ZSE Market Commentary 17 June 2024
ZSE in marginal gains as heavy and mid cap counters trade mixed…
The ZSE market recorded marginal gains in the session as the heavy and mid cap counters closed mixed. The All-Share Index was 0.35% up at 111.08pts while, the Blue-Chip Index added 0.88% to settle at 115.63pts. On the contrary, the Agriculture Index fell 1.48% to close at 94.72pts while,the Mid Cap Index shed 0.33% to 109.17pts. Packaging group Proplastics led the best performers of the day as it charged 15.00% to $0.5520 as 446,900 shares traded in the name. Banking group CBZ trailed on a 9.29% upsurge to $4.0000 while, Zimre Holdings Limited advanced 6.41% to close at $0.3405. Fintech company Ecocash inched up 2.94% to $0.2064 while, General Beltings rose 0.41% to $0.0502. Partially offsetting today’s gains was Tanganda that plummeted 15.00% to $1.2575 while, sugar pro_cessor Star Africa lost 14.44% to $0.0070. Retailer OK Zimbabwe eased 9.93% to $0.4504 while, Nampak was 2.99% weaker at $0.4268. Mashonaland Holdings parred off 0.11% to $0.1405 as it capped the top five losers Ust of the day.
Activity aggregates were mixed in the session as volumes traded rose by 37.94% to l.21m shares while, turnover declined 28.96% to $2.41m. Volume leaders of the day were Proplastics, Star Africa, Delta and Tanganda that contributed a combined 86.52% of the total. In the turnover category, Delta was the most active stock as it claimed 69.89% of the value traded. The Old Mutual ETF rose 1.29% to close at $0.1100 while, the Datvest MCS was stable at $0.0200 as 26,142 units exchange hands. The Tigere REIT was 3.00% lower at $0.6402 while, the Revitus Opportunities REIT was 0.91% up at $0.3366 .
VFEX falters in Monday’s trades…
The VFEX All Share Index faltered by 1.53% to 99.65pts mainly weighed down by Edgars and lnnscor. Edgars dropped 7.69% to close at $0.0180 while, conglomerate lnnscor retreated 7.24% to $0.4267. Simbisa slipped 0.09% to settle at $0.3497. On the contrary, hotelier African Sun was 1.94% up at $0.0420.
Activity aggregates enhanced as volumes traded surged 101.30% to 781,312 shares while, turnover ballooned 819.11% to $332,588.00 . Activity was mainly confined in lnnscor that contributed 99.62% of the total volumes and 99.87% of the turnover traded.-efesecurities.
Bulls n Bears
ZSE Bullish in Early Week Trades as VFEX Significantly Plunges
Despite a slow-down in the magnitude of gains owing to reduced activity and sell-offs in medium caps, the bourse was overly positive on Monday as demand for market heavies inched up following news of an expected removal of capital gains tax, a decision that incentivizes avid investors. The mainstream ZSE All Share Index went up by a mild 0.34% to close at a new record high of 111.08 points. However, penny stocks remain constant since the rebasing of indices. Following the introduction of a new currency, the ZiG, which replaced the ZWL, the ZSE changed its functional currency to ZiG, and rebased all indices to 100 on the 8th of April in a bid to effectively reflect the effect of the new currency on financial markets. Likewise, all share prices were also converted to ZiG at a rate of 2,498.65 upon introduction. Since the rebasing of indices, the All Share Index boasts of a 11.1% nominal return, which converts to 11.7% in US$ terms. On a month-to-date basis, the ZSE is up 9.9%, buttressing a nominal return of 2.28% garnered in May.
The US$ denominated bourse, VFEX, opened the week on a negative note, reversing prior session’s gains as the market continues on an oscillatory trajectory amid policy uncertainties. This follows an announcement about plans of turning the bourse into a pan-African trading hub this year, including the exchange of African currencies and commodities. The mainstream VFEX All Share Index shed off -1.53% today to close at 99.65 points, with losses driven by 3 laggards which outweighed 1 riser. The All Share Index was rebased to 100 at the end of 2023 following the addition of six new listings in 2023. On the upside, since the beginning of June, the All Share Index has garnered a 2.4% growth, which compares to a -2.3% loss suffered in May. On a year-to-date basis, VFEX is down -0.3%. An aggregate of US$332,556 exchanged hands in today’s session, significantly up from US$36,183 traded in the prior session.
On the currency markets, the Zimbabwe government introduced a new currency on the 5th of April 2024, backed by gold reserves and foreign currency. The Central Bank also announced new monetary policy measures on the same day, further tightening its stance on money supply while, however, slushing borrowing costs from 130% to 20%. The new MPS highlighted that the currency auction market has been replaced by the Interbank market, which will be used to liquidate all ZWL balances into Zimbabwe Gold (ZiG), the new currency. Today, the ZiG appreciated by 0.08% against the US$ to close at 13.49. The Central Bank computes the exchange rate by dividing the US$ by gold price per milligram.
An aggregate of 18 counters exchanged hands in today’s session, with 5 sailing stable while 7 emerged risers. Proplastics came out as the top performer in the session on surging 15% to settle at 55.20c, extending the positive streak to a 5th straight session while CBZ recouped prior session’s losses on rising 9.29% to close at 400c. ZHL firmed by 6.41% to settle at 34.05c, followed by EcoCash Holdings which went up for a 3rd consecutive session by a further 2.94% to close at 20.64c. General Beltings gained 0.41% to settle at 5.02c, capping off the Top 5 risers’ set.
On the downside, a total of 6 counters partially weighed on the market. Tanganda Tea Company performed the worst in the session on slumping -15% to close at 125.75c, trailed by Star Africa which extended losses to a 4th straight session on easing -14.44% to settle at 0.70c. OK Zim set off prior session’s gains on retreating -9.93% to close at 45.04c while Nampak settled at 42.68c after losing -2.99%. Mashhold shed off -0.11% to close at 14.05c, capping off the Top 5 laggards’ pack.
Total turnover fell by -29% from prior session’s record to ZiG2.41 million today despite a 38% increase in overall shares traded. Delta led turnover contributors in the session, contributing 70% of the aggregate turnover and was trailed by Proplastics, Tanganda Tea Company, CBZ and FBCH in that respective order.-Equity-Axis