Grand entrance for Cassava on ZSE

23 Dec, 2018 - 00:12 0 Views
Grand entrance for Cassava on ZSE

The Sunday Mail

Enacy Mapakame

Cassava SmarTech Zimbabwe Limited became the biggest company on the Zimbabwe Stock Exchange (ZSE) on December 18, just hours after going public.

With a market value of $3,8 billion, the financial technology company eclipsed even its parent company, Econet, and beverages giant Delta, which are valued at $3,7 billion and $3,5 billion, respectively.

The entrance of Cassava on the ZSE subsequently shifted positions for the market’s heavily capitalised counters — ZSE Top 10 Index.

Cassava is a diversified smarTech group, with a mandate to use digital solutions to drive socio-economic development, and to improve the overall quality of life.

Diversified industrial group Innscor, which is valued at $1 billion, now trails behind as the fourth most valuable company on the bourse, while British American Tobacco (BAT) is now the fifth-largest counter with a total value of $680 million.

Seed Co International, with capitalisation of $652 million, was pushed to sixth position, followed by Old Mutual at $535 million. National Foods, Seed Co Limited and Padenga complete the top 10, with a market capitalisation of $485,9 million, $485,1 million and $460 million in that order.

On debut on Tuesday, each Cassava share was initially being swapped for 43 cents and closed its first session at $1,49, trading a low of $1,10 and a high of $1,53.

The sessions activity aggregates were boosted by heavy trades in the fintech group, where 1,99 million shares worth $2,97 million changed hands.

The trades in Cassava accounted for 33,9 percent of the volume aggregate and 37,11 percent on the value out-turn in that session. Meanwhile, total ZSE market capitalisation rose 17 percent to $19 billion last week following Cassava’s listing, which added $3 billion into the market.

However, the primary All-Share Index dropped 3,8 percent to 147,26 points on losses across board.

The market’s heavy capitalised stocks — ZSE Top 10 Index — eased 5,2 percent to 147,73 points from prior week’s 155,91 points on heavy battering in the big cap counters. At 491,7 points, the Industrials Index lost 4 percent.

Generally, a bearish sentiment prevailed on the market as investors profit-take ahead of the festive holidays. Losses in big-cap counters particularly dragged the market into the negative.

Econet and Delta dropped 6,4 percent to $1,44 and 7,8 percent to $2,80, respectively. Innscor let go of 2,6 percent to $1,85, while National Foods lost 1,3 percent to $710. Cigarette manufacturer BAT eased a marginal 0,57 percent to $33. Sugar processor Hippo remained unchanged at $1,71.

The resources side had a different story.

The Mining Index closed in the positive after adding 4 percent of value to 201,29 points spurred by a 20 percent move in Bindura.

Bindura’s holding company, ASA Resources Group Plc, which is currently under Administration, announced it has entered into a sale and purchase agreement (“SPA”) with a third party in relation to the 74,7 percent shareholding in Bindura.

The conditions of the SPA include various regulatory approvals and other conditions as expected with a transaction of this nature. The third party is a UK-based nickel company with complementary interests in Southern Africa.

Fellow resources group Falgold remained flat at 2,5 cents. The gold producer indicated several factors that could have a negative effect on its operations and earnings such as foreign currency shortages, as well as a system failure at its Golden Quarry processing plant a week ago.

The company is, however, working towards minimising the effects of these challenges.

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