Bloodbath intensifies on ZSE as inflation slows down
at 13068.97 points.
losses were stimulated by market heavies and medium caps which slumped by -15,92% and -0,6% respectively, outweighing the 2,51% gains in penny stocks. performance was weighed by the sustained low liquidity in the market as the central bank continues pinning down on cash-in-circulation in a bid to curb inflation.
uncertainty is also reigning on the market as the country approaches presidential elections scheduled for 2023. month-to-date nominal losses stretched to -11,53%, hardly a week into the new month.
overall year-to-date nominal gains were trimmed to 20,76%, which translates to a loss position of -79% in us dollar terms. efforts by the central bank to curtail inflation by pinning down liquidity resulted in a slow-down in annual inflation from 285% to 280,4%. However, the move has also driven down demand for stocks in the interim.
on the us dollar-denominated bourse, vFeX, the duo of padenga and bnc plunged by -5,72% and -1,96% respectively in the week under review while the other two counters did not record any price movement. an aggregate of us$44 892 exchanged hands in the week, down from us$66,286 in the prior week.
The blue-chips, bnc and padenga, only recorded trades on Thursday and Friday after inactivity through-out the week due to low liquidity, while the other two stocks did not record any trades.
on currency markets, the ZW$ has been stable on both the formal and the informal markets, owing to tightened liquidity in the economy. on the parallel market, the ZW$ has been sailing at a stable exchange rate for close to a month now, with the premium dwindling to below 30%.
on the reuters auction currency market, the us$ appreciated by 0,75% at the close of the most recent trading week to close at ZW$626.189 per each us$ while on the sole legal exchange market, the interbank, the us$ appreciated by a mild 0.82% to close at ZW$626.9728 per each us$.
an aggregate of 45 stocks exchanged hands in the first week of october, with 18 emerging risers and these were led by Fml which extended its gaining streak to a 3rd consecutive week on notching 36.3% to settle at 2691.58c.
The duo of lafarge and cafca buttressed prior week's gains by a further 26.4% and 17.6% respectively to close at 12500c and 20000c each. dairibord went up for a 3rd straight week by a further 14% to settle at 2530c, while mashhold rose for a 4th consecutive week by a further 11.6% to close at 700c. The duo of masimba and rioZim extended prior week's gains on surging 10.9% and 10.5% apiece to settle at 7200c and 11496.87c in that order.
clothing retailer, edgars, stretched its gaining streak to a 3rd straight week on rising 10.3% to close at 750c while financial stock, First capital bank, rose for a 4th consecutive week by a further 9.5% to settle at 1005.45c. nmbZ firmed by 9% to close at 2000c, capping off the risers' set.
on the downside, an aggregate of 19 counters partially weighed on the market, with delta performing the worst on plunging -27.2% to close at 18104.82c, reversing prior week's gains.
The duo of econet and seed co partially countered prior week's gains on easing -26.2% and -25.9% respectively to settle at 8469.04c and 8000c each. natfoods heavily weighed on prior week's gains on slumping by -15% to close at 102000c while oK Zim retreated by -12.8% to settle at 3098.15c.
innscor and ecocash limited Zimbabwe partially set off prior week's gains on dwindling -12.4% and -11.1% respectively to close at 26963.33c and 4978.24c apiece.