ZSE Market Commentary 03 April 2024
ZSE commentary
ZSE maintains positivity but focus remains on upcoming MPS
HARARE – Zimbabwe Stock Exchange shares maintained positivity on Wednesday amid heightened anticipation of the new measures set to be presented soon that are largely expected to foster pricing stability in the face of the runway depreciation of the local currency and the expected economic weakness due to the impact of the drought.
President Emmerson Mnangagwa this morning declared a state of disaster due to the effects of the drought as he put up a US$2 billion requirement to be used on various measures that will mitigate against food insecurity and climate change. This has been legislated through Statutory Instrument 55 of 2024, which was gazetted this afternoon.
But investors’ eyes are on the upcoming monetary policy statement, with reports that the local currency continues to rapidly depreciate in the alternative market amid a ZWL liquidity shortage as traders take a cautious approach. The ZWL was quoted at 40 000 on the alternative market.
Despite the sustained positive trajectory, the stock market valuation remains underwhelming in real terms. At close, the All Share Index was 1.35% higher to 915 716.53 in a session, which yielded 14 risers against six losers. Market capitalisation was $74.13 trillion.
Turnover was at $3.19 billion after 1.86 million shares exchanged hands. Econet contributed the most to the value at $1.32 billion, while OK Zimbabwe had the most volume at 557 000 shares. Total trades were fairly okay at 366. Foreigners sold $1.32 billion worth, mostly out of Econet, and bought an insignificant number.
The Top Ten Index put on 1.03% to 414 843.38. CBZ added 11.99% to 1 119 900c in a low volume trade of 300 shares, while small gains were seen in Delta and EcoCash. Econet was the weakest link among the heavyweights after it closed 4.14% lower to 7 200c.
The Medium Cap Index rose 1.92% to 3 327 958.72. FMP and Nampak were the day’s top risers after they hit limit up to 64 400c and 88 550c respectively.
CFI rose 14.98% to 343800c. The group recently said that turnover in the five months to February increased by 848% in historical terms to ZWL$286.5 billion. Of this total turnover, the retail division albeit being flat in the period accounted for 66% followed by Victoria Foods at 23%. Agrifoods and Glenara contributed 7% and 2% respectively.
Zimre Holdings rose 14.86% to 44 566.39c taking its year-to-date gain to 141.62% and Willdale added 12.24% to 11 000c ahead of its EGM tomorrow, where it will seek approval for land deals that are key to its recapitalisation.
OK Zimbabwe was near flat after it launched its US$1 million annual promotion. The group has now added OK Mart to its participating stores.
Ariston was the session’s worst performer, losing 11.23% to 6144.15c, Proplastics declined 6.86% to 120515.35c and marginal losses were seen in Turnall (-1.37%) and Seed Co (-0.14%).
On the VFEX, the All Share added 0.33% to 100.68. First Capital Bank led the risers with a 9.16% gain to 2.86 US cents while there were fractional gains in National Foods (+0.78% and Padenga (+0.30%).
Turnover was moderate at US$161 316 after 436 429 shares traded. Simbisa led in both turnover and volume at US$120 287 from 343 683 shares.finx