Delta reclaims market heavyweight status

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Business Writer
Recently listed Cassava SmarTech Zimbabwe Limited flattered to deceive when it became the biggest publicly traded company in Zimbabwe a few weeks back. Now, beverages maker — Delta, valued at $3,55 billion has reclaimed its pole position, as per tradition, relegating the new fintech group to third on the Zimbabwe Stock Exchange (ZSE).

Telecoms giant — Econet, remains the second most highly valued quoted company in the country with a market capitalisation of $3,53 billion by close of Wednesday session.

Cassava’s market value has tripped to $3,47 billion, a decline of 10 percent from $3,86 billion since its listing on the ZSE on December 18, 2018.

Initial market valuations appear to have been driven purely by market hype. Investors have now sobered up, resizing the stock’s price to $1,34 from $1,49 achieved at close of trade on listing date.

That means if someone spent $100 buying the Cassava share when it went public, the investor has lost $10 to date.

On a year-to-date basis, Cassava is 6,67 percent lower.

Cassava Smartech is a diversified smartech group that uses digital solutions to drive socio-economic development and to improve the overall quality of life.

The fintech focused spin-off from Econet, made history by becoming the bourse’s largest counter by market capitalisation a few hours after its debut, eclipsing its parent company Econet and Delta then valued at $3,77 billion and $3,61 billion respectively.

However, fortunes changed barely a month resulting in Delta reclaiming its pole position which it had lost to Econet in August last year. The development came after Econet’s class A shares were for the first time included on the ZSE but only for the purpose of calculating market capitalisation.

Delta now accounts for 18,84 percent of the market’s total value. At $2,80, the beverages giant’s value has improved 2,73 percent on a year-to-date basis.

Earlier this week, Delta announced new recommended wholesale and retail prices for its clear beer products, effecting a 25 percent increase of its lager beer prices.

Delta said the increase was to cushion the company against the rising local costs. Earlier, Delta had announced intentions to sell its products in US dollars saying foreign currency shortages were negatively affecting its business, resulting in the company failing to meet demand.

Industrial conglomerate Innscor remains the fourth largest company with a market value of $923 million, accounting for 4,89 of the market’s total capitalisation. At $1,65, Innscor has decreased by 10 percent since beginning of the year.

Wrapping up the market’s top five counters is British American Tobacco (BAT) valued $680 million and representing 3,6 percent of total market value.

BAT has remained flat at $33, maintaining its position as the market’s most expensive stock by nominal value.

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