Major International Business Headlines Brief::: 19 January 2021

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Major International Business Headlines Brief::: 19 January 2021

 


 

 


 <mailto:info at bulls.co.zw> 

 


 

 


ü  Will the UK really refuse trade deals over human rights?

ü  Covid-19: China's economy picks up, bucking global trend

ü  Covid: UK closes all travel corridors until at least 15 February

ü  Africa: Can Crypto-Currency Compete With Gold?

ü  Kenya: Good Stock Prices Lure Investors to NSE

ü  Nigeria: Buhari to Inaugurate National Oil, Gas Centre Thursday

ü  Tanzania Securities Limited Recommends Jatu Share Sale

ü  Tanzania: Dse to Remain Vibrant Backed By Banking, Cement Sectors

ü  Tanzania: Nyamirembe Port in Chato Now Ready for Use

ü  Outlook darkens for Wall Street as Biden's regulators take shape

ü  Boeing 737 MAX to get EU flight clearance next week: safety chief

ü  Canada scrambles to salvage Keystone XL as Biden prepares to kill
troubled pipeline project

ü  Epidemics lead world's biggest short-term risks: World Economic Forum

ü  TikTok owner ByteDance launches Douyin Pay, its mobile payment service
for China

ü  India asks Facebook's WhatsApp to withdraw privacy policy update

 


 

 


Will the UK really refuse trade deals over human rights?

The UK is forging its post-Brexit path as a "confident, independent nation -
and an energetic force for good", according to the government.

 

It's free to set trade on its own terms, pursue opportunities and higher
living standards. But can it square profit with principle?

 

Is turning a blind eye to human rights violations worth it to have a trade
deal that knocks a couple of quid off the price of an imported shirt?

 

That New Year's resolution is already being tested, as China falls
increasingly out of favour.

 

Foreign Secretary Dominic Raab has referred to conditions, under which over
a million Uighur Muslims are being held in camps and forced into work, as
"at the worst... torture and inhumane and degrading treatments".

 

He warned that British companies will face fines, if they can't show that
their supply chains are free from forced labour.

 

In December, a BBC investigation revealed thousands of Uighurs and other
minorities have been compelled to toil in the cotton fields of Xinjiang. The
region accounts for a fifth of the world's crop - it's not always easy to
tell where your t-shirt hails from.

 

The UK and Canada have led the charge here, but one wonders how much further
can it go.

 

Mr Raab told the BBC that the UK should not be engaging in free trade
negotiations with countries whose record was "well below the level of
genocide".

 

Determining human rights abuses

There are several issues with this: first, working out who gets to decree
human rights abuses.

 

Amendments to the Trade Bill currently going through Parliament would oblige
the government to assess the human rights records of potential partners.

 

image captionIn July, Dominic Raab accused China of "gross and egregious"
human rights abuses against its Uighur population

One amendment proposes allowing the High Court to declare a genocide in
other countries, and forcing the immediate cancellation of trade deals with
said nations.

 

Mr Raab, however, says the decision to declare a genocide can't, and
shouldn't be, delegated to the courts. Rather, it's for MPs to hold the
government to account over trade deals.

 

But Labour MPs, who have written to their Conservative counterparts urging
them to support the amendments, say they've already been denied powers of
scrutiny.

 

They highlight trade deals rolled over with Egypt, Cameroon and Turkey, with
whom the UK previously enjoyed similar deals the EU had struck.

 

These three countries, they argue, have questionable records on human
rights.

 

And then there's China. The UK is not planning a deal with Beijing and has
indicated it won't do a deal with countries that don't share its democratic
values.

 

But both nations have their eye on joining the wider Trans-Pacific
Partnership (TPP) agreement.

 

With imports and exports worth almost £80bn in 2019, China already scores as
one of the UK's largest trading partners, and it's not just about frocks and
financial services crossing borders.

 

The question of China

Since Xi Jinping and David Cameron famously sipped a pint in a
Buckinghamshire pub in 2015, Chinese investment in the UK has exploded,
backing everything from football clubs to restaurant chains.

 

Now China's appeal has soured, but it may not be easy to back away from
encouraging investment, or a trade deal which touts lower import prices and
greater opportunities for exporters, when the UK economy is already reeling.

 

Take textiles - a free trade deal would do away with a 12% tariff on clothes
hailing from China. Ultimately, trade deals build on an existing - in this
case very lucrative - relationship.

 

Critics argue it's not enough to refrain from boosting ties with nations
with chequered records - they should be lessened.

 

But it's even harder to snub countries that are already providing jobs for
thousands, or items from the frivolous, such as smartphones, to the vital,
like billions of PPE items.

 

Some say the UK has its own issues elsewhere. It resumed the sales of arms
to Saudi Arabia last year, after the government said the method for
licensing had been reformulated to ensure they wouldn't be used in Yemen.
Human rights groups are less sure.

 

Balancing its quest to be a responsible citizen, together with exploring
fresh fortunes, is just one dilemma the UK faces, as it shapes its new
identity on the global stage.--BBC

 

 

Covid-19: China's economy picks up, bucking global trend

China's economy grew at the slowest pace in more than four decades last
year, official figures show, but remains on course to be the only major
economy to have expanded in 2020.

 

The economy grew 2.3% last year, despite Covid-19 shutdowns causing output
to slump in early 2020.

 

Strict virus containment measures and emergency relief for businesses helped
the economy recover.

 

Growth in the final three months of the year picked up to 6.5%.

