ZSE Market Commentary 29 April 2024

Tigere REIT’s 11.7% trade highlights stock market activity

A total of 84.12 million units worth nearly ZiG 40 million (US$2.97 million) sailed through as a negotiated trade at 47.50c per unit, with the Public Service Commission Pension Fund shooting through the top five register through the purchase, which was booked over by MMC. The PSCPF, which has long announced that it will target property assets for stable returns, is now the second-largest shareholder in the property company after Frontier Real Estate.

In normal trades, Tigere was near flat at 56.04c. Revitus REIT was unchanged at 22c in a single transaction of 539 shares.

Meanwhile, SDHT Property Fund initially associated with property group Seeff Properties and which is in the market with a US$7 million REIT offer, is finalising papers to become a stand-alone entity.

Elsewhere on the equities market, the All Share added a marginal 0.07% to 99.10 in a session, which yielded nine risers against six decliners. Investors’ concerns are on the alternative market exchange rate amid reports of rising ZiG liquidity to support trades. Dealers are trading within the range of 16-21, the trading rate at most formal stores is now at 14 -16 while the official exchange rate is at 13.44. Banks will start releasing new ZiG notes and coins tomorrow.

Turnover was at ZiG 2.46 million after 884,900 shares exchanged hands in a paltry 131 trades. Delta led on both turnover and volume after 272,200 shares worth ZiG 1.93 million were traded. Foreigners were net buyers at ZiG 1.79 million against sellers of ZiG 57 246.50.

The Top Ten Index put on 0.45% to 97.42. Delta put on a marginal 0.46% to 710.11c but on the opposite end, EcoCash dropped 2.91% to 30c.

The Medium Cap closed 0.07% higher to 104.31. NMB maxed out at 165.60c, as did Fidelity Life at 50.60c. Ariston put on 14.68% to 4.82c, and Mash Holdings, which published its dividend announcement today, was 6.43% higher to 14.9c. Seed Co recovered 4.56% to 134.22c with a last transaction price of 128c.

Dairibord was the day’s worst performer, with a 14.97% fall to 102.25c, and Nampak lost 10.79% to 50c. Willdale, which is currently undergoing recapitalization, shed 3.38% to 5.31c.

On the VFEX, the All Share was 1.49% higher to 97.97, although in subdued turnover of just US$417. African Sun was the standout performer with a 5.63% gain to 3 US cents, Innscor added 5.10% to 47 US cents, and First Capital put on 3.73% to 2.50 US cents. There were no fallers.

Zimplow did not trade in the wake of its delayed December finals, where the group reported a decline in profitability after high operating costs weighed. Revenue was down 28% on prior year to US$32 million mainly due to dampened demand in the agricultural cluster. Pre-tax profit was US$0.68 million, which was 74% below the prior year.-finx