Stock Market Weekly Review

BULLISH sentiment prevailed on the Zimbabwe Stock Exchange (ZSE) during the past week with investors amassing nearly $1 trillion cumulatively, as excess liquidity finds its way to the equities market.

Early this month, the Reserve Bank of Zimbabwe introduced a gold backed digital currency, which analysts say, is a positive move to mop up the excess liquidity, while the currency will also hedge against the obtaining volatility.

During this week’s auction, the local currency further deteriorated to $1 888 against US$1 while on the parallel black market it is trading at around $3 000.

Now on the ZSE, total market value jumped 14 percent to $7,7 trillion compared to $6,7 trillion recorded in the prior week. On a year-to-date basis, the exchange’s total market capitalization has gained by 277 percent despite a mass exodus of counters to the Victoria Falls Stock Exchange.

The primary indicator, the ZSE All Share Index gained 18 percent to close pegged at 93 115 points. Market heavies, the ZSE Top 10 Index ticked 16,6 percent to 57 126 points while the ZSE Top 15 Index jumped 16,7 percent to 66 124 points.

Property firm Mashonaland Holdings headlined the week’s risers as it nearly doubled to $43,25 compared to $22 recorded in the previous week. Financial services group ZBFH put on 70 percent to $182,55 while peers CBZ followed with a 70 percent gain to $529.

Clothing retailer Edgars put on 57 percent to settle at $56 from $35,50 while FML wrapped the week’s top five risers with a 52 percent to $43,70.

The market was not short of fallers. FMP went down 13 percent to $38,32 followed by EcoCash which gave up 11 percent to $134,38. Agriculture and earthmoving equipment supplier Zimplow lost 6 percent to $90 as the company is on a recovery path post exit of Caterpillar dealership by its subsidiary Barzem, which has since transitioned to Tractive Power Solutions (TPS).

Cigarette maker BAT backtracked by a marginal 0,2 percent to $5 406,25 but remained the most-priced stock on the ZSE. Completing the week’s fallers was Econet, which went down by a marginal 0,04 percent to $600,43.

On the resources side, RioZim remained unchanged at $253 as first-quarter gold production at its flagship Cam & Motor Mine increased 92 percent on the back of the Biological Oxidation (BIOX) plant that came into operation last year.

On the exchange-traded funds (ETFs) all the counters recorded gains except for the Cass Saddle Agric ETF which remained unchanged at $2,80.

Morgan and Co Made in Zim ETF and Old Mutual ZSE Top 10 ETF paced the fastest with a 30 percent gain each to close at $3,65 and $19,48 respectively.

The Morgan and Co Multi-Sector ETF rose by 20 percent to $50 while the Datvest MCS ETF added 2,75 percent of value to settle at $50.

Elsewhere, trades on the VFEX were largely skewed in the negative with Seed Co International falling the heaviest by 10 percent to US27 cents followed by African Sun which fell by 1 percent to US7,82 cents. Simbisa retreated by 0,62 percent to US39,76 cents while Innscor eased by a marginal 0,04 percent to US49,97 cents.

However, on the upside was Nedbank ZDR which rose by 10 percent to US$12 while the duo of Axia and Padenga rose by 5 percent each to settle at US9,02 cents and US20,05 cents respectively.

Bindura, Caledonia, FCB and WestProp remained flat at US1,03 cents, US$16, US3,91 and US$10 in that order.