ZSE Market Commentary 15 July 2024
ZSE resumes new week in the black…
The ZSE market resumed the new week in black as the primary All Share Index gained 2.46% to close at 180.22pts while, the Blue-Chip Index rose 1.83% to 192.2 pts. The Agriculture Index went up 4.61% to 152.97pts while, the Mid Cap Index added 3 .46% to 146.57pts. Proplastics headlined the top performers of the day on a 15.00% jump to close at $0.8050. The duo of TSL and milk processor Dairibord surged a similar 15.00% to end at $2.2810 and $1.5220 respectively. CFI charged 14.99% to $2.1290 while, banking group ZB Financial Holdings completed the top five winners of the day on a side, brick manufacturer Willdale led the laggards of the day on a 5.37% decline to $0.0374, followed by tea producer Tanganda that fell 3.47% to $4.0000. Star Africa eased 3.08% to $0.0081 while, ART slipped 0.41% to settle at $0.1000. Agriculture concern Ariston trimmed 0.07% to end pegged at $0.0400. Seventeen counters recorded gains against three that faltered to leave the market w ith a positive breadth of fourteen .
Activity aggregates were mixed in the session as volumes traded ballooned 203.00% to 6.61m shares while, value traded succumbed 27.76% to $14.llm.Top volume drivers of the day were OKZim {54.05%), Star Africa (17.41%} and Delta (11.02%). Delta, OKZim and AFDIS contributed a combined 95.13% to the total value traded. A total of 360,165 units exchanged hands in the ETF section. Cass Saddle ETF shot up 6.09% to $0.0122 while, the Morgan and Co multi sector ETF tumbled 1.20% to end the day pegged at $0.4100. The Tigere REIT firmed up 0.99% to $0.7122 on 4,521 units.
VFEX records losses in week opening session …
Padenga led the laggards of the day on a 16.16% drop to settle at $0.0180. Hotelier African Sun retreated 1.25% to close at $0.0395 as banking group First Capital completed the fallers of the day on a 0.25% decline to end the day pegged at $0.0399.
Activity aggregates enhanced in the session as volumes traded ballooned 50.71% to 18,484 shares while, value outturn grew 3,844.9% to $129,813.00. Top volume leaders of the day were Axia, lnnscor and Padenga that accounted for a shared 85.69% of the total. lnnscor, Axia and Padenga were the top traded counter by value after claiming a combined 93.62% of the outturn.-efesecurities
Bulls n Bears
ZSE Reaches Record YTD Performance as VFEX Oscillates Amid Exchange Rate Stability
The ZSE reached a record performance on Monday on year-to-date return basis, in US$ terms, as increased local currency liquidity continues to drive demand for safe haven in stocks. The mainstream ZSE All Share Index firmed by 2.46% in early week trades to close at a new record high of 180.2 points, with gains driven by market heavies and medium caps while penny stocks remained constant. 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 80.2% nominal return, which converts to 77.9% in US$ terms. On a month-to-date basis, the ZSE All Share Index is up 40.1%, buttressing a nominal return of 27.3% garnered in June.
The US$ denominated bourse, VFEX, opened the new week on a negative note, partially reversing prior session’s gains as investor sentiment remains mixed. The mainstream VFEX All Share Index shed off a mild -0.13% today to close at 103.64 points, with losses driven by 4 laggards which outweighed 4 risers. 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, the VFEX All Share Index is 0.9% up since the beginning of the month, buttressing a 5.6% growth registered in June. On a year-to-date basis, VFEX is up 3.6%. An aggregate of US$18,483 exchanged hands in today’s session, up from US$3,290 traded in the prior session.
On the currency markets, the Zimbabwe government introduced a new currency on the 5th of April 2024, backed by gold reserves and foreign currency. The Central Bank also announced new monetary policy measures on the same day, further tightening its stance on money supply while, however, slushing borrowing costs from 130% to 20%. The new MPS highlighted that the currency auction market has been replaced by the Interbank market, which will be used to liquidate all ZWL balances into Zimbabwe Gold (ZiG), the new currency. Today, the ZiG appreciated by 0.1% against the US$ to close at ZiG13.75. The Central Bank computes the exchange rate by dividing the US$ by gold price per milligram.
An aggregate of 28 counters exchanged hands in today’s session, with 4 sailing stable while 18 emerged risers. The trio of Proplastics, TSL and Dairibord came out as the top performers in the session on rising 15% each to settle 80.50c, 228.10c and 152.20c in that order. CFI firmed by 14.99% to close at 212.90c, followed by ZBFH which recouped prior session’s losses on gaining 14.86% to settle at 822c, capping off the Top 5 risers’ set.
On the downside, a total of 6 counters partially weighed on the market. Willdale performed the worst in the session on slumping -5.37% to close at 3.74c, trailed by Tanganda Tea Company which partially set off prior session’s gains on easing -3.47% to settle at 400c. Star Africa reversed prior session’s gains on dipping -3.08% to close at 0.81c while ARTD lost ground by -0.41% to settle at 10c. Ariston shed off -0.06% to close at 4c, capping off the laggards’ pack.
Total turnover fell by -28% from prior session’s record to ZiG14.11 million today despite a 203% growth in overall shares traded. Delta led turnover contributors in the session, contributing 67% of the aggregate turnover and was trailed by OK Zim, AFDIS, Econet and CBZ in that respective order. Overall foreign inflows contributed 7% to aggregate turnover while outflows held a foothold of 58%.
COMPANY EVENT
CBZ 32nd AGM to be held online at https://polling.fts-net.com/Identity/Account/Login
on Friday, 19 July 2024 at 1000 Hours
AFDIS 74th AGM to be held at St. Marnock’s, Lomagundi Road, Stapleford, Harare, Zimbabwe on Wednesday, 24 July 2024 at 1200 Hours
Fidelity 45th AGM to be held online at https://teams.microsoft.com/l/meetupjoin/19%3ameeting_ ZjhmYjNjYTYtZTdiMy00Y2I0LTkyZWYtMWI1MzI2ZGY3MDRj%40thread.v2/0?context=%7b%22Tid%22%3a%22050c1ec0-6f87- 4689-97a2-4729bf6b7ca5%22%2c%22Oid%22%3a%227144d259-a862-4e18-9257-d214c4a4dbc8%22%7d
on Tuesday, 25 July 2024 at 1000 Hours
ZHL 26th AGM to be held at 206 Samora Machel Avenue, Harare on Tuesday, 30 July 2024 at 1100 Hours
Equity-Axis