eBusiness Weekly
Business Writer
The stock market pared losses during the week to Wednesday September 24, 2020 as selling pressure persisted.
By the close of trading on Wednesday, the overall market capitalisation was 2,06 percent lower at $207,6 billion.
This is after losses were recorded in big cap stocks such as Delta that eased 5,53 percent to 1698,42 cents.
Conglomerate Innscor dropped 16,84 percent to 1 691 cents as the market awaits its results for the full year to June 2020.
Also on the downside among heavyweight counters was Padenga Holdings which lost 9,09 percent to 1450 cents.
Padenga is a must watch for investors as its recently acquired gold operations are said to have a high value ore body worthy over US$1 billion which can be mined over five years through an open pit.
Property concern, Mashonaland Holdings was, however, the week’s biggest loser after it dropped 25,17 percent to 46,52 cents. It was followed by Meikles Limited which eased 18,85 percent to 1405,37 cents.
OK Zimbabwe and Truworths were the other losers having shed 15,40 percent and 15,10 percent respectively.
The market was, however, not short of risers with financial services provider FBC Holdings adding 25 percent to 1500 cents.
FBCH is now the market’s third biggest company by market capitalisation. Its strong performance with a 2 198,85 percent year to date gain has also seen its top executives acquiring shares in the Group.
This year, CEO John Mushayavanhu and deputy CEO Trynos Kufazvineyi have indirectly bought millions of FBCH shares.
Last week, another director, Group Company Secretary, Tichaona Mabeza bought shares worth $100 076.
Masimba Construction is also having a good run and was the week’s second top riser with a 16,3 percent gain to 204,02 cents. In its results for the half year to June 2020, Masimba’s earnings before tax (EBT) rose 40 percent to $176 million. Profit for the period came in at $122,39 million, which was a 2 percent growth from same period last year.
Fidelity Life was also among the top five risers adding 11,11 percent to 90 cents. The Group is subject to a takeover by major shareholder ZHL. Post the acquisition of NSSA’s equity by ZHL, Fidelity is expected to be delisted.
Zimplow put on 10,53 percent to 420 cents following the announcement that it is working on acquiring complementary businesses that might add more than $100 million to its turnover.
The proposed deal, as reported elsewhere in this publication, will see Zimplow acquire the entire shareholding of the sole distributor of Scania products in Zimbabwe, Scanlink (Private) Limited, the exclusive distributor of the Goodyear brand of tyres in Zimbabwe, Tredcor Zimbabwe (Trentyre), as well as an industrial stand in the Southerton area.
Market watchers have attributed the downward trend on share prices to selling pressure from foreign investors as well as investors who had only gone into the market to hedge against exchange rate losses and value erosion amid high inflation.
Tightening liquidity by both treasury and monetary authorities was also blamed for the downturn.
A stockbroker who requested not to be named said the downturn is a “is a wonderful buying opportunity for the small money” which coincides with the launch of a new online trading platform, ZSE Direct.
“I think the market is still heavily discounted and the more liquid should take advantage of this and take positions,” said another.
