eBusiness Weekly
The Zimbabwe Stock Exchange bull run came to a halt this week as investors started taking profits off a rally that was not supported by strong fundamentals. At the close of the week on Thursday last week, the market capitalisation had slipped to $10,46 billion from $10,74 billion.
The Industrials Index dropped 4,09 percent to 379,95 after having managed to rise past the 400 level on Friday, September 15. The Minings Index was up 16,65 percent to 98,74.
The market has since recorded four consecutive losses after shedding another 0,74 percent Thursday last week to 364,42. The margin of losses has, however, been coming off which speaks to the upward strength that is still in the market.
On Tuesday, there were more risers that fallers on a ratio of 11 risers to seven fallers. It was the same on Wednesday with riser outnumbering fallers by 17:10. Surprisingly most of the counters that reported their results recently traded in the negative with First Mutual Life 21,58 percent to 9,5 cents.
FML’s operating income in the 6 months to June 30, 2017 dropped by a notable 61 percent to $1,642 million as a result of unsustainable higher claims in agribusiness under the property and casualty reinsurance business.
Notable fallers for the week include Axia Corporation Limited, the owner TV Sales & Home and car parts seller Transerv, down 8,51 percent to 29,41c. The Group, however, released on Thursday last week a strong set of full year results as it shrugged off the continued shortage of foreign currency and constrained consumer spending.
The company said revenue for the year ended June 30, increased by 26 percent to $248,262 million, while operating profit stood at $22,754 million. Barclays, which is still awaiting regulatory approvals for its takeover by Malawi’s FMB Bank was also negative having lost 12,50 percent to 8 cents since Thursday last week.
Edgars also closed negative shedding 3,31 percent to 4,84 cents. The Group this week reported its half year financial showing a 7 percent growth revenue to $24,7 million while group gross profit margin of 43 percent reduced by 1 percent from the same period last year.
Padenga was, however, the biggest loser after it dropped 24,29 percent to 80,46 cents. Padenga was also in the paper with its results for the first six months of the year showing increased profits.
