Gains galore on ZSE as market awaits MPS

05 Apr, 2024 - 00:04 0 Views
Gains galore on ZSE as market awaits MPS Dr Mushayavanhu

eBusiness Weekly

In a week characterised by notable bullish momentum, the Zimbabwe Stock Exchange (ZSE), witnessed impressive gains across various sectors, as investors wait for the Monetary Policy Statement (MPS) to be released today.

The ZSE All Share Index surged by 8,46 percent, closing at a robust 915,716.53 points.

This surge contributed to a remarkable year-to-date gain of 333 percent, reflecting the hedging phenomenon against a depreciating currency.

However, today the Reserve Bank of Zimbabwe (RBZ) will be announcing the MPS and investors await for the modalities of the structured currency said to be introduced today.

Speaking after a tour of the RBZ yesterday where the President Mnangagwa was shown the 1,1 tonnes of gold held in the Central Bank vaults, the Apex Bank’s Governor, Dr John Mushayavanhu, emphasised;

“We also have other precious minerals in the form of diamonds and so forth which if converted to gold will be equal to 0,4 tonnes of gold.”

“That makes the total of what we are holding in the vaults, converted to gold, to 1,5 tonnes.”

Dr Mushayavanhu stated that the country has another tonne of gold held offshore, saying; “We have other gold which is held offshore and it is worth one tonne of gold so, in total when we talk of gold reserves and other precious minerals, we are talking of 2,5 tonnes and when converted to US dollars at today’s price we have US$175 million.”

“Over and above that US dollar, I have also confirmed the cash balances, Nostro balances in cash held by the Central Bank, and I can confirm that there is US$100 million worth of foreign currency balances in cash,” he added.

On the ZSE, among the top performers was Zimre Holdings emerged as the standout gainer, soaring by an impressive 48,56 percent. The company closed the week at $44,566.39, a significant jump from its previous value of $29,999.62.

Similarly, SeedCo, a prominent seed producer, experienced a notable weekly gain of 32,00 percent, closing at $394,921 from an opening price of $299,049.

These substantial increases reflect strong investor interest and positive sentiment towards these entities.

In addition, Nampak and RioZim, operating in the packaging and mining sectors respectively, demonstrated robust performance.

Nampak recorded a remarkable gain of 31,97 percent, while RioZim saw a commendable increase of 15,97 percent. These gains underscore the diversity of the Zimbabwean market and the potential for growth across various industries.

However, amidst the general uptrend, certain stocks faced downward pressure. Bridgefort Capital class A experienced a significant decline, losing 58,82 percent of its value. The stock closed the week at $3,500, down from $8,800, highlighting the inherent volatility within the market.

Similarly, horticultural products producer Ariston and Proplastics encountered losses, declining by 5,82 percent and 6,86 percent respectively.

Ariston closed at $6,144, while Proplastics concluded the trading week at $120,575. These losses, albeit moderate in comparison to the broader market gains, indicate the presence of challenges within specific sectors.

In the Exchange-Traded Fund (ETF) segment, positive momentum prevailed with no losers recorded.

The Datvest MCS ETF emerged as the top gainer, surging by 32,24 percent to close at $3,887 from an opening price of $2,916.67. Additionally, the Old Mutual ZSE Top-10 ETF exhibited strong performance, recording a gain of 30,88 percent, closing at $18,826 from a previous price of $14,384.

On the ZSE, volatility remains a factor, necessitating prudent investment strategies and risk management practices.

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