Stock Market Weekly Review

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Enacy Mapakame
Investors on the Zimbabwe Stock Exchange last week lost a cumulative $99 million as the equities market continued on a downward trend amid losses in its top counters.

Companies’ financial results released in the week failed to inspire growth as total market capitalisation for week to Wednesday eased 0,82 percent to $11,9 billion from the previous week’s $12 billion.

The week saw companies with half-year or full-year ending June 30 release their financial results that showed growth in earnings compared to comparable prior year period, despite the challenging operating environment.

The primary index, the ZSE All Share Index eased 0,72 percent to 112,69 level from prior week’s 113,51 level. The market’s elite club of heavily capitalised stocks, the ZSE Top 10 Index let go of 0,8 percent to 114,32 level. At 378,7 level, the Industrials Index was 0,73 percent weaker while the Minings Index of four counters remained flat at 163,44 level.

Total turnover, however, jumped 73 percent to $17 million sustained by trades in the market’s favourite counters Delta, Old Mutual, Simbisa, Econet, CBZ, Seed Co, FMP and PPC that were the major value drivers. Weekly volumes rose 250 percent after 74 million shares exchanged compared to 21 million shares recorded in the previous week. FMP, CBZ, Simbisa, Proplastics, Willdale, Delta and Econet drove volumes for the week.

Number of trades recorded in the week increased by a marginal 0,2 percent to 495 compared to last week’s 494 trades.

Leading the week’s fallers was banking group Barclays that lost 10,27 percent to 6,2 cents while Masimba eased 7,14 percent to 6,5 cents. At 15 cents, largest banking group by deposits CBZ was 7,12 percent lower than previous week’s price of 16,15 cents.

Insurance firm, FML lost 6,56 percent of value while clothing retailer Edgars wrapped up the top five fallers with a 4,28 percent decline to close pegged at 8,5 cents.

Regional seed producer Seed Co let go of 3,27 percent to close the week at $1,89 from $1,96. The market’s biggest counter by capitalisation — Econet lost 2,6 percent to $1,16 while Padenga closed 1,98 percent weaker to 61,75 cents from 63 cents. The crocodile breeder reported revenue for the half year to June 30, 2018 rose 224 percent to $9,6 million from $2,9 million during the same period last year. Its profit before tax amounted to $7,7 million from $4,3 million during the comparable prior year period.

Other losses were recorded in OK Zimbabwe and Axia that fell 2,89 percent to 23,5 cents and 0,11 percent to 26,97 cents respectively. OK Zimbabwe last week announced the appointment of Herbert Nkala as its new chairman taking over from David Lake.

Axia sustained profitability in the year to June 30, 2018 by recording an operating profit of $25,8 million representing a 46 percent growth above prior year. The specialty retail and distribution group’s revenue for the year grew 31 percent to $275 million on strong performance across board. Further losses were offset by gains in sugar processor, Star Africa which headlined the week’s gainers with a 39 percent increase to 0,89 cents followed by Unifreight which rose 19,84 percent to 3,02 cents.

At 8,13 cents, Art put on 12,92 percent ahead of prior week’s 7,2 cents. Proplastics added 8,6 percent of value to 12 cents while beverages giant — Delta rose 4,77 percent to $2,11 from $2,01 in the comparable week. Other gains were recorded in financial services group, FBC that rose 4,33 percent to close pegged at 25,04 cents while diversified media group, Zimpapers added 1,11 percent to 1,82 cents.

The market’s most expensive stock, BAT remained flat at $27. Also to maintain prior week levels were General Beltings at 1,1 cent, Lafarge at $1,30, African Sun at 8,1 cents, Innscor at $1,38 and National Foods at $5,63.

Both Innscor and Natfoods recorded growth in earnings for the year to June 30, 2018. Innscor’s revenue grew 9 percent to $631 million on volumes growth across board while Natfoods recorded a 3 percent revenue increase to $297 million.

On the resources side, all the four counters Bindura, Falgold, Hwange and RioZim maintained previous week’s prices of 6,16 cents, 2,5 cents, 4,01 cents and $1,40 respectively.

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