MORNING NOTE

15 SEPTEMBER 2022
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Market Commentary 14 September 2022

All Share Index (ALSI) closed 6.53% weaker at 10 917.96 on account of declines in Innscor, Delta,
Hippo, Tanganda and Econet. On the upside, advances were recorded in CFI, FCA, ZBFH, Ecocash
and RTG. Overall, the market breadth was negative with 18 counters declining, 10 counters
advancing and 23 unchanged as shown in the diagram below.

All Share Index

33000
30000
27000 Advances
24000 ; 10
21000 no
18000 change;
15000 23
12000 Declines;
9000 18
6000
3000
0
2019/12/31 2021/05/03 2022/09/04 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% 61.82 56.11
DATVEST ETF 149.07 149.32 0.17% 49.32% 72.78 338.58
MORGAN & CO MIZ ETF 124.41 123.00 (1.13%) 23.00% 72.28 2 940.94
MORGAN & CO MULTI SECTOR ETF 2 650.00 2 650.00 0.00% 165.00% 1 939.05 3 640.04
OLD MUTUAL ZSE TOP 10 ETF 501.99 446.92 (10.97%) 1.55% 366.50 737.13
*All share prices are in ZW cents

ZSE INDICES
MAIN INDICES Today Day Change % YTD Change % SECTOR ANALYSIS Today Day Change % YTD Change %
ALSI 10 917.96 (6.53%) 0.88% Financials 22 231.68 (1.43%) 58.56%
MINING INDEX 17 292.52 0.00% 121.26% Consumer Discretionary 15 930.24 (5.03%) 30.03%
TOP 10 6 027.66 (7.97%) (11.51%) Consumer Staples 12 928.09 (8.09%) (5.45%)
TOP 15 6 887.92 (8.34%) (8.52%) Materials 10 355.73 0.01% 18.53%
SMALL CAP 488 326.76 0.18% 21.25% Industrials 16 522.90 (2.24%) (12.73%)
MEDIUM CAP 27 048.05 (4.08%) 32.54% ICT 11 903.83 (9.07%) (27.52%)
Real Estate 8 599.11 (1.66%) (1.93%)

ZSE FOREIGN TRADES ON 14 September 2022

Foreign purchases Foreign sales
Counter Volume Price (ZWc) Value (ZW$) Counter Volume Price (ZWc) Value (ZW$)
DELTA 1 000 13 427.60 133 600.00 -

TOTAL 1 000 133 600.00 TOTAL - -

Members of the Zimbabwe Stock Exchange

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

RBZ LATEST FOREIGN EXCHANGE AUCTION RESULTS: 13 September 2022

MAIN BOARD SME BOARD
Highest Bid 655.0000 650.0000
Lowest Accepted Bid 570.0000 570.0000
Weighted Average Rate 604.2580 604.2580
Total Accepted Bids (USD) 14 251 235.80 2 365 809.80
Total Allocations (USD) 13 429 628.61 2 196 092.29
Allocations: (USD)
Raw Materials 5 583 303.10 41.57% 709 780.41 32.32%
Machinery 3 879 715.95 28.89% 547 943.76 24.95%
Consumables 1 012 716.98 7.54% 237 276.90 10.80%
Services 1 372 699.56 10.22% 360 324.06 16.41%
Retail 1 114 217.08 8.30% 189 439.82 8.63%
Electricity 0.00 0.00% 5 000.00 0.23%
Chemicals 304 550.21 2.27% 122 190.25 5.56%
Paper & Packaging 162 425.73 1.21% 24 137.09 1.10%
Source: RBZ Weekly Auction Reports

Dividends Declared
COMPANY Announced Last Day Payable Amount (ZWc) Final/Interim
MASH 13 September 2022 TBA TBA 8.40 Interim
NMB 08 September 2022 TBA TBA 45.00 Interim
Old Mutual Limited 30 August 2022 20 September 2022 17 October 2022 773.04 Interim
ZBFH 30 August 2022 TBA TBA 77.18 Interim
FBCH 31 August 2022 19 September 2022 30 September 2022 148.82 Interim
CBZH 10 June 2022 TBA TBA 191.57 Final
UNIFREIGHT 08 July 2022 TBA TBA 59.00 Final

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
15 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 foreign currency generation through competitive USD pricing
-consistent dividend payer
Econet - significant pricing power and a bigger market share
-consistent dividend payer
Delta - Strong foreign currency generation through local and regional operations
- Monopolistic market structure across its product offerings with an estimated
market share of 95% in Lager beers, 86% in Chibuku and 65% in sparkling
beverages.
-consistent dividend payer
Meikles -well diversified in Supermarkets and Hotels
-strong cash generation
-a 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

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
15 SEPTEMBER 2022

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
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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