eBusiness Weekly
Enacy Mapakame
A positive sentiment prevailed on the Zimbabwe Stock Exchange (ZSE) this week with all the benchmarks closing in the black as investors seek a hedge against inflationary pressures.
Beginning of the week, the Zimbabwe National Statistics Agency (Zimstat) released CPI figures showing annual inflation is now at 175 percent, the highest outturn since 2009.
Zimbabwe has witnessed rapid price increases since October last year when Government started reforms, including separation of nostro and domestic currency accounts, 2 percent intermediated tax, exchange rate liberalisation and the recent ban of the multi-currency regime.
But analysts see the rate of inflation showing signs of a slowdown and under control by year end on exchange rate stability.
In the week to Wednesday, the ZSE’s primary indicator, ZSE All Share Index inched up 1,17 percent to close at 191,83 points.
At 183,24 points, the ZSE Top 10 Index was 1,4 percent above prior week’s 180 points while the Industrials Index put on 1,17 percent to 640,06 points.
On the resources side, the Mining Index of two active counters rose by 0,94 percent to 251,3 points on a 1,32 percent growth in RioZim.
Total market value gained 1,27 percent to close the week pegged at $25,36 billion.
Property firm, Mashonaland Holdings headlined the week’s risers with a 23,15 percent increase to 5 cents compared to 4,06 in the prior week. This comes as stakeholders in the real estate sector have argued Zimbabwe is abound with opportunities in the property sector but failing to realize full potential due to high cost of doing business.
For Mashonaland Holdings, the group has identified opportunities in student accommodation, commercial properties outside the central business district as well as in smaller towns.
Zimre Holdings Limited (ZHL) Powerspeed and General Beltings Holdings each rose by 20 percent to settle at 4,32 cents, 36 cents and 2,88 cents respectively.
Regional cement producer, PPC rose 18 percent to $2,19 wrapping the week’s top five risers. Other notable gains were recorded in retail giant, OK Zimbabwe that put on 13 percent to 45,39 cents while Old Mutual was 8 percent stronger to $15,76.
Diversified hospitality group, Meikles ticked 4 percent to $1,20. Econet inched up 2,73 percent to $1,69 after the telecoms giant reviewed its data bundle and SMS pricing by between 30 and 50 percent in a move seen by analysts as a way to align tariffs with the prevailing economic environment.
The new data tariffs come as the value of the local currency has significantly weakened, by more than 600 percent since the last tariff increase in April this year. During the week under review, Econet emerged one of the major value drivers with 10 million shares worth $17,2 million exchanging in Tuesday trade.
On the downside, clothing retailer Edgars gave up 20 percent to 16 cents while Art was 15 percent weaker to close the week at 8 cents from prior week’s 9,5 cents.
At 49 cents, Axia was 9,26 percent weaker while insurance group FML lost 7,92 percent to settle at 22,1 cents.
Sugar processor, Star Africa wrapped up the week’s top five fallers after decreasing 1,64 percent to 1,8 cents.
Simbisa retreated 1,59 percent to $1,08 while Proplastics marginally moved 0,26 percent lower to 38 cents. Hospitality group, African Sun anchored all the fallers for the week with a marginal 0,12 percent decline to close the week pegged at 40 cents.
Wines and spirits maker, Afdis remained flat at $1,80 while cigarette manufacturer, BAT also stagnated at $39,50 and maintaining its long held position as the most expensive stock on the local bourse.
Largest banking group by deposits and assets, CBZ Holdings also maintained prior week levels of 50 cents after the banking unit, CBZ Bank was crowned Zimbabwe’s best bank by Euromoney in London a week earlier.
Also remaining unchanged were Dairibord, Masimba, National Foods and Zimpapers that closed at 29 cents, 9 cents, $7,22 and 7 cents respectively.
