The Sunday Mail
Enacy Mapakame
The equities market maintained an upward trajectory over the first two weeks of trading in January, with total market value adding 8 percent.
On the Zimbabwe Stock Exchange (ZSE), gains in the big-cap counters have sustained the market.
Statistics from the bourse show that brick-making firm Willdale has paced the fastest so far in the year with YTD gains of 82 percent. In US dollar terms, Willdale has increased by 76 percent.
Sugar processor Hippo is next with a 47 percent gain in local currency and 42 percent in US dollar terms. Analysts expect cane production to remain flat in the current financial year. Although the 2022/2023 rainfall season is projected to be normal to above normal, this is also likely to cause water logging, which will likely have a knock-on effect on cane production.
Fintech group Ecocash Holdings has added 47 percent of value since the beginning of the year, followed by Dairibord, which added 37 percent.
Retail giant OK Zimbabwe completed the top five gainers with an increase of 33 percent. The retail group is projected to see marginal gains in sales volumes for the second half of its financial year despite a challenging environment. The growth will be based on seasonal spending patterns, according to analysts.
“Whilst contractionary measures by monetary authorities have remained in place, constraining spend in the local ZWL, we forecast marginal volume uplift in the second half of OK Zimbabwe’s financial year based on seasonal spending patterns,” said research firm IH Securities in their earnings review for the group.
Telecoms giant Econet has put on 30 percent in the first two trading weeks of the year, while the largest stock by market value Delta rose by 12 percent. Delta, Econet, OK Zimbabwe and Innscor are among the top value and volume drivers.
The market was not short of fallers. Diversified industrial group Innscor and its offshoot Aixa have dipped 5 percent and 13 percent, respectively. Both counters are preparing for their migration to the Victoria Falls Stock Exchange (VFEX) after delisting from ZSE.
Axia says migrating to the VFEX will allow the company to raise capital in foreign currency and enhance opportunities to attract a broader investor base.
The Tigere REIT has jumped 32 percent, while the ETFs market has traded mixed since the beginning of the year. Old Mutual ZSE Top 10, Morgan & Co Made in Zim and Cass Saddle Agric ETFs have advanced by 15 percent, 5 percent and 2 percent, respectively.
Datvest and Morgan & Co ETFs, however, went down by 2 percent and 4 percent, respectively.
On the VFEX, Padenga has been the biggest gainer so far, with a 46 percent increase; followed by Simbisa, which put on 34 percent of value. SeedCo International has increased by 9 percent.
Caledonia has been stagnant at US$13 as the group achieved a record gold production at its Gwanda-based mine – Blanket Mine.
The mine recorded a 19 percent increase in gold to 80 775 ounces for the full year to December 31, 2022. Blanket Mine is expected to further drive growth for the group, aided by production from its recently acquired Bilboes.
Peers – Bindura has been the only laggard on the US dollar-denominated exchange with a 13 percent decline.
