ZSE in all-time high

HARARE - The Zimbabwe Stock Exchange (ZSE) last Thursday reached its highest post United States Dollar adoption, after capping the month of August on the front foot as bulls continued to drive the indices higher.

With the previous highest level set on August 1, 2013 — the day after Zimbabwe’s last general election — the benchmark Industrial Index charged 1,30 percent in the final session of August and closed at an all-time high of 235,03 points having accumulated 15,6 percent over the month, on unrelenting local demand buoyed by institutional investors.

Leading the market charge was fast foods group Simbisa Brands that surged 14,11 percent to a high of $0,4700; local seed manufacturer SeedCo, followed after sailing 8,31 percent to an all-time high of $1,7415 having touched an intra-day high of $1,8000, where it closed well bid.

Telecoms giant, Econet Wireless Zimbabwe put on 1,35 percent and ended at $0,4885 as beverages group Delta added 0,77 percent to $1,4107.

Completing the top risers of the day list was dual-listed group, Old Mutual, which firmed 0,55 percent and closed at $4,1125.

Holding back the market gains were losses in a couple of stocks Edgars and Meikles that were in respective losses of 10 percent and 6,67 percent as they ended at $0,0450 and $0,2100 respectively.

Activity aggregates reflected an improvement as the market spends went up 105,82 percent to $650 000, stemming from a 569,74 percent surge in volume of shares traded to 8,58 million shares.

Driving the market spend was SeedCo and Zimre Property Investments that accounted for 45,55 percent and 19,60 percent respectively.

Volumes of the day were propelled by property group ZPI, which claimed 93,25 percent of the aggregate after a block of eight million shares exchanged hands at a price of $0,0160.

Foreign play remains subdued on the demand side as a mere $25 937 in-inflows were recorded against outflows of $426 094.

The local bourse reached a four-year capitalisation high after breaching the $6 billion mark during the month of August. Earlier that month, the market breached the 200 point mark, reaching its highest in almost two years.

Having reached a recent low in February 2017, the bourse has been steadily firming as local institutional investors fuel activity on the ZSE.

Over the second quarter, the ZSE gained 41 percent leading to a 35,6 percent return over the first six months of the 2017.

Although volumes have increased somewhat, they have remained relatively subdued outside of Econet with foreign investors remaining on the side-lines because they are still failing to access US dollars to repatriate any sales proceeds.

The rally continued on Friday last week as the industrial index firmed a further 1,26 percent to close at 238 points.

Comments (1)

As the ZSE races upwards the value of the Bond note falls - basic economics really. Doctor John "Bond" Mangudya has a small headache that is only going to get bigger

ace mukadota - 6 September 2017

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