market report WITH FUNGAI NYAUNGWA
The Zimbabwe Stock Exchange (ZSE) tumbled for the second week in a row during the week ended July 5 2019.
Since the introduction of new monetary measures on June 24 2019, the market has retreated 18.57% as measured by the All Share Index. Total market capitalisation fell 8.30% to close the week at $24,773 million from $27,017 million last week. All equity benchmarks were in the red: The All Share Index and the Industrial Index shed 7.84% and 7.89% to close the week at 188.70 points and 629.60 points respectively. The Top 10 Index was down 9.45% to 178.57 points indicating that heavyweights were strongly affected during this week’s selloff. Mining counters closed at 248.50 points, down 2.65% as RioZim Limited and Bindura Nickel Corporation fell 3.66% and 0.12% respectively. Year to date, the market is still up 29.03% as measured by the All Share Index.
Powerspeed Electrical led the risers, gaining 20.00% this week followed by PPC Limited, up 18.75% and First Mutual Limited, up 14.29%, howbeit on thin volumes. The biggest loser for the week was Turnall, which shed 27.27% in a block trade that saw 17,051,300 shares changing hands. Other significant loses were seen in First Mutual Properties and OK Zimbabwe which fell 20.00% and 19.86% respectively.
Activity on the ZSE was rather depressed compared to last week. Volumes activity was dominated by the trades in Turnall, which contributed 35.86% to total volumes, followed by Cassava Smartech (12.66%) and Star Africa (8.64%). A total of 47,544,065 shares changed hands during this week’s trading session, down 49.24% from the 93,671,400 traded during the previous week.
Total turnover during the week was $48,384,946 and was 23.26% down from the $63,052,619 traded last week. Turnover was largely driven by activity in Delta Corporation, Cassava Smartech and Old Mutual contributing 28.31%, 21.92% and 12.37% to total turnover respectively.
Among the heavyweights, Delta Corporation closed the week at a price of $3.4514, a 1.48% uptick as 4,080,600 shares worth $13,698,480 traded. Econet Wireless Zimbabwe and Cassava Smartech retreated 16.65% and 16.82% respectively while Innscor Africa was down 13.34%. Fungible counters were up this week: Old Mutual gained 1.82% to close the week at $14.00 while PPC Limited added 18.75% to close at $1.90. The Old Mutual Implied Rate (OMIR) ended the week at 8.9072, up from 8.7312 last week.
Going into the week ahead, we continue to see selling pressure in the big names and anticipate the market will trade lower on activity in the heavy caps.
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