Stock Market Weekly Review

06 Dec, 2019 - 00:12 0 Views
Stock Market Weekly Review

eBusiness Weekly

Tawanda Musarurwa

The depressed state of the local equities market worsened in the week to November 4, with total market capitalisation taking a 1,72 percent hit to $30,65 billion from $31,19 billion in the previous week.

The Zimbabwe Stock Exchange (ZSE) continues to reflect the under-performance of the wider economy, which is being bogged down by foreign currency shortages and declining consumer demand due to low disposable incomes.

The waning of the market’s capitalisation is reflective of foreign investors (who have traditionally dominated trades on the ZSE) becoming increasingly weary of the economic challenges affecting listed companies.

Most of the ZSE’s indices were in the red this week (bar the Mining Index).

The bourse’s linchpin index, the All Share Index slipped by 1,34 percent to close at 237.03 in the week under review, from 240.37 previously.

The ZSE Top 10 Index was also down, sliding 4,15 percent to 211.74, from 215.89 in the prior week, while the Industrials Index was down by a hefty 11,53 percent to 788.61, from 800.14 in the prior comparable period.

The only winner was the Mining Index, which rose by 5,78 percent to 344.49 from 338.71 last week.

However, on a year-to-date basis, all the indices were in the positive, perhaps indicative of the fact that the local capital markets remain an attractive investment safe haven, especially for local investors due the long-running economic problems.

On a year-to-date basis, the All Share Index was up by 62,08 percent, while the ZSE Top 10 Index gained 46,01 percent and the Industrials Index was up by 61,89 percent.

Year-to-date gains for the Mining Index stood at 51,28 percent.

Trading in small and medium caps was strong this week as clothing retailer Edgars led the top risers with a 28,16 percent gain to close at 17,25 cents, followed by First Mutual Properties, which gained 16,23 percent to close at 16,33 cents, and Zimbabwe Property Investments (ZPI), which rose 14,15 percent to 7,42 cents.

Also on the up was Zimre Holdings Limited, which gained 13,04 percent to close at 13 cents, and CAFCA, which was up 11,25 percent to 178 cents.

The week’s biggest losses were recorded in Dairibord Zimbabwe Limited down 34,34 percent to 32,83 cents; Dawn Properties, down 25,23 percent to 6,52 cents; GB Holdings, down 20 percent to 2,4 cents, OK Zimbabwe, down 10,51 percent to 78,75 cents, and Padenga, down 10,06 percent to 260,35 cents.

Meanwhile, beverages giant Delta remains the most capitalised equity on the ZSE, with its $4,58 billion market capitalisation accounting for 15 percent of the total market.

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