The Sunday Mail
BULLS charged on the Zimbabwe Stock Exchange (ZSE) as the mainstream Industrials Index sailed to its highest level since dollarisation closing the month of August at 235 level after accumulating 15 percent.
Before this, the highest index reached was 233,18 recorded on August 1, 2013.
Total market capitalisation also rose 15,6 percent to $6,659 billion as it pushed towards a record $7 billion mark.
Turnover for the month amounted to $13 million after 130 million shares exchanged hands. The turnover is, however, 47,36 percent lower than the turn-over of $24,7 million recorded in the previous month of June.
Constrained supply in the bourse’s momentum stocks spurred the rise in the industrials as the buying impetus remained strong.
Market watchers have also maintained the pursuit for a safe haven in the face of potential inflationary pressures which saw a surge in demand from local investors who have been shying away from the market preferring money market investments. These have started flocking to the market to defuse cash balances with banks.
This comes after the Reserve Bank of Zimbabwe (RBZ) announced that an additional $300 million facility for bond notes was on the way to supplement the initial $200 million facility as currency shortages persisted.
According to African Financials, the local bourse, up 62,62 percent year-to-date, has remained the best performer in the region on a year-to-date basis ahead of Malawi Stock Exchange and the Nigeria All-Share Index that have both added 46 percent and 36 percent respectively.
Shares on the Nairobi Stock Exchange and Mauritius All-Share Index have also increased by 26 percent and 21 percent respectively.
On the ZSE, penny stocks headlined the risers for the month as General Beltings jumped 400 percent to 0,55 cents from 0,11 cents.
Pharmaceuticals and chemicals stock Medtech rose 150 percent to 0,05 cents while quick service restaurant Simbisa Brands added 88 percent of value to close the month at 47 cents. Simbisa is currently trading under a cautionary as it plans listing on the London Stock Exchange’s Alternative Investment Market.
Crocodile breeder Padenga Holdings was 57 percent firmer to 44 cents while Axia also made it into the top risers after adding 28 percent of value to settle at 16 cents.
Paper and packaging group Art Corporation was one of the lame ducks after retreating 30 percent to 4,20 cents.