eBusiness Weekly
Enacy Mapakame
The Zimbabwe Stock Exchange returned to the black last week as all indicators closed the week pointing northwards. Market watchers believe the tobacco selling season will significantly help the foreign currency shortages and improve liquidity on the market that have been negatively affecting the economy. Tobacco is the second single largest foreign currency earner after gold.
Official figures show that by end of last year Zimbabwe had earned about $892 million from the export of 184,1 million kilogrammes of the golden leaf.
This year’s tobacco selling season started on a low note as tobacco farmers withheld their crop while protesting low prices and the 2 percent intermediated money transfer tax, which the Government has since scrapped.
In the week to Wednesday, the primary indicator, the ZSE All Share Index closed at 121,56 points, which was 0,84 percent above prior week’s level.
At 114,26 points, the ZSE Top 10 added a marginal 0,74 percent from 113,42 points. On a year-to-date basis, the Top 10 Index fell the hardest with a 21,21 percent decline.
The Industrials Index rose 0,79 percent to 405,24 points while the Mining Index was 2,93 percent firmer to close the week at 193,98 points on gains in Bindura.
Total market value closed the week pegged at $16 billion, representing a 1,39 percent gain from $15,8 billion recorded in the previous week.
Headlining risers for the week, financial services group CBZ rose 17,04 percent to 17,57 cents followed by brick making firm, Willdale that put on 15,79 percent to 2,2 cents.
At 6,34 cents, Bindura was 12,41 percent above prior week, and pushed the resources index up. Old Mutual put on 10,13 percent to settle at $7,99.
The diversified financial services group expressed satisfaction with the rate of space uptake at its newly constructed Eastgate Market for small to medium enterprises. The mall opened early this year and the occupancy level now stands at 57 percent.
This comes on the back of the firm’s 41 percent growth in revenue to $1,4 billion for the year to December 31, 2018 , while pre-tax profit jumped 36 percent to $329,8 million compared to $242,9 million reported in the previous year.
Sugar manufacturer, Star Africa capped the week’s top five risers with a 10 percent increase to 1,1 cents.
Telecoms firm, Econet put on 9,76 percent to $1,10 from $1 recorded in the previous week. This comes as telecoms firms across the sector reviewed prices in line with the increase in cost of service provision. The new tariffs came into effect on April 1, 2019.
Property concern, Dawn, increased 8,33 percent to 2,6 cents, while retail giant OK Zimbabwe rose 4,83 percent to 21,05 cents.
Proplastics put on 4,71 percent to close pegged at 22,25 cents ahead of its financial results presentation scheduled for April 4.
Other gains were recorded in FBC
that ticked 3,7 percent to 35 cents while Innscor rose 1,52 percent to $1,32. Dairibord marginally gained by 0,71 percent to 14,15 cents while Cassava wrapped up the week’s risers with a marginal 0,23 percent increase to $1.
On the downside, National Foods lost a hefty 20 percent to close at $5,60 from $7 recorded in the previous week.
Banking group, NMB gave up 8,88 percent to20 cents while regional cement producer, PPC was in a 3,79 percent decline to
$1,27.
Agriculture concern, Ariston retreated 2,33 percent to 2,93 cents while Padenga was 1,85 percent weaker to close at 95,21 cents.
At 65 cents, Simbisa was 1,52 percent lower than 66 cents recorded in the previous week while beverages giant Delta lost 1,29 percent of value to $2,27.
Other losses were recorded in Axia that retreated 1,21 percent to 35,05 cents while Hippo and FCB decreased by 0,33 percent to $1,50 and 0,20 percent to 5,04 cents respectively, capping all the week’s fallers.
TSL, RioZim and Zimpapers remained flat at 60 cents, $1,77 and 8,7 cents respectively. Also maintaining prior week
levels were Art, Edgars, Fidelity and Masimba that closed the week pegged at 9,2 cents, 10 cents, 8,8 cents and 8,6 cents in that order.
