Stock Market Weekly Review

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

eBusiness Weekly

Enacy Mapakame
Gains in heavy cap counters kept the Zimbabwe Stock Exchange (ZSE) in the black as all the benchmark indices closed pointing upwards. In the week to Wednesday, the primary index, the ZSE All Share Index closed 3,13 percent firmer to settle at 143,24 points. The ZSE Top 10 Index rose by 2,43 percent to 135,45 points from the previous week’s 132,27 points on gains in the market’s top cap counters.

At 478,63 points, the Industrials Index was 3,10 percent above prior week while on the resources side, the Mining Index of two active counters was 3,43 percent firmer to 189,63 points.

Total market value was in 2,39 percent growth to close settled at $18,635 billion.

Pharmaceuticals firm, MedTech was the week’s best performer with a 33,33 percent jump to 0,24 cents after reporting after tax profit amounted to US$1,4 million in the year ended December 31, 2018 from a loss of US$459 279 in the prior year.

Revenue was up 11 percent to US$12,3 million compared to US$11,1 million in the prior year and the company is concerned about its ability to meet foreign obligations on the back of foreign currency shortages, raising fears of imminent stock outs.

Hospitality group, African Sun was up 27,38 percent to 34,99 cents while peers, Rainbow Tourism Group put on 25,42 percent to 6,02 cents.

At 30 cents, banking group, CBZ was 24,9 percent above prior week.

Dairibord wrapped up the week’s top five risers with a 19,31 percent jump to close pegged at 19,09 cents.

Also on the upside, Turnall ticked 16,38 percent to 9,31 cents from 8 cents, while banking group, NMB put on 16 percent to 29 cents. Insurance giant, Old Mutual closed the week 12,63 percent firmer to $11,29 replacing BAT as the fifth largest company by market capitalisation. Old Mutual is now valued at $680 million ahead of BAT, now the sixth largest firm valued at $638 million.

At 2,8 cents, property firm, Dawn was 12 percent above prior week. Biggest counter by market capitalisation, Delta rose 3,33 percent to $2,94.

The beverages giant reported revenue for the year to March 31, 2019 rose 26 percent to RTGS$722 million while attributable income came in 58 percent stronger to RTGS140 million.

Lager beer and sorghum beer volumes grew 31 percent and 5 percent respectively on stable pricing especially in the first nine months of the year. But sparkling beverages suffered a 44 percent volumes decline due to foreign currency shortages that affected production resulting in temporary closure of the business unit.

Industry wide, foreign currency shortages and inflationary pressures that eroded disposable incomes had a knock on effect on business.  Policy pronouncements made in February on introduction of the interbank market as well as the introduction of the RTGS$ as functional currency also had an effect on business operations and industry maintains availability of foreign currency will determine the course the economy will take going forward.

On the downside, Powerspeed fell the hardest after losing 11,01 percent to 16 cents followed by FMP which gave up 10,53 percent to 5,1 cents.

Telecoms giant, Econet backtracked 4,98 percent to $1,04 remaining the third biggest stock after Delta and Cassava.

Sugar processor, Star Africa fell 4,17 percent to 1,15 cent from prior week’s 1,2 cents while Axia wrapped up the week’s top five fallers with a 2,38 percent decline to 41 cents. Other losses were recorded in Art Corporation that fell 1,79 percent to 11 cents while Nampak lost a marginal 0,33 percent to 30 cents.

At Nampak, demand across operating units was firm despite challenges induced by critical imported inputs. Profitability was aided by good volume growth and cost containment measures adopted across the group, according to statement by parent Group, Delta.

Seed Co fell 0,68 percent to $145.

On the resources side, Bindura put on 9,09 percent to 6 cents while peers, RioZim ticked 1,74 percent to $1,75.

Afdis, FCB and GetBucks remained unchanged at $1,71, 5 cents and 8 cents respectively. Diversified hospitality group, Meikles was flat at 60 cents while Willdale and Zimpapers also maintained prior week levels of 2,21 cents and 8,98 cents respectively.

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