ZSE slide extends in election week

HARARE - The Zimbabwe Stock Exchange (ZSE)’s weekly slide extended into the post-election period in the wake of violent demonstrations that rocked the capital, Harare, as results of the elections were being published, a local equities firm has said.

The elections, whose outcome saw the ruling Zanu PF party retain the majority in Parliament, coupled its developments with the benchmark All Share Index sliding 0,10 percent and settling at 114,19 points while, the Industrial Index dipped 0,12 percent and closed the week at 383,77 points, EFE Securities said.

“The market’s top capitalised stocks took the major shock as the ZSE Top 10 Index tumbled 0,37 percent and settled at 118,43 points,” EFE Securities said.

Meanwhile, the Mining Index was the only gainer for the week among the benchmarks putting on 0,38 percent and closing the week set at 164,62 points.

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.

Remaining unfazed over the election result announcement period, the market gained 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 Emmerson Mnangagwa lead which was punctuated by spontaneous pockets of demonstrations throughout Harare Central Business District.

In the first day of trade 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 we 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 diary 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

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