Stock Market Weekly Review

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Enacy Mapakame
Total turnover for the week to Wednesday on the Zimbabwe Stock Exchange (ZSE) fell 57 percent to $9 million as the equities market plunged into the red on heavy sell offs across the market.

The bourse’s main indicator, the ZSE All Share Index lost 5,56 percent of value to 112,09 level. Resultantly, total market capitalisation reduced to $10,7 billion compared to the $11,3 billion in the prior week.

The Top 10 Index let go of 7, 45 percent to settle at 115, 65 level following losses in some of the market’s top cap counters.

The Industrials Index lost 22,64 points or 5,72 percent to close the week at 373,75 level subsequently reducing its year to date gains to 12,23 percent.

On the resources’ side, the Minings Index of four counters was the only market’s indicator to close the week in the positive after gaining 4,15 percent to 162,47 level driven by gains in Hwange and RioZim.

Weekly volumes plunged 46 percent after 62 million shares exchanged compared 117 million in the prior week. At 479, the number of trades reduced by 15,52 percent from 567 in the previous week.

Leading risers for the week were Fidelity Life which jumped 20 percent to 12 cents followed by Hwange which rose 17,65 to 4 cents as the coal miner successfully offset losses it incurred in the previous week.

Hwange is targeting monthly production of 300 000 tonnes of coal beginning this month as it eyes a return to profitability.

Also on the upside was Turnall which rose 15,79 percent to close the week at 1,1 cent while Proplastics was 14 percent firmer to 9,69 cents.

Hospitality group, African Sun also made it into the top five risers of the week after adding 13,33 percent of value to 6,8 cents.

Other gains were recorded in RioZim and TSL that rose 7,10 percent to $1,49 and 9,76 percent to 41 cents ahead of their annual general meetings yesterday.

Telecoms firm, Econet recorded a 1,74 percent gain to $1,16 cents. Econet last week launched the Ecocash business wallet, which offers higher limits of upto $500 000 as to enhance ease of transactions by businesses, both formal and informal.

The biggest stock by market capitalisation, Delta, led the week’s casualties after letting go of 20 percent of value to $1,99 from $2,50 in the previous week.

Art closed the week at 6 cents, representing a 7,69 decrease from 6,5 cents a week ago, while regional cement maker PPC lost 7,62 percent to $1,20. PPC last week reported its local unit had a 34 percent jump in annual revenue to $132 million as volumes grew 46 percent.

The growth followed commissioning of its plant in Harare in 2016 which doubled capacity to 1,4 million tonnes annually.

Insurance giant, Old Mutual eased 7,29 percent to $6 while First Mutual Holdings Limited retreated by 5,88 percent to 16 cents.

Other losses were recorded in Bindura, Star Africa and ZB Financial Holdings that eased 4,53 percent to 5,06 cents, 5,33 percent to 6 cents and 2,94 percent to 33 cents respectively.

Afdis, FBC, Natfoods and Zimre Holdings Limited (ZHL) remained unchanged at $1,45, 22 cents, $5,45 and 2,3 cents in that order.

ZHL had a slow start to the year but remained profitable in the five months to May, with gross premium increasing 9 percent to $14 million on strong performance by the rebranded Emeritus Re Zimbabwe.

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