Stock Market Weekly Review

08 May, 2020 - 00:05 0 Views
Stock Market Weekly Review

eBusiness Weekly

Enacy Mapakame
The Zimbabwe Stock Exchange (ZSE) maintained an upward trajectory with investors garnering a cumulative $1 billion last week.

Figures from the local bourse show that total market value during the week to Wednesday increased by 1,29 percent to close pegged at $64 billion compared to $63 billion recorded in the previous week.

The gains were sustained by firming demand.

The primary indicator, the ZSE All Share Index added 1,44 percent of vale to close at 494,43 points, extending its year-to-date gains to 114 percent.

The ZSE Top 10 Index rose by a marginal 0,11 percent to 398,67 points while the ZSE Top 15 Index also rose by a marginal 0,18 percent to show at 412,64 points.

At 725 points, the Medium Caps was 3,53 percent above prior week’s 411 points.

The Small Caps paced the fastest with a 5,26 percent jump to 1 631 points as it maintained the biggest year to date gains at 157 percent.

Headlining risers for the week, Turnall put on 53 percent to close at 21,5 cents followed by Art which was 28 percent firmer to 74,5 cents.

At $1,92, TSL was 27 percent above prior week or level while clothing retailer Truworths put on 15,3 percent to 9 cents.

Property firm, FMP gained 15 percent to settle at $1,30 wrapping up the week to find risers. The property company has of recent enjoyed a fine run pushing it straight into the market’s big boys’ club — the top 10 by market capitalisation. By close of the week, FMP was valued at $1,609 billion occupying the tenth position.

The market was not short of fallers. Leading bears for the week, clothing retailer Edgars eased 16 percent to 32 cents. The clothing retailer last week reopened some branches after the conditions for national lockdown were relaxed to enable those in industry and commerce to resume business but under strict adherence to health regulations necessary to limit the spread of the Covid-19 pandemic.

Cable manufacturer, Cafca let go of 5 percent to $18 while financial services giant Old Mutual retreated 3,7 percent to $41,42.

At 50cents, hospitality group African Sun 3 percent below prior week. Telecoms giant, Econet reduced value by 1 percent to $3,25 after more than doubling data charges, in what the market has viewed as an insensitive move at a time the country is relying on data and internet services to do business as well as access information during this Covid-19 crisis.

Maintaining prior week levels were Afdis, BAT, General Beltings and Zimpapers that closed pegged at $6, $80,5 cents and 30 cents in that order. Dawn, FCB and Lafarge were also flat at 9 cents, 22 cents and $3 respectively.

Market watchers argue stocks may continue on an upward trajectory in the short to medium term as investor seek a hedge against inflation.

According to figures from the Zimbabwe National Statistics Agency (Zimstats) annual inflation in March stood at 676 percent, which market watchers project to continue on an upward trajectory on trickle down effects from increase in retail consumer prices. Additionally, increased electricity tariffs, unplanned costs of mitigating supply chain disruptions during the current global pandemic will also contribute to the rise in inflation.

Although Government announced an $18 billion stimulus package to recapitalise industry and cushion them against the effects of Covid-19 concerns are that this will likely impact money supply growth triggered as Government is likely to print money in order to finance the stimulus package.

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