 

This momentum will continue, although the current Covid-19 outbreak in a
couple of provinces in northern China might temporarily cause fluctuation,"
said Yue Su, principal economist for the Economist Intelligence Unit.

 

China's mainland share markets as well as Hong Kong's Hang Seng posted
modest gains on the latest figures, which exceeded economists' expectations,
according to a Reuters poll.

 

However, Covid-19 was still a major drain on growth in 2020, with nationwide
shutdowns of factories and manufacturing plants forcing economic growth down
to its slowest rate for four decades.

 

China's manufacturing sector appears to have recovered, with Monday's data
showing a 7.3% increase in industrial output.

 

Exports have also led the way. Data last week showed Chinese exports grew by
more than expected in December, as coronavirus disruptions around the world
fuelled demand for Chinese goods.

 

That is despite a stronger yuan, which makes Chinese exports more expensive
for overseas buyers.

 

China's economy has seen a strong rebound, while the rest of the world
struggles with anaemic demand, millions of job losses, and businesses
shutting down.

 

China's economic engine roared back to life after a brutal lockdown that saw
the Chinese economy contract by a historic 6.8% in the first quarter of
2020.

 

We should always be circumspect about Chinese data - with the usual caveat
that the trajectory of the data rather than the figures themselves are a
useful guide to how China's economy is growing.

 

What these numbers show is that China's strategy of locking down cities hard
and quickly has worked.

 

A combination of government-led investment and global demand for Chinese
goods also helped to power a rapid recovery, and boost exports.

 

Still - this is the lowest rate of annual growth in more than 40 years for
the economic giant. Worries over a resurgence of the virus are also clouding
China's growth outlook, with consumer demand still weak.

 

And Beijing is trying to navigate a prickly trade relationship with the US,
with the incoming administration unlikely to be softer on China than
President Donald Trump.

 

All of these challenges will no doubt weigh on Chinese growth in 2021 - but
they seem to be in a better place than the rest of the world's major
economies.

 

Presentational grey line

It was not all good news from the latest figures.

 

Li Wei, a senior economist at Standard Chartered Bank, said pandemic-related
exports and credit-fuelled car and housing sales accounted for much of the
growth, while domestic demand lagged behind.

 

"Domestic household consumption of food, clothing, furniture and utilities
remains below pre-pandemic levels, while the hospitality and transportation
sectors continue to face capacity and travel restrictions," he told Reuters.

 

Although retail sales grew by 4.6% in the fourth quarter of 2020, they fell
by 3.9% for the year.

 

Many analysts are tipping growth to accelerate in 2021, but the China Bureau
of Statistics has warned of a "grave and complex environment both at home
and abroad", with the pandemic having a "huge impact".

 

China still faces many challenges, including continuing trade tensions with
the US and how they might play out under the administration of
President-elect Joe Biden, who takes office later this week.--BBC

 

 

 

Covid: UK closes all travel corridors until at least 15 February

All UK travel corridors, which allow arrivals from some countries to avoid
having to quarantine, have now closed.

 

Travellers arriving in the UK, whether by boat, train or plane, also have to
show proof of a negative Covid-19 test to be allowed entry.

 

The test must be taken in the 72 hours before travelling and anyone arriving
without one faces a fine of up to £500.

 

All passengers will still be required to quarantine for up to 10 days.

 

The isolation period can be cut short with a negative test after five days
in England, but it does not apply in Scotland, Wales or Northern Ireland.

 

The government has said the travel corridor closure will be in force until
at least 15 February.

 

Under the new rules, travellers arriving from the Falklands, St Helena and
Ascension Islands are exempt.

 

Those arriving from some Caribbean islands are exempt until 04:00 GMT on
Thursday 21 January.

 

Foreign Secretary Dominic Raab told the BBC'S Andrew Marr Show on Sunday
that Public Health England would be stepping up checks on travellers who
must self-isolate.

 

He said enforcement checks at borders would also be "ramped up" and added
that asking all arrivals to self-isolate in hotels was a "potential measure"
the government was keeping under review.

 

Passengers arriving into London's Heathrow airport on Monday said they had
been met with "substantial" queues at passport control and one couple
complained they had "felt unsafe" due to what they described as poor social
distancing.

 

Andy Hart, from London, who had arrived into the UK from Nairobi, said: "We
felt that even though everyone was masked they were far too close together.

 

"It took an hour and 10 minutes. I've been flying 30 times a year for 20
years. I mean, once or twice have I ever seen it [airport queues] like this.
How can this happen during Covid times?"

 

Meanwhile on Sunday, the government announced that a financial support
scheme for airports in England would open this month in response to the new
travel curbs.

 

Aviation minister Robert Courts said the aim was to provide grants of up to
£8m per applicant by the end of this financial year. The scheme was first
announced in November but without a start date.

 

Industry groups have warned there was only so long airports could "run on
fumes", following the announcement of the new quarantine rules.

 

EasyJet chief executive Johan Lundgren said the closure of the travel
corridors will not have a "significant impact" on his airline in the short
term as flight numbers were already limited due to the pandemic.

 

He told BBC Radio 4's Today programme that the minimum number of days
arrivals must wait to take a negative test releasing them from quarantine
could be reduced from five days to three days.

 

Karen Dee, chief executive of trade body the Airport Operators Association,
said she supported the decision to close the travel corridors but stressed
the need for "a clear pathway out".

 

A ban on travellers from South America, Portugal and Cape Verde also came
into force on Friday, having been imposed over concerns about a new variant
identified in Brazil.

