ZSE Stock Market Weekly Review


HARARE – The Zimbabwe Stock Exchange (ZSE) total market value rose 3,6 percent to reach a record high of $206 billion as investors hedge against inflation.

This comes as figures from the Zimstats show annual rate of inflation for the month of May reached 785 percent. The annual rate of inflation growth moved into double digit territory from October 2018 when Government ordered separation of local currency accounts from foreign currency accounts. The business environment has been challenging due to inflationary pressures.

During the week to Wednesday, two of the benchmarks closed in the negative while the rest were in the black.

The primary indicator, the ZSE All Share Index rose 4,39 percent to 1 607 from the previous week’s 1 540 points.

At 1 347 points, the ZSE Top 15 Index was 2,15 percent above previous week.

The Medium Cap paced the fastest after putting on 20 percent to close pegged at 2 760 points.

On the downside, the market’s heavies, the ZSE Top 10 Index eased 4,51 percent to 1 174 while the Small Cap Index also went down 4 percent to 4 889 points. On a year to date basis, the Small Cap has recorded highest gains at 632 percent.

Headlining risers for the week was financial services group, FBC which jumped 81 percent to $8,61 followed by hospitality group RTG with a 72 percent growth to $1,24.

At $29,65 banking group, CBZ was 69 percent above prior week as the group rose to be the second biggest counter with a market value of $24,9 billion after Delta which is worth $29,4 billion.

CBZ now accounts for 12 percent of the total market value.

ZHL came in 32 percent firmer to $1,99 while Zimplow wrapped the week’s top five risers with a 20 percent gain to close settled at $2,52.

Other significant gains were recorded in Truworths which also rose 20 percent to 19,2 cents.

Addis, African Sun, Dawn, Masimba, Turnall and ZB all rose by 19 percent to close pegged at $12,92, $1,48, $1,13, $1,21, $1 and $9,15 in that order.

On the downside, Power speed fell the hardest with 38 percent decline to $1,01 while TSL lost 22 percent of value to close at $4,10.

Clothing retailer, Edgars let go of 19 percent to $1. Media group, Zimpapers eased 14 percent to close pegged at 58,14 cents from 68,25 cents.

Telecoms giant, Econet wrapped the week’s top five fallers with a 12 percent decline to $8,47.

The duo of Delta and Dairibord lost 7 percent each to $22,92 and $6,01 respectively.

Cassava, MedTech and Seed Co International fell 6 percent each to $8,63, 14 cents and $21 in that order.

At $13,31, Padenga was 5 percent weaker while resources group, RioZim went down by the same margin to $10,50. During the week, RioZim announced it had stopped production due to delays in payments for deliveries to Fidelity, leaving the company unable to meet its operational expenditures. The group indicated it was owed millions of dollars by Fidelity for gold deliveries.

GetBucks and General Beltings remained flat at 12 cents and 15 cents respectively.

Also maintaining prior week levels were Nampak, NMB, Proplastics and Unifreight that closed at $1,50, $3, $7,20 and 10,8 cents. Unifreight says it is geared for the turbulent times ahead caused by the COVID 19 pandemic, coupled with an already existing economic downturn. – Business Weekly