The Zimbabwe Stock Exchange (ZSE) closed the week ended July 26 2019 in the negative. Total Market Capitalisation lost $609 million (-2.41%) to close the week at $24,70 billion. All equity gauges traded in the red: The All Share Index shed 0.50% to close at 190.50 points while the Industrial Index fell 0.45% to 635.93 points. The Top Index was down 1.51% to 180.46 points, indicating that heavyweights were most affected during this week’s sell-off. The Mining Index was not spared, declining 3.46% to 242.61 points as losses in RioZim Limited of 13.04% outweighed gains in Bindura Nickel Corporation of 22.02%. Year-to-date, the market is up 30.27% as measured by the All Share Index.
TSL Limited, up 40.00% led the risers this week on scrappy volumes worth $3,200. Bindura Nickel Corporation, up 22.02% and Meikles Limited, up 18.18% also recorded significant gains. Local media reported that Meikles Limited recently received CTC approval for the sale of its Meikles Hotel to Dubai based Albarwardy Investments. The biggest loser this week was RioZim Limited which declined 13.04%, followed by OK Zimbabwe, down 6.22% and Cassava Smartech, down 4.70%. OK Zimbabwe management, in a trading update during the company’s AGM, reported that 1Q20 sales rose 167%, but rising cost pressures emanating from increased energy-related costs resulted in a 137% increase in the cost base.
Volumes activity last week was largely dominated by a block deal in Econet Wireless Zimbabwe, which contributed 33.67% to total volumes, followed by First Mutual Limited (15.54%) and Innscor Africa Limited (13.97%). A total of 32,979,800 shares changed hands during the week’s trading session, a 9.37% increase from 30,154,398 shares traded during the previous week.
Total turnover for the week was $42,772,941, up 12.10% from $38,156,969 recorded during the previous trading week. Turnover was largely driven by activity in Econet Wireless Zimbabwe, Innscor Africa Limited and Delta Corporation Limited which contributed 44.11%, 24.23% and 8.72% to total turnover respectively.
Among the heavyweights, Delta Corporation Limited declined 0.27% to $3.5000 as 1,064,500 shares worth $3,728,501 traded. Econet Wireless Zimbabwe gained 0.75% to $1.6964 on trades worth $18,868,649. Cassava Smartech and Innscor Africa Limited were down 4.70% and 0.90% respectively. Trading in fungible counters was heavily skewed towards Old Mutual: Old Mutual Limited advanced 2.01% to close at $16.0658 on trades worth $3,239,225 while PPC Limited traded unchanged at $1.9500 on subdued turnover of $65,456. The Old Mutual Implied Rate (OMIR) ended the week at 10.8626 from 10.2808 the previous week. — Akribos Research