ZSE closes 2019 positive
THE equities market closed positive in 2019 yielding a 57 percent gain as investors turned to stocks as a safe haven for investment.
The year was characterised by economic volatility mainly due to inflationary pressures, which helped push demand for stocks as other investment channels such as the money market became unattractive.
Currency reforms were among the top highlights for the year which saw the Reserve Bank of Zimbabwe establish an interbank market for foreign currency, introduction of local currency and banning of foreign currency for local transactions with the exception of other sectors such as tourism.
The conversion from a multi-basket of currencies to a local mono-currency meant an increase in local dollars’ liquidity, which found its way on the stock market.
However, the policy changes also had a knock on effect over investor confidence as the market witnessed a wait and see attitude by foreign investors.
Resultantly, foreign participation accounted for only 13 percent of total turnover, which was the lowest in a decade.
Market watchers contend that the market has been grossly undervalued.
“We believe from a general net asset valuation most companies show sharp upside while from a ratio perspective the upside is even higher,” revealed analysts at Equity Axis.
During the period under review, all the benchmark indicators closed the year in the black. The ZSE All Share Index and the Industrials Index both rose by 57,3 percent to 230 points and 766 points respectively.
The market’s top cap counters, the ZSE Top 10 Index advanced 39,76 percent to close the year at 202 points as all its counters closed in the black with the exception of Cassava, which lost 2 percent of value to close the year at $1,40.
On the resources side, the Minings Index advanced 39,06 percent to 316,6 points on gains in its three active counters, Bindura, Falgold and RioZim.
The bourse has since introduced new indices effective January 2, and these are expected to provide the market with better tools for performance measurement as well as assist in sector-based investment strategies.
Of the 59 active counters, 57 closed the year in the positive while only two closed in the negative, that is Cassava and seed producer, Seed Co Limited which eased 8,4 percent to close the year at $1,90. Zeco remained unchanged at 0,02 cents.
MedTech, Ariston, RTG, ZHL and Meikles were the top five performers in that order.
This year, stocks are seen surging on the back of a slowdown in sales volume loss as was the case in 2019 and a further re-rating based on exchange rate weakness.
Panashe Chikonyora
ZIMBABWE Tourism Authority says it is looking forward to the ambassador role that UEFA President Aleksander Ceferin is going to play in marketing Zimbabwe as an effective tourist destination.
This follows the UEFA President, together with his family’s recent visit to the country on a 10-day vacation.
Speaking on behalf of ZTA at Mr Ceferin’s send-off dinner, ZTA’s marketing director Godfrey “Chief ” Koti appreciated the visit saying that it will help usher in confidence into the country.
“We are delighted and we would like to thank him and his family for having stopped by Zimbabwe and this is an attest to the fact that Zimbabwe is certainly a destination that one can enjoy.
“It’s an attest to the fact that we are a destination of choice and that we are a must-visit destination as a country,” remarked Koti.
Reflecting on the visit, Mr Ceferin showed dismay in the continued and unsubstantiated reports by international news organisations that Zimbabwe was an unsafe tourist destination and described it as unfortunate.
He enjoyed time with his family in the country and pledged to go and tell people abroad about how beautiful and safe Zimbabwe is.
Mr Ceferin expressed that he would not hesitate to advise anyone to visit the country as the perception that the country was not safe for tourists was untrue.
Mr Ceferin and his family left the country yesterday morning after having been in the country for more than a week, which saw him visiting Victoria Falls, Hwange, Great Zimbabwe and the Eastern Highlands.
Meanwhile, as a way to enhance destination awareness and foster market visibility, ZTA will be exhibiting at the 27th edition of the South Asia Travel and Tourism Exchange (SATTE) from today until Friday in New Delhi, India.
The move will help it nurture and grow new and emerging tourism markets.