Stock Market Weekly Review

Losses on the Zimbabwe Stock Exchange (ZSE) persisted in the week to Wednesday as all the benchmark indices closed in the red as profit taking took its toll.

The primary indicator, the ZSE All Share Index eased 2,13 points or 1,48 percent to close pegged at 142,25 points. Losses in the market’s heavies dragged the ZSE Top Ten Index 1,54 percent lower to 140,96 points from prior week’s 143,16 points.

At 474,49 points, the Industrials Index lost 6,35 points or 1,32 percent from 480,84 points recorded in the comparable week.

The Mining Index of three active counters fell the heaviest after letting go of a hefty 19,31 points or 8,48 percent to close the week pegged at 208,4 points from 227,71 points on the back of losses in Bindura. Total market capitalisation was 1,65 percent weaker to $18,8 billion compared to $19,1 billion in the prior week on losses recorded across the bourse.

However, weekly turnover rose 17,47 percent to $21,2 million from prior week’s $18,1 million while volumes ballooned 52 percent after 33,8 million shares exchanged.

Agriculture concern, Ariston headlined risers for the week after putting on 20 percent of value to 2,88 cents.

The agro-concern returned to the black after posting a before tax profit of $3,1 million for the year ended September 30, 2018 compared to a before tax loss of $1,5 million incurred in the prior year.

This was on the back of improved average selling prices and improvements in fruit quality in the trading year.

Ariston also benefited from the Reserve Bank of Zimbabwe export incentive after it received $1,7 million from the central bank. This compares favourably with the $802,935 received prior year comparative.

Diversified media group — Zimpapers added 18,06 percent of value to close pegged at 3,4 cents from 2,88 cents.

At 8 cents, GetBucks closed at 14,29 percent above prior week while property concern, Dawn rose 12 percent to 2,8 cents.

Crocodile breeder, Padenga Holdings put on 5,88 percent to 90 cents. Other gains were recorded in beverages maker — Delta, which put on 5,84 percent to close at $2,80. The beverages giant has been in a pricing conundrum during the festive season due to foreign currency shortages that have affected business across sectors.

Delta proposed pricing of its products in United States dollars before reverting to the bond note/RTGS prices. The company, however, increased lager beer prices by an average 25 percent to cushion the beverages giant in the face of increasing local costs.

Property concern — Mashonaland Holdings rose 4,17 percent to 3 cents while Proplastics increased by 2,56 percent to 20 cents. African Sun added 1,37 percent to 11,1 cents while Seed Co International wrapped all the week’s risers after putting on 1,16 percent to $1,74.

Weighing down the market were Bindura which lost 25,93 percent of value to close at 7 cents. Late last year, Bindura’s holding company, ASA Resources Group Plc which is currently under Administration, announced it entered into a sale and purchase agreement (“SPA”) with a third party in relation to the 74,73 percent shareholding in Bindura.

The third party is a UK-based nickel company with complementary interests in Southern Africa.

ZHL and FCB eased 17,58 percent to 2,11 cents and 10,17 percent to  5,3 cents respectively. Industrial conglomerate — Innscor dropped 8,21 percent to $1,65 from prior week’s $1,79. Wrapping the top five fallers, Old Mutual eased 6,38 percent to $7,29.

Other losses were recorded in OK Zimbabwe which eased 6,09 percent to 27 cents while PPC was 5,26 percent lower to $1,80.

Recently listed firm, Cassava lost 5,56 percent of value to close pegged at $1,34. Zimplow decreased by 4 percent to 24 cents while Seedco eased 3,75 percent to $2.

Maintaining previous week’s prices were BAT, Edgars and Hippo that closed at $33, 10,02 cents and $1,71 respectively.

Masimba, NMB TSL and RioZim also remained flat at7,56 cents, 24 cents, 60,25 cents and $1,89 respectively.