eBusiness Weekly
Business Reporter
ZIMBABWE Stock Exchange (ZSE) mounted a strong recovery last week as it bounced back into the black driven by heavyweight counters.
This week, the market saw four of the five indices closing in the positive territory for the first time since measures meant to deal with speculative buying were announced by President Mnangagwa.
This prompted a cautious approach among traders, with significant stockholders disposing their shares.
The top index drove the market to 13, 14 percent weekly gain as the All Share Index closed at a level of 23, 685.59.
In the sub-indices the Top Ten Index gained 16, 33 percent to close at 15 651.73 as the Medium Cap Index recovered by 4, 74 percent to end the week at 39 374.98.
The Mining Index remained unchanged at 20, 021.24, with the Small Cap Index in the negative as it shed a marginal 0,75 percent.
Market capitalisation responded positively to close the week $2, 96 trillion, 14, 19 percent ahead of last week’s $2, 6 trillion.
Foreigners continued to sell despite a recovery in the market as they were spooked by policy inconsistency which brought back memories of the trading ban initiated last year August.
As a result, foreign sales of $110 million outweighed purchases of $7,5 million in the week under review.
Week-on-week purchases were down 89 percent from $70 million and sales were 83 percent lower from $649, 5 million.
It was a good week for derivatives with ETF market registering 168.81 percent increase in volumes traded from 545, 934 in 350 trades to 1,5 million in 546 trades.
Value traded under ETFs grew 111.40 percent to close the week under review at $6, 1 million
However, this week’s trades were 16 percent ahead of 1537 made last week.
Number of trades in the week ending June 3 remained low despite the continued influence of retail investors as daily average trades were 300, way below the desired 1 000 trades per day target by ZSE.
Despite low trades a total value of $3,6 billion was traded in the week representing an 81,38 percent week on week rise from $1, 98 billion in the previous week.
However volumes traded declined by 82, 27 percent with the week under review witnessing 19, 8 million shares exchanging hands from 111,5 million shares traded last week.
