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2016: mixed fortunes for stocks

Who would have thought that the Zimbabwe Stock Exchange (ZSE) would record a daily turnover of a paltry $105 in 2016? Perhaps those with supernatural powers but certainly not our local prophets or prophetesses put together!

BY NDAMU SANDU

Zimbabwe Stock Exchange chief executive officer Alban Chirume

Zimbabwe Stock Exchange chief executive officer Alban Chirume

Record-breaking ZSE

It was by all accounts a tough year in which ZSE broke records at will. The $105 daily turnover on July 26 was the lowest since 2009. On that day, 6 995 Barclays shares were snapped up at a price of $0,0150 per share. August’s turnover of $7 075 762 was the lowest since March 2009. The annual turnover of $193 912 389 was the lowest since the country embraced the multicurrency regime eight years ago.

Suspension, more suspensions

In January, ZSE temporarily suspended the trading of CFI Holding shares to allow for the publication of audited financial statements for the previous year and investigations into trading done during a closed period. The suspension was lifted in May after the group had published its financial results. In December, ZSE suspended engineering concern Zeco Holdings from trading for three months after the company failed to pay listing fees and hold annual meetings of shareholders. Zeco has been struggling while failing to meet its ZSE obligation such as releasing financial results on time. Its half-year ended June 30 financials were released after the stipulated 90 days after the closure of the financial period.

GetBucks, Axia join bourse

In January, GetBucks listed on ZSE after the closure of its initial public offering (IPO). GetBucks offered 93 567 251 ordinary shares to the public at a subscription price of $0,034 to raise $3,2 million. The IPO had a low subscription rate of 2,29%, leaving a large chunk of shares in the hands of DBF Capital Partners Limited, who were the underwriters of the transaction. In May, Axia Corporation Limited debuted on the bourse when 51 134 shares were traded at $0,075.
Axia, which incorporates Distribution Group Africa, Transerve and TV Sales & Hire, was demerged from Innscor Africa Limited.

Off the radar

In May, ZSE announced the exit of Pelhams and Radar from the bourse. Pelhams was removed from the list having been under voluntary suspension. ZSE said Pelhams failed to publish audited financial statements for 2014 and 2015 and also failed to settle listing fees. It said Radar shareholders had, at an extraordinary general meeting of shareholders, approved the termination of its listing. A month earlier, Phoenix also left the bourse after its members and creditors had voted for the delisting of the entity.

New broom at ZSE

In February, Finance minister Patrick Chinamasa announced a new board for ZSE chaired by Caroline Sandura. Other members of the board are Alban Chirume (CEO), Bart Mswaka, Benson Gasura, Markus De Klerk, Daniel Muchena and Xolisani Moyo.

Boost for foreign investors on ZSE

In February, RBZ reviewed upwards to 15% the single investor limit from 10% per counter in order to promote portfolio investments by foreign investors on ZSE with the overall objective of enhancing market liquidity. RBZ also reviewed to 49% the threshold for foreign investors on the bourse from 40% as it aligned the exchange control policy with the indigenisation policy. RBZ also reviewed the full fungibility status to 49% from 40% to ensure the maintenance of shares on the ZSE register, thereby encouraging participation by local investors.

Coca-Cola terminates Delta deal

In October, the Coca Cola Company announced plans to terminate its bottling deal with Delta Corporation and Schweppes Zimbabwe Limited. This followed the tie up between AB InBev and one of Delta’s shareholders, SABMiller. Delta is now an associate of AB InBev. Recently, Coca Cola said it would buy Delta’s Coca Cola assets.

Golden acquisition

In October, RioZim announced that its subsidiary RioGold would acquire Palatial Gold Investments Limited, a wholly owned subsidiary of Falgold. Palatial Gold owns the Dalny Mine Complex, which consists of a gold processing plant, equipment, mining claims, mining infrastructure and a mine compound. In a transaction update on Wednesday, RioZim and Falgold said they were in the process of fulfilling the conditions precedent to the transaction.

NSSA shores stake in NicozDiamond

In a cautionary notice in December, NicozDiamond said the National Social Security had shored up its shareholding in the short term insurer and now has a combined shareholding of 44,85% in the company.

Old Mutual lists shares on ATP

Insurance giant Old Mutual scored a first by becoming the first company to join the first alternative trading platform (ATP), Financial Securities Exchange, listing its 107 847 B-shares.
The alternative trading platform is part of measures by the Securities Exchange Commission of Zimbabwe to broaden the capital markets.

Exits

In August, CFI Holdings announced the departure of long serving CEO Steve Kuipa, at the helm of the agricultural concern for nearly 14 years. Francis Nyambiri left Pearl Properties in October. In the same month, Turnall parted ways with managing director Caleb Musodza and finance director Kenias Horonga.

Top stocks of 2016

General Beltings firmed 700% to 0,08 cents per share while Art stock grew by 510% to 6,10 cents. Colcom grew by 117,6% to 37 cents and Proplastic doubled to 4,20 cents per share.

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