ZSE Market Commentary 15 Mach 2024
• ZSE reaches record high as demand sky-rocketed
• VFEX dips to new lows amid sell-offs
• ZWL-US$ exchange premium trims
The ZSE halted a bear-run in the week under review, recouping prior week’s losses as demand for safe-haven drove stock prices to record-high levels. The ZSE All Share Index closed at a record high of 621,651 points in the week under review after garnering a 22.7% nominal growth.
The positive performance was driven by revamped demand for market heavies and medium caps, while penny stocks remained constant. Overall year-to-date gains scaled up to 195% in nominal terms, while the US$ YTD loss position closed at -1.1% amid a heightened exchange rate depreciation on interbank market. On a month-to-date basis, the bourse is up 18% in nominal terms, and down -3.1% in US$ terms.
The US$ denominated bourse, VFEX, extended prior week’s negative performance, dipping to new record lows as heightened fears of reduced foreign receipts weighed on prospects of recovery of the market amid liquidity challenges. The mainstream VFEX All Share Index retreated by a further -0.56% to close at 95.5 points, with losses driven by sell-offs in 3 laggards which outweighed 4 risers.
The All Share Index was rebased to 100 at the beginning of the year to account for the six listings in 2023. The All Share Index stretched year-to-date losses to -4.5%. The bourse has succumbed to a loss of -3.1% since the beginning of March. An aggregate of US$446,384 exchanged hands on VFEX in the week under review, 2-folds down from US$1,326,847 traded in the previous week.
An aggregate of 36 stocks exchanged hands in the week under review, with 25 emerging risers and these were led by Meikles which gained 63.4% to settle at 500000c. The duo of Econet and Turnall recouped prior week’s losses on rising 61.6% and 55.3% respectively to close at 275863c and 6500c apiece. Beverages giant, Delta, reversed prior week’s losses on surging 40.8% to settle at 1161135c, followed by Star Africa which closed at 1100c after countering prior week’s losses on notching a staggering 34.8%.
CAFCA buttressed prior week’s gains on firming 33.4% to settle at 1350000c while ZBFH set off prior week’s losses on gaining 32.3% to close at 264500c. Tanganda Tea Company rose for a 3rd straight week by a further 32.2% to settle at 257890c, trailed by ZHL which rose for a 7th consecutive week by a further 32% to close at 35000c. OK Zim recouped prior week’s losses on rising 27.9% to settle at 68934c, capping off the risers’ set.
On the downside, an aggregate of 24 counters heavily weighed on the market, with Edgars performing the worst on plummeting -23.9% to close at 30000c. The duo of NMBZ and BAT extended prior week’s losses by a further -15% each to settle at 242250c and 3382265c in that order. TSL extended losses to a 3rd straight week on easing -4.3% to close at 220000c, trailed by ARTD which partially set off prior week’s gains on softening -3.2% to settle at 21000c. Mashhold extended prior week’s losses by a further -0.5% to close at 34339c, while General Beltings partially reversed prior week’s performance on easing -0.04% to settle at 13690c. Proplastics fell for a 3rd consecutive week by a further -0.004% to close at 129395c, capping off the Top 10 laggards’ pack.
EQUITY-AXIS