ZSE Market Commentary 25 January 2024
All Share passes key level as investors pile into Delta
HARARE – Delta supported trading activity on Thursday as Zimbabwe Stock Exchange shares continued their record advance.
The beverages producer, which has just released an upbeat trading update showing strong revenue growth, made up 86% of the $10.59 billion turnover as investors buy into the earnings potential of the company in light of ZWL value erosion. A total of 2.74 million shares traded with Delta contributing the most at 1.11 million. It was also the most active at 39 out of the 265 trades. The stock put on 5.99% to 818 360.68c with January gains of 133.20% and market cap of $10.69 trillion.
Foreigners sold $564.9 million against purchases of $163.16 million.
The All Share Index crossed a key level after gaining 5.25% to 413 257.58. Market bias remained strongly positive as stocks remain a safe haven in the face of rising economic uncertainty. The session yielded 18 risers against seven fallers.
The Top Ten Index rose 4.78% to 187,270.93 as it doubled its gains in the year to date. First Mutual advanced 14.98% to 159 000c in a low volume trade of 400 shares. EcoCash Holdings put on 14.67% to 36 458.66c extending its January gains to 106.94%
However, TSL dropped 4.08% to 115099.01c and Econet pared 0.64%.
The Medium Cap Index whose performance is currently trailing the wider market, put on 6.20% to 1 429 224.07. Zimpapers led the risers, gaining 44.12% to 4 900c taking its market cap to $28.22 billion.
Four stocks in the constituency recorded 15% gains; NMBZ to 112 245c, Proplastics to 149 500c, Dairibord at 171 670c and Meikles to 454 430c. Meikles recently released a strong third quarter trading update, which showed volume recovery on flagship supermarket segment and buoyant revenue growth at its hotel.
Nampak was the worst performer, losing 12.99% to 37924.09c. Ariston shed 1.77% to 4 616.67c and fractional losses were recorded in Star Africa and Zimre.
There was an improvement in VFEX turnover at US$193 037.32 anchored by Innscor’s 350 387-shares trade. Volume amounted to 2.03 million, the majority of which came from First Capital at 1.65 million. The All Share was 0.83% higher to 98.48. African Sun led the risers, putting on 8.36% to 3.50 US cents and Innscor added 2.27% to 45 US cents. There were marginal losses in Padenga and Zimplow of 0.29% and 0.25% respectively.-finx