ZSE Market Commentary 29 January 2024
Caledonia eyes Blanket Mine extension as ZSE continues to rally
HARARE – Across-the-board gains lifted the stock market higher as inflation-driven price adjustments continued, albeit on poor turnover momentum. The All Share Index rose 7.34% to 490 879.64 taking its record January gains to 132.83%.
Only three stocks are yet to register double digits gains since the beginning of the year.
While there was across the board activity, turnover remained subdued at $3.01 billion after 2.07 million shares exchanged hands. Trades amounted to 282 with Econet the most active at 32. Ariston led in volume at 827 900 shares while Delta contributed the most to volume at $1.14 billion.
Market capitalisation moved up to $39.34 trillion, with 79% coming from just ten stocks. Seven counters are now capitalised above $1 trillion with Delta moving towards US$1 billion capitalisation at $12.79 trillion.
The Top Ten Index was the strongest link with a 7.29% jump to 219 318.73. BAT led in the constituency with a 15% gain to 4 070 930c but its market cap remains below $1 trillion at $839.98 billion. First Mutual put on 14.71% to 182 389.58c Delta was 10.52% higher to 979 696.28c.
The Medium Cap Index advanced 7.15% to 1 731 544.56. General Beltings jumped 93.71% to 7 000c taking its market cap to $37.56 billion. Seed Co, Unifreight and ZB Financial Holdings hit limit up to 301 775c, 29 325c and 157 375c respectively.
OK Zimbabwe rose 14.99% to 41340c and Meikles was 12.95% higher to 671 310.79c with a last transaction price of 680 000c. Dairibord added 14.84% to 178 165.08c and Art Holdings put on 14.98% to a 52-week high of 8 135c.
Marginal losses were seen in Proplastics (0.03%) and StarAfrica (1.75%).
NTS was the best performer after it doubled its price to 14 000c in a low volume trade of 200 shares. Bridgefort put on 17.65% to 2 000c. These gains saw the Small Cap Index close 0.07% higher.
On the ETF’s, Cass Sadle fell 9.21% to 703.78c. There were marginal gains, however, on the Old Mutual Top Ten at 2.65% to 7 500c and the Morgan & Co MS, which has just declared an US$18 000 dividend, put on 1.22% to 51 140c.
The Tigere REIT gained 6.97% to 54 877.77c against a 52-week high of 55 400c while no trades were recorded on the Revitus REIT.
Axia was the standout performer on the VFEX with a 19.89% gain to 9.10 US cents while Simbisa recovered 10.76% to 34.70 US cents. As a result, the All Share Index was 2.33% higher to 99.40.
Innscor was down a fractional 0.09% to 44.89 US cents but was the most active with 18 trades. Total turnover was at US$80 326 after 361 094 shares traded.
Meanwhile, Caledonia Mining Corporation said the life of its Blanket Mine in Zimbabwe will likely be extended after recent in-fill deep drilling produced better-than-expected grades and widths.
Gold grades from around 1,000 metres (m) below the surface at the Blanket and Eroica ore bodies ranged between 3.62 grammes per tonne (g/t) to 8.8g/t over widths of 4-16m.