ZSE Market Commentary 19 January 2024
Stocks maintain record run; Industry concerns about economy grow
HARARE – The stock market continued to trade through a good January, maintaining its record run that has seen it shoot past key levels amid heightened uncertainty over the direction that the economy will be taking this year, despite the modest growth that is expected.
While the Reserve Bank of Zimbabwe governor John Mangudya says that the current depreciation of the local currency is a temporary phase, Confederation of Zimbabwe Industries president Kura Matsheza believes that failure to arrest the loss in value on time, will make it more difficult for industry to recover at the same time pushing business to full dollarisation, which is uncompetitive for manufactured products. The ZWL is now being quoted between 13 000 and 14 000.
The All Share Index gained 4.36% to 315 981.47 with a year-on-year gain of 1 361% on the same period last year. Market bias remained strongly positive after 19 stocks recorded gains against four fallers.
Turnover at $4.43 billion was supported by trades in Delta, First Mutual and EcoCash. Delta contributed the most to value at $1.23 billion while it was EcoCash which led in volume at 4.67 million shares. Total volume closed at 6.72 million shares. Trades amounted to 269 with Delta the most active at 42. Foreigners were net sellers at $131.32 million against purchases of $12.76 million.
The Top Ten Index added 4.36% to 142 898.60. BAT Zimbabwe led the risers, gaining 15% to 1 722 985c and Econet put in 14.97% to 157 433c on news that it will now acquire spin-off EcoCash’s non-banking assets as part of a reconstruction exercise. EcoCash was 2.03% higher to 157 433.58c.
CBZ was, however, 0.28% lower to 510 000c.
The Medium Cap Index rose 4.28% to 1,111,875.29. NMB surged 15% to 84 875c and Fidelity Life was 14.84% higher to 35 600c. Dairibord added 13.46% to 80 000c in a low value trade of 400 shares.
Edgars, which is undergoing some restructuring, was the worst performer with an 8.05% drop to 16 000c.
Star Africa dropped 3.80% to 906.87c and Ariston shed 0.08% to 4 696.3c.
Meikles, a pacesetter on YTD at 112.12%, was unchanged at 264 503.54.
On the VFEX, turnover was strong at US$1.29 million led by Simbisa’s 4.01 million shares. Trades totalled 27 with Simbisa and Innscor the most active. The All Share Index was 1% higher to 94.45. First Capital led the risers with a 4.17% gain to 2 US cents and Simbisa put on 5.30% to 31.99 US cents. Innscor was up a marginal 0.38%.