ZSE market cap up $15bn

23 Feb, 2020 - 00:02 0 Views
ZSE market cap up $15bn

The Sunday Mail

Enacy Mapakame
Business Reporter

Investors on the Zimbabwe Stock Exchange (ZSE) amassed a cumulative $15 billion in one week as the bullish sentiment continued amid significant volumes.

Total market value jumped 29 percent to $65 billion buoyed by gains recorded across the board.

Figures from the local bourse show all key indicators closed pointing northwards during the week to Wednesday, reaching record highs.

This comes as punters are pumping money on the bourse as a safe haven against economic uncertainties stemming from inflationary pressures.

The primary indicator, the ZSE All Share Index, jumped 29 percent to 502,41 from the prior week’s 388,47 points on the back of gains recorded across the board, extending year-to-date gains to 118 percent.

The market’s heavy cap counters, the ZSE Top 10 Index, drove aggregates after putting on 25 percent to 447,46 points while the ZSE Top 15 Index advanced 27 percent to 451,58 points compared to 354,39 points recorded in the prior week.

On a year-to-date basis, the two indices have been the biggest gainers after putting on 120 percent since the beginning of the year.

During the week under review, the medium cap paced the fastest, adding 38 percent to 617,64 points compared to 447,44 points achieved in the prior week while at 1 261 points, the small cap moved 34 percent, advancing its year-to-date gains by 99 percent.

Leading the bull run was sugar producer, Hippo Valley that put on 146 percent of value to $4,80 barely a week after resuming trades on the local bourse.

Hippo was suspended from trading on the local bourse in August last year for failing to comply with listing regulations, before the suspension was lifted during the week under review.

While Hippo lost significant months of trading, market watchers contend the counter will recover.

The company produces one of the basic commodities for both the domestic and regional markets.

Its current sugarcane plantations expansion taking place in the Lowveld under the Kilimanjaro Project, will result in increased supply of raw sugar at competitive prices for both local and export requirements.

The US$40 million Kilimanjaro Sugar Cane project being developed was launched last year in Chiredzi by President Mnangagwa and is expected to be a game changer in sugar cane production.

This is part of the firm’s drive to increase aggregate sugar output while also empowering indigenous outgrower farmers who will be allocated plots on the nearly 3 300 hectares being developed on a cost recovery basis.

Other significant gains were recorded in Art Holdings that advanced 106 percent to 25,4 cents while clothing retailer Truworths put on 105 percent to close the week pegged at 5,62 cents.

At 4,32 cents, MedTech was 103 percent above prior week’s 2,12 cents. Cables manufacturer Cafca rose 99 percent to $8,28 wrapping the week’s top five risers.

The country’s biggest retail group, OK Zimbabwe, rose 21 percent to $2,29 as its volumes for the quarter to December 31, 2019 went down 15 percent as a result of waning disposable incomes due to the hyperinflationary environment.

The market was, however, not short of bears as three counters closed in the red. Powerspeed retreated 16 percent to 35,25 cents while diversified insurance giant Old Mutual retreated 5,9 percent to $47,61 remaining the second most expensive counter after BAT’s $67,50 a share.

Zimplow completed the week’s three fallers with a 5 percent decline to 95 cents.

Media group Zimpapers remained flat at 30 cents as was Unifreight at 9 cents.

Afdis, FMP and Getbucks also closed the week unchanged at $5,15, 22,5 cents and 12 cents in that order.

 

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