Zimbabwe Stock Market Weekly Review

The Zimbabwe Stock Exchange (ZSE) faltered during the week on Wednesday, reversing gains that were registered in the prior week.

All benchmark indices closed the week in the red as investors are searching for direction.

Government last October announced various policy measures aimed at restoring confidence in the economy and reduce inflation, which is expected to fall by year end.

At 191,23 points, the primary indicator, the ZSE All Share Index was 0,31 percent lower than prior week while the ZSE Top 10 Index eased 0,92 percent to 181,56 points as the market’s top cap counters succumbed to selling pressure.

The Industrials Index gave away 1,58 points or 0,25 percent to close pegged at 638,48 points, while the Mining Index of two active counters, fell the heaviest after retreating 4,25 percent to 240,62 points.

Total market value went down 2,43 percent to $24,74 billion compared to previous week’s $25,36 billion on losses recorded across board  after the Reserve Bank of Zimbabwe (RBZ) tightened exchange control regards the treatment of free funds  from Individual Nostro currency accounts.

Despite the subdued week on week performance, the ZSE remains the best regional performer on a year to date basis followed by South Africa, Egypt and Uganda exchanges in that order.

Zambia’s Lusaka Stock Exchange has been the worst performer with year to date losses of 19,56 percent followed by Ghana exchange.

Headlining losses on the local bourse were resources group, RioZim that fell 13 percent to close the week at $2.

Brick making firm — Willdale — dwindled 12,5 percent to 3,5 cents while PPC lost 11,19 percent to $1,95.

The cement manufacturer has set out action plans to help ensure  that  operations  are not interrupted due  to difficulties  in  remitting  payments to foreign  suppliers.

Through the action plans, PPC Zimbabwe is exploring various mitigation methods such as increasing   export sales and obtaining a trade financing mechanism facility, according to a statement accompanying group financial results for the year to March 31, 2019.

Cigarette manufacturer, BAT eased 7,59 percent to $36,50, remaining the market’s most expensive stock.

Retail giant, OK Zimbabwe lost 5,27 percent to 43 cents.

Seed maker, Seedco retreated 3,23 to $1,50 while Nampak eased 2,26 percent to 39 cents. Crocodile breeder, Padenga backtracked 1,92 percent to $1,90 while Simbisa gave away 1,85 percent to $1,06.

Biggest counter by market capitalisation, Delta, eased a marginal 0,28 percent to $3,50 after reporting subdued volume performance for the first quarter to June 2019, as the market continue to adjust to the rising beverages pricing structure.

In the period under review lager beer volume declined by 57 percent for the quarter while sparkling beverages volume slumped 79 percent compared to the corresponding period last year.

Further losses were offset by gains in TSL that put on 40 percent to 70 cents followed by nickel producer Bindura that rose 19 percent to 10 cents.

Insurance group, FML put on 13,12 percent to 25 cents. At 45 cents, Zimplow was 12 percent above prior week’s 40 cents. Sugar processor, Star Africa wrapped up the week’s top five risers with a 11 percent gain to 2 cents.

Other notable gains were recorded in Masimba that ticked 10 percent to 9,98 cents while banking group ZB put on 9 percent to close pegged at 60 cents.

Diversified hospitality group – Meikles gained 4,17 percent to $1,25 and the group is seeking approval from its shareholders for the proposed disposal of Meikles Hotel.

Afdis, Cafca, Dawn and Dairibord remained flat at $1,80, $1,27, 4 cents and 29 cents respectively. Also maintaining prior week levels were FMP, Hippo, Mashonaland Holdings and National Foods that closed the week at 5,1 cents, $1,90, 5 cents and 39 cents in that order.

Turnall, ZHL and Zimpapers were also unchanged at 8 cents, 4,32 cents and 7 cents respectively.