eBusiness Weekly
Enacy Mapakame
The Zimbabwe Stock Exchange (ZSE) maintained a losing streak for the 6th consecutive week that saw all the indices close pointing southwards.
In the week to Wednesday, the primary indicator, the ZSE All Share Index closed at 163,27 points, representing a 1,70 percent decline as investors are moving funds from the stock market to other investment channels such as prescribed assets.
The market has been hampered by economic uncertainties, inflationary pressures and exchange rate weaknesses that in the past have triggered a stocks rally. On the contrary, the market’s performance has remained subdued with investors losing billions within a month.
At 144,94 points, the ZSE Top 10 Index was the hardest hit after closing 2,57 percent lower than prior week’s 148,77 as the market’s heavies succumbed to selling pressure.
The Industrials Index retreated 1,68 percent to 543,13 points. The Mining Index of two active counters retreated 2,05 percent to 262,5 points.
MedTech was the biggest casualty of the week after easing 14,63 percent to 0,35 cents while the second largest stock by market value, Cassava softened 6,47 percent to $1,19. By close of the week, the fintech firm was valued at $3,093 billion accounting for 14,53 percent of total market value, after Delta.
Crocodile breeder, Padenga lost 6,37 percent of value to close pegged at $1,50 while diversified hospitality group, Meikles retreated 5 percent to $1,14.
At $1,18, Econet wrapped up the week’s top five fallers after the telecoms giant backtracked 4,81 percent.
Other losses were recorded in Delta which fell 3,32 percent to $2,90 while fellow big cap counters Innscor and National Foods declined 1,04 percent to $1,85 and 1,43 percent to $6,90 respectively.
Seed producers, Seed Co and Seed Co International eased 1,38 percent to $1,43 and 0,92 percent to $2,18 in that order.
The two active resources counters were both in the negative with Bindura slipping 4,35 percent to 11 cents while RioZim fell 0,91 percent to $2,18. RioZim announced the appointment of Caleb Dengu as its vice chairman.
Further losses were offset by gains agriculture concern Ariston which put on43,85 percent of value to 7,84 cents while diversified media group Zimpapers rose 20 percent to 9,6 cents.
Mashonaland Holdings was 14,68 percent firmer to 5 cents while Old Mutual added 11,54 percent to $19,56.
The country’s largest retail group, OK Zimbabwe wrapped the week’s top five risers with a 3,64 percent increase to 32,5 cents.
Other gains were seen in Dairibord that added 3,45 percent to 30 cents. Simbisa rose 1,31 percent to 58 cents while Turnall put on 1,27 percent to 7,2 cents.
Also on the upside, Fidelity and Dawn gained 1,07 percent to 8,5 cents and 1,02 percent to 4,95 cents respectively.
Financial services group, FBC remained flat at 60,5 as it swung into the market’s top capitalised stocks with a total market value of $406 million and accounting for 1,91 percent of the market’s total worth.
Regional cement maker, PPC, Willdale and ZHL also remained unchanged at $2,05, 2,5 cents and 4,65 respectively.
Also maintaining prior week levels were Proplastics, FMP and Edgars that closed pegged at 38 cents, 6,48 cents and 13 cents.
Cables manufacturer, Cafca also remained flat at $1,50 after reporting year to date exports by volume are 10,3 percent of sales compared to 4,8 percent in the prior year.
Despite the downturn and to ensure all products required locally are readily available, Cafca has justified keeping the numbers employed at the same level as last year. Finished goods stocks have been increased to adequately cover any upturn in the market.
Cafca, together with other stocks bemoan the erratic power supplies that are limiting production while raising overheads.
This is in addition to other economic challenges such as the prevailing foreign currency shortages as well as inflationary pressures, eroding disposable incomes.