 

New variants causing concern have previously been identified in the UK and
South Africa, with many countries imposing restrictions on arrivals from
both nations.

 

Scientists fear the variants seen in South Africa and Brazil may interfere
with the effectiveness of vaccines and evade parts of the immune system.

 

The travel industry has said closing the travel corridors was understandable
due to the health emergency, but warned it would deepen the crisis for the
sector.

 

Tim Alderslade, chief executive of Airlines UK, said the system had been "a
lifeline for the industry" last summer but "things change and there's no
doubting this is a serious health emergency". He said he assumed the
government would remove the latest restrictions as soon as it was safe.

 

"We've had no revenue now effectively for 12 months, give or take a few
months in the summer last year. If we're going to have an aviation sector
coming out of this we need to open up in the summer," he told the BBC.

 

The Department for Transport has said it is supporting the travel industry
with an extension to the furlough scheme until the end of April, business
rates relief and tax deferrals.

 

With all parts of the UK under strict virus rules amid high levels of
infection, only essential travel is permitted.

 

On Sunday, another 671 deaths within 28 days of a positive Covid test were
reported in the UK, and a further 38,598 lab-confirmed cases of
coronavirus.-BBC

 

 

Africa: Can Crypto-Currency Compete With Gold?

There can be no doubting the phenomenal run enjoyed by Bitcoin and other
crypto devotees over the past twelve months.

 

Bitcoin, the cryptocurrency standard bearer, delivered a more than 300%
return last year and has started 2021 on the front foot, rising more than
10% in January.

 

Where should investors expect it to go from here? Naysayers predict a repeat
of its previous 2017 post-bull market collapse with Nouriel Roubini, the
economist dubbed "Dr Doom", calling it a "pure speculative bubble with no
fundamental value" in the Financial Times.

 

Market commentators cite several factors for the meteoric ascent of Bitcoin
over the past year, including unprecedented monetary easing by central banks
that may have eroded trust in regular currencies, a collapse in yields
resulting in non-yielding Bitcoin becoming comparatively attractive, and
speculation that it may be the medium of exchange of the future.

 

What Bitcoin and cryptocurrencies actually are is notoriously hard to either
understand or accurately explain.

 

US comedian John Oliver famously labelled them as "everything you don't
understand about money combined with everything you don't understand about
computers". Disciples of the "asset class", if indeed it can be described as
that, claim however, that they represent the future...Daily Maverick.

 

 

 

Kenya: Good Stock Prices Lure Investors to NSE

The Covid-19 battering of Nairobi bourse-listed firm's share prices has
presented an attractive opportunity for investors with a long-term view to
accumulate stocks and hope for a sustained recovery as companies start
turning the corner on the pandemic.

 

Analysts are now projecting continued interest in most of the stocks
especially in telecommunication and banking sectors with foreign investors
already making a comeback.

 

The green shoots started showing last December as equities embarked on an
upward trajectory.

 

The NSE-20--which tracks the 20 best performing counters-- gained 6.2
percent in that month from November while all share index points also rose
by 4.8 percent.

Large cap counters such as Safaricom hit a 52-week high of 34.25 on the
Central Bank of Kenya announcing lapse of free M-Pesa transactions for
Sh1,000 and below which had denied the telco billions of shillings.

 

Bamburi cement also gained 5.4 percent month-on-month to close at Sh37.85 as
NCBA and DTB rose by 18.9 percent and 21.5 percent respectively in the same
period.

 

The strong ending has spilled over to the New Year with more than half (31)
of the Nairobi Securities Exchange (NSE) closing last week with price gains,
signalling a renewed interest in equities after a tumultuous 2020.

 

Safaricom in particular touched a new-all-time high of Sh36.50, sending
excitement to the market, especially with foreign investors turning net
buyers.

Foreign investors

 

The total value of investor wealth at the NSE is now at 11-month high with
foreign investors showing increased interest in key counters.

 

"We anticipate the return of foreign investors to the bourse who in 2020
withdrew over Sh29 billion from the NSE on pandemic jitters," says AIB-AXYS
Africa in its outlook for the year.

 

A recent upgrade on the Morgan Stanley Capital International (MSCI) emerging
markets index, gave Kenya increased allocation with the weight in the index
rising to 9.49 percent from 8.2 percent after the exit of Kuwait.

 

"That increased weighting promises to result in more capital allocation to
the Kenyan market by foreigners," says NSE chief executive Geoffrey Odundo.

 

For banking stocks, high provisions for non-performing loans and sharp rise
in requests for loan restructuring that were witnessed last year battered
their prices.

However, ICEA-Lion Asset Management chief executive Einstein Kihanda says a
strong recovery is expected hinged on slowed provisions and increased loan
repayments.

 

"We see a huge upside potential for banking stocks. We expect that as the
economy continues to recover in areas such as the hospitality industry,
education and manufacturing, businesses and individuals start repaying loans
leading to strong fundamentals for banks," said Mr Kihanda.

 

Equity, KCB, NCBA, Cooperative Bank, DTB, Standard Chartered, Absa, I&M and
Stanbic Bank, Absa and I&M all closed last year having shed prices in the
range of 31.7 percent and 16.7 percent.

 

AIB-AXYS Africa reckons that the pick-up in economic activity is likely to
result in a reduction in non-performing loans and increase earnings and
this, therefore, makes most banking counters attractive.

 

Head of research at AIB-AXYS Africa Sarah Wanga says while earnings for last
year are likely to be lower because of high loan loss provisions, the strong
income from the core business of lending offers room for quick recovery.

