Stock Market Weekly Review

05 Aug, 2022 - 00:08 0 Views
Stock Market Weekly Review

eBusiness Weekly

Enacy Mapakame

Weakness persisted on the Zimbabwe Stock Exchange (ZSE) as the Mid Term Supplementary Budget by Finance and Economic Development Minister Professor Mthuli Ncube failed to inspire confidence on the market.

Among the key highlights from his presentation, GDP growth in 2022 was reviewed downwards to 4,6 percent from the 5,5 percent initially projected on reduced output from the 2021/22 agricultural season.

Treasury also reviewed tax-free threshold on local currency remuneration from $300,000 to $600,000 per annum and also adjusted the tax bands to end at $12 million from the current $6 million per annum, above which tax will be levied at a rate of 40 percent, with effect from 1 August 2022.

During the week to Wednesday, four of the benchmark indices closed in the negative in losses led by the market’s top cap counters.

The primary indicator – the ZSE All Share Index, shed 3,8 percent to close the week at 16 098 points. The ZSE Top 10 Index backtracked 4,7 percent to 9 910 points while the ZSE Top 15 eased 4,5 percent to 10 928 points.

At 32 186 points, the Medium Cap was 2,6 percent below prior week. The Small Cap was, however, the only index to record gains after adding 4,9 percent to 518 371 points.

Total market value retreated 1 percent to $2,06 trillion compared to $2,08 trillion reflective of the losses recorded during the week.

Weighing the market were losses in beverages giant – Delta which dropped 15,1 percent to close at $228,95 followed by resources group – RioZim which eased 15 percent to $93,50.

Banking group – NMB lost 13 percent to settle at $20 while Simbisa gave up 12 percent to $200. FBC completed the top five fallers with a 11 percent decline to $61,95.

Other losses were seen in Tanganda which fell 9 percent to $139 after the tea producer reported revenue for the quarter under review was 135 percent ahead of the previous financial year in historical cost terms and 3 percent below comparative period in inflation adjusted terms for the quarter to June 30, 2022.

Revenue for the nine months ended 30 June 2022 grew by 84 percent in historical cost terms and declined by 6 percent in inflation adjusted terms.

Further losses were offset by gains in NTS which put on 14,6 percent to $11,75 followed by Turnall which rose 14,3 percent to $4,69. At $43,50, Unifreight was 13 percent above prior week.

Nampak added 9 percent of value to $12 while Ariston wrapped the week’s top five risers with a 7 percent increase to $2,35.

Other gains were seen in Cafca which rose 6 percent to $235,50 while Hippo added 2 percent to $247 as the sugar processor reported cane deliveries from the company’s plantations (miller-cum-planter) for the quarter ended 30 June 2022, were 22 percent above same period prior year driven by a combination of increased harvesting targets in line with total crop projections, a more efficient cane haulage system and improved mill uptime.

However, cane deliveries from private farmers were below prior year on account of rains received in April 2022 which resulted in the delayed onset of harvesting.

However, sugar production to date is 4 percent lower than the same period in prior year largely as a consequence of lower cane quality due to a prolonged wet spell that prevailed in the region.

BAT, Fidelity and Mash remained unchanged at $2 228,57, $22 and $5 in that order.

During the Wednesday trading session alone, the Cass Saddle ETF lost 9,7 percent to $1,53 while, Made in Zimbabwe ETF shed 0,76 percent to $1,29. Datvest retreated 0.52 percent to $1.6891.

The Old Mutual ETF grew 5 percent to $6,87 while Morgan and Co MCS added 0,01 percent to $26,74. A total of 1,62 million units worth $2,17 million exchanged hands in five ETFs.

On the VFEX, Padenga and Bindura were the only counters that registered trades in the mid-week session as Bindura traded 161,339 shares at a stable price of US3 cents while, Padenga ticked up 0,62 percent to close the day at US32,35 cents.

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