HARARE – Equity prices climbed slightly higher last week, pushing the Zimbabwe Stock Exchange (ZSE) total market value 10 percent to $12,176 billion, a rise viewed by some analysts as proof of positivity in the health of the economy post-elections.
Zimbabwe and the rest of the region have been on the edge due to the July 30 harmonised elections, which President Emmerson Mnangagwa won by 50,8 percent.
The elections were generally touted as peaceful, free and fair prior to Wednesday’s protests that left six people dead and some property damaged.
All the parties involved have campaigned on an economic transformation agenda, providing hope for local industry and the economy as a whole.
Analysts have maintained that the outcome of this election will be critical in determining the course the Zimbabwe economy will take going forward.
In the week to Thursday, over $1,141 billion was added to total market value, thanks to telecoms giant Econet which highlighted Tuesday’s session after a block trade of 25 million shares sailed through at $1,25 in a trade that helped lift market valuations higher.
Although the buyer of the shares could not be established by the time of going to print, the mystery investor now owns 1 percent of Econet’s issued share capital after pouring $31 million in the counter on Tuesday alone.
But the Industrials Index slipped a marginal 0,8 percent to 383,40 level. The primary All-Share Index let go of 0,08 percent to close the week at 114,08 level.
The ZSE Top 10 Index eased 0,9 percent to 118,58 level on losses in the market’s heavily capitalised counters.
On the resources side, the Minings Index inched up 0,38 percent to 164,62 level on gains in nickel producer Bindura.
Financial services group, GetBucks let go of 10 percent to close the week at 3,33 cents while Innscor slipped 5,3 percent to $1,42.
Econet slipped 2,14 percent to $1,23 cents while crocodile breeder Padenga eased 0,77 percent to 60 cents.
Sugar processor, Hippo let go of 0,58 percent to $1,69 compared to previous week’s $1,70 as it succumbed to profit taking.
Further losses were offset by gains in Dairibord which rose by 5,26 percent to 14 cents.
Zimplow rose by 3,89 percent to 12 cents. The agriculture implements firm is seeking shareholder approval to buy back shares.
The buyback scheme is expected to deliver strong returns to shareholders, improve flexibility to better manage the company’s share capital structure and dividend payments.
Zimplow has indicated it is enjoying good returns due to increased volumes on the back of Government’s Command Agriculture programme.
Resources group Bindura added 1,44 percent to 5,6 cents, compared to 5,56 in the previous week.
Insurance giant Old Mutual rose by 0,4 percent to close the week at $5,02 cents, compared to $5 in the previous week.
Delta and retail group, OK Zimbabwe were flat at $2,15 and 22,10 cents respectively. At its recent annual general meeting held in the capital, OK Zimbabwe indicated earnings were on an upward trend as revenue for the first quarter of the financial year 2019 rose 20 percent above same period last year.
Meanwhile, stocks were generally on an upward trend during the election month of July amid optimism over business friendly policies endorsed by the President Mnangagwa administration, such as indigenisation laws reforms.
By close of trade in the month of July, the Industrials Index was up 12,1 percent to 384,25 while the All Share was 11,95 to 114,32.
The ZSE Top 10 was up 15,33 percent to 118,84 while the Minings Index rose 1,68 to 163,99.
Strong revenue and profit growth also boosted share prices mostly while a bit of excess money in the form of huge bank balances created a safe haven.