HomeBusinessZSE extends gains sixth week running

ZSE extends gains sixth week running

By Fungai Nyaungwa

The Zimbabwe Stock Exchange (ZSE) extended gains for the sixth week, during the week ended May 3, on buyer dominance resulting in a 3.61% rise in total market capitalisation to $17.759 million (up from $17,140 million recorded the previous).

All equity benchmarks remained in positive territory, except for the mining index: The All Share Index returned 3.81% to 135.70 while the Industrial Index advanced 3.87% to close the week at 453.38.

The Top 10 index rose 4.21% to 129.54 on the back of strong price performance in Delta Corporation, which saw an uplift of 8.47%.

The Mining Index, however shed 0.84% to 184.90 weighed down by losses in RioZim, down 1.14% to $1.74 after publishing financial results which showed a 71% decline in operating profit during the 2018 financial year. Year to date, the market is down 7.20%, as measured by the All Share Index. Mashonaland Holdings led the risers, gaining 20.33% this week to close at $0.0290, followed by Rainbow Tourism Group, up 20.17% to $0.0280.

RTG published a pleasing set of results and declared a dividend for the first time since 2006.

The company is also the first ZSE listed counter to declare a hard currency dividend since the introduction of the RTGS Dollar — paying out US$300 000 in dividend in conjunction with RTGS$700 000.

Another significant gain was seen in Edgars Stores, up 18.18%. Notable losses were recorded in First Mutual Properties, Turnall and First Mutual Limited down 7.54%, 6.98% and 4.41% respectively.

Activity remained largely concentrated in the heavy weights this week. A total of 25,962,033 shares changed hands, a significant decline from the 40,461,683 shares that traded during the previous week.

Total turnover was 13.98% higher this week at $32,719,194, mainly driven by trades in Old Mutual, contributing 51.18% of total weekly turnover, followed by Delta Corporation, which contributed 19.77% and FBC Holdings, accounting for 12.35% of total trades.

Last week the ZSE recorded turnover of $28,706,189.

Among the heavyweights, Delta, which stared off the week at a price of $2.6275 added 8.47% to close the week at $2.8501, with total shares of 2,288,571 worth $6,468,720 being traded.

Econet Wireless Zimbabwe and Innscor rose 0.56% and 11.32% respectively while Cassava slipped 0.17%.

Fungible counter Old Mutual closed the week 11.57% higher at $10.1617, with 1,670,004 shares trading hands.

The Old Mutual Implied rate closed the week at 6.2505, an increase from 5.6798 last week.

We expect buyers aggression will continue to drive up prices during the week ahead, with activity centred on Old Mutual and Delta. — Akribos Research Services

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