 

"Investors have already factored in the earnings fall in the current prices
so when banks release results we may not see a huge fall in results.
Foreigners are making a comeback and are likely to concentrate on banks and
Safaricom," said Ms Wanga.

 

Loan book exposure

 

AIB outlook gives Co-op Bank stock the highest upside potential (34.6
percent) among banking stocks followed by Absa (34.5 percent) and DTB (29.6
percent).

 

The outlook says that Co-op's declining cost of funds--it fell by 50 percent
to 3.3 percent year-no-year in September--and limited loan book exposure in
a single sector offers the tailwinds for a rebound in earnings.

 

"Diverse loan book will shield growth despite shutdown in some sectors of
the economy," says AIB which gives Co-op a target price of 16.82.

 

Equity and KCB, whose shares last year fell by 31.7 percent and 29.4 percent
respectively have been given an upside potential of 14.4 percent and 21.2
percent in that order.

 

NSE chief executive Geoffrey Odundo says the macroeconomic environment looks
more stable this year than in 2020, with discovery of vaccines for Covid-19
promising to boost investor sentiments.

 

"With several vaccines being found we are extremely positive about trading
volumes and the return of foreign investors. From a valuation perspective,
most prices are attractive and this promises to bring recovery," says Mr
Odundo.

 

ICEA Lion Asset Management head of research Judd Murigi says banks are
expected to record a sharp earnings recovery this year on reduced loan
losses and therefore this offers an attractive entry point for NSE
investors.

 

"We think that the NSE all share index can make double digit returns this
year because previous experiences show that every downturn is quickly
followed by a strong rally in succeeding year," adds Mr Murigi.-Nation.

 

 

 

Nigeria: Buhari to Inaugurate National Oil, Gas Centre Thursday

President Muhammadu Buhari will on Thursday virtually inaugurate the
National Oil and Gas Excellence Centre (NOGEC) Lagos, as part of effort to
boost the operations of the Nigeria oil and gas sector.

 

The Director of Department of Petroleum Resources (DPR), Mr. Sarki Auwalu,
announced this yesterday in a statement signed by the Head of Public
Affairs, DPR, Mr. Paul Osu.

 

Auwalu said the centre was structured to drive the three-prong objectives of
safety, value and cost efficiency which are critical for oil and gas
industry stability, growth and sustainability.

 

He said the centre would afford the Nigerian oil and gas industry the
crucial elements for competitive advantage in a changing global energy
landscape.

"The integrated centre will also entrench Nigeria's status as regional
leader and position the nation for significant global impact in the
provision value-added services and breakthrough solutions for the industry
in years and decades to come," he added.

 

Auwalu also said the NOGEC complex was structured to house the various
flagship centres in order to comprehensively cover key areas of the
industry.

 

He listed the flagship centres as Search, Rescue and Surveillance (SeRAS),
Command and Control Centre, and National Improved Oil Recovery Centre
(NIORC).

 

Others, according to him, are Oil and Gas Dispute Resolution Centre (DRC) ,
Oil and Gas Competence Development Centre (CDC), and Integrated Data Mining
and Analytics Centre (IDMAC).

 

The DPR boss further said: "SeRAS is an industry-wide programme established
to enhance safety management, emergency preparedness and response as well as
bed space management and logistics services across the industry.

 

"SeRAS will entrench safe practices, drive cost reduction and improve
operational efficiency across the industry.

 

"The SeRAS Command and Control Centre (CCC) established at the NOGEC Centre,
Lagos while two other Rescue Coordination Centres (RCC) will be set up at
Osubi and Brass, in the first instance, for effective coverage of areas of
operations."- This Day.

 

 

 

Tanzania Securities Limited Recommends Jatu Share Sale

JATU Plc has only one class of ordinary shares authorised and issued. There
are no preferential shares. Currently, it has a total authorised share
capital of 125bn/-, consisting of 250 million ordinary shares at a nominal
value of 500/- per share.

 

The total issued and paid share capital amounts to 1.082bn/-.

 

Jatu products and services Jatu agriculture

 

Jatu Company runs and manages various agricultural projects in collaboration
with its members. Agriculture is the main foundation and pillar of the
company, where Jatu seeks areas/farms and researches them technically and
legally. So far, Jatu in collaboration with their members, have successfully
owned three large-scale farms located in Manyara, Morogoro and Tanga.

Jatu factory

 

Jatu establishes small-scale factories around agricultural projects to
facilitate access to raw materials. Through these industries, the company
buys the products of farmers who are their members and prepares the products
that are sold through the Jatu App for the purpose of online marketing -
Network Marketing.

 

Jatu Saccos

 

This is the Saccos of the Jatu people who lend to its members at interest
and soft terms. Jatu Saccos assists its members by lending them those tools
and agricultural inputs.

 

Recommendation: sale

 

Since Jatu has been listed, in November 23, 2020, the share price increased
by 7 times of the listed price on exchange. The price continues to rally
from 420/- to current market price of 3,620/- on January 8, 2020. There has
been no fundamental ground on the Jatu share price increase or the technical
factor that justifies the same, but the lack of supply has been the main
reason for the share price appreciation.

Since Jatu has been in the market for about three years with both years the
company has posted a net profit of around 6.0m/- to 40m/-. What are the
competitive advantages that will bring Jatu on top of other companies?
However, for the manufacturing part the only way the business could excel is
through "economies of scale", that the performance will be driven by the
lowering cost as the results of the increased production.

