ZSE reaches new high in August

ZSE reaches new high in August

HARARE, September 4 (The Source) – The Zimbabwe Stock Exchange industrial index advanced 15,64 percent in August to 235,03 points, the highest since dollarisation, driven by the gains in all heavyweights.

The mining index was up 5,8 percent to close at 73,47 points, its highest since September 2014. In the year to date, both the mainstream and resource indices increased by 62,62 percent and 25,57 percent respectively.

Market capitalisation also reached a new high since dollarisation after it increased by 15,63 percent to $6,66 billion from $5,76 billion in the previous month. Year-on-year, the market capitalisation has improved by 144 percent.

However, total market turnover dropped 44,95 percent to $13,6 million from $24,7 million recorded in the previous month. A total of 115,9 million shares exchanged hands in the month under analysis, compared to 53,4 million shares in the previous month.

In the eight months to August, total market turnover recorded on the local bourse amounted to $153,4 million, 41 percent more than $108,2 million recorded in the same period last year.

The month of March recorded the highest market turnover in the year of $26,9 million, while the month of January recorded the least turnover of $8,6 million.

The largest company by market capitalisation on the ZSE , Delta, advanced 10,86 percent in the month to close at 141,07 cents while telecoms giant, Econet gained 22,13 percent to settle at 48,85 cents.

Simbisa and Padenga advanced 88 percent and 60,82 percent to close the month at 47 cents and 44,87 cents respectively. Seedco and Hippo also added 25,29 percent and 10,34 percent to trade at 174,15 cents and 96 cents respectively. Innscor gained 7,9 percent to close at 78,5 cents.

Old Mutual, which is trading at a premium compared to its price on the Johannesburg Stock Exchange (JSE) and the London Stock Exchange (LSE), advanced 4,64 percent to close at 411,25 cents.

BAT and Natfoods slightly gained 0,55 percent and 0,39 percent to settle at 1,815 cents and 381,5 cents respectively.

General Beltings was the best performer in August, after its share price increased five times to 0,55 cents.

Medtech also added 150 percent to close at 0,05 cents in the month under analysis while CFI and Dairibord gained 84,56 percent and 57,14 percent to settle at 68,75 cents and 11 cents respectively.

Zimre, Nampak and OK Zimbabwe also gained 46,99 percent, 45,45 percent and 37,75 percent to close at 6,6 cents, 8 cents and 14,05 cents in that order.

NMB and Axia added 33,33 percent and 28 percent to trade at 5,4 cents and 16 cents respectively while Colcom and Powerspeed gained 21,85 percent and 20 percent to close at 50,25 cents and 6 cents in that order.

ZB Financial Holdings, Pearl and Unifreight were also among the gainers after adding 18,18 percent, 17,65 percent and 17,12 percent to settle at 19,5 cents, 4 cents and 1,3 cents respectively.

Dawn also picked up 15,38 percent to trade at 2,1 cents while Meikles and Masimba added 13,21 percent and 13,03 percent to close at 21 cents and 5,9 cents respectively in the month under review.

Edgars, Afdis and Mashonaland also gained 12,5 percent, 11,67 percent and 7,44 percent to close at 4,5 cents, 67 cents and 2,31 cents in that order.

Only three counters ART, Willdale and Fidelity recorded losses on the local bourse, in the month under analysis, after their share prices declined by 23,64 percent, 2,44 percent and 1,82 percent to close at 4,2 cents, 0,4 cents and 13,5 cents respectively.

The 5,6 percent increase in the resource index was on the back of Riozim and Falcon after their share prices advanced 8,33 percent and 20 percent to close at 65 cents and 1,2 cent respectively. Bindura and Hwange remained unchanged at 2,45 cents and 2,6 cents respectively.

Foreigners were net sellers in the month, with purchases of $1,17 million against sales of $2,87 million, resulting in a net outflow of $1,7 million.