Stock Market Weekly Review

22 Oct, 2021 - 00:10 0 Views
Stock Market Weekly Review Market watchers have, however, warned investors to be cautious in picking stocks on the bourse as the current rally will not last forever. As such, there is need for proper checks as inflationary pressures noted during the third quarter of the year will cause economic volatility.

eBusiness Weekly

Enacy Mapakame

Market rally on the Zimbabwe Stock Exchange (ZSE) continued in the mid-week session, sustained mainly by firming demand in heavies. As a result, all key indices closed the week to Wednesday in positive territory.

The primary indicator the ZSE All Share Index put on 14 percent to close at 11 519 points from 10 054 points in the previous week.

The blue chips, the ZSE Top 10 Index paced the fastest with a 17 percent increase to 7 162 points while the ZSE Top 15 followed with a 16 percent increase to 7 960 points.

At 22 886 points, the Medium Cap rose 9 percent while the Small Cap also closed in the positive with a 7 percent increase to 341 442 points.

Total market value surged 15 percent to $1,4 trillion.

Specialty retail and distribution group, Axia headlined risers for the week with a 43 percent increase to $45. Fintech group, Cassava, also rose by the same margin to settle at $45,45 as it resumed trading during the week following a two week suspension from the bourse. Cassava was suspended for failing to timeously release its financial results for the year to February 28, 2021.

Proplastics added 39 percent of value to $34,90 while diversified hospitality group, Meikles rose 36 percent to close at $163,51.

Beverages giant, Delta, wrapped up the week’s top five gainers after adding 27 percent to $158,61. Other gains were recorded in Dairibord which rose 23 percent $52 after reporting revenue for the quarter to September 30, 2021 increased 11 percent from the prior quarter and 69 percent in historical terms above the third quarter of 2020. Dairibord also indicated the group’s drive to generate foreign currency revenues continue to bear fruit with year to date foreign currency revenue up 196 percent from 2020.

Diversified industrial conglomerate, Innscor advanced 24 percent to $189,99 while Seed Co put on 21 percent to close pegged at $122,18.

Econet put on 15 percent to close at $80,76 as it also maintained an upward trajectory that saw the telecoms giant bounced back to top capitalized counter with a total market value of $209 billion ahead of Delta, which is valued at $206 billion.

This also comes as mobile operators got a greenlight to adjust tariffs. The tariff increase — averaging 30 percent on data, voice and SMS bundles — comes at a time when fuel prices have gone up while the country is also experiencing high power outages, thus pushing operating costs.

The market was not short of fallers as cigarette maker BAT gave up 19 percent to $2 292,50. MedTech fell 11 percent to 20,56 cents. At $4,02, property firm, Mashonaland Holdings was 8 percent below prior week. Insurance group, Fidelity, fell by the same margin to close settled at $7,38 while biggest banking group by assets and deposits, CBZ wrapped the week’s top five fallers with a 7 percent decline to $92,51.

Other losses were seen in resources group Bindura which eased 5 percent to $5,31 while brick making firm, Willdale backtracked 3 percent to $3,78. The duo of RTG and ZB lost 2 percent each to settle at $5,56 and $82,80 respectively. Cafca, CFI and FMP remained flat at $170, $41,12 and $12 in that order.

During the same week, Cottco, currently under suspension released its trading update for the second quarter to September 30, which shows that as the buying season draws to a close, 2021 intake stands at 114,656 metric tonnes against last year’s full year output of 82,479 metric tonnes. National seed cotton production is estimated to be 130,000MT meaning Cottco’s market share is approximately 88 percent.

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