ZSE breach $800 billion mark

The Zimbabwe Stock Exchange’s market capitalisation breached the $800 billion mark for the first time on Friday with the local bourse remaining a popular investment option in the country.

By the close of trading on Friday, which was also the last day of trading in July, the ZSE’s market capitalisation at $804 billion had gained 153 percent for the year and 7,88 percent for the month. 

Using the official exchange rate, the ZSE is now valued at US$9,3 billion.

Market watchers, however, tend to use the parallel market rate which would put the ZSE’s market capitalisation at US$5,7 billion when using an exchange rate of $140:US$1.

Penny stocks were the major drivers of the market with the Small Cap Index closing 24,7 percent firmer in July at 237,235.99.

Big cap stocks were not far behind with the ZSE Top 10 Index recording a 15,39 percent gain in July to 3 639.99. 

For the month of July, cement producer Lafarge was the top riser up 58,33 percent to 9 500 cents.

In its latest trading update for the five months to May 2021, Lafarge said its sales were little affected with cement volumes for the period increasing by 23,7 percent compared to the prior year.

In the same period, Dry Mortar products volumes grew by 105 percent compared to the same period last year. 

Zimplow was also another top performer after it picked up 50,83 percent to 1 454 cents.

In June, the company said profitability for the five months to May 30, 2021 grew 90 percent compared to same period in the prior year on improvements in volumes across business units.

Other stocks that performed exceptionally for investors were Cafca by 40 percent to 17 500 cents, NMB up 37,5 percent to 1 650 cents and Truworths up 36,73 percent.

The month was, however, without its loser with Getbucks taking the hit with a 63,26 percent drop in July.

Getbucks is however still the year’s number two performer with a year-to-date gain of 4 519,8 percent.

Also singing the blues was First Capital Bank down 21 percent, Willdale down 20,4 percent and NTS down 16,09 percent. Willdale and NTS are part of the year’s best-performing stocks at number three and four.

Since January this year, NTS has gained 3 705,5 percent while Willdale has gained 1 139 percent.

Since the beginning of the year, the Small Cap Index has gained 1 891,24 percent while the Top 10 Index has put on 117,77 percent. 

The ZSE All Share Index has put on 158,63 percent to 6 818. – Business Weekly