Stock Market Weekly Review

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Enacy Mapakame
Shares on the Zimbabwe Stock Exchange (ZSE) declined in successive trades last week, paring gains that had been achieved a fortnight ago as investors took profit.

All four benchmarks closed the week in the red as the ongoing reporting season failed to spur gains for the market in the midst of a slowdown in activity.

By end of trading on Wednesday, the total market value had tumbled 1,55 percent to $16,663 billion from prior week’s $16,925 billion.

The primary ZSE All Share Index let go of 1,73 percent to 155,32 points compared to 158,06 recorded in the comparative week.

At 158,58 points, the ZSE Top 10 Index was 1,28 percent weaker on losses in the market’s heavily capitalised stocks.

The Industrials Index eased 1,6 percent to 522,19 from prior week’s 530,67 points by end of trade. The Mining Index of three active counters fell the heaviest after letting go of 7,44 percent to 193,19 points from 208,71 points in the previous week on losses in Bindura. Total turnover reduced by 22,92 percent to $21 million while weekly volumes increased by 133,73 percent after 70 million shares exchanged.

Dragging down the market, MedTech fell 66,67 percent to close pegged at 0,01 cents while cement maker Lafarge let go of a hefty 33,57 percent to 93 cents from prior week’s $1,40.

Resources group, Bindura lost 27,98 percent of value to close pegged at 5,07 cents. Agriculture and mining implements firm, Zimplow let go of 18,64 percent to 24 cents.

Financial services group, ZB lost 11,39 percent to 35 cents wrapping up the week’s top five fallers. Banking group, FCB lost 10,58 percent of value to 6 cents while Meikles eased 7,63 percent to 51 cents.

Other losses were recorded in PPC with a 5,29 percent loss to $1,61 while ART lost 4,37 percent to 10,5 cents. ART reported revenue for the full-year to September 30, 2018 rose 40 percent to $46,9 million on increased demand and improved production output in battery business. The battery division recorded $32 million revenue, representing 42 percent growth from prior year as it remains the group’s cash cow.

Dawn and Delta declined by 4,29 percent to 2,68 cents and 3,08 percent to $3,15 respectively. Spirits and wines maker Afdis lost 3,13 percent to $1,55.

The market’s biggest stock by capitalisation, Econet, eased 1,34 percent to close at $1,57 as a cloud continues to hang over the listing of the proposed unbundling of Cassava. This follows the company’s announcement that it shall seek the approval of the ZSE to defer the implementation of the demerger resolutions to a date to be announced in order to accommodate the outcome of the adjourned Debenture Conversion meeting.

Further losses were offset by gains in National Foods that put on 2,71 percent to $7,20 while insurance services group FML put on 1,45 percent to 14 cents.

Crocodile breeder, Padenga gained a marginal 0,53 percent to 95 cents. Ariston and Old Mutual each rose by 0,4 percent to 2,5 cents and $8,20 respectively.

African Sun, Dairibord and Getbucks remained flat at 10 cents, 20 cents and 7 cents respectively. The trio of property firms FMP, Mashonaland Holdings and ZPI also maintained prior week levels at 7,08 cents, 2,4 cents and 2,52 cents respectively.

Mash Holdings said performance for the full year to September 30, 2018 remained flat with revenue of $4,74 percent, representing 1 percent increase from prior year. Operating profit was stagnant at $2,4 million with margins falling to 48 percent from 50 percent.

Profit for the year rose 52 percent to $2,3 million from $1,5 million in the comparable year. The property sector in general has been affected by voids especially in commercial property in the central business district. Tenants are moving to office parks and suburban offices while downward rental reviews are also adding on to their challenges resulting in reduced rental yields. Also remaining flat was Powerspeed, RTG and Zimpapers at 14 cents, 2 cents and 2,4 cents in that order.

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