eBusiness Weekly
Enacy Mapakame
A bearish sentiment prevailed on the Zimbabwe Stock Exchange (ZSE) last week with all market indicators pointing southwards.
In the week to Wednesday, the benchmark ZSE All-Share Index eased 6,76 percent to close at 156,34 points as stocks succumbed to selling pressure.
The market’s elite club, the ZSE Top 10 Index let go of a hefty 8,96 percent to settle at 160,11 points on battering. The Industrials Index let go of 6,76 percent to close the week at 525,34 point on losses experienced across the board.
The Mining Index of three active counters (following the recent suspension of Hwange) slipped 9,47 percent to 199,07 points from prior week’s 208,81 points on losses in Bindura and RioZim.
Total market value eased 10,68 percent to close at $16,810 billion while weekly turnover succumbed 12,84 percent to $24 million from $18 million in the prior week.
At 31,5 million shares, weekly volumes were 11,5 percent lower than the previous week.
Weighing down the market were the market’s biggest counter on market capitalisation — Econet that succumbed to a 34,88 percent decline to $1,65 followed by FCB lost 32 percent of value to 7 cents.
Econet is set to hold an extraordinary general meeting next week (November 29) where among other issues to be tabled include the increase in ordinary share capital, conversion of debentures into equity as well as the demerger and subsequent separate listing of Cassava Smartech Zimbabwe Limited.
At 1,1 cents, sugar producer — Star Africa was 21,43 percent below last week’s 1,4 cents. Hospitality group African Sun let go of 13,79 percent to 10 cents while TSL lost 13 percent to 52,18.
Other losses were recorded in hospitality group Meikles that eased 8,93 percent to 55,01 cents.
Meikles reported profit after tax for the half-year to September 30, 2018 surged 467 percent to $15,3 million, surpassing the $7,7 million result for the full-year ended March 30, 2018 by 99 percent.
Revenue for the period grew 30 percent to $330 million compared to $254 achieved in the same period in the prior year, thanks to the supermarket business.
On the resources side Bindura retreated 9,72 percent to close pegged at 6,5 cents. Diversified mining group, RioZim also let go of 2,9 percent to $1,82.
RioZim indicated it has reopened its three mines whose operations had been suspended due to capital constraints as a result of foreign currency shortages that have been affecting the whole economy.
According to figures from the Zimbabwe National Statistics Agency (ZimStats), the country’s import bill continue to outstrip exports, worsening the foreign currency situation as the country is not generating enough exports.
As a result, cumulative deficit for the 10-month period to October came in at $2,2 billion, surpassing the 2017 full-year deficit by $0,4 billion.
Further losses were offset by gains in Fidelity Life which put on 47,14 percent to 10,3 cents followed by Dairibord which rose 33,33 to 20 cents.
At 44,95 cent, Axia closed the week 17,55 percent firmer compared to previous week’s. Industrial conglomerate Innscor rose 14,40 percent to $1,90 while agriculture concern, Ariston wrapped the week’s top five risers after it added 14,29 percent to 2,8 cents.
Other gains were recorded in insurance giant Old Mutual that rose 11,53 percent to $7,84 while cement maker — PPC added 10,34 percent to $1,60 from prior week’s $1,45.
Financial services group, ZBFH put on 8,22 percent to 37 cents while Simbisa rose 2,94 percent to 70 cents ahead of its annual general meeting scheduled for today.
Maintaining prior week levels were Afdis at $1,60; BAT at $33; Dawn at 2,68 cents; Masimba at 10,5 cents; Powerspeed at 14 cents.
Truworths, Unifreight and Zimpapers also remained flat at 1,36 cents, 4,05 cents and 2,4 cents respectively.
