eBusiness Weekly
Market Update
Equities on the Zimbabwe Stock Exchange (ZSE) remained sluggish week on week which saw all indicators closing the week pointing southwards.
During the week to Wednesday, the primary indicator, the ZSE All Share Index, went down 1,89 percent to close at 6 902 points while the blue chips, the ZSE Top 10 fell the heaviest with a 2,5 percent decline to 3 669.
The ZSE Top 15 Index fell 2,4 percent to close at 3 244 points compared to 4 328 points. At 18 109 points, the Medium Cap was 1,1 percent below prior week level of 18 310 points.
The Small Cap went down by a marginal 0,6 percent to close settled at 229 365 points. Total market value retreated by 1,2 percent to $823 billion reflective of the losses recorded across the board.
Sugar processor, StarAfrica was the biggest loser after letting go of 22 percent to $2 from $2,59 recorded in the prior week.
MedTech backtracked 16 percent to 25,09 cents compared to 29,98 cents. Biggest counter by market capitalisation, Delta backtracked 12 percent to $85,50.
At $8,59, Art was 11 percent slower compared to $7,60 as the company has made progress towards its acquisition of Softex from Nampak. Financial services provider, FML wrapped the week’s top five fallers with a 10 percent decline to close at $25.
Also on the downside was OK Zimbabwe and largest banking group by assets and deposits — CBZ that all fell by 7 percent each to $16,54 and $86,45 respectively.
The duo of FBC and Mashonaland Holdings went down by 3 percent each to $29 and $3,20 respectively. Nampak also fell by 3 percent to $13 as the firm reported firm earnings performance for the third quarter and nine months to June 30, 2021 on the back of strong volumes.
According to the group, revenue for the third quarter and nine months was 37 percent and 26 percent respectively ahead of prior year period. Despite the challenges in raw materials availability, Nampak traded profitably during the period. Further losses were offset by gains in Econet, which put on 15 percent to $39,58 from $34,25 after it was the most sought-after stock in the midweek session as circa 4,72 million shares worth $186,87 million exchanged hands in the telecoms giant.
The trades accounted for 61,5 percent of total volumes and 61,26 percent of the value outturn on Wednesday session.
This comes as data and voice traffic volumes increased by the 77 percent and 25 percent respectively for the quarter to May 30, 2021. However, Econet has indicated the increased demand for data and internet services in the country following the adoption of remote working has been straining its network, although efforts have been made to contain the pressure.
Banking firm, NMB closed the week at $16, representing a 13 percent increase from prior week price while peers, FCB rose 11 percent to $3,76.
Brick making firm — Willdale rose by the same margin of 11 percent to $3,22 from $2,88. Dairibord wrapped the top five risers with a 7 percent increase to $39,76.
Other gains were seen in Cassava which put on 6 percent to close at $15,95 from $15,01 while clothing retailer — Edgars put on 4 percent to $3,30.
The duo of Zimplow and Innscor put on 2 percent each to settle at $15,93 and $102,11.
Cables maker, Cafca Remained unchanged at $170.
Insurance group, Fidelity also was unchanged at $10 amid concerns that its policy holders risk losing US$30 million it’s the company’s acquisition of Langford Estates is reversed.
