Selling pressure continued on the Zimbabwe Stock Exchange (ZSE) in the first three days after reopening driving all indices into negative territory.
The ZSE resumed trading on Monday after a month long suspension following allegations the bourse was being used to sabotage the economy. On resumption of trades, three counters, Old Mutual, Seed Co International and regional cement maker PPC remained suspended.
In the three days to Wednesday total market value went down by 9,6 percent or $22 billion to settle at $206 billion.
The primary indicator, the ZSE All Share Index fell 9 percent to 1 616,38 points reflective of the losses recorded across board.
The ZSE Top 10 went down 12,05 percent to 1 084 as the market’s heavy weights succumbed to selling pressure.
At 1 254 points, the ZSE top 15 Index was 11 percent weaker. The Medium Cap slowed 5 percent to settle at 3 118 points while the Small Cap was the biggest casualty succumbing to a 12,26 percent decline to close at 4 876 points.
Dragging the market into negative territory was RioZim that lost 43 percent to close at $6,40 while MedTech followed with a 31 percent decline to 8,01 cents.
Beverages giant Delta and Powerspeed eased 28 percent each to close pegged at $17,73 and $1,03 respectively. Delta recently reported beer volume declines for the quarter to June 30, 2020 on the back of low disposable incomes coupled with disruptions caused by Covid-19 pandemic.
Due to the lockdown that was effected on March 30, 2020, there was limited access to markets as beer-halls, clubs, bottle stores and other social gatherings that drive alcohol sales were closed.
At $1,25, Masimba was 25 percent weaker. The trio of Willdale, Padenga and Meikles fell 21 percent each to 22 cents, $10,83 and $13 respectively.
Further losses were mitigated by gains in Zimplow which put on 9 percent to $3,33 followed by ZB which rose 5 percent to $12.
The financial services group said its total income increased substantially in the second quarter of this year largely driven by fair value credits and foreign exchange gains. Its total income rose 144 percent to $94,2 million from $38,6 million recorded in the same quarter last year. Property firm, FMP added 2 percent to close at $2,10 while ZHL rose 1 percent to $2,50.
Dawn rose 0,8 percent to $1,15.
Spirits and wines maker, Afdis inched up by 0,34 percent to $18,30 while Bindura was 0,22 percent firmer to $3,94. Market watchers opine the general economic environment will have a bearing on investor sentiment on the bourse.
The course of the economy currently characterised by inflationary pressures, limited foreign currency and low disposable incomes will also be determined by the extend of the Covid-19 effects on production.