ZSE in post bud­get cheer

The Sunday Mail (Zimbabwe) - - BUSINESS NEWS - Enacy Ma­pakame

EQ­UI­TIES on the lo­cal bourse re­cov­ered last week due to post­bud­get in­vestor cheer which saw the mar­ket close in a bullish mood.

All the bench­marks closed the week to Thurs­day in the black.

The pri­mary indicator, the ZSE All-Share In­dex, in­creased three per­cent to 161,19 points while the Top 10 In­dex rose four per­cent to 166,08 points on gains in the mar­ket’s heavy­weights.

At 208,56 points, the Min­ing In­dex of three ac­tive coun­ters was 2,4 per­cent above prior week lev­els on gains in di­ver­si­fied re­sources group — RioZim.

On Novem­ber 22, Fi­nance and Eco­nomic Devel­op­ment Min­is­ter Pro­fes­sor Mthuli Ncube de­liv­ered his 2019 Na­tional Bud­get State­ment themed “Aus­ter­ity for Pros­per­ity”, lay­ing the foun­da­tion for eco­nomic growth.

Among the main high­lights of the fis­cal pol­icy was a forecast gross do­mes­tic prod­uct (GDP) growth of 3,1 per­cent.

How­ever, the pro­jected $1,6 bil­lion bud­get deficit has left some econ­o­mists uncertain of Gov­ern­ment’s sin­cer­ity to cur­tail spend­ing.

Other key is­sues around currency pol­icy were not ad­e­quately ad­dressed, thereby leav­ing the econ­omy bat­tling with a multi-pric­ing regime.

Ad­di­tion­ally, econ­o­mists also con­tend that any re­forms must fos­ter pro­duc­tion and en­hance ex­ports to boost the coun­try’s for­eign currency earn­ings and ad­dress key eco­nomic en­ablers such as the avail­abil­ity of fuel.

These, among oth­ers, will see the coun­try ful­fil plans of be­com­ing an up­per mid­dle class econ­omy by 2030.

Dur­ing the week un­der re­view, to­tal mar­ket value rose four per­cent to close at $17,232 bil­lion from the prior week’s $16,5 bil­lion.

The mar­ket’s top cap­i­talised coun­ters were the main value driv­ers.

Hospi­tal­ity group RTG put on 20 per­cent to close at 1,92 cents. Big­gest stock by mar­ket cap­i­tal­i­sa­tion, Econet, rose 10 per­cent to $1,80 from $1,62 in the prior week.

The tele­coms gi­ant’s sub­sidiary, Cas­sava Smartech, last week launched an ed­u­ca­tion in­sur­ance cover prod­uct called “Enda Ed­u­ca­tion Cover” that is un­der­writ­ten by Econet Life, Cas­sava Smartech’s In­surtech arm.

The prod­uct of­fers school fees ben­e­fits for pri­mary and sec­ondary ed­u­ca­tion in the event of the death of a bread­win­ner or a le­gal guardian of the stu­dent.

This is in ad­di­tion to in­tro­duc­tion of the FCA Eco­cash wal­let as the group con­tin­ues to lever­age on mo­bile money ser­vices.

In­dus­trial con­glom­er­ate Innscor added 6,9 per­cent of value to close at $1,94 while Na­tional Foods rose 2,4 per­cent to $6,76.

Also on the up­side, Sim­bisa Brands rose 4,2 per­cent to 75 cents.

The quick ser­vice restau­rant (QSR) group in­di­cated at its an­nual gen­eral meet­ing that earn­ings for the first quar­ter of the 2019 fi­nan­cial year were ahead of prior year tar­gets.

Croc­o­dile breeder Padenga ad­vanced three per­cent to 95 cents while Nam­pak rose 2,3 per­cent to 21,5 cents.

The pack­ag­ing ma­te­rial man­u­fac­turer re­ported that profit for the year to Septem­ber jumped 89, 3 per­cent to $14,5 mil­lion from $7,6 mil­lion in the prior pe­riod de­spite a dif­fi­cult op­er­at­ing en­vi­ron­ment com­pounded by for­eign currency short­ages.

Rev­enue steadily rose 21,3 per­cent to $116, 8 mil­lion, buoyed by ex­cep­tional per­for­mance from its op­er­at­ing units Me­gaPak, Sof­tex tis­sue prod­ucts, Hun­yani and Car­naudMe­tal­box.

The com­pany at­trib­uted the im­proved per­for­mance to vol­ume growth, tight cost con­trol and a good to­bacco sea­son.

Bev­er­ages maker Delta rose by a mar­ginal 0,9 per­cent to $3,28.

Fur­ther gains were off­set by losses in Meik­les that came off 15 per­cent to 51 cents.

In­sur­ance firm Fidelity let go of 12 per­cent to 15,75 cents while Bin­dura re­treated 0,8 per­cent to 7,02 cents.

Afdis, Fal­gold and Hippo re­mained flat at $1,60, 2,5 cents and $1,70 re­spec­tively.

Hippo re­ported that rev­enue for the six months to Septem­ber 30, 2018 in­creased 29 per­cent to $93,2 mil­lion from $72,4 mil­lion in the same pe­riod in the prior year, un­der­pinned by in­creased su­gar pro­duc­tion which was 13 169 tonnes more than prior year, a 12 per­cent in­crease in do­mes­tic de­mand for su­gar.

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