Barclays, CBZ spur ZSE

Discounted market capitalisations are prevailing on the Zimbabwe Stock Exchange.

HARARE – Zimbabwe Stock Exchange (ZSE) recorded significant gains towards the end of last week buoyed by block trades in financial institutions Barclays and CBZ Holdings (CBZ) shares.

The local bourse, which survived a mid-week slump as it powered to gains in all the major market benchmarks by the end of week ahead of the announcement of a new Cabinet, capped the week at 120,50 points as gains were fairly spread across the board.

“Market aggregates for the week received a welcome boost from block trades in banking groups — Barclays and CBZ —which made notable contributions to both volumes and values.

“The volumes of the week ballooned 209 percent anchored by Barclays and CBZ which claimed a combined 57 percent of the weekly aggregate,” equity analysts at EFE Securities said.

In the week under review, 25 million Barclays Bank Zimbabwe (BBZ) shares changed hands at $0,0676 to yield the day’s single stock top value.

The value of trades up 37,82 percent at $23,34 million dominated by market heavies Econet claiming 25 percent, Old Mutual accounting for 24 percent and Delta driving 22 percent of the spend in the week.

Barclays and CBZ’s block trades saw them account for 13 percent and eight percent of the values respectively.

Among the segregated indices, the Industrials top performed on a 2,7 percent rise that left the benchmark pegged at 405,31 points while, the Top Ten Index charged 2,61 percent and closed the week set at 124,87 points in the week under review.

The Resources Index was up 1,20 percent for the week as it settled at 163,38 points spurred by gains in Bindura and RioZim as demand continued to surge.

“Another bullish outlook appeared on the bourse with investors seemingly chasing stock amid a scarcity of sellers in the market heavies,” EFE Securities said.

In the week under review, 26 counters posted gains against a mere seven fallers setting a positive weekly breadth.

Penny and mid-tier stocks headlined the gains though support was mainly from some of the heavies where investors cherry picked.

Weekly shakers were led by agricultural concern SeedCo that slipped 15,5 percent and settled at $2,1800 as the stock rerates post the unbundling of its regional operations — SeedCo International — while StarAfrica succumbed 10 percent to $0,0090 where demand could be established for the sugar processing and packaging group.

Cigarette manufacturer BAT Zimbabwe shed 3,57 percent to $27 0000 while, Econet shed 3,34 percent to end the week settled at $1,2040.

First Mutual Holdings Limited, Innscor and Padenga capped the weekly fallers on declines of 2,94 percent, 0,72 percent and 0,26 percent.

However, EFE Securities noted that the recent Cabinet announcements had offered a glimmer of hope to the bourse.

“A few new faces in the line-up, notably in the Finance ministry offered a glimmer of hope that — maybe some — new approaches may be in the offing as government attempts to arrest the debilitating economy,” the analysts said.

However, this week, the bourse ignored “Mthuli-phoria”  adrenalin shared by market watchers on appointment of Mthuli Ncube, the former African Development Bank vice president as a new broom at Treasury.

On Monday, the market opened the week on a low note as heavies dragged the Indices southwards. The mainstream All Share Index and Industrials let go a similar 0,04 percent to close at 120,45 points and 405,15 points.

Similarly, on Tuesday the All Share and Industrials Indices lost a similar 0,90 percent to end pegged at 119,37 points and 401,49 points respectively, reversing gains accumulated last week.

— The Financial Gazette