Big losses on the ZSE as blue chips tank

Big losses on the ZSE as blue chips tank
Published: 26 June 2019
The Zimbabwe Stock Exchange shed a hefty 5.4% with big caps tumbling as the market adapts to the changed currency dynamics.  This is the second consecutive losing day after a prolonged bullish spell on the market.
The new exchange control restrictions on Dual listed stocks are expected to slow trading activity following sustained activity in the Old Mutual share in recent weeks. The big gains experienced in big caps look to be reversing as investors cash in on their gains following a shift in the market outlook.
The RBZ interbank mid-rate opened at 6.3698, while the reports around the parallel market vary between 8.5-9.5. The general sentiment is that the strengthening of the local currency is short term and dependent on a significant injection of support from a credit line.
At the close of trades, market turnover was up to $7.94 million from $4.3 million in the previous session, with 11.3 million shares traded in 116 trades. The Delta share drew the most trades at 29 and the most traded value at $3.9 million as it retreated 11.5% to close at $3.40. Trading in Dual listed stocks expectedly slowed with Old Mutual drawing 2 trades valuing $9.6k, PPC drawing 1 trade valuing $51.5k and SeedCo International drew 3 trades valuing $3.2k as it stayed static at $1.7898.
Following heavy losses in Econet, Cassava and Delta, both the All Share Index and Industrial indices dropped 5.37% to close at 218.06 and 727.56 respectively. The Top 10 Index lost 6.14% to close at 212.45 while losses in Bindura Nickel saw the Minings Index drop 5.41% to close at 275.71.
Property group Dawn Properties added 20.1% to close at 4.84 cents bringing its market cap up to $118.93 million. Retail group Powerspeed gained 19% to close at 25 cents to push its YTD up to +78.57%. Pennystock Medtech added 17.6% to close at 0.4 cents in a single trade valuing $103.2.
Clothing and apparel retailer Edgars Stores gained 10% to settle at 22 cents bringing its market cap up to $68.10 million. Insurance group First Mutual made further gains after adding 5.2% to close at 21.04 cents pushing its YTD up to +40.27%.
Dual listed stocks led the top fallers, with Old Mutual dropping 20% to close at $1.95 (US$0.31) while PPC shed 19.9% to close at $13.75 (US$2.16). Tourism and hospitality concern Rainbow Tourism Group lost 16.7% to close at 7.5 cents bringing its YTD down to +213.81%. Mining stock Bindura Nickel lost 15.4% to close at 11 cents. Retail stock OKZim lost 11.9% to close at 50.2 cents to leave its YTD at +76.02%.
- finx
Tags: ZSE,


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