 

The question that investors keep asking to remain the same, what is so
special with Jatu share price rally? The company revenue has been growing at
CAGR of 92.70 per cent to 564m/- in 2019 from 151.96m/- in 2017. While cost
of sales grew by CAGR of 39.95 per cent to 181.69m/- in 2019 from 92.75m/-.
All this led to an increase in gross profit to 382.61m/- in 2019 from
59.20m/- in 2017 equivalent to CAGR of 154.22 per cent.

During the similar period, the company profit after tax (PAT) increased to
40.08m/- from 6.32m/- in 2017. But the company's forecast loss for the year
ended 2020. According to our analysis, we forecast sales to grow at CAGR of
13.10 per cent (2020-2025) mainly revenue to come from agricultural and
factory segments.

 

This growth will lead to an increase in gross profit by a CAGR of 11.25 per
cent and cost of sales to grow at CAGR of 16.57 per cent. The increase in
cost in sales is due to an increase in volume to be sold over the period and
a decrease in closing stock, since the large volume will be sold and remain
with the standard inventory to maintain inventory turnover of around 3.74x
to 13.68x over the period of 2020-2025.

 

According to our analysis, we forecast the company PAT for the year 2020, to
decline to a loss of 110.78m/- from the profit of 40.08m/- in 2019. While
sales are expected to increase by 36.04 per cent to 767.69m/- from 564.3m/-
in 2019, while gross profit is expected to grow by 14.78 per cent to
439.5m/- from 382.61m/- in 2019.

 

This indicates that the company may look too aggressive in their forecasts
and ignore the fact that startup companies face a lot of challenges and
risks despite Jatu being in the cash cow industry. The company forecast
revenue to be 1.24bn/- in 2020 while our forecast see revenue to be down by
37.56 per cent from the company forecast incorporating scenario analysis in
our model.

 

Quick conclusion - sell

 

We value the company at a fair value price of 407/56 per share or a
Price/Earnings (P/E) of 5.14x, price-to-book (P/B) of 0.78x and EV/EBITDA of
136.44x from the current prevailing market price Jatu has the P/E of
158.73xand P/B of 5.66x which shows that Jatu is overvalued.

 

- Tanzania Securities is a stock broker, investment adviser and fund
managers operating from Dar es Salaam.-Daily News.

 

 

 

Tanzania: Dse to Remain Vibrant Backed By Banking, Cement Sectors

IN the coming week, we still prospect that the market will remain vibrant
going forward specifically on the banking sector and Cement sector as we
have seen the previous week's top counters coming from those sectors. The
market will remain active during the week and mainly from the top local
active counters.

 

JATU Plc share price expected to decline at the bourse, it is likely that it
may remain active for some coming trading sessions, but we remain wary with
the decline in the volume to be traded.

 

CRDB is likely to be the most active counter and this has been due to
analysts and traders' expectations on the 2020 performance of the bank, and
hence creates higher demand for the shares and will push the price higher in
the coming week.

Other top counters expected to transact during the week include TBL, TPCC,
NICOL, SWIS and DSE. In midweek we expect a Treasury bill auction to be held
by the central bank.

 

There could be slight increase in the WAY with low volatility towards
decline in yields for the short-term instruments, but with a likelihood of
oversubscription as we have observed the yields started to increase for
treasuries.

 

In the interbank money market, despite the increase in the Weighted average
rate (WAR) during the previous week, we still reiterate foresee that WAR
will continue to be stable and within a range of 3.50 per cent to 4.00 per
cent with slight volatility in the high and low rate.

 

The Bourse During the week, total market capitalisation lost by 1.03 per
cent to close the market at TZS 14.97 Trillion from TZS 15.09 Trillion in
the previous week mainly due to share price depreciation of both cross
listed and locally listed firms at the bourse.

CRDB share price increased by 9.76 per cent to close at TZS 225, DSE share
price increased by 2.22 per cent to close at TZS 920, NMG share price
increased by 1.56 per cent to close at TZS 325 while EABL declined by 3.07
per cent to close at TZS 3,160, KCB declined by 3.75 per cent to close at
TZS 770, JATU share price declined by 18.37 per cent to close at 2,400 and
JHL share price declined by 0.82 per cent to close at TZS 6,050.

 

Domestic market capitalisation gained by 0.69 per cent thanks to share price
appreciation of CRDB and DSE. TSI gained 0.69 per cent to close at 3,513.49
points, DSEI lost 1.03 per cent to close at 1,803.04 points, Industrial &
allied index lost 0.05 per cent to close at 4,820.43 points, Bank, Finance,
and Investment Index (B&F) gained 3.56 per cent to close at 2,430.70 points
while Commercial Service (CS) remain stationary for the week to close at
2,139.33 points.

 

 

Total Volume of shares traded increased by 84.49 per cent to 2,574,267 with
205 deals from last week's 1,395,341 with 258 deals. Total turnover for the
week declined by 45.08 per cent to TZS 594.32 million from TZS 1.08 billion
previous week.

 

CRDB led all counters after transacting shares worth TZS 557.28 Million,
TPCC counter followed after transacting shares worth TZS 13.73 Million, DSE
transacted shares worth TZS 7.89 Million, SWIS counter transacted shares
worth TZS 7.10 Million, JATU transacted shares worth TZS 6.44 Million, VODA
transacted shares worth TZS 555,000, DCB transacted shares worth 515,000,
NICOL transacted shares worth 556,850, TCC transacted shares worth
TZS145,800, TCCL transacted shares worth TZS 65,800, TICL transacted shares
worth TZS 10,500, MPB and SWALA transacted shares worth TZS 4,500 each.

