidence on the ground suggests that its $18
billion stimulus package may cause macroeconomic instability, according to
Confederation of Zimbabwe Industry (CZI). The private sector says even
before the outbreak of Covid-19 and subsequent lockdowns, the economy was
already "walking a macroeconomic tightrope" and finding a solution to the
already established challenges should not be overlooked in favour of dealing
with impact of the pandemic. As such, the CZI called for careful calibration
of the multi-billion dollar stimulus package and reorientation of existing
policies to reboot the economy and avoid potentially devastating implosion.
<http://www.bulls.co.zw/> Read more >

 <mailto:info at bulls.co.zw> 

Edgars skates struggling Edcon   

Sometimes brilliant business decisions are just that, brilliant; sometimes
they are just luck. The acquisition of Edgars Limited by Mauritian
investment management firm SSCG Africa Holdings last year was part of a
restructuring of the former's South African parent company Edcon Holdings.
Two weeks ago Edcon filed for administration after losing 2 billion rand in
sales and failing to pay suppliers due the coronavirus imposed lockdown in
that country. But the signs had been written on the wall for quite some time
now.  <http://www.bulls.co.zw/> Read more >

Business can't simply awake from this coma, carry on   

When the pandemic hit, there was widespread hope that economies would be
able to reopen after a month or two of lockdown. Businesses would be placed
into an induced coma, stay intact over the period of the lockdown and start
production quickly when it was lifted. With this in mind, rich countries
supported their small and medium-sized enterprises with grants or wage
subsidies, and their large companies with cheap loans. While expensive, the
logic went, it would only be for a short while. This view may be overly
optimistic. Business reopening looks likely to be long drawn out, certainly
in high-contact sectors like travel and hospitality, but even in
manufacturing where supply chains need to be synchronised. Companies cannot
be simply woken up from their coma. Many will have to change what they do
and how they do it. A number will be unviable. <http://www.bulls.co.zw/>
Read more >

NetOne probe on board members widens   

Police have widened the probe into alleged criminal abuse of office by
NetOne acting chairperson Susan Mutangadura to include another board member
Dr Ranga Mavhunga, whose company FMC Finance is alleged to have entered into
a business partnership with the State-owned mobile operator without
declaring his interests. Already, the police are keen to investigate alleged
criminal abuse of office by Mutangadura, who last week filed an urgent
chamber application seeking to block the investigators to have access to
company's documents related to the appointment of Retired Justice Moses
Chinhengo, her business associate to preside over the disciplinary hearing
of Lazarus Muchenje who was suspended in February this year.
<http://www.bulls.co.zw/> Read more >

Business backs lockdown extension   

Business leaders yesterday supported President Mnangagwa's decision to
extend the national Covid-19 lockdown indefinitely but at level two with
periodic reviews fortnightly, saying the policy would save both lives and
the economy. The national lockdown has helped the country keep the number of
Covid-19 confirmed cases at low levels but the Government has, by moving up
from level four to level two, allowed large swathes of the economy to reopen
under tight conditions that minimise risk. Confederation of Zimbabwe
Industry president Mr Henry Ruzvidzo said industrialists were supportive of
the move to avoid worst situations as witnessed in the United States and
Europe.  <http://www.bulls.co.zw/> Read more >

Talks to review data prices for e-learning ongoing   

Talks between Government and mobile phone operators are underway with a view
to reduce the price of data bundles to cater for e-learning during the
Covid-19 national lockdown period. Education has been affected by the
lockdown, as students are unable to go back to school so as to minimise the
spread of the disease, prompting calls for the education sector to adopt
e-learning. There have been concerns over high data prices in Zimbabwe, amid
fears many students will be unable to take part in e-learning.
<http://www.bulls.co.zw/> Read more >

Vendors selling underweight maize meal packs   

Vendors selling roller meal on the black-market are now adding to their
crimes by stealing some of the meal before selling underweight packs.
Unsuspecting buyers are already paying around double the subsidised $70
price for a 10kg bag, often having to pay US$4 in foreign currency. Informal
traders use queuers to get stock when supplies arrive at shops. And now
buyers of roller meal find they are getting around 9kg, or even less in some
cases, as vendors carefully open the bag and scoop out a portion before
selling the rest in the resealed bag. In recent weeks efforts have been made
to try and ensure that roller meal is sold in local shops to households, but
it is difficult to exclude those who queue, sometimes after being tipped off
by friends on the shop staff, to buy bags for resale in the black market.
<http://www.bulls.co.zw/> Read more >

Screws tightened on second-hand clothes imports   

Smugglers bringing second-hand clothes threaten programmes to contain
Covid-19, police have said. Masvingo provincial police spokesperson
Inspector Charity Mazula said people must understand the impact of Covid-19,
and stop smuggling second-hand clothes since they may potentially spread the
virus. "People need to understand that this disease is real and we will all
die if we allow people through the border line," said Insp Mazula. While the
neighbouring countries do not have too many cases of coronavirus, the
clothes which come mainly from Europe and the United States, may potentially
carry the virus, which is why Government is determined to block the threat.
<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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