eBusiness Weekly
Enacy Mapakame
Investors on the Zimbabwe Stock Exchange (ZSE) lost a hefty $245 million as bearish sentiment prevailed with all indices closing in the red, in one of the shortest trading weeks due to two consecutive holidays.
In the week to Wednesday, the primary index, the ZSE All Share Index lost a marginal 0,53 percent to settle at 111.88 level while the ZSE Top 10 Index let go of 0,7 to 115.13 level on the back of losses in the market’s heavy cap counters.
The industrials Index fell 0,46 percent to close the week at 376.22 level. The Minings Index of four counters fell the heaviest with a 3,54 plunge to 158.8 level on losses in RioZim.
Total market capitalisation eased 2 percent to $11,9 billion. At $5,8 million, total weekly turnover was 64 percent lower than last week’s $16,5 million.
Foreign buys plunged 83 percent to $706 428 while foreign sales fell 98 percent to $104 910. Investors have also adopted a wait and see attitude as they await for the new Government to settle and provide policy direction which the economy will take in the next five years and beyond.
Weighing down the market were retail and consumer stocks. Brick molding company, Willdale led fallers after it lost 8,33 percent of value to settle at 0,55 cents followed by retail giant OK Zimbabwe which let go of 2,08 percent to close the week at 23,5 cents.
Beverages firm, Delta declined by 2,04 percent to $2 while Axia was 1,89 percent weaker to close the week pegged at 26,49 cents.
At $1,40 cents, Innscor fell 1,34 percent wrapping up the top five fallers.
Other losses were recorded in Simbisa that was 1,02 percent weaker to 47,51 cents while Hippo lost 0,59 percent to $1,68.
SeedCo and PPC declined by 0,39 percent to $2,57 and 0,21 percent to $1,19 respectively. Resources group, RioZim was the only mining firm in the negative shedding 0,54 percent to $1,46, dragging down the Minings Index.
Consumer and retail stocks have this year been projected to perform better than most sectors driven by an increase consumer spending on the back of improvements in primary sectors, agriculture and mining.
While challenges may still persist in the economy particularly with regards to shortages of foreign currency, retail and consumer stocks – OK Zimbabwe, Simbisa, Delta, National Foods, BAT, Dairibord, Axia and Econet are expected to buck the trend.
There has also been a notable shift in purchasing trends as the market adopts formal channels where plastic money is accepted as opposed to informal traders.
Losses were however offset by gains in Zimplow that put on 20 percent to close the week at 14,4 cents from 12 cents last week.
Zimplow reported its total revenue for the half year to June rose 38 percent to $20, 3 million from $14, 7 million in the prior comparable period.
Gross profit was up 61, 8 percent to $7, 16 million from $4, 43 million, giving a gross profit margin of 35, 27 percent compared to 30, 11 percent in the prior comparable period. The rise in gross profit was notwithstanding an increase in cost of sales of 27, 89 percent.
Banking institution, Barclays rose by 6,67 percent to 6,4 cents while Edgars gained by 1,85 percent to 6,62 cents.
Hospitality group African Sun and NMB both gained 1,67 percent to close the week at 7,32 cents and 12,2 cent respectively.
Other gains were recorded in Padenga that put on 1,58 percent to 60,58 cents while Old Mutual added 1,13 percent to $5,10.
Bindura, Powerspeed, Meikles and FBC remained flat at 5,6 cents, 8 cents, 35 cents and 22 cents respectively.
