ZSE on the rebound, gains ZWL$45bn

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After sharp losses of more than ZWL$54bn in the first two weeks this month, the Zimbabwe Stock Exchange (ZSE), has taken back a chuck of those losses following a strong bull-run hitting the runway with strong gains during the 14 days to yesterday, Business Times can report.

At the end of March, stock valuations ran up to lofty levels, recording ZWL$543bn.

But, between April 1 and 14, 2021, that lofty valuation was quickly shattered after indices turned south.

The ZSE quickly plummeted, shedding about ZWL$54bn in two weeks to ZWL$489bn.  The drop was widely blamed on tight liquidity in the market.

Foreigners have also been cashing out of the local bourse, leaving the stock market in a clearly underweight position.

The local bourse, however, shrugged off the volatile two weeks, meaning the events unfolding this month gave investors both upside and downside reasons to sell a stock and lock in profits.

The charge has seen a significant spike in the value of stocks in the past two weeks.

Consequently, there was a rebound on the local bourse by ZWL$45bn, with nearly all major sectors advancing but were unable to erase declines recorded in the volatile first two weeks of this month.

As of yesterday, the local bourse valuation was ZWL$534bn.

Multiple analysts yesterday said although the valuation of stock was below the ZWL$543bn reached at the end of March, the current level was still a lofty level.

The financial, consumer staples, consumer discretionary, materials, real estate and industrials indices, helped push the stock market to lofty levels in the past two weeks.

The ICT sector index fell by 0.22% to close at 4 305.12 points.

The All share index rose 1.18% to close at 4592.87 points while the Top 10 index gained 1% to close at 2646.40 points.

The Top 15 index jumped 1% to 3 009.79 points.

However, small caps tumbled 0.30% to 43 271.46 points.

Analysts say stocks rebounded as investors sifted through corporate results published in the past four weeks, giving signs on whether an anticipated jump in profits would bring with it forecasts for stronger growth.

Some losses were driven by concern over a flare-up in Covid-19 cases that could jeopardise an economic rebound.

“We had a busy two weeks of corporate earnings reports with the majority that published their financial results seeing better-than-expected results,” an investment analyst who preferred anonymity told Business Times.

Other analysts say there was some availability of liquidity in the market, resulting in a bull run on the market.

And it appears the bulls keep charging. – Business Times