ZSE Market Commentary 22 May 2024
Treasury says Old Mutual/PPC standoff to be resolved ‘soon’; ZSE rises
HARARE – Finance Minister Mthuli Ncube says the Old Mutual/PPC suspension stand-off is close to being finalised with considerable progress being made.
Ncube said this while responding to the insurance and pensions industry concerns at an engagement meeting this morning.
The sector had requested that government should allow players holding suspended counters to trade them on external bourses to raise liquidity in line with offshore investment guidelines.
In June 2020, Old Mutual Zimbabwe PPC and Seed Co International were suspended from the ZSE amid concerns that the fungibility of the shares was being used to fuel the parallel market. The three were directed to list on the VFEX but only SCI took up the offer.
Capital markets are agreed that Treasury should bring finality to the issue that has inconvenienced investors and has dampened confidence in the market while the reasons for the suspension no longer apply.
The Finance Minister, without giving further details, said they are now closer to a solution and this issue would soon be resolved.
Meanwhile, Zimbabwe Stock Exchange shares closed higher with the benchmark All Share gaining 1.30% to 96.87 in relatively improved turnover. Market bias was positive after the session yielded 12 risers against eight fallers.
Turnover closed at ZiG 4.14 million led by Delta at ZiG 2.85 million. Volume was at 1.58 million shares with Zimre Holdings contributing the most at 500 000 shares. Total trades were at 193, a slight improvement from recent averages while foreign participation was insignificant.
The Top Ten Index rose 1.73% to 95.43. Econet put on 10.73% to 153.51c and smaller gains were seen in Delta and FBC.
EcoCash dropped 1.02% to 17.43c.
The Medium Cap Index added a marginal 0.25% to 99.47. Willdale led the risers with a 17.33% gain to 2.52c and property stock FMP advanced 10.41% to 35c.
Former heavyweights CFI was 7.69% ahead to 140.05c and Seed Co put on 7.60% to 196.77c.
Nampak was the worst performer with a 9.09% decline to 40c and ZHL was 5.26% lower to 36c. Star Africa dropped 1.30% to 0.69c and Zimpapers pared 1.13% to 3.96c.
On the VFEX, trades in Caledonia and Seed Co International (SCI) boosted turnover which closed the session at US$322 040.95. Total volume was at 939 749 led by SCI at 523 056 with a value of US$115 143.19. Caledonia saw traded value of $109 062 after 6 059 shares exchanged hands.
Zimplow was the weakest link, losing 145 to 1.72 US cents and Seed Co International dropped 1.92% to 22.01 US cents. A small loss was recorded in Innscor.
There were gains in First Capital, which was 3.98% ahead to 2.61 US cents and Simbisa put on 2.28% to 30.96 US cents.
-finX