Stock Market Weekly Review

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Enacy Mapakame
All of the Zimbabwe Stock Exchange (ZSE)’s indices closed the week to Wednesday in bearish mode as investors adopt a wait-and-see approach over the economy post-elections.

Linchpin index, the ZSE All Share Index eased 1,84 to close the week at 112.48 while the ZSE Top 10 Index closed the week 2,86 percent to 115.94 on losses in the market’s heavily capitalised counters.

At 377.94, the Industrials Index eased 1,63 percent. The Industrials has gained 13,49 percent since beginning of the year.

The Minings Index of four counters –Bindura, Falgold, Hwange and RioZim was unchanged at 164.62. However, total value of all the four counters more than doubled to $258 million from previous week’s $106 million.

Total market capitalisation marginally declined by 0,19 percent to close the week $12,176 billion from $12,199 billion recorded in the previous week.

Weekly turnover slumped 65,81 percent to $16,596 million from previous week’s $48,537 million. Foreign participation was skewed towards the sellers’ side as foreign sales rose 65 percent to $8,598 million. At $4,288 million, foreign buys were 34,31 percent lower than last week’s $6,528 million.

The number of trades recorded during the week declined by 33,56 percent to 291.

Leading the week’s fallers was Masimba Holdings that let go of 35 percent of value to 3,98 cents followed by financial services group Barclays which retreated 8,26 percent to 6 cents.

Dairibord eased 7,14 percent to 13 cents while beverages giant – Delta eased 5,22 percent to $2,04 while Econet wrapped up the top five fallers after retreating 3,03 percent to $1,20.

Other losses were recorded in regional cement maker PPC that closed the week 1,59 percent weaker to $1,20 while Star Africa marginally eased by 0,78 percent to 1,28 cents.

Further losses were offset by gains OK Zimbabwe that added 8,6 percent of value to 22,1 cents while Axia was 8 percent firmer to 25 cents. At 5,58 cents, First Mutual Properties was 7,53 percent above 6 cents achieved in the previous week.

Zimplow and First Mutual Limited rose by 3,9 percent to 11,55 cents and 3,03 percent to 16,5 cents respectively. Zimplow last week indicated it was considering shareholder approval for a share buyback as it seeks to enhance strong returns for its shareholders.  Other gains were recorded in Old Mutual that inched up 0,58 percent to $5,04 from $5,02.

All the four resources counters Bindura, Falgold, Hwange and RioZim were unchanged at 5,6 cents, 2,5 cents, 3,8 cents and $1,47 respectively.

Other counters that remained unchanged week on week include Art, Innscor, Padenga and SeedCo that maintained previous week’s prices of 6 cents, $1,42, 60 cents and $2,58 respectively.

SeedCo held its annual general meeting yesterday where it sought shareholder approval for a $19 million capital raise and separate listing of its regional operations on the Botswana Stock Exchange.

Also unchanged was plastic pipes manufacturer, Proplastics Limited which maintained the previous price of 9,8 cents.

Proplastics reported a 71 percent increase in revenue to $10,7 million in the six months to June 30, 2018. Volumes were 29 percent above same period last year on the back of strong demand experienced especially in the first quarter of the year.

During the course of the week, the National Social Security Authority (NSSA) said it increased its stake in hospitality group, Rainbow Tourism Group (RTG) to 67 percent from 60 percent.

This comes after the pensions authority raised $22,5 million needed by the hotelier to restructure its statement of financial position.

RTG closed the week flat at 1,1 cent and a year to date increase of 10 percent.

Overall, stocks are anticipated to remain shaky in the short term as investors await for policy clarity from the new Government which will guide the economic activity.

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