Zimbabwe Stock Market Weekly Review

HARARE – Equities on the Zimbabwe Stock Exchange (ZSE) maintained a positive trajectory post-mid-term-budget review presentation, which saw the weekend with four benchmark indices in the positive.

During the week, Finance and Economic Development Minister Professor Mthuli Ncube showed optimism, reviewing economic growth prospects to 7,8 percent in 2021 from an earlier 7,4 percent projection.

The growth will be underpinned by record agriculture output, with the sector’s growth rate now pegged at 34 percent from the November 2020 forecast of 11,3 percent.

Treasury is also upbeat about attaining the mining sector’s growth rate of 11 percent while inflation also stabilizes.

During the week to Wednesday, the primary indicator, the ZSE All Share Index put on 2,5 percent of value to 6 938 points in gains led by the market’s heavy caps. The blue chips, the ZSE Top 10 Index paced the fastest with a 4 percent increase to 3 725 points from 3 568 recorded in the previous week.

At 4 288 points, the ZSE Top 15 Index was 3 percent above the prior week level while the Medium Cap put on a marginal 0,26 percent to close at 17 947 points.

The Small-Cap was the only index to close in the negative after backtracking by 1 percent to 231 622 points.

During the week under review, the total market value rose 3,4 percent to $817 billion from $790 billion reflective of gains recorded across the board.

Microfinance firm, GetBucks led the risers with a 51 percent increase to $7,81 followed by the market’s biggest counter by capitalization – Delta which put on 13 percent to $94,58.

Mining and agriculture implements firm, Zimplow rose 10 percent to $14,86.

Insurance firm FML put on 9 percent to close at $30,75 while Seed Co rose by the same margin to settle at $73,43 wrapping the week’s top five risers.

Other gains were seen in Art and CBZ which rose by 5 percent each to close at $8,63 and $95 respectively. Retail giant, OK Zimbabwe put on 4 percent to $17,01 while Innscor and Dairibord added 2 percent each to $107,30 and $35,35 in that order. Cassava also rose by the same margin to $15,99 as the group announced plans to rebrand to Ecocash Holdings Limited in order to align the business with its main operating subsidiary Ecocash Private Limited. According to the group, this will also remove any confusion on the market.

On the downside, the banking firm, NMB was the biggest laggard as it gave away 35 percent to $11 from $17 recorded in the prior week. Clothing retailer, Edgars lost 24 percent to $3,15 while NTS eased 19 percent to $8,45.

At $2,20, Truworths was 17 percent below the prior week level while Willdale wrapped the week’s biggest five fallers with a 10 percent decline to $2,96.

Other losses were seen in GB Holdings which backtracked by 10 percent to $2,18 while media group, Zimpapers went down 8 percent to $3,21. Property firm, FMP fell 6 percent to $13,98 while Lafarge, MedTech, Simbisa and Turnall eased 1 percent each to $93,21, 29,61 cents, $44,20 and $4 in that order.

On the resources side, Bindura remained almost flat at $4,99 while their peers RioZim was unchanged at $28. Also maintaining the prior week level was the banking group, ZBFH which closed at $77 as the group announced the appointment of Shepherd Fungura as its group chief executive officer effective August 01, 2021. – Business Weekly