The Zimbabwe Stock Exchange (ZSE)’s market aggregates surged in the week to Wednesday with the volume of shares traded ballooning 425 percent to 144 million shares from 27 million shares in frenzied buying as investors scramble to offload excess liquidity.
Block trades in beverages giant, Delta Corporation which traded circa five million shares in Wednesday’s session, subsequently accounting for 90 percent of the day’s value outturn, contributed significantly to both the week’s volumes and value.
Total market capitalisation surged 44 percent to a $19 billion, the highest recorded since the economy dollarised in 2009 as developments in other markets of price hikes and rising parallel market rates also spread to the stock market.
All the market indices closed the week pointing northwards.
The market’s index of top cap counters — the ZSE Top 10 paced fastest with a 47,17 percent surge to 190,64 points.
The primary indicator, the ZSE All Share Index rose 41,81 percent to 176,52 points on gains across the board. At 593,82 points, the Industrials Index ticked 41,18 percent while the Mining Index of four counters rose 23,76 percent to 203,65 points on gains in resources groups.
Total turnover for the week soared 411,69 percent to $45 million compared to $8 million recorded in the prior week.
Econet, Delta, OK Zimbabwe and Old Mutual drove both volumes and value for the week.
Multi-listed insurance giant, Old Mutual led the week’s risers after surging 87,51 percent to $10,60 followed by Axia which rose 70 percent to 46,05 cents.
Cement manufacturer PPC put on 69 percent of value to close the week pegged at $1,86 compared to prior week’s $1,10.
At 11,5 cents, ART was 64,29 percent above previous week’s 7 cents while Delta wrapped the top five risers with a 60 percent surge to $3,64.
The beverages giant reported lager beer volume grew by 52 percent over prior year for the quarter to September 2018, and up 54 percent for the six months on the back of increased demand.
The sorghum beer volume in Zimbabwe grew by 9 percent above prior year for the quarter and 2 percent for the six months and the company recorded an improvement in the supply of packaging materials for Chibuku Super.
The production capacity for Chibuku Super is now fully extended while that for standard Chibuku is limited by the shortages of Scud bottles.
Other significant gains were recorded in hospitality group, African Sun which rose 52 percent to 12,5 cents, while FML rose 47,73 percent to 22,16 cents. FML has made an application to Government for the transfer of Tristarinsurance business to Nicoz Diamond. FML acquired majority stake in Nicoz Diamond which was held by the National Social Security Authority (NSSA).
Fast food service provider, Simbisa rose 59,22 percent to 82 cents while the country’s biggest retail group, OK Zimbabwe put on 48,78 percent to 37,15 cents.
Resources groups, Bindura and RioZim rose 33 percent to 8,4 cents and 20 percent to $1,69 respectively, helping push the Mining Index higher.
RioZim has indicated its intentions to execute legal action against the Reserve Bank of Zimbabwe (RBZ) over failure to meet its obligation to avail foreign currency saying this is choking its business.
RioZim said due to lack of access to foreign currency for its operations, business was becoming unsustainable and crippling its growth strategies.
CAFCA remained flat at 85,5 while FBC Holdings and Fidelity Life also remained flat at 25,1 cents and 10,3 cents respectively.
Also maintaining prior week levels were Nampak that closed pegged at 18 cents, Powerspeed at 14,99 cents, Willdale at 0,67 cents and Hwange at 4,01 cents. During the past week, Hwange board suspended its acting managing director on allegations of “unethical business practices”.
Indications are that weak management systems have seen the coal producer defaulting on the Scheme of Arrangement it entered into with creditors, and the firm has plunged into $7,6 million arrears.
Hwange, which owes various creditors $352 million, entered into a Scheme of Arrangement with them on May 10 last year, under which employees would be paid monthly.