MORNING NOTE

26 SEPTEMBER 2022
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Market Commentary 23 September 2022

The All-Share Index (ALSI) closed 10.46% firmer at 11 629.65 on account of advances in BAT, Natfood,
Innscor, Delta and Simbisa. On the downside, declines were recorded in Afdis, NMB, ART, Bridgefort
and Bridgefort B. Overall, the market breadth was positive with 27 counters advancing, 2 counters
declining and 22 unchanged as shown in the diagram below.

All Share Index

33000
30000
27000
24000 Advances
21000 no ; 27
18000 change;
15000 22
12000
9000
6000 Declines;
3000
2
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 200.00 200.00 0.00% 100.00% 56.57 72.40
DATVEST ETF 140.00 145.41 3.86% 45.41% 60.08 329.71
MORGAN & CO MIZ ETF 120.52 125.00 3.72% 25.00% 69.40 2 988.76
MORGAN & CO MULTI SECTOR ETF 2 845.45 2 773.24 (2.54%) 177.32% 1 669.77 3 809.32
OLD MUTUAL ZSE TOP 10 ETF 404.76 421.94 4.24% (4.12%) 361.58 695.93
*All share prices are in ZW cents

ZSE INDICES
MAIN INDICES Today Day Change % YTD Change % SECTOR ANALYSIS Today Day Change % YTD Change %
ALSI 11 629.65 10.46% 7.46% Financials 22 188.68 5.48% 58.25%
MINING INDEX 16 928.69 0.00% 116.61% Consumer Discretionary 14 092.83 17.09% 15.04%
TOP 10 6 690.83 13.32% (1.77%) Consumer Staples 13 805.77 14.95% 0.97%
TOP 15 7 537.46 13.09% 0.11% Materials 10 160.57 8.23% 16.30%
SMALL CAP 471 763.41 5.59% 17.13% Industrials 15 973.11 0.39% (15.64%)
MEDIUM CAP 26 741.87 5.29% 31.04% ICT 15 525.78 25.14% (5.46%)
Real Estate 9 583.90 5.57% 9.30%

ZSE FOREIGN TRADES ON 23 September 2022

Foreign purchases Foreign sales
Counter Volume Price (ZWc) Value (ZW$) Counter Volume Price (ZWc) Value (ZW$)
- RTG.zw 10 700 599.95 64 193.00

TOTAL - - TOTAL 10 700 64 193.00

Members of the Zimbabwe Stock Exchange

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

RBZ LATEST FOREIGN EXCHANGE AUCTION RESULTS: 20 September 2022

MAIN BOARD SME BOARD
Highest Bid 650.0000 655.0000
Lowest Accepted Bid 580.0000 580.0000
Weighted Average Rate 613.3681 613.3681
Total Accepted Bids (USD) 11 642 279.21 2 109 508.47
Total Allocations (USD) 11 562 566.29 2 099 695.45
Allocations: (USD)
Raw Materials 5 481 712.32 47.41% 544 543.20 25.93%
Machinery 2 897 448.71 25.06% 664 958.47 31.67%
Consumables 781 648.34 6.76% 286 454.89 13.64%
Services 1 095 578.45 9.48% 288 805.86 13.75%
Retail 766 563.72 6.63% 163 244.46 7.77%
Electricity 51 255.00 0.44% 0.00 0.00%
Chemicals 353 813.31 3.06% 92 325.75 4.40%
Paper & Packaging 134 546.44 1.16% 59 362.82 2.83%
Source: RBZ Weekly Auction Reports

Dividends Declared
COMPANY Announced Last Day Payable Amount (ZWc) Final/Interim
Afsun 23 September 2022 04 October 2022 31 October 2022 US0.0545c Interim
Afsun 23 September 2022 04 October 2022 31 October 2022 10.21 Interim
Simbisa 26 September 2022 11 October 2022 19 October 2022 US0.58c Final
Old Mutual Zimbabwe Limited 16 September 2022 20 September 2022 17 October 2022 205.40 Interim
ZHL 15 September 2022 27 September 2022 06 October 2022 US0.0137c Interim
MASH 13 September 2022 27 September 2022 06 October 2022 8.40 Interim
NMB 08 September 2022 04 October 2022 04 November 2022 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
UNIFREIGHT 08 July 2022 TBA TBA 59.00 Final

Company Updates
Simbisa FY June 2022 Financial Highlights
ZW$ million FY June 2022 % Change
Revenue 51 692 203%
Cash generated from operating activities 15 011 357%
Total Assets 63 210 451%
Total Equity 18 758 488%
Profit before tax 10 883 427%
Profit for the year attributable to equity holders of the parent company 8 429 277%
Headline earnings per share (ZW Cents) 1 412.8 255%
P/E 8.0

Members of the Zimbabwe Stock Exchange

100 The Chase, Emerald Hill, Harare, Zimbabwe
Tel: +263-242-308-400, Email: omsec@oldmutual.co.zw
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26 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
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

Members of the Zimbabwe Stock Exchange

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

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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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 Hill, Harare, Zimbabwe
Tel: +263-242-308-400, Email: omsec@oldmutual.co.zw