Delta’s market value rises to $4bn as ZSE continues to rise

10 Nov, 2017 - 00:11 0 Views
Delta’s market value rises to $4bn as ZSE continues to rise

eBusiness Weekly

Business Writer
The Zimbabwe Stock Exchange clocked 15 billion market capitalisation this week as stocks continued their upward trend week-on-week after it added 1,31 percent for the week toWednesday November 8, 2017.

The Industrials Index closed at 530,08. Delta cemented its position as the most valuable company on the ZSE after it hit the $4 billion mark on Wednesday. The Mining Index was, however, weak after it lost 1,91 percent to 135,58 on the back of losses in Bindura down 12,8 percent to 5 cents.

Turnover for the period of $34,4 million was lower than what was achieved for the comparable prior period amounting to $44,0 million. This was however higher than the $4,7 million that was invested last year.

The bulk of this week’s funds were invested in Econet which got $13,3 million or 38,6 percent of the total turnover. Econet recently released its results for the half year ended September 30, 2017 showing a 17 percent growth in revenue to $352,67 million while after-tax profit was $48,85 million from $14,73 million last year, an increase of 226 percent.

Dual-listed Old Mutual also got $9,6 million as investors continue to use the group as a vehicle to bring in or send money outside the country. Old Mutual Plc shareholders can buy and sale the shares on any of the three platforms, the JSE, ZSE and LSE.

On the ZSE, the company is currently trading at a premium of more than 470 percent to its price on the JSE and 468 percent to the LSE price.

At least 22 stocks supported the upward trend slightly higher than the 21 risers that were recorded last week.

Notable risers were Edgars up 27,25 percent to 8 cents, GB Holdings up 25 percent to 0,8 cents and Lafarge up 25 percent to 120 cents. Zimpapers was also among the risers up  15,03 percent to 1,53 cents.

Ariston led the fallers after it lost 20,56 percent to 1,8 cents, followed by Bindura which lost 12,8 percent to 5 cents. National Foods was also among the fallers down 5,63 percent to 710 cents.

The company said volumes for the first quarter of the year were down due to subdued performance in stock feeds, maize divisions and third part products. First quarter volumes were subdued at 10,1 percent (14 000 metric tonnes) below last year.

Afdis also lost 2,7 percent to 185 cents. In a trading update released this week the company said its three product categories registered double digit growth with wines leading the pack at 29 percent, spirits continue to be the major revenue contributor at 66 percent, ready to drink (ciders and spirit coolers) contributed 24 percent, registering a 22 percent volume growth.

PPC also shed 0,07 percent to 346 cents in a week that the dual listed company said it expects a 200 percent growth in earnings for the 6 months ended 30 September 2017.

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