ZSE continues to wither, loses $412 million

A broker makes a bid at the morning trading session of the Zimbabwe Stock Exchange in the capital Harare April 3, 2008. There was still no official word on the result of Zimbabwe's presidential election on Thursday as Robert Mugabe fought to survive the biggest crisis of his 28-year rule. REUTERS/Howard Burditt (ZIMBABWE)

The Zimbabwe Stock Exchange (ZSE) continued to wither during the week ended 2 August 2019.

During the week under review, the Reserve Bank of Zimbabwe (RBZ) held its first Treasury Bills auction in seven years, raising $30million for 90 day paper at an average rate of 15.60%. Interestingly, the auction was oversubscribed with bids worth $133million, according to a notice by the RBZ.

In addition, the Finance Minister of Finance and Economic Development, Professor Mthuli Ncube presented his Mid-Term Fiscal Review and Supplementary Budget, but the market is yet to react to it.

On the ZSE, total market capitalisation pulled back by $412 million (-1.67%) to close the week at $24.29 billion. All equity benchmarks except for the Mining Index traded in the negative: the All Share Index and the Industrial Index shed 3.08% and 3.13% to close at 184.64 points and 616.00 points respectively.

The Top 10 Index eased 4.26% to 172.77 points. The Mining Index gained 0.81% to 244.57 points on the back of a 2.44% rise in the price of Bindura Nickel Corporation; the company released its results for the year ended March 31, 2019 which showed a 140% increase in operating profit to $21.3million. Year to date, the market is up 26.26% as measured by the All Share Index.

Art Corporation led the risers, gaining 12.50% last week, on trades worth a meager $720. CBZ Holdings Limited, up 11.78% and Zimplow, up 11.11% also recorded significant gains. During the week, Zimplow declared an interim dividend of RTGS1.47c after recording an 831% increase in Profit After Tax during the Half Year ended June 30, 2019. Top losses were recorded in Willdale, Masimba Holdings and Mashonaland Holdings, down 28.57%, 19.84% and 15.80% respectively.

Volumes activity last week was largely dominated by trades in Econet Wireless Zimbabwe, which contributed 19.25% to total volumes, followed by Masimba Holdings Limited (16.03%) and CBZ Holdings Limited (13.24%). A total of 33,282,000 shares changed hands during the week’s trading session, a 0.92% increase from the 32,979,800 shares that traded during the previous week.

Total turnover for the week was $29,278,547, down 31.55% from the $42,772,941 recorded during the previous trading week. Turnover was largely dominated by activity in Econet Wireless Zimbabwe, Delta Corporation and CBZ Holdings Limited which contributed 36.80%, 11.43% and 8.36% to total turnover respectively.