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Marginal gains on the ZSE

By Fungai Nyaungwa

The Zimbabwe Stock Exchange (ZSE) booked marginal gains during the week ended June 7, 2019. The Top 10 Index was the only equity benchmark in the red: The All Share Index and the Industrial Index inched up 0.81% and 0.71% to end the week at 189.60points and 632.94points respectively.

The Top 10 Index eased 0.69% to 181.73 points as heavyweights have started to retreat. Mining counters were 6.73% higher at 241.02 points, on the back of gains in RioZim Limited and Bindura Nickel Corporation, of 8.11% and 4.69% respectively. Year to date, the ZSE is up 29.65% as measured by the All Share Index.

Willdale Limited led the risers with a 27.27% gain, followed by National Tyre Service, up 20.11% and Ariston Holdings, up 20.00%. The week’s top losses were seen in Star Africa Corporation, down 9.50%, African Sun Limited, down 6.93% and First Capital Bank Limited, down 3.61%.

Volumes activity was mainly dominated by financial services counters CBZ Holdings and FBC Holdings which together contributed 65.77% to total volumes. A total of 73,855,545 shares changed hands during this week’s trading session, a 130.12% increase from last week’s 32,094,448 shares.

Total turnover at $69,704,482 was a 63.50% improvement from last week. Turnover was largely driven by trades in CBZ Holdings which contributed 23.76% to total turnover, followed by Delta Corporation (21.23%) and Old Mutual (12.64%).

Among the heavyweights, Delta Corporation shed 0.35% this week to close at $3.5980, with a total of 4,093,900 shares worth $14,799,535 being traded. The share prices of Econet Wireless Zimbabwe and Cassava Smartech retreated 2.87% and 3.16% respectively while Innscor Africa advanced 7.11%.

Fungible counter Old Mutual weakened 3.52% to $13.50, while another fungible counter PPC Limited, strengthened 19.94% to close the week at $2.2775. The Old Mutual Implied Rate (OMIR) closed the week at 10.0053, up significantly from 7.8604 last week. A mild softening in the heavyweights is likely to persist this week, but we still anticipate demand in the midcaps.

Akribos Research

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