MORNING NOTE

02 SEPTEMBER 2022
 MORNING NOTE │ZIMBABWE
02 SEPTEMBER 2022

Market Commentary 01 September 2022

All Share Index (ALSI) closed 0.31% firmer at 13 747.45 on account of advances in CBZ, Econet, FCA,
Ok Zimbabwe and Ariston. On the downside, declines were recorded in Afdis, Ecocash, Tanganda,
Delta and TSL. Overall, the market breadth was positive with 16 counters advancing, 12 counters
declining and 23 unchanged as shown in the diagram below.

All Share Index

33000
30000
27000 Advances
24000 no
; 16
21000 change;
18000 23
15000
12000
9000 Declines;
6000 12
3000
0
2019/12/31 2021/04/30 2022/08/29 Advances Declines no change

ZSE ETF MARKET

ETF Opening Closing Day Change % YTD Change % NAV Mkt Cap (ZW$m)
CASS SADDLE AGRICULTURE ETF 155.00 155.00 0.00% 55.00% 68.32 56.11
DATVEST ETF 142.21 140.00 (1.55%) 40.00% 84.24 317.44
MORGAN & CO MIZ ETF 123.00 125.00 1.63% 25.00% 70.44 2 988.76
MORGAN & CO MULTI SECTOR ETF 2 650.00 2 650.00 0.00% 165.00% 1 959.00 3 640.04
OLD MUTUAL ZSE TOP 10 ETF 556.41 561.83 0.97% 27.66% 507.70 926.65
*All share prices are in ZW cents

ZSE INDICES
MAIN INDICES Today Day Change % YTD Change % SECTOR ANALYSIS Today Day Change % YTD Change %
ALSI 13 747.45 0.31% 27.03% Financials 24 507.59 5.95% 74.79%
MINING INDEX 15 473.37 0.00% 97.99% Consumer Discretionary 18 819.98 (0.43%) 53.62%
TOP 10 8 230.73 0.26% 20.84% Consumer Staples 16 619.28 (0.12%) 21.54%
TOP 15 9 222.06 0.24% 22.48% Materials 10 195.47 (0.03%) 16.69%
SMALL CAP 500 174.12 0.18% 24.19% Industrials 16 608.42 (0.19%) (12.28%)
MEDIUM CAP 29 149.75 0.42% 42.84% ICT 17 902.42 (1.58%) 9.01%
Real Estate 9 240.94 (2.43%) 5.39%

ZSE FOREIGN TRADES ON 01 September 2022

Foreign purchases Foreign sales
Counter Volume Price (ZWc) Value (ZW$) Counter Volume Price (ZWc) Value (ZW$)
TANGANDA 200 12 393.60 24 800.00 SEEDCO 7 979 7 001.24 558 928.95
DELTA 100 22 118.55 22 100.00 RTG 600 820.00 4 920.00

TOTAL 300 46 900.00 TOTAL 8 579 563 848.95

Members of the Zimbabwe Stock Exchange

100 The Chase, Emerald Hills, Harare, Zimbabwe
Tel: +263-242-308-400, Email: omsec@oldmutual.co.zw
 MORNING NOTE │ZIMBABWE
02 SEPTEMBER 2022

RBZ LATEST FOREIGN EXCHANGE AUCTION RESULTS: 30 August 2022

MAIN BOARD SME BOARD
Highest Bid 605.0000 600.0000
Lowest Accepted Bid 520.0000 520.0000
Weighted Average Rate 546.8254 546.8254
Total Accepted Bids (USD) 13 636 355.46 3 688 792.36
Total Allocations (USD) 12 681 789.09 2 643 432.75
Allocations: (USD)
Raw Materials 4 799 173.49 37.84% 812 525.35 30.74%
Machinery 3 800 847.08 29.97% 814 009.62 30.79%
Consumables 1 196 777.11 9.44% 345 580.06 13.07%
Services 1 508 324.19 11.89% 352 940.17 13.35%
Retail 773 243.03 6.10% 138 840.56 5.25%
Electricity 0.00 0.00% 0.00 0.00%
Chemicals 503 678.80 3.97% 113 816.62 4.31%
Paper & Packaging 99 745.39 0.79% 65 720.37 2.49%
Source: RBZ Weekly Auction Reports

Dividends Declared
COMPANY Announced Last Day Payable Amount (ZWc) Final/Interim
FCA 26 August 2022 06 September 2022 14 September 2022 44.20 Interim
ZBFH 30 August 2022 TBA TBA 77.18 Interim
FBCH 31 August 2022 TBA TBA 148.82 Interim
CBZH 10 June 2022 TBA TBA 191.57 Final
UNIFREIGHT 08 July 2022 TBA TBA 59.00 Final

Company Updates
GenBelt Offer to Minority Shareholders
Jemaimah Synergies (Pvt) Ltd is making a cash offer of ZW$2.21 per share held to GB
Holdings Limited minority shareholders.GB Holdings Limited minority shareholders who
accept the mandatory offer by the closing date shall receive ZW$2.21 for every GB
Holdings Limited share disposed of in line with outlined terms below.

