Stock Market Weekly Review

15 Mar, 2019 - 00:03 0 Views
Stock Market Weekly Review

eBusiness Weekly

Enacy Mapakame
A bearish sentiment prevailed on the Zimbabwe Stock Exchange (ZSE) with all the indices dipping for the seventh consecutive week.

The primary indicator, the ZSE All Share Index plunged 8,4 percent to settle at 132 points in the week to Wednesday as weakness persisted on the bourse.

The market’s heavies, the Top 10 Index fell the heaviest with a 10,58 percent fall to 127,41 points as the top cap counters suffered declines in the week. On a year to date basis, the index is also the biggest victim with a 12,14 percent decline.

At 442,95 points, the Industrials Index was 8,4 percent lower than prior week levels while the Mining Index of two active counters lost 5,38 percent to 201,72 points.

Total market value slumped 9,38 percent to $17,5 billion from $19,3 billion in the previous week on losses mainly in the top capitalized counters.

Weighing down the market were losses in Art that fell 20,59 percent to 9,49 cents followed by Econet that eased 18,02 percent to $1,13. With a total market capitalisation of $2,9 billion, the telecoms giant becomes the market’s third largest company after Cassava and Delta that are valued at $3,28 billion and $3,05 billion respectively.

At 70 cents, TSL was 13,57 percent lower compared to prior week’s 81 cents while CBZ lost 12,16 percent of value to 14,01 cents.

Resources group, Bindura, capped the top five fallers with a 12 percent decline. The nickel miner last week indicated proposed sale by its holdings company ASA Resources had hit a snag after negotiations with the anticipated buyer were “terminated.”

Its parent company, currently under administration, announced it had entered into a sale and purchase agreement (“SPA”) with a third party in relation to the 74,73 percent shareholding in Bindura with a UK listed firm.

Fellow resources group, RioZim also suffered declines to close the week pegged at $1,80 from $1,85.

Biggest counter by market capitalisation, Cassava lost 11,8 percent of value to close the week at $1,26 from prior week’s $1,43.

During the week under review, Cassava expanded its Vaya digital platform to offer ambulance services a few months after the company unveiled the road hailing application.

Beverages giant, Delta, eased 10,69 percent to $240 while Innscor was 9,5 percent lower to $1,44. The industrial conglomerate posted a 100 percent growth in operating profit to $80, 5 million for the six months to December 2018 from $40, 2 million recorded in the comparative prior period.

Its revenue surged by 61 percent to $490 million as profit after tax improved 167 percent to $64 million from previously recorded $24 million.

Crocodile breeder, Padenga retreated 7,56 percent to 90,95 cents while Masimba lost 6,62 percent 8,18 cents.

Quick service restaurant provider, Simbisa backtracked 5,56 percent to 68 cents after recently reporting earnings growth despite a challenging operating environment.

Also on the downside were SeedCo and SeedCo International that fell 4,34 percent to $1,87 and 3,53 percent to $1,64 respectively.

Other losses were recorded in Old Mutual that fell 3,46 percent to $7,24 while National Foods lost 2,23 percent to $7 after reported profit for the half year to December 31, 2018, grew 78 percent to $16,8.

Further losses were offset by gains in Hippo and African Sun that rose15,2 percent to $1,44 and 7,14 percent to 15 cents respectively.

Agriculture concern, Ariston put on 3,09 percent to 3 cents while brick making firm, Willdale was 2,89 percent above prior week to close pegged at 1,78 cents.

At 14,9 cents, DZHL was 2,05 percent up wrapping up all the week’s risers. Cafca, Dawn and Edgars remained flat at $1,03, 2,5 cents, 10,15 cents respectively.

Also maintaining prior week levels were Fidelity, Lafarge and Meikles that closed pegged at 11 cents, $1,33 and 52 cents in that order.

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