Stock Market Weekly Review

15 Nov, 2019 - 00:11 0 Views
Stock Market Weekly Review Zimbabwe Stock Exchange (ZSE)

eBusiness Weekly

Enacy Mapakame

Bulls dominated trades on the Zimbabwe Stock Exchange (ZSE) as all benchmark indices continued to trek upwards ahead of the 2020 National Budget Presentation yesterday.

Finance and Economic Development Minister Professor Mthuli Ncube yesterday (Thursday) presented the 2020 National Budget themed “Gearing for Higher Productivity, Growth and Job Creation”.

During the week to Wednesday, the primary indicator, the ZSE All Share Index, put on 1,79 percent to 246,74 points while the ZSE Top 10 rose 1,71 percent to 227,8 points.

At 821,85 points, the Industrials Index was 1,45 ahead of prior week’s 810,12.

The Mining Index of three active counters paced the fastest with a 25 percent increase to 333,88 points from 265,03 points recorded in the previous week.

Total market value closed the week at $32,1 billion representing a 1,63 percent increase on prior week sustained by gains across board.

Resources group’s dominated the top five gainers for the week. Nickel producer, Bindura, headlined the week’s risers with a 40 percent increase to 16,8 cents followed by MedTech that put on 21 percent to 0,92 cents.

At 3,6 cents, sugar processor, Star Africa was 20 percent firmer than the comparable week.

Property firm, FMP put on 19 percent of value to 13,1 cents  while RioZim wrapped up the top five risers for the week with an 18 percent gain to $2,50.

Other gains were recorded in Meikles that put on 14 percent to $2 while Mash Holdings was 15 percent up to 8 cents.

Biggest media group, Zimpapers ticked 12 percent to 11,2 cents. Retail giant, OK Zimbabwe advanced 4 percent to 78,66 cents after reporting decline in sales volumes for the six months to September 30, 2019 on the obtaining economic challenges, key among them the foreign currency shortages, erratic power supplies and inflationary pressures.

Insurance group, ZHL inched up 1,2 percent to 8,4 cents as it reported profit for the nine months to September 30, 2019 surged 2 992 percent above budget on gains from property and foreign currency revaluations following the change of functional currency.

The firm also attributed the growth to increased share of profits from associates, turnaround in the performance of the rental income revenue line following the commissioning and release of high value rental space at Sawanga Mall in Victoria Falls and Bulawayo Nicoz House student accommodation.

The market was not short of fallers as on the downside was Art which retreated 33 percent to 8,6 cents. Powerspeed fell 17 percent to 32 cents while Masimba eased 16 percent to 15,2 cents. At 44 cents, hospitality group, African Sun was 14 percent below prior week level.

Brick making firm, Willdale, wrapped the top five fallers with a 13,49 percent decline to 4,17 cents.

Other losses were seen in Edgars, which eased 6 percent to 19 cents as the group announced South African retail giant, Edcon completed the disposal of its shareholding in the retail firm to Mauritius incorporated entity SSCG Africa Holdings, as the group realigns operations to remain sustainable.

The market’s biggest counter by capitalisation, Delta backtracked by a marginal 0,07 percent to $3,99 while Dairibord eased 0,27 percent to 69,81 cents. The food and dairy products manufacturer posted a 40 percent decline in sales volumes for the third quarter to September 30, 2019, in comparison with 2018 comparative trading period.

Management attributed the drop in sales volumes largely to supply side constraints, namely continual deterioration of macro-economic fundamentals compounded with foreign currency, electricity and water shortages.

Remaining unchanged for the week were Afdis, BAT, Fidelity and Getbucks that closed at $1,98, $50,9 cents and 12 cents in that order.

National Foods also remained flat during the week at $9,01 as the firm gears for more grain imports to cover for the expected maize deficit as a result of the drought experienced last farming season.

The milling company experienced a 36 percent decrease in volumes for the first quarter to September 30, 2019, due to constrained consumer spending, power and limited availability of some raw materials. However, the company is anticipated to cash in on importation of grain after Government gave a green light for companies with free funds to import maize direct.

The country expects 800 000 tonnes of maize imports to narrow the deficit caused by the El Nino induced drought.

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