Investors on the Zimbabwe Stock Exchange (ZSE) amassed a cumulative $600 billion last week as bulls charged on the market in gains led by the market’s top cap counters.
During the week to Wednesday, the total market value jumped 29 percent to $2,63 trillion from $2 trillion recorded in the previous week. The first quarter of the year has seen massive gains in stocks from $1,3 trillion recorded at close of the year 2021.
Some market watchers have said the activity on the stock market is being driven by inflationary pressures as investors are using it as a hedge against economic uncertainties.
Inflation statistics from the Zimbabwe National Statistics Agency (ZimStat), showed that prices increased by 72.7 percent year-on-year in March 2022 after they gained by 66.6 percent in the prior month while on a month-on-month basis, prices grew by 6.3 percent in March.
Considering monthly prices rose by 5.34 percent and 7 percent in January and February respectively, MoM inflation averaged 6.2 percent in the first quarter, way above the central bank’s target.
In the foreign exchange market, both the official and alternative markets, the local currency has continued to lose value to close at $145,87 against the greenback on the auction market. The USD traded at around $300 during the week on the parallel market compared to around $270 in the previous week.
The market’s big cap counters, the ZSE Top 10 Index rose by 29,5 percent to 14 050 points while the ZSE Top 15 rose 29,7 percent to 15 491 points.
At 33 987 points, the Medium Cap was 24,3 percent above prior week while the Small Caps gained 6 percent to 473 776 points. The primary indicator, the ZSE All Share Index put on 28 percent to 21 077 points in line with gains recorded across board.
Tanganda headlined gains during the week with a 62 percent gain to $174,77 followed by Axia which rose 60 percent to settle at $128,62. At $112,43, EcoCash was 58 percent ahead of prior week while banking firm NMB put on 51 percent to close the week at $20,48.
Mobile operator, Econet wrapped the week’s top five risers after gaining 50 percent to $204,97.
Other gains were recorded in sugar processor, Star Africa which rose 39 percent to $1,89 while the duo of Willdale and Hippo advanced 37 percent each to $4,18 and $400 respectively.
Also on the upside, the duo of retail group, OK Zimbabwe and Nampak added 34 percent each to $39,96 and $19,50 respectively.
On the other hand, GetBucks led the week’s laggards after with a 9 percent decline to $6. Property firm, FMP gave up 8 percent to $11,55 as the property market, particularly the commercial central business market remains depressed.
At $17, MedTech was 5 percent below prior week while Unifreight gave up 2 percent to $32,57.
Cigarette maker, BAT completed the week’s five fallers with a marginal 0,08 percent decline to $3 660 but still remaining the most expensive counter ahead of Natfoods which is pegged at $2 059,81.