eBusiness Weekly
Enacy Mapakame
Equities on the Zimbabwe Stock Exchange (ZSE) continued to trend downwards during the week ahead of the 2022 National Budget presentation.
Yesterday, Finance and Economic Development Minister Mthuli Ncube, presented the National Budget themed “Reinforcing Sustainable Economic Recovery and Resilience,” which seeks to buttress the economic growth trajectory experienced in 2021 while building resilience against the negative impacts of the Covid 19 pandemic.
During the week to Wednesday, the market’s all the key indicators closed in the negative in losses led by blue chips.
The primary indicator, the ZSE All Share Index went down 10 percent to 10 765 points from 11 966 points recorded in the previous week.
The market’s heavies, the ZSE Top 10 Index fell the heaviest with a 13 percent decline to 6 702 points while the ZSE Top 15 Index went down 12 percent to 7 451 points.
At 20 991 points, the Medium Cap was 2 percent slower while the Small Cap eased by a marginal 0,65 percent to 396 607 points. On a year to date basis, the Small Cap is the biggest gainer at 3 228 percent.
Total market value retreated by 11 percent to $1,2 trillion from $1,4 trillion recorded in the previous week.
Telecoms giant, Econet fell the heaviest as it went down 30 percent to $55,13. African Sun gave up 24 percent to close the week at $7,68 from $10,18 as the hospitality group announced its managing director Edwin Shangwa will leave the group at the end of this year as it abolishes the managing director’s position from January 1, 2022 when Peter Saungweme, chief executive officer (CEO) at the Johannesburg Securities Exchange-listed Arden Capital Limited takes over as African Sun CEO.
Peers, Meikles gave up 20 percent to settle at $175 from $220 in the comparative week.
Diversified industrial conglomerate, Innscor backtracked 19 percent to $151,10 while beverages maker, Delta fell 15 percent to $152,48 wrapping up the week’s top five fallers.
Other losses were seen in Axia which lost 14 percent of value to close at $34 while Cassava eased 11 percent to $44,79. Also on the downside was NMB which fell 12 percent to $10,50 while Unifreight lost 11 percent to $30.
Further losses were offset by gains seen in NTS which rose 30 percent to $7,80 followed by hospitality group RTG, which jumped 23 percent to $5,66. is upbeat its Gateway Streams will continue to drive revenue for growth at a time the sector is anticipating recovery as Covid 19 restrictions continue to be relaxed. During the quarter to September 30, 2021, hotel occupancies improved marginally to
24 percent from 23 percent as the tightened level four lockdown in July and August affected the business due to restrictions on intercity travel and gatherings, especially conferencing.
Financial services group, FCB rose 17 percent to $3,55 while Fidelity rose by 12,5 percent to settle at $9.
Property firm, Mashonaland Holdings wrapped the week’s top five risers with a 12,4 percent increase to $4,50.
Other gains were recorded in GetBucks which put on 10 percent to $9 while Nampak added 7 percent to $11,33.
On the resources side, Bindura went down 10 percent to $4,49 as the nickel producers gears to delist from the ZSE and subsequently list on the USD denominated exchange – the Victoria Falls Stock Exchange (VFEX).
Peers, RioZim remained flat at $37. Lafarge also remained unchanged at $92 while Cafca and BAT also maintained prior week levels of $170 and $2 740 respectively.
