eBusiness Weekly
Enacy Mapakame
Stocks continued on a downward trend on the Zimbabwe Stock Exchange (ZSE), with three of the benchmark indices closing the week pointing southwards as the market’s heavy weights dominated the weeks fallers.
In the week to Wednesday, the primary indicator the ZSE All Share Index backtracked 1,45 percent to 177,96 points.
The market’s most watched stocks, the ZSE Top 10 Index was the biggest casualty with a 2,59 percent decline to 162,92 points on losses in the market’s big cap counters.
At 592,83 percent, the Industrials Index fell 1,56 percent to 260,17 points.
The Mining Index of two active counters, was the only indicator to close the week in the black after putting on 5,43 percent of value to close pegged at 260,17 points.
Total market value weakened 1,63 percent to $23,178 billion weighed down by losses in heavy weights.
Dragging down the market was insurance giant Old Mutual that slowed 11,86 percent to $18,95 from the previous week’s $21,50.
Fast food group, Simbisa retreated 5,68 percent to 84,89 cents while diversified industrial giant, Innscor gave up 5,21 percent to close the week at $2.
Padenga was 3,15 percent weaker to $1,75. The crocodile breeder is currently trading under a cautionary and seeking shareholder approval for a proposed transaction that will see it diversify into gold mining.
In the week under review, it emerged one of the gold mines it will have under its portfolio, Eureka Mine near Guruve was invaded by illegal artisanal miners alleging the new owners were taking longer to start operations.
Retail giant, OK Zimbabwe wrapped up the week’s biggest five fallers with a 2,78 percent decline to 37,75 cents.
Also on the downside, fintech group, Cassava eased 2,53 percent to $1,30 while Econet also closed the week at $1,30 representing a 2,12 percent decline.
Axia wrapped up the week’s eight fallers after the specialty distribution group decreased 1,5 percent to close pegged at 47,25 cents.
Further losses were offset by gains in Dawn that put on 15,5 percent to 4,62 cents followed by ZPI that put on 11,55 percent to 2,8 cents.
At 7 cents, FCB was 9,38 percent above prior week while regional cement maker, PPC rose 9,33 percent to $2,17.
Diversified mining firm, RioZim also made it into the top five risers for the week with a 7,34 percent increase to $2,15. Peers Bindura was also on the upside with a 2,33 percent gain to 11 cents.
Other gains were recorded in diversified hospitality group, Meikles, which ticked 5,69 percent to $1,30.
Meikles this week renewed a cautionary in line with a previous communication to the effect that the group is seeking to dispose of its flagship Meikles Hotel.
At $1,31, Cafca was 2,75 percent above prior week while Seed Co International gained 3,52 percent to $2,19. The Seed manufacturer’s shareholders can now receive their dividend payments below US$10 through the C-Trade platform as a way to enhance ease of transacting and cut costs.
However, shareholders with dividends above US$10 have an option to have their dividends deposited in their C-Trade accounts or to provide local US$ FCA Nostro Investment account details or local RTGS account in order to receive their dividend.
The market’s biggest counter by market capitalisation — Delta, closed the week unchanged at $3,46.
Agriculture concern, Ariston, Afdis and Dairibord also remained unchanged at $1,80, 5,45 cents and 31 cents respectively.
Government recently exempted some food and beverages companies among them Dairibord and Afdis, from paying duty in foreign currency when importing certain raw materials necessary for their production processes.
Also maintaining prior week level were Truworths, National Foods, Lafarge and Mashonaland Holdings that closed pegged at 2 cents, $7,20, $1,19 and 4,28 cents.
Mashonaland Holdings has reported overall revenue growth of 40 percent to $4,9 million during the quarter to June 30, 2019 albeit adverse challenges among them rising inflation and depreciating exchange rate.
During the week under review, sugar processor, Hippo, was suspended from trading on the bourse following its failure to comply with ZSE rules guiding the publication of financial statements of listed companies.
