ZSE Market Commentary 27 February 2024

REITs turnover highlights ZSE as equities remain tepid

HARARE – Zimbabwe Stock Exchange shares were higher after gains in select heavyweight stocks. However, volume momentum remained tepid with only 675 100 shares trading as caution continues to prevail ahead of the Monetary Policy Statement whose date of announcement is still to be announced.

Turnover was at $614.2 million in 196 trades. Foreign participation was insignificant with only purchases of $180 000.

The All Share Index rose 2.87% to 516 753.82 as investor focus is now on key inflation data expected to be released tomorrow. Inflation is expected to continue to accelerate in light of the sustained depreciation of the local currency both on the official and alternative markets.

The Top Ten Index added 3.99% to 230 902.14 taking its gains in the year to date to 156.31%. EcoCash led the risers, gaining 14.62% to 60963.23c and Delta was 6.67% higher to 826 395.26c with a market cap of US$892.33 billion.

CBZ put on 3.93% to 795 000c as investors continue to await the finalisation of its acquisition of a controlling stake in ZB Financial Holdings.

Econet, however, lost 2.43% to 180 000c.

The Medium Cap Index lost 0.44% to 2 080 237.44 weighed down by Nampak’s 10.91% fall to 44545.45c while fractional losses were seen in Meikles (-0.85%), Masimba (-0.43%) and Zimre Holdings (-0.4%).

There were gains, however, in Star Africa, which put on 13.91% to 830.48c and Tanganda recovered 5.065 to 194 250c.

The REITs saw strong turnover of $4.92 billion after 8.2 million shares traded in the Tigere REIT.

The VFEX All Share was near flat after moving up 0.01% to 98.79. First Capital led the risers, putting on 19.34% to 2.53 US cents while small gains were seen in National Foods, Padenga and Simbisa Brands.

Only Innscor traded in the red, losing a marginal 0.11% to 44.82 US cents.

First Capital supported volume at 1.02 million shares while total turnover was at US$191 533.finx
-finx