Stock Market Weekly Review

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Enacy Mapakame
The Zimbabwe Stock Exchange last week closed mixed after three of the benchmarks closed pointing southwards. In the week to Wednesday, total market value slipped a marginal 0,78 percent to $16,9 billion from prior week’s $17,05 billion reversing gains achieved in the prior week.

The primary indicator, the ZSE All Share Index fell 0,31 percent to 158,06 points while the Industrials Index was 0,31 percent to close the week pegged at 530,67 points from prior week’s 532,34 points.

The ZSE Top 10 fell the heaviest with a 1,31 percent decline to 160,63 points on losses in the market’s top capitalised counters. Turnover for the week closed 31,88 percent lower to settle at $27,7 million from $40 million achieved in the prior week.

Weekly volumes declined by 36,64 percent after 30 million shares exchanged.

The usual market’s favourites — Econet, Delta, Innscor, OK Zimbabwe and Old Mutual and BAT were significant contributors to both value and volumes as well as most trades. Weighing down the market were insurance group FML that retreated 12,38 percent to 13,8 cents from 15,75 cents. Asbestos maker — Turnall was 8,73 percent lower to 5,02 cents from 5,5 cents. Biggest stock by market capitalisation — Econet let go of 5,12 percent to $1,60 from $$1,68. The telecoms giant’s subsidiary Cassava Smartech this week launched a platform where its mobile network subscribers can open bank accounts through cell phones in a minute. Mobile banking is seen as the future of the financial services at a time electronic banking continues to gain traction.

Cement maker — Lafarge succumbed 3,25 percent to $1,40 while Innscor wrapped the top five fallers for the week.

At their latest annual general meeting (AGM) held Wednesday, the industrial conglomerate indicated business was severely affected by foreign currency shortages which resulted in product stock outs as the group had difficulties making foreign payments. But demand for its products remained firm, driving overall volumes growth. Its subsidiary — National Foods recorded a 26 percent volumes increase on the back of a 55 percent volumes growth in maize. Earlier in the week Natfoods had warned its clients of a possible closure of its mills in Harare and Bulawayo due to wheat stock outs on very limited foreign currency to settle its foreign obligations.

Other losses were recorded in Delta and Seed Co that slipped 0,82 to $3,25 and 0,13 percent to $1,99 respectively. Seed Co, which is the largest seed manufacturer in the country reported revenue for the half year to September 30, 2018 rose 82 percent to $29 million from $15 million during the same period in the prior year driven by a 115 percent jump in maize sales.

Profit from continuing operations amounted to $5,9 million from a loss position of $35 million mainly driven by earlier than normal timing of maize seed sales as well as growth in finance income.

Further losses in the week were offset by gains in Star Africa which rose 30 percent to 1,3 cents followed by hospitality group RTG that put on 25 percent to close settled at 2 cents. At 2,56 cents, ZH was 19,63 percent above prior week’s 2,14 cents.

Packaging group — Nampak put on 17,21 percent to 25,2 cents while ART also made it into the top five risers with a 9,8 percent increase to 10,98 cents.

Other gains were recorded in Meikles that put on 8,25 percent 55,21 cents while Natfoods added 7,68 percent of value to close pegged at $7,01. Indications are that the obtaining foreign currency shortages are threatening to paralise operations Natfoods. Resources group, Bindura, which reported a $2,8 million profit for the HY2019, rose by a marginal 0,28 percent to 7,04 cents. The other resource groups, Falgold and RioZim remained unchanged at 2,5 cents and $1,89 respectively.

DZHL, Masimba and Powerspeed remained unchanged 20 cents, 10,24 cents and 14 cents respectively. Also remaining flat Mashonaland Holdings, TSL and Truworths that closed at 2,4 cents, 1,6 cents and 60 cents in that order.

 

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