The mandatory offer opens for acceptance at 1000 hours on Monday, 5 September
2022 and will close at 1600 hours on 26 September 2022 (“the Closing Date”). This
date may be subject to change and any such change will be published in the
Zimbabwe national press.

Jemaimah Synergies (Pvt) Limited intends to maintain the ZSE listing of the Company
subject to meeting all the ZSE Listings Requirements. Post the Mandatory Offer if GB
Holdings Limited and/or Jemaimah Synergies (Pvt) Limited is in breach of any ZSE
Listings Requirements the major shareholder and/or the Company Secretary will
engage the ZSE Listings Committee for guidance and compliance.

Members of the Zimbabwe Stock Exchange

100 The Chase, Emerald Hills, Harare, Zimbabwe
Tel: +263-242-308-400, Email: omsec@oldmutual.co.zw
 MORNING NOTE │ZIMBABWE
02 SEPTEMBER 2022

COUNTERS TRADING UNDER CAUTIONARY

Counter Commentary
Ok Zimbabwe Shareholders are advised that the Company is engaged in discussions that involve a
potential transaction that may have a material effect on the value of the Company’s
shares. The transaction involves the restructuring of the company and its unbundling into
a group of companies.
GetBucks Shareholders are advised that while negotiations for recapitalisation are still in progress,
the Board and Management are considering a migration of the Company’s listed
securities from the ZSE to the VFEX, the full impact of which is still being determined and
if successful, may have material effect on the price of the securities
Willdale Shareholders are advised that the Company has commenced negotiations for the
disposal of certain idle assets. The transaction if successful, will raise funds for capital
expenditure and could have material effect on the business and share price.
Lafarge Company advised shareholders that Associated International Cement Limited, a
member of the Holcim group, has entered into a binding agreement for the sale of its
76.45% stake in Lafarge Cement Zimbabwe Limited to Fossil Mines (Private) Limited.
FML Stakeholders are advised that the Insurance and Pensions Commission (IPEC) intends to
perform a forensic investigation on First Mutual Life Assurance Company, a subsidiary of
First Mutual Holdings Limited, arising from the asset separation exercise initiated by IPEC.
ZBFH Company advised shareholders that discussions on the potential transfer of assets and
acquisition of minority interests in ZB Bank Limited, ZB Building Society and Intermarket
Banking Corporation, are in progress which, if successfully concluded, may have a
material effect on the Company’s securities.
CBZH Shareholders are advised that the Company is in negotiations for a potential acquisition
which if successfully concluded may have a material effect on the price of the
Company’s securities, the full impact of which is currently being determined.

Recommendations
BUY
First Capital Bank -steady performer that inherited strong banking culture from Barclays.
- consistent dividend payer
Innscor -strong cash generation and attractive fundamentals
-consistent dividend payer
Econet - significant pricing power and a bigger market share
-consistent dividend payer
Delta - strong consumer focus in lager beers, sparkling beverages and sorghum
beer
-consistent dividend payer
Meikles -well diversified in Supermarkets and Hotels
-strong cash generation
-a consistent dividend payer

Members of the Zimbabwe Stock Exchange

100 The Chase, Emerald Hills, Harare, Zimbabwe
Tel: +263-242-308-400, Email: omsec@oldmutual.co.zw
 MORNING NOTE │ZIMBABWE
02 SEPTEMBER 2022

ACCUMULATE
Hippo - monopoly producer of sugar in Zimbabwe
- sugar is a staple commodity
-consistent dividend payer
Axia -The business has been consistently growing despite several constraints
being experienced in the economy
- steady demand for their products
-attractive fundamentals

Analyst: Trevor Mhlophe

Mobile: +263 782183281

The information contained in this document is derived from carefully selected sources. No representation is given
about, and no responsibility is accepted for the accuracy or completeness of this document. Any views
expressed reflect the current views of the author and do not necessarily represent the views of the OLD MUTUAL
GROUP or any subsidiary or affiliate of the OLD MUTUAL Group. The views reflected herein may change without
notice. OLD MUTUAL SECURITIES, its affiliates and their respective officers, directors, partners and employees,
including persons involved in the preparation of this document, may from time-to-time deal in, hold, or act as
market-makers, advisers, brokers, and commercial and or investment bankers in relation to equities, securities,
or derivatives thereof. Members of staff of Old Mutual Securities may or may not hold interests in the subject
matter of analysis and or commentary contained in this document. This document is provided to you for
informational purposes only and should not be construed as and shall not form part of an offer or solicitation to
buy or sell any equities, securities or derivatives thereof. It may not be reproduced, distributed or published by
any recipient for any purpose. In connection with its distribution, this document has been approved by OLD
MUTUAL SECURITIES.

Members of the Zimbabwe Stock Exchange

100 The Chase, Emerald Hills, Harare, Zimbabwe
Tel: +263-242-308-400, Email: omsec@oldmutual.co.zw