eBusiness Weekly
Waning demand on the Zimbabwe Stock Exchange (ZSE) dragged equities lower last week as profit taking took its toll.
As a result, all the benchmark indices closed the week to Wednesday in the red as bears dominated across board. The primary indicator, the ZSE All Share Index closed the week 3 percent lower to 6 690 points from 6 902 recorded in the previous week.
The blue chips, the ZSE Top 10 Index gave up 1,3 percent to settle at 3 621 points while the ZSE Top 15 eased 2,3 percent to 4 126 points.
The Mid-Caps fell the heaviest with a 5 percent decline to 17 074 points compared to 18 109 points recorded in the prior week.
At 229 340, the Small Cap fell by a marginal 0,01 percent.
Total market value reduced by 3 percent to $798 billion from $823 billion reflective of the blood bath that occurred on the market. Property firm, FMP was the biggest laggard of the week with a 19,98 percent decline to $11,20 followed by cigarette maker BAT which retreated by 19,94 percent to settle at $920,65 but remaining the most expensive stock on the bourse.
At $15,30, sugar processor – Hippo was 19,4 percent below previous week level.
Proplastics backtracked 17 percent to $27,86 while Masimba wrapped the week’s top five fallers with a 16 percent decline to $33,39.
Other losses were seen in Ariston and Axia which fell13 percent to $3 and 12 percent to $21,93 respectively.
Diversified hospitality group Meikles also recorded losses of 4 percent to $89,93 although the group reported positive earnings performance for the quarter to June 30, 2021, thanks to the more stable economic condition.
During the quarter under review, group revenue for continuing operations grew by 21 percent. The agricultural segment was classified as a discontinued operation and an asset held for distribution to shareholders on 31 March 2021. Revenue for the agricultural segment was 41 percent ahead of the same period of the previous financial year.
Further losses were offset by gains in Cassava which put on 25 percent to $19,99 from $15,95 followed by clothing retailer, Edgars that rose 17 percent to $3,90.
MedTech advanced 9 percent to 27,5 cents while the duo of Unifreight and Art rose 5 percent each to $30 and $7,99 respectively.
Nampak, Natfoods and NMB remained unchanged at $13, $520 and $16 in that order. Also maintaining prior week price was NTS which remained flat at $10,80. The tyre making firm has indicated the increase in Covid cases this year leading to a ban on crises border and inter city buses has adversely affected its true business for that market segment, which is one of the company’s major markets. Despite the Covid related challenges, companies remain upbeat of improved performance this current financial year and going forward driven by stability in the foreign currency exchange rate, access to foreign currency on the formal market while the roll out of the vaccination programs is seen as a confidence booster.
