Stock Market Weekly Review

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The Zimbabwe Stock Exchange (ZSE) closed the week to Wednesday on a low note as losses persisted resulting in all indicators but one closing pointing southwards.

The appointment of a new Cabinet nearly a fortnight ago — widely endorsed as the right prescription to Zimbabwe’s economic challenges — failed to inspire equities this week.

Investors are yet to see the course of action the new ministers intent to take to steer economic growth through increased production, increased flow of investment, job creation as well as greater transparency and accountability.

The primary ZSE All-Share Index retreated 3,85 percent to 113,51 level as negative sentiment prevailed in the week.

At 115,24, the market’s elite club, the ZSE Top 10 Index was 5,14 percent down dragged by losses in some of the heavyweights.

The Industrials Index lost 3,91 percent of value to close the week at 381,49 level while the Minings Index of four counters was the only index to close in the positive after a marginal 0,04 percent gain to 163,44.

At $12,062 billion, total market capitalisation closed 3,5 percent weaker compared to previous week’s $12,5 billion.

Weekly turnover slumped 58 percent to $10,15 million from previous week’s $24,56 million. Total volumes for the week fell 76 percent after 21 million shares exchanged compared to 88 million shares in the prior week.

Number of trades also weakened by 23 percent to 494 from 644. Of these trades, foreign buys accounted for $4,7 million, representing a 54 percent decline from $10,5 million in the prior week while foreign sales 47 percent lower to $3,9 million.

Clothing retailer, Edgars headlined the week’s risers after putting on 20 percent to 8,88 cents. The company posted a profit for the six months to June 30, 2018 of $32, 1 million, up 30 percent from prior comparable period.

Sales merchandise increased 29 percent to $3,1 million from $24,1 percent posted in the same period prior year.

Art Corporation added 17,84 percent to 7,2 cents while the only listed brick making firm, Willdale rose by 8,33 percent to 0,65 cents.

Diversified banking group, CBZ rose 8,17 percent while Powerspeed maintained its growth trajectory and wrapped the week’s top five risers with a 8,12 percent gain to 14,92 cents.

Other gains were recorded in Barclays which put on 7,97 percent to 6,91 cents.

The banking group announced shareholder approval of the unbundling of the its non-core banking properties into a separate vehicle to be listed on the ZSE.

The primary asset included is the company’s 50 percent shareholding in a property holding company called Makasa Sun (Private) Limited.

Cables manufacturer Cafca also rose 2,04 percent to 71,43 cents after it issued a profit warning as it anticipates significant earnings growth.

Basic earnings per share and headline earnings per share for the year to September 30, 2018 will be approximately 10,5 cents which is above the 2,21 cents achieved in 2017.

Cafca said profitability has improved on the back of strong local demand and a change in sales mix from aluminum to copper products while the high level of finished goods brought forward from the previous year have also contributed to the growth.

Weighing down the market were losses in sugar manufacturer, Star Africa that eased 28 percent to 0,64 cents while beverages giant Delta let go of 14,26 percent to $2,01.

TSL and Seed-Co both fell 10,56 percent to 40,25 cents and 8,86 percent to $1,96 respectively.

Diversified financial services group, Old Mutual wrapped the week’s top five fallers with a 8,37 percent decline to $5,30.

Other losses were recorded in African Sun that lost 7,95 percent to 8,1 cents while Innscor closed the week 5,43 percent weaker to $1,38.

Masimba Holdings and ZPI lost 4,42 percent to 7 cents and 5,88 percent to 1,6 cents respectively.

BAT, Dawn, FBC and RioZim remained flat at $27, 2,4 cents, 24 cents and $1,40 respectively.–ebusinessweeklyc,oz,w

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