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, Friday, 14 June 2019 Foreign Currency, Money, Equities & Commodities Markets Overview Foreign Currency Markets International Stock Markets Year–On-Year Inflation Rates Currency 14-06-19 13-06-19 Index 13-06-19 12-06-19 Change Country Rate USD/RTGS 6.0000 6.0000 Dow Jones 26,106.77 26,004.83 +0.39% Zimbabwe 75.86%Apr USD/ ZAR 14.8473 14.9121 NASDAQ 7,837.13 7,792.72 +0.57% South Africa 4.4%Apr Apr EUR/ USD 1.1276 1.1298 FTSE All Share 4,022.84 4,024.80 -0.05% Malawi 9.1% GBP/USD 1.2673 1.2681 Nikkei 225 21,101.86 21,014.55 +0.42% Zambia 16 8.0% May USD /BWP 10.9409 10.8932 DAX 12,169.05 12,115.68 +0.44% Botswana 2.5% Apr Old Mutual Implied Exchange Rates Mozambique 2.42%May Currency 13-06-19 12-06-19 May 2019 Apr 2019 Mar 2019 Feb 2019 Namibia 4.1% May USD/ZWL 9.4462 9.4034 9.7191 6.1291 5.4150 4.4057 Kenya 5.49% May ZWL/ZAR 1.5639 1.5914 1.2609 1.2938 1.3073 3.1868 Ghana 9.5% Apr Regional Stock Markets Nigeria 11.37%Apr Index 13-06-19 12-06-19 Change Interest rates 13-06-19 Brazil 4.66%May ZSE Industrial Index 668.49 646.85 +3.35% 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 200.22 193.81 +3.31% LIBOR One Month 2.411% Germany 1.4%May JSE All Share 58,697.63 58,710.55 -0.02% LIBOR Three Month 2.428% Australia 1.3%Apr Ghana SE-CI 2,414.11 2,422.68 -0.35% LIBOR One Year 2.333% U.K. 2.1%Apr Nairobi All Share 150.44 150.46 -0.01% Federal Discount Rate 1.000% Japan 0.9% Apr Nigeria All Share 30,029.15 N/A N/A Federal Prime Rate 3.500% U.S.A. 2.0%Apr Last Daily YTD YTD Issued 13-06-19 12-06-19 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 0.092 0.08 0.08 +0.012 +0.032 +53.33% 2,156,260,176 198,375,936.19 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 1.9509 1.7448 1.7448 +0.2061 +1.0509 +116.8% 2,590,577,000 5,053,956,669.30 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 0.28 0.275 0.275 +0.005 +0.19 +211.1% 392,954,830 110,027,352.40 Old Mutual Plc 14.0032 14 14 +0.0032 +9.3032 +197.9% 64,173,594 898,635,671.50 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 13-06-19 Previous 13-06-19 Previous Counter (US$) (US$) Change (%) Counter (US$) (US$) Change (%) Proplastics 0.3768 0.3200 +17.75% FCB 0.0920 0.0800 +15.00% Masimba 0.1205 0.1054 +14.33% African Sun 0.4497 0.4000 +14.23% International Commodity Prices +0.042% ZSE Market Data Index 13-06-19 12-06-19 Commodity 13-06-19 12-06-19 Jan 19 Jan 18 Turnover Value ($m) 4.1540 6.5070 Gold (US$/oz) 1,341.90 1,333.10 1,283.50 1,317.10 Foreign Buys ($m) 2.4357 0. 2814 Platinum (US$/oz) 810.00 810.00 792.00 942.00 Foreign Sales ($m) 1.4131 2.4453 Silver ( US$/oz) 14.885 14.750 15.470 17.150 Market Cap ($m) 26,572.99 25,579.20 Palladium ( US$/oz) 1,428.00 1,390.00 1,252.00 1,086.00 YTD Change (Market Cap) +38.48% +33.30% Brent Crude Oil (US$/barrel) 61.31 59.97 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. Government’s fiscal consolidation measures and other initiatives introduced into Zimbabwe’s economic programmes should see prices of goods starting to drop from next month, Finance and Economic Development Minister Mthuli Ncube has said. In a pre-recorded governors’ Statement released in Malabo, Equatorial Guinea during the 54th Meeting of the Boards of Governors of the African Development Bank (AfDB) and the 45th Annual Meeting of the African Development Fund underway at Sipopo Conference Centre, Prof Ncube said reforms introduced under the Transitional Stabilisation Programme (TSP) were starting to bear fruit. (Herald) 2. The country’s biggest banking group by assets and deposits, CBZ Holdings Limited, has secured US$40 million export-oriented loan facility from the Africa Export-Import Bank (Afreximbank) that will assist local companies. The facility will assist companies that are only into export businesses as the country targets an export-led economic growth and boost foreign currency earnings. Group chief executive officer Blessing Mudavanhu said this was a positive sign as it showed Zimbabwe still has room to get external funding at a time its risk profile is perceived high with other multi-lateral lenders averse to extend credit lines to the country. (Herald) 3. Government has earmarked the 2% intermediated money transfer tax (IMT), which has performed above target since introduction last year for infrastructure development among other key economic enablers. Further, the Government indicated that airtime levy, which has also performed well consistently and raked in $11.4 million in April, had been earmarked for medical equipment. A report by the African Development Bank (AfDB) says that Zimbabwe needs US$26 billion to bridge its infrastructure gaps, which entails deficiencies in services associated with roads, water and sanitation, transport, electric power and ICTs. And since its introduction last year, the transactions tax, which has raised more than half a billion dollars, has been used for other critical things that include education and safety nets. (Herald) 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 4. The Zimbabwe Miners Federation (ZMF) has called on state gold buying entity, Fidelity Printers and Refineries (FPR), to join hands with the miners’ representative body and capitalise on frequent gold rushes that have a potential to boost deliveries to the gold buyer. The call was made by ZMF secretary general Morgan Mugawu, when he made a presentation at a meeting between the two parties that sought to foster a mutually beneficial relationship that could boost gold deliveries as well as see miners getting value for their deliveries. Small scale miners, who fall under the ambit of ZMF are the country’s largest gold producers, accounting for the largest chunk of deliveries to FPR ahead of their better equipped counterparts in the primary production sector. With Government expecting to build on last year’s record gold deliveries of 33.2 tonnes to 40 tonnes this year and ultimately at least 100 tonnes per year by 2023, the small scale mining sector is now a strategic investment destination. (Herald) 5. Sole state gold buying entity, Fidelity Printers and Refineries (FPR) will this month set up a gold production taskforce in conjunction with producers of the yellow metal as it seeks producer input that will inform payment modalities to curb rampant leakages.