Art leads ZSE rout at week’s opening trades

It was a bloodbath yet again on the Zimbabwe Stock Exchange with all indices closing negative in yesterday’s trades.

Heavy losses were recorded in medium capitalised companies with the ZSE’s Medium Cap Index being the biggest loser down 1,65 percent to 2 589.97.

The Small Cap Index followed with a 1,59 percent drop to 4 520.45 while the ZSE Top 10 Index eased 1,07 percent to 810.97.

As a result, the All-Share Index lost 1,33 percent to the 1 268.32 level.

Art Corporation was the day’s biggest loser after it tumbled 19,84 percent to trade at 152 cents. The counter is however still 1 069 percent positive since the beginning of the year.

Truworths was the second top loser down 17,65 percent to 14 cents. Last week the clothing retailer’s management said it anticipates a drop in profit for the year ended 28 June 2020 on the back of the severity of the COVID-19 induced hostile operating environment.

Headline earnings per share (HEPS) is estimated to decrease on the prior period by between 28 percent to 33 percent while earnings per share (EPS) is estimated to drop by between 188 percent to 198 percent.

African Sun, Willdale and Dairibord Zimbabwe completed the top five losers after losing 15,4 percent, 14,92 percent and 10,17 percent respectively.

In its latest trading update for the three months to June 20, Willdale said brick sales volumes for the quarter were 25 percent down. The company says: “Profit levels for the ensuing quarter will be lower than anticipated due to subdued volumes and margins.”

The ZSE was however not short of risers with OK Zimbabwe leading with a 4, 4 percent gain to 371,24 cents.

Other gains were recorded in Padenga up 1,92 percent to 1102,51 cents, Meikles up 1,67 percent to 1220 cents, NMB up 1,64 percent to 310 cents and Lafarge up 1,01 percent to 500 cents.–ebusinessweekly.co.zw

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