Investors favour blue chip stocks
TRADING in the market’s top cap counters last week drove both value and volumes leading to market gains in a week shortened to four trading days due to the anti-sanctions day holiday last Friday.
Zimbabwe and the rest of SADC joined hands on Friday to denounce the two decade long sanctions imposed on the Zimbabwean economy.
In the week to Thursday, total market capitalisation rose 0,85 percent to close pegged at $29,9 billion, registering year-to-date gains of 53,16 percent.
Volumes traded in the week reached 23,2 million with an average of 5,78 million shares exchanging per session.
Weekly turnover amounted to $35,4 million with a daily average of $8,8 million. Statistics show that activity was highest in insurance giant Old Mutual, Innscor and Delta, which contributed 24,4 percent, 14 percent and 13,3 percent respectively. Cassava, Padenga and Econet also made the top six value contributors for the week under review.
The market indicators, the ZSE All Share Index climbed 1,46 percent to end the week at 231,67 points while the ZSE Top 10 Index inched up 0,91 percent to 210,7 points.
At 765,51 points, the Industrial Index was 0,69 percent firmer while the Mining Index closed 1,27 percent above prior week to close pegged at 314,13 points.
Overall, Powerspeed headlined risers with a 20 percent jump to 42 cents while Falgold also rose 20 percent to 3 cents.
Agriculture concern, Ariston put on 19 percent to 15 cents. Other gains were recorded in construction firm - Masimba which soared 18 percent to 19 cents while Proplastics and Dairibord were among the week’s best performers surging by 17 percent to 88 cents and 10 percent to 56,25 cents respectively.
On the downside, Art fell the heaviest after it eased 16 percent to close pegged at 12,6 cents while regional seed producer, Seed Co backtracked 13 percent to $1,91. Banking stocks CBZH, NMBZ and FCB fell 9 percent to 60 cents, 8 percent to 35,85 cents and 2,5 percent to 9,59 cents in that order.
Market watchers contend the stability in the foreign exchange interbank market might be a contributor towards stocks performance although the economy still faces a myriad of challenges that erode confidence.
Recent figures from the central bank showed money supply grew 20 percent month on month in July, a situation likely to fuel further inflation and subsequently erode consumer spending as prices of goods and services sky-rocket.