The Daily Economic and Business News Update, Thursday, 13 June 2019
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Group Corporate Strategy ZB Financial Holdings Limited 1st Floor, 21 Natal 21 Natal Road, Belgravia, Box 3198, Harare Tel: +263 (0)8677002001 The Daily Economic and Business News Update, Thursday, 13 June 2019 Foreign Currency, Money, Equities & Commodities Markets Overview Foreign Currency Markets International Stock Markets Year–On-Year Inflation Rates Currency 13-06-19 12-06-19 Index 12-06-19 11-06-19 Change Country Rate USD/RTGS 6.0000 5.8500 Dow Jones 26,004.83 26,048.51 -0.17% Zimbabwe 75.86%Apr USD/ ZAR 14.9121 14.6943 NASDAQ 7,792.72 7,822.57 -0.38% South Africa 4.4%Apr Apr EUR/ USD 1.1298 1.1336 FTSE All Share 4,024.80 4,041.37 -0.41% Malawi 9.1% GBP/USD 1.2681 1.2725 Nikkei 225 21,014.55 21,179.82 -0.78% Zambia 16 8.0% May USD /BWP 10.8932 10.8225 DAX 12,115.68 12,155.81 -0.33% Botswana 2.5% Apr Old Mutual Implied Exchange Rates Mozambique 2.42%May Currency 12-06-19 11-06-19 May 2019 Apr 2019 Mar 2019 Feb 2019 Namibia 4.5% Apr USD/ZWL 9.4034 9.4256 9.7191 6.1291 5.4150 4.4057 Kenya 5.49% May ZWL/ZAR 1.5914 1.5801 1.2609 1.2938 1.3073 3.1868 Ghana 9.5% Apr Regional Stock Markets Nigeria 11.37%Apr Index 12-06-19 11-06-19 Change Interest rates 12-06-19 Brazil 4.66%May ZSE Industrial Index 646.85 639.54 +1.14% SARB Prime Rate 10.25% China 2.7%May ZSE Mining Index 248.51 248.51 0.00% BOB Prime Rate 5.00% Canada 2.0%Apr ZSE All Share 193.81 191.65 +1.13% LIBOR One Month 2.411% Germany 1.4%May JSE All Share 58,710.55 58,767.63 -0.10% LIBOR Three Month 2.450% Australia 1.3%Apr Ghana SE-CI 2,422.68 2,422.03 +0.03% LIBOR One Year 2.343% U.K. 2.1%Apr Nairobi All Share 150.46 150.22 +0.16% Federal Discount Rate 1.000% Japan 0.9% Apr Nigeria All Share N/A 30,099.83 N/A Federal Prime Rate 3.500% U.S.A. 2.0%Apr Last Daily YTD YTD Issued 12-06-19 11-06-19 Traded Change Change Change Zimbabwe Market Cap. ZSE Counter (US$) (US$) (US$) (US$) (US$) (%) Shares (US$) ZB Financial Holdings 0.49 0.49 0.49 0.000 +0.13 +36.11% 175,190,642 85,843,414.58 First Capital Bank Limited 0.08 0.08 0.08 0.000 +0.02 +33.33% 2,156,260,176 172,500,814.08 CBZ Holdings Limited 0.45 0.45 0.45 0.000 +0.3 +200.0% 687,231,691 309,254,260.95 Econet Wireless Zimbabwe 1.7448 1.7128 1.7128 +0.032 +0.8448 +93.9% 2,590,577,000 4,520,038,749.60 FBC Holdings Limited 0.505 0.505 0.505 0.000 +0.305 +152.5% 671,949,927 339,334,713.14 Fidelity Life Assurance 0.11 0.11 0.11 0.000 0.000 0.00% 108,923,291 11,981,562.01 Get Bucks 0.12 0.12 0.12 0.000 +0.083 +224.3% 1,093,567,251 131,228,070.12 NMBZ Holdings Limited 0.275 0.275 0.275 0.000 +0.185 +205.6% 392,954,830 108,062,578.25 Old Mutual Plc 14 13.399 13.399 +0.601 +9.3 +197.9% 64,173,594 898,430,316.00 First Mutual Holdings 0.18 0.18 0.18 0.000 -0.015 -7.69% 690,143,060 124,225,750.80 Mashonaland Holdings 0.04 0.04 0.04 0.000 +0.0054 +15.61% 1,859,073,947 74,362,957.88 ZSE Gainers ZSE Losers 12-06-19 Previous 12-06-19 Previous Counter (US$) (US$) Change (%) Counter (US$) (US$) Change (%) MedTech 0.0034 0.0028 +21.43% Delta 3.6191 3.6266 -0.21% Simbisa 1.2200 1.1003 +10.88% Edgars 0.1650 0.1520 +8.55% Turnall 0.1100 0.1035 +6.28% International Commodity Prices +0.042% ZSE Market Data Index 12-06-19 11-06-19 Commodity 12-06-19 11-06-19 Jan 19 Jan 18 Turnover Value ($m) 6.5070 13.8814 Gold (US$/oz) 1,333.10 1,326.30 1,283.50 1,317.10 Foreign Buys ($m) 0. 