eBusiness Weekly
Enacy Mapakame
The Zimbabwe Stock Exchange (ZSE) rebounded in mid-week sessions on firming demand post Monetary Policy Statement from the central bank.
The Reserve Bank of Zimbabwe (RBZ) Governor, Dr John Mangudya announced policies aimed at mopping up excess liquidity and attract the much needed foreign currency into the economy.
In the week to Wednesday the benchmark ZSE All Share Index gained 10,45 percent to close pegged at 124,47 level while the market’s favourite stocks — ZSE Top 10 Index closed 13,31 percent firmer to 129,54 level.
The Industrials Index rallied 10,57 percent to 418,73 level while the Mining Index of four counters inched up 0,68 percent to close the week pegged at 164,55 level on gains in nickel producer Bindura that rose 2,27 percent to 6,3 cents.
Total market capitalisation jumped 13,44 percent to $13,5 billion from $11,9 billion in the comparative week as demand for stocks increased pushing prices higher.
At $8,9 million, turnover for the week was, however, 49 percent below last week’s $17 million. Foreign buys were 81 percent lower to $900 653 compared to previous week’s $4,7 million while foreign sales amounted to $4,1 million representing a 7,3 percent growth.
Weekly volumes declined 62 percent as 27,5 million shares were exchanged compared to 74 million shares recorded in the previous week
The total number of trades increased 17, 6 percent to 581 from 495 in the previous week.
MedTech headlined risers for the week with a 100 percent surge to 0,02 cents from 0,01 cents. The medical consumables firm reported significant improvements in earnings with an 18 percent increase in revenue while operating profit jumped 541 percent to $2 million during the half year to June 30, 2018. Telecoms giant, Econet rose 41 percent to $1,65 from previous week’s $1,16. The telecoms firm is planning to unbundle its financial technology unit and pursue a separate listing on the local bourse. The unit comprise of the mobile money platform EcoCash.
Econet is also considering the exchange of the company’s 51 percent stake in Liquid Telecom Zimbabwe for a stake of equivalent value in the holding company, Liquid Telecom Holdings, in advance of the anticipated listing of Liquid Telecom Holdings on a reputable international exchange; and the conversion to equity of debentures that were issued as part of the company’s rights offer in March 2017.
Also on the upside was GetBucks which rose 35,44 percent to 4,51 cents from 3,33 cents while hospitality group, Meikles closed 25 percent firmer at 45 cents.
Cafca wrapped up the top five risers for the week with a 19,7 percent increase 85,5 cents. Other gains were recorded in Unifreight that put on 19,21 percent to close pegged at 3,6 cents while property firm, ZPI rose 18,75 percent to 1,9 cents. ZPI reported profit for the year to June dipped by 68 percent to $197 397 from $613 526 recorded in the prior comparable period while the company’s revenue decreased by 41,3 percent to $1,5 million from last year’s $2,6 million.
Slowdown in the group’s profitability was largely attributed to the refurbishments at Nicoz House in Bulawayo and construction of Sawanga Mall in Victoria Falls which evidently require massive capital injection.
Conveyor belts manufacturer — General Beltings put on 13 percent to 1,25 cents while TSL added 11,8 percent of value to close pegged at 45 cents.
Regional seed producer Seed Co gained a marginal 0,55 percent to $1,91 ahead of its secondary listing on the local bourse and listing of regional operations on the Botswana Stock Exchange today. Further gains were offset by losses in Art which eased 13,9 percent to 7 cents followed by Star Africa which eased 10,11 percent to 0,8 cents.
Also on the downside was Zimre Holdings Limited which lost 9,24 percent of value to 2,16 cents. Mashonaland Holdings let go of 3,85 percent of value to 2,5 cents while peers Dawn eased 3,33 percent to 2,32 cents. Other losses were recorded in Powerspeed which lost a marginal 0,07 percent to 14,99 cents. First Mutual Properties, Hippo and Nampak remained flat at 6 cents, $1,68 and 18 cents respectively. Resources groups Hwange, Falgold and RioZim also maintained prior week levels of 4,01 cents, 2,5 cents and $1,40 respectively.
