Stock Market Weekly Review

03 May, 2019 - 00:05 0 Views
Stock Market Weekly Review

eBusiness Weekly

Tawanda Musarurwa
The Zimbabwe Stock Exchange’s market capitalisation gained 5,52 percent in the week to May 2 to close at RTGS$17,5 billion from RTGS$16,6 billion prior comparable period as the market continues on a mini-recovery.

The market has been bearish over the last few weeks as investors took positions in response to recent currency and exchange rate events.

But the market could again be emerging as an investment safe haven for both foreign and local investors as economic uncertainties remain.

The bourse’s linchpin index, the All Share Index ended the week 5,27 percent higher at 133.69, while the Top 10 Index was up 5,89 percent to 127.66.

The Industrial Index closed the period under review 5,33 percent higher at 446.52, while the Mining Index fell 0,22 percent ending the week largely flat at 186.47.

However, on a year-to-date basis, all the indices were in the red as recent monetary and fiscal policies have had a contractionary effect on consumption, which has had an adverse effect on a number of consumer stocks.

Bottom-of-the-pyramid disposable incomes have been compromised following the reforms, which have proved highly inflationary.

The Mining Index posting the heaviest loss year-to-date, dropping -18,1 percent. Shadowing the Mining Index was the Top 10 Index, which has lost -12 percent.

The All Share Index was down -8,5 percent year-to-date, while the Industrial Index lost -8,3 percent over the same period.

Trading in medium caps was strong this week as African Sun led the top risers with a 20,43 percent gain to close at RTGS$0,23 cents, followed by Turnall gained 19,4 percent to close at RTGS$0,8c.

Edgars, Meikles and Medtech also traded higher during the week, gaining 18,2 percent, 17,3 percent and 16,7 percent to RTGS$0,13c, RTGS$0,60c and RTGS$0,014c respectively.

The week’s biggest losses were recorded in nickel producer Bindura, down -0,90 percent to RTGS$0,5c; Nampak, down -0.40 percent to RTGS$0,30c; Cassava Smartech, down -0,04 percent to RTGS$1,07c and PPC, down -0,01 percent to RTGS$1,37c

Delta Corporation continues to hog market share on the ZSE, with its RTGS$3,5 billion market capitalisation accounting
for 20,1 percent of total market capitalisation.

Cassava Smartech comes in second with its RTGS$2,77 billion market cap staking 15,8 percent of total market capitalisation.

In close third is Cassava’s parent company, Econet Wireless Zimbabwe whose RTGS$2,72 billion market capitalisation represent 15,5 percent of the bourse’s total market capitalisation.

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