2814 4.0767 Platinum (US$/oz) 810.00 815.00 792.00 942.00 Foreign Sales ($m) 2.4453 5.3262 Silver ( US$/oz) 14.750 14.715 15.470 17.150 Market Cap ($m) 25,579.20 25,279.00 Palladium ( US$/oz) 1,390.00 1,375.00 1,252.00 1,086.00 YTD Change (Market Cap) +33.30% +31.73% Brent Crude Oil (US$/barrel) 59.97 62.29 53.80 66.55 Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own TheSundayMail investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document. -Page 1- Group Corporate Strategy ZB Financial Holdings Limited 1st Floor, 21 Natal 21 Natal Road, Belgravia, Box 3198, Harare Tel: +263 (0)8677002001 Local Business News 1. Economist and former MDC official Eddie Cross says Zimbabwe’s economic fundamentals are now sound and there is no need for speculators to continue with their wayward behaviour on the foreign currency parallel market which is affecting the poor. In an interview with The Herald yesterday, Cross urged the Government to take stern measures to contain the forex parallel market that has brought anguish to the majority. The prevailing volatility of the parallel market is blamed on speculators for influencing the exchange rate without economic justification. Cross said if macro-economic fundamentals were constant, as the situation on the ground shows, the rates should not exceed RTGS$4 to US$1. “The currency speculators are manipulating the exchange rate and are using the opportunity created by these activities to make millions at the expense of all Zimbabweans. (Herald) 2. Swedish information communication technologies (ICTs) giant Epson Europe BV will set up office in Harare next week in response to President Mnangagwa’s pro-investment reforms under the New Dispensation. The firm will supply latest efficient technological equipment to the education sector and digitisation programme. Epson SADC region business development manager Alison Ekland said in an interview yesterday that the tech giant found the country as a viable investment destination. “As the Government of Zimbabwe has started the process of modernising schools through adoption of ICTs, we found it worthwhile to invest here,” she said. (Herald) 3. Zimbabwe Stock Exchange (ZSE) listed RioZim says construction of its 2 800 megawatts Sengwa power project will commence in the next 12 months after the mining group signed an exclusivity agreement with Chinese firm, Power China. The project, which has been on the books since the early 1990s and could not get off the ground due to lack of investment, comes as Zimbabwe is battling choking power crisis due to a mismatch in demand and supply. Zimbabwe requires 1 700MW at peak periods of demand, but only affords limited production of Disclaimer: This document may be legally privileged and/or confidential and has been prepared for informative purposes only. No liability whatsoever for any loss howsoever arising from the use of this review or its contents or otherwise arising in connection therewith shall be accepted by ZB Financial Holdings, any of its directors, employees, or associates. Any person who makes use of this document shall be solely responsible for making his or her own TheSundayMail investigation of the issues discussed in this report. ZB Financial Holdings accepts no responsibility whatsoever for the accuracy or completeness of the information contained in this document. -Page 2- Group Corporate Strategy ZB Financial Holdings Limited 1st Floor, 21 Natal 21 Natal Road, Belgravia, Box 3198, Harare Tel: +263 (0)8677002001 1000MW when producing optimally. This is due to reduced output at Kariba South, which is facing water issues due to the drought experienced last year, and Hwange, which frequently breaks down due to antiquated equipment. (Herald) 4. Government will soon roll out a “massive” programme for the production of table and Irish potatoes as a measure to boost the country’s food security in light of below par summer rain season that characterised the last farming season. This was revealed by Lands, Agriculture and Rural Resettlement Minister Perrance Shiri on the sidelines of the 38th Joint Meeting for Sadc Ministers responsible for Water in an interview with Namibian publication The Southern Times last week. Zimbabwe is currently harvesting its 2018/19 season crop and is expecting 750 000 metric tonnes of maize and close to 200 000 metric tonnes in small grains which will leave the country in deficit. (Herald) 5. Zanu-PF is set to host a high stakes breakfast meeting in Harare this morning to solicit the views of various stakeholders ahead of the review of the Indigenisation and Economic Empowerment Policy.