 

TTP joined the laggard after transacting shares worth TZS 1,200. Interbank
market During the week, the Interbank Cash Market (IBCM) recorded a total
transaction value of TZS 134 billion being a decrease from last week's TZS
244.5 billion traded. The WAR increased to close at 3.95 per cent from 3.70
per cent.

 

The highest and lowest rate was 4.50 per cent and 3.50 per cent similar to
previous week. Debt Market In the debt market, outstanding government bond
listed at the bourse stood at TZS 13.04 trillion. On the Secondary market,
the government bond segment transacted TZS 12.27 billion whose face value
was TZS 11.80 billion from last week's TZS 39.40 billion and TZS 37.70
billion, respectively.

 

For the Corporate bonds, the market transacted bond worth TZS 19.32 Million
and face value of TZS 21.00 Million from the previous week transaction value
of TZS 5.44 Million and face value of TZS 6.00 Million. During the week, the
central government in line with its debt issuance plan sought to raise total
of TZS 122.5 Billion from the public through a 2-year treasury bond.

 

The auction was undersubscribed by TZS 87.87 Billion equivalent to 71.73 per
cent. The central bank pocketed total of TZS 34.62 Billion, while the
weighted average yield increased to 7.5 per cent from 7.09 per cent in the
previous auction. WAP for successful bids was 100.68, and minimum successful
price was 99.91, highest and lowest bids was 101.59 and 99.91, respectively.

 

Interbank Foreign Exchange Market Total volume in the Interbank Foreign
Exchange Market increased to USD 23.50 Million from USD 10.35 Million in the
previous week.

 

TZS/USD remains strong to close the market at TZS/USD 2,309.70 from TZS/USD
2,309.83 in the previous week.-Daily News.

 

 

 

 

Tanzania: Nyamirembe Port in Chato Now Ready for Use

THE newly rehabilitated Chato-based Nyamirembe Port is ready for use since
last week, with Tanzania Authority Port (TPA) Lake Zone Manager, Doreen
Minja inviting potential investors to utilise the opportunity.

 

She told 'Daily News' on Monday that Nyamirembe would provide room for both
small and large-scale investors, following its big space to accommodate not
less than six boats, with the capacity to ferry 50 passengers each and one
big ship with the capacity of 200 carrying passengers at a time.

 

"Nyamirembe is part of a 11bn/- port rehabilitation and construction project
in the Lake Zone, the money released by the government in the last fiscal
year.

"However, Nyamirembe was one and only port that underwent rehabilitation.
Others, namely, Magarini, Lushamba, Mtama, Kyamkwikwi and Bwigobolo are
new," she said.

 

She further clarified that port rehabilitation and construction was to
ensure economic opportunities in the Lake Zone were well-utilised and there
were reliable transport means and interactions of people and goods.

 

However, she declined to expose how much was available from the
rehabilitated and newly constructed ports under the ground that she wasn't
the right person to talk on behalf of TPA.

 

"Remember, the revenue involves figures of which only experts and authorised
persons should speak on it. Again, the ports are still new, meaning the
revenue is also yet to be collected, but at least TPA in the Lake Zone no
longer depends on the head office," she said.

Lake Zone Ports Engineer Khamis Mohamed commented the over 11bn/- worth TPA
rehabilitation and construction project was 100 per cent complete, adding
that it involved mostly the construction of the modern baths, passenger
lounges, public/passengers' toilets, as well as modernisation of office
buildings and other infrastructures, among other activities.

 

"The project got over within the targeted time frame -2019/20. We look
forward to going for phase two of the project in this fiscal year set to
take off soon," he said.

 

Speaking on how Marine Services Company Limited (MSCL) was prepared to
utilise the opportunity at the newly rehabilitated port, the company's
acting marketing and commercial manager, Mr Philemon Bagambilana said that:

 

"Already MSCL has prepared the new route for Nyamirembe Port, using MV
Clarias, which has the capacity to ferry about 216 passengers and 10 tonnes
of cargo."

 

The new route is set to start in March, this year, according to Mr
Bagambilana. "We will quench the citizens' thirst as we recently conducted a
survey and came across to what extent people in islands were in need of
transport services.

 

MV Clarias is currently undergoing maintenance, including installation of
the new machinery, as among the preparations for this new route."-Daily
News.

 

 

 

Outlook darkens for Wall Street as Biden's regulators take shape

WASHINGTON (Reuters) - Wall Street may be facing an uncomfortable four years
after President-elect Joe Biden’s team confirmed on Monday it planned to
nominate two consumer champions to lead top financial agencies, signaling a
tougher stance on the industry than many had anticipated.

 

Gary Gensler will serve as chair of the Securities and Exchange Commission
(SEC) and Federal Trade Commission member Rohit Chopra will head the
Consumer Financial Protection Bureau (CFPB). Progressives see the agencies
as critical to advancing policy priorities on climate change and social
justice.

 

Wall Street-friendly Republicans on Monday criticized Biden for bowing to
leftists, warning the picks would be divisive.

 

“The Biden team is pandering to members of the far-left,” Patrick McHenry,
lead Republican on the House of Representatives finance panel said of
Chopra, while warning Gensler should “resist pressure to commandeer our
securities disclosure regime to try to fix non-economic issues or social
problems.”

 

The chair of the derivatives regulator from 2009 to 2014, Gensler
implemented new swaps trading rules created by Congress after the financial
crisis, developing a reputation as a tough operator willing to stand up to
powerful Wall Street interests.

