Three weeks in the red to date provide adequate evidence that the Zimbabwe Stock Exchange (ZSE) has entered “bear mode”, as investors remain on the fence following last month’s inadvertent currency reform measures.
In the week to July 11, the equities market took a hit, with three of its four key indices slipping further into the red.
The bourse’s linchpin index, the All Share Index slipped by 2,36 percent to close at 189,61 in the week under review, from 194,2 in the prior comparable period. In the week before the currency reforms the All Share Index stood at 218,.77.
The ZSE Top 10 Index was also down, sliding 2,23 percent to 180,71, from 184,83 points in the prior week. And the Industrials Index was down 2,46 percent to 632.65, from 648.63 in the prior comparable period.
Offering a glimmer of hope was the Mining Index, which rose by 4,64 percent to 248.97 from 237.92 last week. The situation, however, might not be as gloomy as it appears on a year-to-date basis, as all the indices are in the positive.
On a year-to-date basis, the main All Share Index was up 29,66 percent, while the ZSE Top 10 Index gained 24,61 percent and the Industrials Index was up by 29,87 percent.
Interestingly, year-to-date gains for the Mining Index of four were somewhat moderate at 9,34 percent. Although the ZSE’s cumulative losses over the past three weeks have been hefty, analysts are of the view that the bourse is likely to revert to its safe haven status as economic uncertainties remain in the country.
The consistent losses seem to be taking a toll on the broader market, as the ZSE’s market capitalization weakened by 2,35 percent to $25,04 billion from $25,64 billion during the period under review.
Medium cap stocks continue to dominate trading as Powerspeed led the top risers in the week under review with a 20 percent gain to close at $30 cents, followed by First Mutual Life which gained 14,07 percent to close at $24c, and ZB Financial Holdings which rose 10 percent to $55c.
A couple of heavyweights also featured among the top gainers, with giant cigarette manufacturer BAT Zimbabwe and insurance behemoth Old Mutual Zimbabwe gaining 9,72 percent and 6,18 percent to close at $3950c and $1460c, respectively.
The week’s biggest losses were recorded in Zimre Holdings Limited down -40,98 percent to $3,6c; First Mutual Properties, down -35,38 percent to $5,04c; construction firm Masimba Holdings, down -30,77 percent to $9c; telecoms giant Econet Wireless Zimbabwe, down 28,02 percent to $165c, and Turnall, down -27,27 percent to $8c.
Beverages giant Delta Corporation is currently hogs market-share on the ZSE, with its $4,48 billion market capitalization accounting for 17,9 percent of total market-share.