ZSE downward trend continues

HARARE - As Zimbabwe awaited news of President Emmerson Mnangagwa’s poll victory on Thursday, the Zimbabwe Stock Exchange (ZSE) further tumbled with the primary All Share and Industrial Indices shedding an identical 0,21 percent.

At the close of Thursday’s session, The primary All Share and the Industrial Indices closed at 114,08 points and 383,40 points respectively, as foreign purchases dipped 80,84 percent to $180 000 while, outflows ballooned 1352,14 percent to $140 000, leaving the market in a net funds outflow position

The ZSE Top Ten Index lost 0,19 percent to end at 118,58 points weighed down by Delta which plunged 0,55 percent to settle at $2,1500 on selling pressure.

Masimba was on top of the shakers’ list after shedding 19,35 percent to $0,0500 while, CBZ plummeted 7,91 percent to $0,1013. Star Africa was down 0,78 percent at $0,0128 closing well offered at $0,0129.

Leading the risers pack was Zimplow which rose 3,90 percent to $0,1200 trailed by Dawn that gained 0,63 percent to $0,0160.

Telecoms giant Econet reversed previous day losses as it extended a marginal 0,01 percent to $1,2376 on waning demand while, Insurance giant Old Mutual edged up a negligible 0,002 percent to close at a value weighted average price of $5,0201.

The risers and fallers’ spectrum was evenly distributed at four, with only eight trades registered for the day.

Turnover for the day retreated 72,81 percent to $450 000 while, volumes plunged 89,71 percent to 246,958 shares.

Delta was the top traded stock by value and volume claiming 69,93 percent of the former and 59,22 percent of the latter.

Old Mutual was the other notable value contributor accounting for 27,83 percent of the aggregate.

The local stock exchange remained unfazed over the election result announcement period gaining a marginal 0,02 percent in the first session after the country’s July 30 polls to close the day at a total market capitalisation of $12,19 billion.

This is despite widespread outrage over an early Mnangagwa lead which was punctuated by spontaneous pockets of demonstrations throughout Harare Central Business District.

In the first day of trades post elections, the Industrial Index was marginally up 0,01 percent to 384,25, attributable to a 0,02 percent gain in stalwart beverage manufacturer, Delta and losses in conglomerate Innscor as well as telecommunications giant, Econet which were down 0,10 percent and 0,01 percent, respectively.

The Mining Index remained unchanged at 163,99 points as the All Share Index inched up 0,01 percent to 114,32 points while the Top 10 Index shed 0,03 percent to 118,84 points.

Other gains for the day were recorded in dairy company, Dairibord, which was up 10,15 percent, retailer OK Zimbabwe, which firmed 0,41 percent and Old Mutual which went up 0,10 percent.

Adding to the losses sugar producer Hippo went down 0,59 percent and Axia was down 0,40 percent.

On the day, the total value traded surged 631,46 percent to $34,84 million, dominated by trades in Econet, SeedCo and Old Mutual, contributing 89,90 percent, 3,69 percent and 3,50 percent, respectively.

This comes as a bearish sentiment prevailed on the ZSE in the final week ahead of the much-anticipated 2018 general elections to seeing all the benchmark indices closing last week in the red.

— The Financial Gazette

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.