Stock Market Weekly Review

18 Jan, 2019 - 00:01 0 Views
Stock Market Weekly Review

eBusiness Weekly

Enacy Mapakame
The Zimbabwe Stock Exchange (ZSE) closed on Monday trading in the positive despite a slowdown in business due to a three day national work stoppage.

The Zimbabwe Congress of Trade Union (ZCTU) initiated the strikes protesting the recently announced fuel price increases which is also expected to cause an escalation of prices in most of the commodities.

This comes as prices of goods have been going up recently, with latest figures from the Zimbabwe National Statistics Agency (ZIMSTATS) revealing inflation for December hit 42,09 percent, gaining 11,08 percentage points on the November 2018 rate of 31,01 percent.

There were no trades on Tuesday and Wednesday as businesses closed across sectors on the back of the unrests and an internet blackout.

In Monday’s session, all the benchmark indicators closed in the positive.  The primary indicator, ZSE All Share Index added 3,55 percent to close at 149,03 points.

The Industrials Index garnered 3,59 percent to settle at 497,34 points, while the ZSE Top 10 paced the fastest with a 4,53 percent jump to close settled at 149,33 points.

The Minings Index of three active counters added 0,08 percent to close at 207 points on the back of gains in Bindura. On a year-to-date basis, the resources index is the only key indicator in the negative at 9,09 percent below year opening level.

Total market capitalisation was 3,44 percent firmer to close at $19,8 billion. Seed Co International headlined risers with a 14,69 percent gain to $2 followed by Meikles that rose 12,13 percent to 55 cents.

The hospitality group is contesting the auctioning of $1,5 million assets related to investments in Tanganda Tea Company and Meikles Hospitality.

Econet added 9,50 percent to $1,51 in a trade that saw the telecoms giant reclaiming its position as the largest company by market capitalisation with a total value of $3,9 billion. Econet, together with other non-listed firms in the telecoms sector suffered a major setback following an internet blockade that occurred during the ZCTU initiated protests. The internet blackout also affected other companies that also use online based services.

At $1,43, Cassava added 7,42 percent of value, reversing losses incurred a week earlier. Industrial conglomerate, Innscor, wrapped up the top five risers with a 6,96 percent increase to $1,81.

Other gains were recorded in banking group, CBZ that put on 5,3 percent to 15,5 cents while property firm, FMP added 4,32 percent to close settled at 7 cents.

Insurance giant, Old Mutual inched up 1,48 percent to $8,29. On the resources side, Bindura was the only counter to record movement with a 0,29 percent gain to 7,02 cents, helping push the Minings Index.

Bindura is currently trading under a cautionary after its holdings company, ASA Resources currently under Administration, announced it entered into a sale and purchase agreement (“SPA”) with a third party in relation to the 74,73 percent shareholding in Bindura.

The third party is a UK-based nickel company with complementary interests in Southern Africa.

No counters traded in the negative. Axia, BAT and Delta remained unchanged at 42 cents, $33 and $2,85 respectively.

For Delta, the beverages giant said revenue for the third quarter to December 2018 rose 5 percent and
24 percent for the nine months on
the back of growth in the  beer  businesses  which was, however, weighed down  by  depressed  outturn in  soft drinks.

Lager  beer  volume  grew by 27 percent for the quarter while the  Sorghum  beer  volume  in  Zimbabwe  grew  by  15 percent above same quarter in the prior year. Chibuku Super contributed 85 percent of the volume.

Also maintaining prior week levels, Edgars, Lafarge and Masimba closed flat at 11 cents, $1,33 and 7,56 cents in that order.

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