ZSE Market Commentary 19 June 2024
Heavies anchor the market in mid-week trades …
Heavy cap counters anchored the market in mid-week trades
Blue-Chip Index was 2.04% higher at 118.76pts mainly buoyed by Tanganda and Ecocash. The Agriculture Index was 1.82% up 0.38% weaker at 110.24pts. Spirit and wines manufacturer AFDIS led the gainers of the day as it charged 15.00% to settle at circuit breaker limit of $3.4385. Dairy processor Dairibord notched up 14.81% to $0.9300 while, tea producer Tanganda was 13.07% higher at $1.4925. Fintech group Ecocash advanced 9.42% to close at $0.2305 while, Turnall added 6.67% to end at $0.0320 as it fastened the top five winners of the day. Retailer OK Zimbabwe led the laggards of the day as it parred off 13.33% to $0.4419 while, Zimre Holdings shed 9.15% to $0.3020. Cigarette producer BAT dropped 3.89% to settle at $20.9995 while, sugar processor Star Africa eased 2.42% to $0.0070. Banking group ZB was 0.24% lower at $1.7900.
Activity aggregates improved in the session as volumes traded jumped 143.26% to see 2.64m shares exchange hands while, turnover surged 124.69% to $1.40m. Volume drivers of the day were Star Africa and OK Zimbabwe that contributed a combined 86.53% of the total. OK Zimbabwe, Delta, Econet and Meikles anchored the turnover aggregate as they claimed 30.34%, 29.17%, 18.37% and 16.79% respectively. In the ETF category, the Cass Saddle ETF surged 14.78% to close at $0.0092 as 20,000 units traded in the name. The Datvest MCS and OMTT ETFs were stable at $0.0200 and $0.1100 apiece. The Tigere REIT trimmed 1.21% to end at $0.6304 as 51,135 units worth $32,235.90 traded.
VFEX rebounds in the session …
The VFEX market recovered in the session as the All-Share
Index was 0.95% up at 100.60pts. lnnscor led the gainers of the day as it advanced 6.81% to end pegged at $0.4500 while, banking group First Capital rose 5.39% to $0. 0352. Partially weighing down the market was agriculture concern Zimplow that slid 10.61% to $0.0160 while, fast foods processor Simbisa Padenga slipped to $0.1595.
Volumes ballooned 2,507.50% to 2.42m shares while, turnover ballooned 182.83% to $138,162.43. Zimplow led the volume drivers of the day as it contributed 87.30% of the total traded while, Simbisa claimed 12.47% of the aggregate. Simbisa and Zimplow were the turnover drivers of the day as they claimed a combined 99.79% of the aggregate.-efesecurities
Bulls n Bears
ZSE and VFEX Prices Firm Up as Exchange Rate Oscillates
The ZSE widened the magnitude of gains in mid-week trades, reaching a new record high since the rebasing of indices as exchange rate stability amid increased liquidity, along with the planned removal of capital gains tax fueled demand for stocks. The mainstream ZSE All Share Index surged by 1.45% to close at a record high of 113.78 points, with gains driven by market heavies which outweighed sell-offs in medium caps while penny stocks remain constant since the rebasing of indices. Following the introduction of a new currency, the ZiG, which replaced the ZWL, the ZSE changed its functional currency to ZiG, and rebased all indices to 100 on the 8th of April in a bid to effectively reflect the effect of the new currency on financial markets.
Likewise, all share prices were also converted to ZiG at a rate of 2,498.65 upon introduction. Since the rebasing of indices, the All Share Index boasts of a 13.8% nominal return, which converts to 14.4% in US$ terms. On a month-to-date basis, the ZSE is up 12.6%, buttressing a nominal return of 2.28% garnered in May.
The US$ denominated bourse, VFEX, recouped prior session’s losses as activity and demand increased on the back of improved investor morale amid an anticipated growth in liquidity in the medium-term. The mainstream VFEX All Share Index was up 1.41% today to close at 100.60 points, with gains driven by 2 risers which outweighed 3 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 garnered a 3.4% growth, which compares to a -2.3% loss suffered in May. On a year-to-date basis, VFEX flaunts a 0.6% return. An aggregate of US$138,162 exchanged hands in today’s session, up from US$40,853 traded in the prior session.
On the currency markets, the Zimbabwe government introduced a new currency on the 5th of April 2024, backed by gold reserves and foreign currency. The Central Bank also announced new monetary policy measures on the same day, further tightening its stance on money supply while, however, slushing borrowing costs from 130% to 20%. The new MPS highlighted that the currency auction market has been replaced by the Interbank market, which will be used to liquidate all ZWL balances into Zimbabwe Gold (ZiG), the new currency. Today, the ZiG depreciated by -0.04% against the US$ 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 4 sailing stable while 8 emerged risers. AFDIS came out as the top performer in the session on gaining 15% to settle at 343.85c, buttressing prior session’s gains while Dairibord firmed by 14.81% to close at 93c. Tanganda Tea Company buttressed prior session’s gains by a further 13.07% to settle at 149.25c, followed by EcoCash Holdings which extended gains to a 5th straight session on rising 9.42% to close at 23.05c. Turnall buttressed prior session’s gains by a further 6.67% to settle at 3.20c, capping off the Top 5 risers’ set.
On the downside, a total of 6 counters partially weighed on the market. OK Zim performed the worst in the session on dipping -13.33% to close at 44.19c, reversing prior session’s gains while ZHL extended prior session’s losses by a further -9.15% to settle at 30.20c. BAT shed off -3.89% to close at 2099.95c, trailed by Star Africa which set off prior session’s gains on easing -2.42% to settle at 0.70c. ZBFH countered prior session’s gains on softening -0.24% to close at 179c, capping off the Top 5 laggards’ pack.
Total turnover rose by 125% from prior session’s record to ZiG1.4 million today against a 143% increase in overall shares traded. OK Zim led turnover contributors in the session, contributing 30% of the aggregate turnover and was trailed by Delta, Econet, Meikles and SeedCo in that respective order. Foreign inflows contributed 18% to aggregate turnover today while outflows were nil.
Equity-Axis