ZSE Market Commentary 14 March 2024
ZSE momentum continues on across the board gains; ZWL down 66% YTD on interbank
HARARE – Zimbabwe Stock Exchange equities remained firm on Thursday on across-the-board gains, although turnover momentum is subdued.
The All Share Index was 3.84% higher to 569,457.44 in a session, which yielded 21 risers. It now sits on a year-to-date gain of 170.10%. Trades amounted to 236 after 4.56 million shares worth $6.55 billion exchanged hands. Econet contributed the most to value at $1.76 billion, while Nampak saw the most volume at 2.01 million shares.
Meanwhile, the ZWL has now lost 65.7% of its value on the interbank market since the start of the year to date, with the 2024 Monetary Policy Statement (MPS) well overdue as authorities remain tight-lipped.
The ZWL now trades at 17 203 against the USD on the interbank market, while the widely used parallel market rate stands at 20 000 per USD.
Notably, the disparity between the official rate and the PMR has narrowed down to 16% from around 48% mid-January this year, which can be attributed to the low liquidity levels of the local currency on the market. However, more concerning is the disparity between the heavily discounted ZWL cash rate of 5000 on the parallel market and the official rate, which has resulted in serious price distortions across the market. The gap between the cash rate and the official rate now stands at 244%. The gap between the cash rate and the parallel market rate stands at 300%.
Elsewhere on the ZSE, the Top Ten Index rose 4% to 256 190.26. Econet maintained positivity with a 14.87% rise to 260761.93c taking its year-to-date gain to 208.25%. First Mutual was 4.61% higher to 376 605.63c and Delta added 2.28% to 1012843.02c or 57.86 US cents using the official exchange rate.
The Medium Cap put on 2.42% to 2 214 853.91. ZB Financial Holdings, Seed Co and Tanganda each gained 15% to 230000c, 224240c and 257890c respectively.
Cafca put on 11.57% to 1 350 000c and Meikles extended its rally gaining 10.43% to 435 066.04c. Milk processor Dairibord was 4.57% higher to 110 000c.
Only three stocks traded in the negative; Edgars which fell 14.49% to 30753.13c or FMP down 5.17% to 55 000c and Proplastics which saw a fractional decline.
On the ETF’s, the Morgan & Co MS led the risers with a 14.83% gain to 80 556.21c and the OMTT rose 14.41% to 10 525.70c. A total 108 816 units traded, yielding a turnover of $53.74 million.
Recovery stock African Sun was the outstanding performer on the VFEX with a 13.67% gain to 3.41 US cents. Other gains were seen in Padenga which added 7.52% to 14.01 US cents and Simbisa, which put on a marginal 0.29% to 34.42 US cents. Simbisa is targeting to open 38 new counters in the second half of its financial year to close it off with a total of 606 stores.
Axia led the fallers after losing 15.24% to 7.51 US cents ahead of the release of its half year results. First Capital reversed yesterday’s gains with a 0.99% loss to 2.01 US cents and Innscor pared 0.16% to 44.03 US cents.
Total turnover was weak at US$76 973 after 290 914 shares traded while the VFEX All Share was near flat at 95.46 after fractional movement. –finx