Grand en­trance for Cas­sava on ZSE

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

CAS­SAVA SmarTech Zim­babwe Lim­ited be­came the big­gest com­pany on the Zim­babwe Stock Ex­change (ZSE) on De­cem­ber 18, just hours af­ter go­ing pub­lic.

With a mar­ket value of $3,8 bil­lion, the fi­nan­cial tech­nol­ogy com­pany eclipsed even its par­ent com­pany, Econet, and bev­er­ages gi­ant Delta, which are val­ued at $3,7 bil­lion and $3,5 bil­lion, re­spec­tively.

The en­trance of Cas­sava on the ZSE sub­se­quently shifted po­si­tions for the mar­ket’s heav­ily cap­i­talised coun­ters — ZSE Top 10 In­dex.

Cas­sava is a di­ver­si­fied smarTech group, with a man­date to use dig­i­tal solutions to drive so­cio-eco­nomic devel­op­ment, and to im­prove the over­all qual­ity of life.

Di­ver­si­fied in­dus­trial group Innscor, which is val­ued at $1 bil­lion, now trails be­hind as the fourth most valu­able com­pany on the bourse, while Bri­tish Amer­i­can To­bacco (BAT) is now the fifth-largest counter with a to­tal value of $680 mil­lion.

Seed Co In­ter­na­tional, with cap­i­tal­i­sa­tion of $652 mil­lion, was pushed to sixth po­si­tion, fol­lowed by Old Mu­tual at $535 mil­lion. Na­tional Foods, Seed Co Lim­ited and Padenga com­plete the top 10, with a mar­ket cap­i­tal­i­sa­tion of $485,9 mil­lion, $485,1 mil­lion and $460 mil­lion in that or­der.

On de­but on Tues­day, each Cas­sava share was ini­tially be­ing swapped for 43 cents and closed its first ses­sion at $1,49, trad­ing a low of $1,10 and a high of $1,53.

The ses­sions ac­tiv­ity ag­gre­gates were boosted by heavy trades in the fin­tech group, where 1,99 mil­lion shares worth $2,97 mil­lion changed hands.

The trades in Cas­sava ac­counted for 33,9 per­cent of the vol­ume ag­gre­gate and 37,11 per­cent on the value out-turn in that ses­sion. Mean­while, to­tal ZSE mar­ket cap­i­tal­i­sa­tion rose 17 per­cent to $19 bil­lion last week fol­low­ing Cas­sava’s list­ing, which added $3 bil­lion into the mar­ket.

How­ever, the pri­mary All-Share In­dex dropped 3,8 per­cent to 147,26 points on losses across board.

The mar­ket’s heavy cap­i­talised stocks — ZSE Top 10 In­dex — eased 5,2 per­cent to 147,73 points from prior week’s 155,91 points on heavy bat­ter­ing in the big cap coun­ters. At 491,7 points, the In­dus­tri­als In­dex lost 4 per­cent.

Gen­er­ally, a bear­ish sen­ti­ment pre­vailed on the mar­ket as in­vestors profit-take ahead of the fes­tive hol­i­days. Losses in big-cap coun­ters par­tic­u­larly dragged the mar­ket into the neg­a­tive.

Econet and Delta dropped 6,4 per­cent to $1,44 and 7,8 per­cent to $2,80, re­spec­tively. Innscor let go of 2,6 per­cent to $1,85, while Na­tional Foods lost 1,3 per­cent to $710. Cig­a­rette man­u­fac­turer BAT eased a mar­ginal 0,57 per­cent to $33. Sugar pro­ces­sor Hippo re­mained un­changed at $1,71. The re­sources side had a dif­fer­ent story. The Min­ing In­dex closed in the pos­i­tive af­ter adding 4 per­cent of value to 201,29 points spurred by a 20 per­cent move in Bin­dura.

Bin­dura’s hold­ing com­pany, ASA Re­sources Group Plc, which is cur­rently un­der Ad­min­is­tra­tion, an­nounced it has en­tered into a sale and pur­chase agree­ment (“SPA”) with a third party in re­la­tion to the 74,7 per­cent share­hold­ing in Bin­dura.

The con­di­tions of the SPA in­clude var­i­ous reg­u­la­tory ap­provals and other con­di­tions as ex­pected with a trans­ac­tion of this na­ture. The third party is a UK-based nickel com­pany with com­ple­men­tary in­ter­ests in South­ern Africa.

Fel­low re­sources group Fal­gold re­mained flat at 2,5 cents. The gold pro­ducer in­di­cated sev­eral fac­tors that could have a neg­a­tive ef­fect on its op­er­a­tions and earn­ings such as for­eign cur­rency short­ages, as well as a sys­tem fail­ure at its Golden Quarry pro­cess­ing plant a week ago.

The com­pany is, how­ever, work­ing to­wards min­imis­ing the ef­fects of these chal­lenges.

The en­trance of Cas­sava on the ZSE sub­se­quently shifted po­si­tions for the mar­ket’s heav­ily cap­i­talised coun­ters

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