market report: WITH MUTANDANI MAKUYANA
The local bourse recorded notable loses during the week under review, albeit in trading in strong volumes. Compared to the close of the prior week, the market further traded southwards, as all the ZSE major indices ended the week in red.
The All-share Index lost 2.45% to end at 234.91 points, the Industrial Index shed another 2.41% to close at 782.04 points, and the Top 10 Index weakened 2.95% to close the week lower at 209.91 points.
The Minings Index followed suit, erasing the previous week gains after loosing 3.62% to end the week’s trading at 331.95 points, weighed down by a loss of 12.61% in Bindura which outweighed a gain of 1.47% posted in Rio Zim. Although market returns remain positive on a year-to-date basis, real returns have remained notably negative.
Meanwhile, the likelihood of equity earnings and share prices going ahead of inflation is slim. However, given limited investment options, the year-to-date stock market return of 63% compares well above the fixed term deposit return ranging 0.22 -12% and the Treasury Bills yield averaging 15%.
Weekly gains were noted in, among other counters: the duo of Turnall and Powerspeed which gained 20% each, and Edgars which added 14.84%, while the pair of the properties concerned Mashonaland Holdings and Zimre Holdings put on 13.76%, and 13.04%, respectively. Leading the downside, were counters such as African Sun which lost 31%, Dairibord weakened by 30.94%, General Beltings shed 20%, and PPC softened by 18.31%, while OK Zimbabwe concluded the week 14.84% lower trading at 74.73 cents.
In terms of market activity, heavy weight counters continued to dominate activity in terms of value contribution, led by Innscor, which realised weekly turnover value of ZWL$9.57 million, followed by the dual listed Old Mutual which recorded ZWL$8.53 million, Delta weighed in with ZWL$6.4 million, while the pair of Econet and OK Zim complete the top five performers with a ZWL$4.63 million and ZWL$3.77 million contribution, respectively.
With regards to volumes, significant trade volumes were recorded in the likes of Ok Zim which saw a cumulative 5.03 million shares exchanging hands during the week under review. ZPI recorded turnover volume of 4.56 million shares, Econet registered 3.09 million, while Innscor and Delta also weighed in with 2.55 million and 1.79 million, respectively.
lMutandani Makuyana is an equities analyst and head of research at Invictus Securities Zimbabwe
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