ZSE Market Commentary 23 July 2024
ZSE posts a 0.29% gain as activity wanes…
The ZSE market recorded a 0.29% gain in the session as three of the four indices we review closed pointing northwards, despite reduced activity across the board. The All-Share Index was 0.29% firmer at 203.91pts while, the Blue-Chip Index inched up 0.45% to 213.90pts. The Mid Cap Index added 1.27% to 170.83pts while, on the contrary the Agriculture Index was 1.15% weaker at 190.66pts. Leading the gainers of the day was property company Mashonaland Holdings that edged up 14.49% to $0.2885, trailed by agriculture concern Ariston that went up 12.86% to $0.0451. Roofing materials producer Turnall rose 10.00% to $0.0550 while, Zimre Holdings Limited advanced 6.74% to $0.3100. General Beltings fastened the top five gainers’ list of the day as it charged 5.71% to $0.0476.
Trading in the negative territory were BAT that dropped 15.00% to close at lower circuit breaker limit of $50.9830 while, cable manufacturer Cafca parred off 13.04% to end trading at $16.0000 as scrappy 300 shares exchanged hands in the counter . Seed technology group SeedCo Limited shed 3.85% to settle $3.2099, where demand could be found. Packaging company Nampak was 3.77% lower at $1.1500 as it capped the losers of the day.
Activity aggregates faltered in the session as volumes traded declined 8.87% to see 5.39m shares exchanged hands while, turnover was 40.30% lower at $10.98m .The duo of Star Africa and Econet drove the volume aggregate as they contributed a combined 88.23% of the total. In the turnover category, activity was mainly skewed toward Econet that claimed 84.41% of the total value traded. In the ETF category, the funds traded mixed as the Old Mutual Top 10 ETF trimmed 2.53% to $0.1755 while, the Datvest MCS improved 1.99% to $0.0345. The Tigere REIT inched up 0.33% to close at $1.0000 as circa 2.35m shares exchanged hands in the aforementioned fund. Elsewhere, CBZ Holdings, through its subsidiary, Datvest, has embarked on a US$150 million housing project, Northgate, a mixed-use residential park with 8,000 housing units.-efesecurities
bull n bears
ZSE and VFEX in Positive Jumps as Exchange Premium Widens
The ZSE was relatively stable on Tuesday, slowing down on the bull-run as investors sail cautiously amid fears of exchange losses on portfolios attributed to the widening exchange premium between parallel market and interbank market. The mainstream ZSE All Share Index closed at 203.9 points today, up by a mild 0.29% from prior session as market heavies and medium caps remained positive while penny stocks were constant. Following the introduction of a new currency, the ZiG, which replaced the ZWL, the ZSE changed its functional currency to ZiG, and rebased all indices to 100 on the 8th of April in a bid to effectively reflect the effect of the new currency on financial markets. Likewise, all share prices were also converted to ZiG at a rate of 2,498.65 upon introduction. Since the rebasing of indices, the All Share Index boasts of a 103.9% nominal return, which converts to 101.2% in US$ terms. On a month-to-date basis, the ZSE All Share Index is up 58.5%, buttressing a nominal return of 27.3% garnered in June.
The US$ denominated bourse, VFEX, mildly recouped early week losses as mixed investor sentiment amid policy uncertainty continues to drive an oscillatory trajectory. The mainstream VFEX All Share Index was up 0.22% on Tuesday to close at 104.77 points, with performance driven by 3 risers against 5 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 the month, the VFEX is up 2%, buttressing a 5.6% growth registered in June. On a year-to-date basis, today’s performance scaled up gains to 4.8%. An aggregate of US$112,336 exchanged hands in today’s session, up from US$12,217 traded in the prior session.
On the currency markets, the Zimbabwe government introduced a new currency on the 5th of April 2024, backed by gold reserves and foreign currency. The Central Bank also announced new monetary policy measures on the same day, further tightening its stance on money supply while, however, slushing borrowing costs from 130% to 20%. The new MPS highlighted that the currency auction market has been replaced by the Interbank market, which will be used to liquidate all ZWL balances into Zimbabwe Gold (ZiG), the new currency. Today, the ZiG depreciated by -0.37% against the US$ to close at ZiG13.75. The Central Bank computes the exchange rate by dividing the US$ by gold price per milligram.
An aggregate of 27 counters exchanged hands in today’s session, with 5 sailing stable while 15 emerged risers. Mashhold came out as the top performer in the session on surging 14.49% to settle at 28.85c, extending prior session’s gains while Ariston rose for a 3rd straight session by a further 12.86% to close at 4.51c. The duo of Turnall and ZHL recouped prior session’s losses on gaining 10% and 6.74% apiece to settle at 5.50c and 31c in that order. General Beltings firmed by 5.71% to settle at 4.76c, capping off the Top 5 risers’ set.
On the downside, a total of 7 counters partially weighed on the market. BAT performed the worst in the session on plunging -15% to close at 5098.30c, trailed by CAFCA which set off prior session’s gains on easing -13.04% to settle at 1600c. The duo of SeedCo and Nampak reversed prior session’s gains on slumping -3.85% and -3.77% respectively to close at 320.99c and 115c each. EcoCash Holdings countered prior session’s gains on dipping -2.07% to close at 51.78c, capping off the Top 5 laggards’ pack.
Total turnover fell by -40% from prior session’s record to ZiG10.98 million today against a -9% decrease in overall shares traded. Econet led turnover contributors in the session, contributing 84% of the aggregate turnover and was trailed by Delta, Proplastics, TSL and Tanganda Tea Company in that respective order. Overall foreign inflows contributed 5% to aggregate turnover while outflows held a foothold of 30%.
Equity-Axis