Zimbabwe Stock Market Outsmarts African Peers





The Zimbabwe Stock Exchange (ZSE) was the second best performing bourse, after the Egyptian Exchange, last week among seventeen regional stock markets tracked by researchers at African Markets.

During the week ending January 15, the ZSE was spurred by significant advances in the mining index led by the nickel producer, Bindura Nickel Corporation, which lifted its share price 11,49% to close at ZWL$3,8 pushing the resources index 8,46% to 4054,04 points.

The primary All-Share Index advanced 4,85% to settle at 2586,90 points, with the industrials putting on a 4,78% charge to 8617,80%.

The growth was underpinned by Zimbabwe National Statistics Agency data, which showed exports defied Covid-19 inspired trade restrictions to rise 20,3% in November last year compared the previous month when exports were valued at US$439 million.

The rise was underpinned by tobacco exports, which helped Zimbabwe notch a healthy trade balance, even as the import bill grew.

The golden leaf is Zimbabwe’s second largest foreign currency earner after gold.

“Zimbabwe is the second best performing market this week,” African Markets said in a report released on Monday.

“Egypt leads the board this week. The Northern African exchange’s benchmark index, EGX 30, jumped 4,58% in a busy week that saw EGP1,63 billion (US$104 million) worth of shares exchange hands on average every day. Total market capitalisation stands at US$43 billion. Orascom Construction Plc has announced that it has signed a memorandum of understanding (MoU) with the National Authority for Tunnels to design, install and commission Egypt’s first high-speed rail system. The agreement, which Orascom signed together with Siemens Mobility and the Arab Contractors, encompasses a rail system network spanning 1 000 km. The company stocks are up 15,6% so far this year,” the report said.

The (ZSE) Top Ten was 6,38% firmer at 1627,56 points lifted by banking giant CBZ which topped the risers of the day on a 16,10% surge to close at $86,0002, having reached an intra-day high of $88,8500.

“Nigeria completes the top three as the Lagos Exchange’s ASI gains 2,63%. Total market turnover was US$17 million a day on average. The financial services industry contributed 41% to the total turnover, followed by the construction/real estate industry (13%).Total market capitalisation stands at US$54 billion). Nigeria’s inflation rate increased by 15,75% in December 2020, the highest rate recorded in three years.

According to the latest Consumer Price Index report, released by the National Bureau of Statistics, the latest figure is 0,86% points higher than the rate of 14,89% recorded in November 2020. Food inflation index explains a significant portion of the increase. The closely watched index rose sharply by 19,56% in December compared to 18,3% recorded in the previous month. On the opposite, the markets in Tanzania, Ivory Coast, and Namibia booked the worst performances, losing 0,79%, 3,06% and 4,02% respectively. The West African Regional Exchange even trails all markets across the continent so far this year. The BRVM Composite index (in Ivory Coast) is down 9,04% year-to-date in local currency and -10,05% in USD.