Profiling the ZSE Sectoral Indices

IN this week’s column, the ZSE is profiling the ZSE Financials Index. The index is part of the ZSE Sectoral indices.

The sectoral indices are designed to represent the performance of Zimbabwean companies, providing investors with a comprehensive set of indices, which measure the performance of the major industry segments of the Zimbabwean economy. ZSE follows the Global Industry Classification Standard ( GICS) in classifying the listed companies.

The ZSE Financials Index represents companies in the field of finance including banks, diversified financials, insurance, mortgage and real estate investment trusts.

Index Calculation Methodology The ZSE uses market capitalization weighting methodology in the computation of all indices. The market capitalization is an approximation of the market value of the listed entity calculated by multiplying the entity’s last Volume Weighted Average price by the number of securities in issue.

Index Constituencies

The index constituents for the ZSE Financials Index are as follows;

ZSE FINANCIALS INDEX

◆ CBZ Holdings Limited

◆ FBC Holdings Limited

◆ First Capital Bank Limited ◆ Getbucks Microfinance Bank Limited ◆ ZB Financial Holdings Limited ◆ First Mutual Holdings Limited ◆ NMBZ Holdings Limited

◆ Zimre Holdings Limited

◆ Fidelity Life Assurance

Limited PERFORMANCE

The ZSE Financials Index was introduced in January 2020 and was calculated backwards to January 2018 which is the time where the ZSE benchmark index otherwise known as the ZSE Allshare Index was first constructed. The index gained 81% in the year 2022 up to 2 November 2022 to close at 25 397.31 points.

Information provided in this article is for educational purposes and does not constitute financial advice. You should obtain independent advice from a registered stockbroker or financial advisor before making any financial decisions.

Please note that past performance cannot be relied on as an indication of future performance.

It is important for all prospective investors to carefully consider their financial situation and consult a financial advisor or stockbroker in order to understand the risks involved and ensure the suitability of their situation prior to making any investment decision.

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