Stock Market Weekly Review

THE Zimbabwe Stock Exchange took a breather in the week to Wednesday in a week that President Mnangagwa expressed concern over the migration of listed firms to the Victoria Falls Stock Exchange.

A total five firms have since migrated to the VFEX while three more plan to.

Writing in his column in the Sunday Mail, President Mnangagwa called for the harmonisation of the two exchanges.

“I am exercised about the unfolding relationship between the Zimbabwe Stock Exchange, ZSE, and its sibling, the Victoria Falls Stock Exchange, VFEX. Instead of a relationship of complementarity, I am beginning to sense that businesses are delisting on one to re- list on the other.

“This may very well relate to discrepancies in incentives we have attached to either of the bourses.

“In an economy that is fighting off negative speculative behaviours, this might not be very helpful.

“Again, I urge the authorities to apply their minds on this growing chasm between these two bourses so they complement each other, for the benefit of our whole economy,” reads part of President Mnangagwa’s column.

However, market players said this week’s drop in share prices was more to do with profit taking than any possible action on the two markets.

The ZSE All Share Index with a 45,31 percent gain has had a good run since the beginning of the year beating both currency depreciation of roughly 18 percent and year- to- date inflation of less than 3 percent.

This could have attracted profit takers according to market watchers.

By the close of trading on Wednesday, the ZSE All Share Index had lost 4,4 percent to 28 325.82while the popular ZSE Top 10 index was down 6,78 percent to 17 567.13.

The Small Cap Index was however positive gaining 1,44 percent to close the period under review at 518 742.25.

The ZSE’s biggest counter by market capitalisation Delta was the week’s biggest loser with a 16,96 percent drop to 54 077.88 cents per share followed by RTG down 15.97 percent to 1 008.33 cents per share.

SeedCo which is on its way to the VFEX and is the market’s year- to- date top riser lost 6,62 percent during the period under review to 22 333.33 cents per share.

African Sun, which announced plans to migrate to the VFEX was the top riser up 24,04 percent to 5 957.69 cents per share, followed by Edgars up 20 percent to 1 200 cents per share.

Exchange Traded Funds did not fare better either with all but one closing in the negative territory.

The Old Mutual Top- 10 ETF was the only riser up 8,05 percent to 900.39 cents per unit.