eBusiness Weekly
Enacy Mapakame
Bears continued to dominate trades on the Zimbabwe Stock Exchange (ZSE) as three of the benchmark indices closed pointing southwards.
In the week to Wednesday, the primary indicator, the ZSE All Share Index backtracked 6,01 percent to 167 points as weakness persisted on the bourse.
The market’s most watched index, the ZSE Top 10 Index was the hardest hit after declining 8,26 percent to 149,46 points on sell offs among the heavy caps. The ZSE Top 10 subsequently narrowed its year to date gains to 3 percent.
At 556,3 points, the Industrials Index was 6,16 percent lower than the previous week’s 592,83 points on losses across board.
The Mining Index was the only indicator to close in the black after putting on 3,61 percent to 269,55 points.
During the week under review, investors lost a cumulative $1,3 billion as total market cap went down 5,92 percent to $21,8 billion.
Dragging the market into the red were Simbisa which retreated 29,27 percent to 60,04 cents while the market’s most expensive stock, BAT lost 16 percent of value to close pegged at $30.
Clothing retailer, Edgars was 14 percent down to 13 cents while hospitality group, African Sun fell 12 percent 35 cents.
At $3,10, the market’s biggest counter by market value, Delta, was 10 percent lower than prior week level. By close of the week, the beverages giant was valued at $3,975 billion accounting for 18,23 percent of total market value followed by Cassava and Econet worth $3,181 billion and $3,132 billion respectively.
Other losses were recorded in Axia which backtracked 9,44 percent to 42,79 cents while Powerspeed and telecoms giant, Econet went down 8,69 percent to 32,87 cents and 6,98 percent to $1,20 respectively.
Cassava, FCB, Innscor, OK Zimbabwe and Old Mutual fell 5 percent each to $1,22, 6,6 cents, $1,88, 35,61 cents and $17,89 in that order.
Padenga also went down 5 percent to $1,65 after its shareholders approved proposal to diversify into gold mining in a transaction that will see the crocodile breeder acquire a majority stake in Dallaglio Investments.
Further losses were offset by gains in brick making firm Willdale and FMP that rose 45 percent to 2,5 cents and 20 percent to 6,15 cents respectively.
Cables manufacturer, CAFCA put on 14 percent to close pegged at $1,50. At 11,5 cents, nickel producer, Bindura was 4,55 percent above prior week. TSL wrapped the week’s top five risers with a 4,51 percent increase to 75,25 cents.
Other gains were recorded in property firms, Dawn, that put on 3,9 percent to 4,8 cents while peers Mashonaland Holdings ticked 2,8 percent to 4,4 cents. Dawn indicated it has commenced construction of its $200 million housing project in Harare.
Financial services group, ZBFH, RioZim and NTS rose 3,33 percent to 62 cents, 3,26 percent to $2,22 and 2,87 percent to 2,15 cents in that order.
Dairibord remained flat at 31 cents after reporting revenue for the half year to June 30, 2019 jumped 139 percent to $118,1 million on the back of volume growth as well as gradual price adjustments in line with market conditions and cost push pressures.
The food and dairy processor has indicated it has secured an investor for the disposal of its Malawi unit, in a transaction that should be concluded by end of this month.
Also remaining unchanged were Masimba, Lafarge and FBC that closed at 8 cents, $1,19 and 60,62 cents respectively.
FBC reported the group’s total income for the half year to June 30, 2019 jumped 200 percent to $198 million driven by banking subsidiaries. The group achieved a profit before tax of $90 million from $54 million during the same period last year underpinned by the group’s diversified business model.
