Breaking News

BREAKING: Artwell Mandaza dies

Zimbabwe's athletics legend, Artwell Mandaza has died.

Get breaking news alerts.
Don't miss a thing.
Subscribe

Investors gain $2bn as stocks rally

23 Sep, 2019 - 00:09 0 Views
Investors gain $2bn as stocks rally ZSE stocks rallied last Friday to record their biggest 1-day gain in recent years

The Herald

Enacy Mapakame Business Reporter

Stocks rallied last week with investors gaining a cumulative $2 billion in last Friday’s session alone, as they seek a safe haven of investment against inflationary pressures driven by exchange rate massacre.

By close of trade on Friday, total market value jumped 9 percent to $25 billion, sustained by gains in the market’s heavies.

The primary indicator, the ZSE All Share Index added 11 percent to 196,37 points, while the ZSE Industrials Index put on 11 percent to 654,89 points on firming demand across counters.

At 182,38 points, the ZSE Top 10 Index was 13 percent above prior session, extending its year-to-date gains to 25,76 percent.

On the resources side, the Mining Index remained unchanged as both counters, Bindura and RioZim, were flat at 11 cents and $2,18 respectively.

Specialty retail and distribution group — Axia, Dawn, Masimba and ProPlastics, rose by 20 percent each to 44,8 cents, 5,94 cents, 10,08 cents and 48 cents in that order.

OK Zimbabwe came in with a 19,97 percent gain to 42,35 cents. Padenga was the only counter to trade in the negative with a 3,45 percent decline to $1,73.

FBC was the top value driver accounting for $4,3 million followed by diversified financial services group, Old Mutual, which accounted for $3,6 million.

Seed Co, Delta and Innscor also made up the top five by value contributing $777 000, $415 000 and $298 00 respectively.

Over the past two weeks, investors have been favouring the blue chip firms that are more stable and have a good capital base.

Statistics from the ZSE show that in the week to September 13, blue chip firms dominated the top ten value drivers, with the exception of African Sun.

Although not part of the market’s top 10 counters, the hospitality group emerged as top value driver for that week accounting for $10,2 million.

Innscor came in second with total value of $7,6 million. The market’s biggest counter by capitalisation, Delta had shares worth $5,08 million exchange in the week under review.

Telecoms giant, Econet accounted for $4,1 million while Old Mutual had $3,6 million worth of shares exchange in the week it released its financial results that showed a 741 revenue jump for the half year to June 30, 2019 to $2,4 billion from $290,7 million previously.

Fintech group, Cassava, was also among the top value drivers accounting for $,2 million of value. The fintech group’s mobile money platform, EcoCash, last week suspended over 4 000 agents on allegations of participating in the now rampant trend of charging excessive premiums for customers intending to cash on their mobile money.

Padenga, Simbisa, FBC and OK Zimbabwe were also among the top 10 value drivers. Heavy cap counters have historically been favourites with investors on their ability to pay dividend consistently as well as strong cash generating businesses.

Share This:

Sponsored Links