By Enacy Mapakame
Zimbabwean stocks continued with their rally this week, boosted by hopes of rapid economic recovery post election.
The ZSE All Share Index climbed 1, 54 percent to 104 level in the week to Wednesday, as the Industrials Index rose 1, 4 percent to 348 level on the back of gains across counters. On a year to date basis, the ZSE All Share Index is 4, 36 percent firmer.
Increases in insurance, agriculture and cement stocks led the rally, which has seen the market total value rising 2, 25 percent to $10, 01 billion.
The ZSE Top 10 index was 2, 73 percent firmer to 107, 19 level as the market’s top capitalized stocks improved in value.
The Minings Index of four counters rose 1, 4 percent to 143, 12 on the back of a 20 percent jump in Bindura.
Total turnover for the week jumped 42 percent to $10 million compared to $7 million in the previous week, as more liquidity found its way on the bourse.
But volumes for the week fell 1 percent after 22 247 407 exchanged during the week.
Trades were skewed towards foreign buys which jumped 277 percent to $5 million as positive investor sentiment continues on seemingly positive economic outlook.
Additionally, there has been increasing evidence of thawing relations between Zimbabwe and the West, what economists say will boost investment into the country and production.
Headlining the risers were nickel producer, Bindura which rose 20 percent to 4, 68 cents followed by Unifreight which rose 19, 86 percent to 1, 75 cents.
Paper and packaging group – Art closed the week 18, 18 percent higher to 5, 2 cents. Other gains were recorded in cement maker PPC and Seedco that rose 17, 75 percent to $1, 29 and 15, 85 percent to $2, 25 respectively.
Crocodile breeder- Padenga also closed the week in the positive after gaining 10 percent to 66 cents. In a recent update at its annual general meeting, Padenga said it was on course to meet its target of 46 000 skins for this current financial year with an average belly width of 34, 6 centimetres.
Since beginning of its harvesting season in March this year, the firm has harvested 7 493 skins.
Dairy and foods processecing company, Dairibord rose 5, 72 percent to 17 cents. Dairibord indicated its revenue for the four months to April 2018 rose 17 percent compared to same period last year on strong demand.
The market was however not short of bears as property firms dominated the week’s top fallers.
On the downside was retail group, OK Zimbabwe that retreated 19, 23 percent to 21 cents on profit taking. The retail group is expected to release financial results on May 22.
Property companies – Dawn lost 18, 24 percent of value to 1, 3 cents while Mashonaland Holdings closed the week 13, 47 percent weaker to 2, 12 cents.
Earnings for property firms have been negatively affected by increase in voids especially in the commercial property side as companies downsize operations, wind up operations, move to suburban and office parks or negotiate for downward rentals.
Also on the downside were Zimre Holdings Limited and Zimre Property Investments that fell 12 percent to 2, 2 cents and 7, 89 percent to 1, 75 cents respectively.