ZSE Market Commentary 11 June 2024

ZSE maintains a positive momentum …

The market maintained a positive momentum as the primary All Share Index added 0.66% to 106.52pts while, the Blue-Chip Index g-ained 0.88% to 109.32pts. The Agriculture Index put on 0.36% to 95.43pts while, the Mid Cap Index rose a negligible 0.003% to 106.43pts. Logistics company Unifreight headlined the top performers of the day on a 15.00% jump to $0.3335, followed by banking group FBC that surged 5.83% to close at $1.9500.

Proplastics stepped up 3.70% to $0.3500 while, TSL advanced 3.65% to $1.1000. Retailer OK Zimbabwe capped the winners of the day on a 3.07% rise to end the day pegged at $0.4611. In contrast, Nampak led the laggards of the day on a 7.46% retreat to $0.4100 while, telecoms giant Econet trimmed 2.70% to settle at $1.6678.

Fintech group Ecocash Holdings lost 2.51% to $0.1914 while, Meikles slipped 0.95% to settle at $4.0929. Masimba Holdings capped the fallers of the day on a 0.02% decline to end the day pegged at $1.5393. The market closed with a positive breadth of three after twelve counters recorded gains against nine that faltered.

Activity aggregates were mixed in the session as volume traded succumbed 36.05% to m shares while, turnover increased by 4.83% to $2.60m . The top volume drivers of the day were FBC (36.54%), Econet (17.09%), Delta (14.36%) and Nampak (8.13%). The trio of Delta, FBC and Econet contributed a combined 85.52% of the total value traded. The OMIT ETF rose 0.33% to end the day pegged at $0.1060 as 620 units exchanged hands in the session. The Morgan and Co MCS was stable at $0.3800 as scrappy 44 units traded. Tigere REIT tumbled 1.47% to close at $0.6503 on 157,285 units.- efesecurities
Bulls n Bears

ZSE and VFEX Recover From Early Week Losses as ZiG Takes a Dive Against US$

The ZSE recouped early week losses on Tuesday amid revamped demand for market heavies following increased liquidity in the economy. The mainstream ZSE All Share Index firmed by 0.66% today to close at 106.52 points, with gains spun between market heavies and medium caps, while penny stocks remain constant since the rebasing of indices. Following the introduction of a new currency, the ZiG, which replaced the ZWL, the ZSE changed its functional currency to ZiG, and rebased all indices to 100 on the 8th of April in a bid to effectively reflect the effect of the new currency on financial markets.

Likewise, all share prices were also converted to ZiG at a rate of 2,498.65 upon introduction. Since the rebasing of indices, the All Share Index boasts of a 6.5% nominal return, which converts to 7.4% in US$ terms. On a month-to-date basis, the ZSE is up 5.4%, buttressing a nominal return of 2.28% garnered in May.

The US$ denominated bourse, VFEX, was almost stable on Tuesday as increased activity in Innscor stock had a bearing on overall investor sentiment amid tight liquidity. The mainstream VFEX All Share Index went up by a mild 0.07% today to close at 100.45 points, with gains driven by 2 risers which outweighed 2 laggards. The All Share Index was rebased to 100 at the end of 2023 following the addition of six new listings in 2023. Since the beginning of June, the All Share Index has gained 3.3%, which compares to a -2.3% loss suffered in May. On a year-to-date basis, VFEX boasts of a mild 0.4% return. An aggregate of US$454,235 exchanged hands in today’s session, up from US$195,109 traded in the prior session.

On the currency markets, the Zimbabwe government introduced a new currency on the 5th of April 2024, backed by gold reserves and foreign currency. The Central Bank also announced new monetary policy measures on the same day, further tightening its stance on money supply while, however, slushing borrowing costs from 130% to 20%. The new MPS highlighted that the currency auction market has been replaced by the Interbank market, which will be used to liquidate all ZWL balances into Zimbabwe Gold (ZiG), the new currency. Today, the ZiG depreciated by -0.53% against the US$ to close at 13.46. The Central Bank computes the exchange rate by dividing the US$ by gold price per milligram.

An aggregate of 22 counters exchanged hands in today’s session, with 2 sailing stable while 12 emerged risers. Unifreight came out as the top performer in the session on surging 15% to settle at 33.35c, buttressing prior session’s gains while FBCH firmed by 5.83% to close at 195c. Proplastics partially recouped prior session’s losses on gaining 3.7% to settle at 35c, followed by TSL which went up by 3.65% to close at 110c. OK Zim recouped prior session’s losses on rising 3.06% to settle at 46.11c, capping off the Top 5 risers’ pack.

On the downside, 8 counters partially weighed on the market. Nampak performed the worst in the session on plunging -7.46% to close at 41c, trailed by Econet which extended losses to a 3rd straight session on losing -2.7% to settle at 166.78c. EcoCash Holdings extended prior session’s losses by a further -2.51% to close at 19.14c while Meikles partially countered prior session’s gains on easing -0.95% to settle at 409.29c. Masimba retreated by -0.02% to close at 153.93c, capping off the Top 5 laggards’ set.

Total turnover rose by 5% from prior session’s record to ZiG2.6 million today despite a -36% decline in overall shares traded. Delta led turnover contributors in the session, contributing 47% of the aggregate turnover and was trailed by FBCH, Econet, Meikles and NMBZ in that respective order. Foreign inflows contributed 11% to aggregate turnover while outflows held a foothold of 8%.


FCA 43rd AGM to be held online via https://escrowagm.com/ eagmZim/Login.aspx
on Wednesday, 12 June 2024 at 1500 Hours

Padenga 13th AGM to to be held at Royal Harare Golf Club, 5th Street Extension, Harare on Thursday, 13 June 2024 0815 Hours

Mashhold 57th AGM to be held in the Mashonaland Holdings Limited Boardroom, 19th Floor, ZB Life Towers, 77 Jason Moyo Avenue, Harare on Wednesday, 19 June 2024 at 1400 Hours

Masimba 49th AGM to be held at 44 Tilbury Road, Willowvale, Harare on Friday, 21 June 2024 at 1200 Hours

RTG 25th AGM to be held in Jacaranda Rooms 2 and 3, Rainbow Towers Hotel and Conference Centre, 1 Pennefather Ave, Samora Machel Ave West, Harare on Monday, 24 June 2024 at 1200 Hours.

Zimpapers 97th AGM to be held Virtually on Tuesday, 25 June 2024 at 1100 Hours

Zimplow 74th AGM to be held at Zimplow Holdings Ltd Head Office No.10 Harrow Road, Msasa, Harare on Thursday, 27 June 2024 at 1000 Hours.

ZBFH 35th AGM to be held Virtually on Friday, 28 June 2024 at 1000 Hours

ZSE Limited 10th AGM to be held Virtually on Friday, 28 June 2024 at 1100 Hours

General Beltings 21st AGM to be held at Cernol Chemicals Boardroom, 111 Dagenham Road, Willowvale, Harare on Friday, 28 June 2024 at 1130 Hours.