Stock Market Weekly Review

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Enacy Mapakame
A bullish sentiment persisted on the Zimbabwe Stock Exchange (ZSE) in the week to Wednesday as all the key indices closed in the black on gains in the market’s heavyweights.

The ZSE All Share Index gained 4, 79 percent to close at 114, 35 while the ZSE Top 10 Index was 11, 3 percent up to 119, 63.

Since the beginning of the year, the ZSE Top 10 Index has jumped 19, 63 percent from year opening’s 100 level.

The Industrials Index also rose 6, 82 percent to 381, 98 while the Minings Index rose by a marginal 0, 29 percent to 151, 97.

Total market capitalisation increased by 7, 4 percent to $10, 2 billion. Weekly turnover was however 5 percent lower to $18, 8 million as investors held on to their monies.

Foreign buys were 33 percent lower than prior week at $4, 8 million while foreign sales increased by 37 percent to $1, 7 million.

Resultantly, total weekly volumes also weakened 32 percent after 21, 2 million shares exchanged as the number of trades also reduced by 11, 2 percent to 562.

Headlining risers for the week were telecoms firm, Econet that jumped 24 percent to $1, 12  compared to prior week’s 90 cents.

The telecoms firm, also the second biggest counter on the stock market by market capitalisation last week reported its profit after tax for the year to February 28, 2018 made a giant leapt of 265 percent to $132, 3 million.

Its revenue increased 34 percent to $831 million as mobile money services continued on a growth trajectory.

Transport firm, Unifreight rose 20 percent to 2, 1 cents.  Unifreight recently reported profit in the five months to May increased 138 percent ahead of budget although earnings were coming off a low base.

Its revenue was 17 percent above prior year and 5 percent ahead of budget.
Also on the upside were Innscor and Delta that rose 11, 54 percent to $1, 45 and 10, 95 percent to $2, 28 respectively.

Seed producer, SeedCo was among the top five risers of the week after adding 10 percent to $2, 74. The firm’s profit for the year to March 31, 2018 was 5 percent above prior year at $21, 4 million, although a number of factors weighed down its revenue.

Overall revenue declined 5 percent to $128, 5 million on the back of high disease pressure, poor pollination due to high temperatures at pollination stage followed by excessive rainfall when seed crops were coming to maturity, and high incidence of the fall army worm.

The market was however not short of bears as Old Mutual, Starafrica, PPC, Hippo and ZB Financial Holdings Limited made up the top five fallers of the week.

Old Mutual was down 22 percent to $6, 07 while Starafrica was 9, 6 percent weaker to 1, 79 cents.

Cement maker, PPC fell 6 percent to $1, 40 while Hippo was 6, 09 percent lower to close the week at $1, 50.

Financial services group, ZBFH was 3, 47 percent lower to close at 34, 75 percent.
Equities analysts anticipate stocks to maintain strong performance supported by the primary economic sectors such as agriculture and mining.

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