 

Chopra helped set up the CFPB after the crisis and served as its first
student loan ombudsman. At the FTC, he campaigned for tougher rules for big
tech companies on consumer privacy and competition, and for stricter
enforcement penalties.

 

 

With Republicans appearing to have a good chance to maintain control of the
Senate following the Nov. 3 election, financial executives had hoped Biden
would pursue more moderate picks. But Democratic victories in two Georgia
run-off elections earlier this month mean Democrats will have effective
control of the chamber once Biden and Vice President-elect Kamala Harris are
sworn in on Wednesday.

 

Those wins also mean anti-Wall Street firebrand Sherrod Brown will lead the
powerful Senate Banking Committee. He has said he plans to try to repeal
Wall Street-friendly rules introduced by President Donald Trump’s
regulators.

 

On Monday, Brown hailed Chopra as a “bold” choice who would ensure the CFPB
“plays a leading role in combating racial inequities in our financial
system,” while Gensler would “hold bad actors accountable” and put “working
families first.”

 

Gensler is expected to pursue new corporate disclosures on climate change
related-risks, political spending, and the composition and treatment of
company workforces, and to complete post-crisis executive compensation
curbs, among other rules.

 

Chopra is expected to review payday lending and debt-collection rules, which
influential consumer groups say won’t protect Americans. They also hope he
will stamp out exorbitant lending rates and abusive debt-collection
practices, address the student debt burden and gaps in minorities’ access to
credit.

 

“The CFPB has an incredibly important job to do, including stopping
financial rip-offs,” said Lisa Donner, executive director at Americans for
Financial Reform, a think tank. “It also has an urgent role to play in
helping families survive and recover from the pandemic-induced economic
crisis.”

 

Biden, though, will first have to fire Kathy Kraninger, the current CFPB
director, a power he will have thanks to a ruling last year by the Supreme
Court which said the CFPB director served at the president’s will.

 

But Richard Hunt, chief executive of the Consumer Bankers Association,
rejected the idea that Biden should automatically use that power.

 

“CBA does not believe it is in the best interest of consumers to have a new
Director with each change in Administration. This whip-saw effect will
stifle innovation and prevent consistent regulations,” Hunt said in an
usually forceful statement.

 

 

 

Boeing 737 MAX to get EU flight clearance next week: safety chief

PARIS (Reuters) - Boeing’s 737 MAX airliner will receive final clearance to
resume flying in Europe next week, the head of the EU’s air safety watchdog
said on Tuesday.

 

The EU Aviation Safety Agency (EASA) published a draft airworthiness
directive in November and has made some largely presentational changes after
public consultations, Executive Director Patrick Ky said in an online media
briefing.

 

“We expect to publish it next week, which means the MAX will be cleared to
fly again,” Ky said. A separate certification of the MAX-200 variant will
likely follow in “coming weeks”, he added, allowing flights to resume before
summer.

 

 

 

Canada scrambles to salvage Keystone XL as Biden prepares to kill troubled
pipeline project

CALGARY, Alberta/OTTAWA (Reuters) - U.S. President-elect Joe Biden’s
expected move to cancel the Keystone XL pipeline prompted Canada’s main
oil-producing province of Alberta on Monday to threaten to seek damages as
Ottawa made efforts to save the troubled project.

 

Scrapping the project would threaten Canadian jobs and the U.S.-Canadian
relationship as Prime Minister Justin Trudeau tries to turn the page on the
Donald Trump era, though the idea drew support from environmental groups and
progressive U.S. Senator Bernie Sanders.

 

A source told Reuters on Sunday that Biden will cancel a permit for the $8
billion project over concerns about fossil fuels contributing to climate
change, dealing a blow to the Canadian energy sector.

 

The news sent shares in Keystone XL owner TC Energy lower on Monday and
prompted Alberta Premier Jason Kenney to urge Trudeau to reach out to the
incoming Biden administration in the next 48 hours. Biden, a Democrat, is
due to take the oath of office on Wednesday.

 

“This is the 11th hour and if this really is the top priority, as it should
be, then we need the government of Canada to stand up for Canadian workers,
for Canadian jobs, for the Canadian-U.S. relationship, right now,” Kenney
told a news conference.

 

He said Alberta had retained legal counsel and believed there was a “very
solid” legal basis to seek damages under international free trade agreements
if the pipeline is effectively killed by presidential fiat. Alberta’s
financial exposure is just over C$1 billion ($783 million), Kenney said,
after the province last year invested in the pipeline, also known as KXL.

 

KXL is intended to carry 830,000 barrels per day of oil sands crude from
Alberta to Nebraska but has run into fierce opposition from U.S. landowners,
Native American tribes and environmentalists. Outgoing Republican President
Donald Trump had supported the project.

 

Diplomats in Ottawa continue to engage with their American counterparts over
Keystone XL, two sources close to the Keystone XL file said, and one of them
said TC Energy is still lobbying.

 

“We don’t have a decision from the Biden administration at this point. We
should continue to work,” one source said, adding Trudeau had consistently
supported the pipeline and would continue to do so. “It’s not over until a
decision is public.”

 

 

“While there have been reports suggesting a decision is imminent, our sense
is very much that it remains possible this could drag out for several
weeks,” a second source said.

 

Trudeau’s government has previously urged the president-elect not to halt
construction. Canadian Natural Resources Minister Seamus O’Regan said in a
statement on Monday that Canada would continue to push for KXL with the
Biden administration.

