The month of August was the worst for investors on the Zimbabwe Stock Exchange as it became the only one the local bourse has closed lower than the previous month.
Market capitalisation: $792,3 billion
Since January, the ZSE has been closing at a higher level than the previous month, but August’s market capitalisation closing level of $792,3 billion, was lower than July’s $803,9 billion. The negative close was mainly driven by small cap counters as they lost the most during the period under review.
This was reflected in the Small Cap index which closed 5,42 percent weaker at 224 123,94. The Medium Cap Index followed with a 4,28 percent drop to 17 031,57. The All Share Index shed off 2,8 percent for the month to 6 652,31. Heavyweight stocks as represented by the ZSE Top 10 index though also closing negative fared better shedding just 1,72 percent, the lowest among major indices.
Turnover $3,4 billion
The market was however, very liquid with $3,4 billion being invested. This is the fifth highest turnover year-to-date. The highest of $4,5 billion was recorded in March.
Volume wise, August with 147 232 100 had the lowest number of shares changing hands. The highest year-to-date was in January when more than 2,4 billion shares changed hands.
Foreign investors: $247 million
Foreign investors continued with their exit from the local bourse after disposing of shares worth $247, 4 million in August. This is more than the $178,1 million worth of shares they bought. Year-to-date foreign investors have sold shares worth $6,5 billion and only bought $1,5 billion worth of shares. The trend has been like this for a while now with currency depreciation and limited access to foreign currency over the years making local listed entities less and less attractive.
Biggest losers: -29,9 percent
Stocks that dragged the market to the negative territory were led by Starafrica with the sugar processor tumbling 29,9 percent to 184 cents. GB Holdings followed with a 20,52 percent drop to close at 189 cents as was Zimpapers which eased 20 percent to close at 280 cents. Truworths and Innscor completed the top five losers down 16,41 percent to 200 cents and 16,29 percent to 9 156 cents respectively.
Top performers: +43,72 percent
Getbucks, the year’s second best performer, was the top riser in August after picking 43,72 percent to 830 cents. For the month, it was followed by Econet, which picked 25,13 percent to close at 3 771 cents. Cassava was also strong up 20,99 percent to 1 940 cents. TSL and Seed Co completed the top 5 risers up 13 percent each.
ETF: +24,86 percent
The Old Mutual ZSE Top 10 ETF lived up to its billing as one of the most rewarding investment vehicles for stock market investors. By the close of trading in August, the ETF was up 24,86 percent to a market value of $358 544 285 million. The instrument is now up 91 percent year-to-date. At least $10, 2 million worth of shares changed hands in August. At the close of trading on Wednesday, the ETF was priced at 191 cents.