Stock Market Weekly Review

LOSSES in selected heavyweights saw the Zimbabwe Stock Exchange (ZSE) close the week to October 27, 2021 with marginal losses, breaking the bull run experienced in the past month.

During the week to Wednesday, the primary indicator, the ZSE All Share index retreated by 0,52 percent to 11 459 points from 11 519 points in the comparative week.

The Small Cap index fell the heaviest with a 6 percent decline to 320 416 points although the index still remains the highest gainer year to date at over 2 000 percent.

At 22 353 points, the Medium Cap was 2 percent below prior week’s 22 886 points. The blue chips, the ZSE Top 10 Index gained a marginal 0,16 percent after a rebound in some selected stocks during the week to close pegged at 7 173 points. The ZSE Top 15 also rose by a marginal 0,35 percent to close the week at 7 988 points from 7 960 points recorded in the previous week.

Total market value fell 0,64 percent to $1,4 trillion reflective of the losses recorded across the board.

Weighing down the market were declines in Zimplow and NTS that fell 20 percent to $19,61 and 18 percent to $7 respectively.

Cement maker, Lafarge eased 14 percent to $96 as the country is experiencing high cement prices partly driven by intermittent shortages of supplies on the local market and this has also opened avenues for cheap imports from the region, particularly Zambia, as many dealers are stampeding for import permits to fill in the supply gap.

At $30, Proplastics was 14 percent below prior week level while specialty retail and distribution group, Axia wrapped the week’s top five fallers with a 13 percent decline to $39,08.

The group is anticipated to see volumes recovery in the current year spurred by improved disposable incomes while the festive season is also seen driving sales.

Other losses were seen in food processing giant, Natfoods which backtracked 11 percent to $1 500 from $1 700 in the previous week.

Clothing retailer, Edgars fell 10 percent to $4,10 as the group indicated it experienced a sharp increase in borrowings for the 26 weeks ended July 11, 2021, necessitated by lockdowns with the group accumulating US$190 000 in foreign liabilities.

Diversified industrial giant, Innscor went down 5 percent to $178,95. The group is upbeat of maintaining a growth trajectory after first quarter volume performance was positive on the back of increased volumes across segments.

Biggest counter by market capitalisation,

Econet eased 2 percent to $78,91; Cassava – 4 percent to $43,29 while Delta eased by 1 percent to $155,94.

Further losses were offset by gains in the rarely traded ZECO holdings which doubled in price to 0,24 cents followed by biggest banking group by assets and deposits, CBZ which traded 29 percent above prior week to settle at $119,96.

Diversified hospitality group, Meikles put on 22 percent to settle at $200,43 as the firm indicated it has begun the process of demerging its agriculture division — Tanganda Tea Company — before its separate listing to follow later.

Cigarette maker, BAT put on 19 percent of value to $2 740 maintain the most expensive stock tag ahead of National Foods which is pegged at $1 500.

Clothing retailer, Truworths wrapped the week’s top five risers with a 16 percent increase to close at $2,29.

Other gains were seen in Fidelity which rose 10 percent to $8,13 while Hippo increased 9 percent to $300.

Insurance firm, FML added 8 percent to $27 while Art rose 7 percent to $10.

Cafca, CFI, Dairibord and Masimba were the only counters to close unchanged at $170, $41,12, $52 and $55 in that order.