 

KXL owner TC Energy said in a statement on Monday that the pipeline squares
with Biden’s vision of a cleaner energy future that creates jobs. TC
promised on Sunday that KXL would run fully on renewable power by 2030.

 

The cancellation would be a blow to a group of Canadian First Nations known
as Natural Law Energy that planned to invest, said its executive director,
Brian Mountain, although he added the group has not yet closed its purchase
and there is no financial risk to the First Nations.

 

KXL was first proposed 12 years ago, when it appeared that Alberta’s oil
sands would rapidly outgrow export pipeline capacity. Two other export
pipeline projects, the Canadian government-owned Trans Mountain Expansion
and Enbridge Inc Line 3 replacement, are proceeding, however, reducing the
need for KXL.

 

TC Energy on Monday closed down 4.5% at C$54.00 in Toronto.

 

($1 = 1.2762 Canadian dollars)

 

 

 

Epidemics lead world's biggest short-term risks: World Economic Forum

LONDON (Reuters) - Infectious diseases and livelihood crises led the
rankings of risks expected to pose a critical threat to the world in the
next two years, according to a survey of more than 650 World Economic Forum
(WEF) members from business, government and academia.

 

 

Extreme weather events and cybersecurity failure were also key risks, WEF
said in an annual risks report on Tuesday.

 

The COVID-19 pandemic has already had a devastating impact on many
livelihoods, as global lockdowns have led to job losses and business
closures. It has also exacerbated issues such as increasing inequalities
over access to technology and the threat of civil unrest.

 

“The pandemic has accelerated trends that have been coming for a long time,”
said Carolina Klint, risk management leader, Continental Europe, at
insurance broker Marsh.

 

Medium-term worries include burst asset bubbles and debt crises, the report
found, while the biggest long-term concerns were of the use of weapons of
mass destruction and of state collapses.

 

“As governments, businesses and societies begin to emerge from the pandemic,
they must now urgently shape new economic and social systems that improve
our collective resilience and capacity to respond to shocks while reducing
inequality, improving health and protecting the planet,” said Saadia Zahidi,
managing director at the WEF.

 

Peter Giger, chief risk officer at Zurich Insurance, remained optimistic
about rebuilding after the pandemic.

 

“The history of the economy suggests that every major structural change has
led to higher employment,” he said.

 

The world’s leaders will hold a virtual Davos Agenda event next week,
instead of the traditional January event in Switzerland, and a face-to-face
meeting in Singapore in May.

 

The report was compiled together with insurance companies Zurich and Marsh &
McLennan and South Korea’s SK Group.

 

 

 

TikTok owner ByteDance launches Douyin Pay, its mobile payment service for
China

BEIJING (Reuters) - Beijing-based ByteDance launched on Tuesday its
third-party payment service for the Chinese version of its hit short video
app TikTok, “Douyin Pay”, as it presses to expand into the e-commerce
business in China.

 

“The set-up of Douyin Pay is to supplement the existing major payment
options, and to ultimately enhance user experience on Douyin,” Douyin said
in a statement.

 

Users of Douyin, which accumulated 600 million daily active users,
previously could use Ant Group’s Alipay and Tencent Holdings’ WeChat Pay,
the country’s two ubiquitous third-party mobile payment channels, to buy
virtual gifts for livestreamers or items from shops on the platform.

 

ByteDance founder and CEO Zhang Yiming built up the company’s payment
capability in China by acquiring Wuhan Hezhong Yibao Technology Co last
year. Hezhong Yibao obtained a third-party payment license from the central
bank in 2014.

 

ByteDance has been ordered by the outgoing Trump administration to divest
TikTok’s U.S. assets on national security concerns.

 

The company, which denies the allegation, has been in talks for months with
Walmart Inc and Oracle Corp to shift such assets into a new entity.

 

Douyin is the main revenue generator for ByteDance. It provides a glimpse of
what TikTok could eventually become, as Douyin started selling merchandise
in 2017 and now operates a growing e-commerce operation where hundreds of
millions of users shop on a daily basis.

 

ByteDance’s expansion comes as China’s financial regulators are tightening
oversight over financial technology firms, particularly companies such as
Ant Group.

 

China’s third-party payment sector is dominated by Alipay and WeChat Pay,
with the former taking 55.39% of the total market in the second quarter of
last year, according to market researcher Analysys. Other players include
JD.com’s JD Pay, Baidu Wallet and Meituan Pay.

 

 

 

India asks Facebook's WhatsApp to withdraw privacy policy update

NEW DELHI (Reuters) - India’s technology ministry has asked Facebook
Inc-owned WhatsApp to withdraw the changes to its privacy policy announced
by the messenger earlier this month, saying the new terms take away choice
from Indian users.

 

“The proposed changes raise grave concerns regarding the implications for
the choice and autonomy of Indian citizens,” said the tech ministry’s email
addressed to WhatsApp boss Will Cathcart dated Jan. 18, which was reviewed
by Reuters.

 

“Therefore, you are called upon to withdraw the proposed changes.”

 

WhatsApp did not immediately respond to a request for comment but has
previously said that its new privacy policy update does not affect the
privacy of users’ messages with friends, family and in groups.

 

The company last week said it would delay the new policy launch to May from
February, after facing a raft of criticism over the new terms including in
its biggest market of India.

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2021

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


Companies under Cautionary

 

 

 


 

 

 

 


ART

Seed co Int.

Dairibord

 


Starafrica

Medtech

Turnall

 


Seed co

 

 

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


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.

 


 

 


(c) 2021 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

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