ZSE shares continue to advance on mid-cap gains

 ZSE shares continue to advance on mid-cap gains
Published: 12 March 2020
Zimbabwe Stock Exchange shares continued their advance with the benchmark index rising past the psychological 500 level. This comes as the market is awaiting the introduction of the Reuters market marker trading platform, which is one of the measures government is pursuing to steady exchange rate volatility and the resultant rising inflation.

The local dollar had rapidly deteriorated in the past two weeks to a rate of just over 40 against the US dollar. However by this afternoon quotes seem to have pared slightly as dealers await what kind of managed float Treasury will pursue.

At the close of trades, the All Share added 2.31% to 506.20 buoyed by gains in mid to small cap stocks. Afdis and Cafca led the risers gaining 20% each to 618c and 180c respectively. Cafca's gains continue to be supported by small volume, which is nothing but expected from the tightly held counter.

Mining stock RioZim was 19.93% higher to 734c amid expectations that the central bank might announce a favourable retention ratio to gold miners in particular after the central bank terminated the gold incentive scheme. The gain in RioZim saw the Minings Index close with a 5.53% gain to 925.26.

Among the heavyweights, BAT Zimbabwe put on 6.94% to 9625c but had a last transaction price of 10 000c. Delta was 4.32% up to 738.59c and was the most active with a trade count of 29. OK Zimbabwe put on 2.85% to 196.62c and Old Mutual was up a marginal 0.05c to 5 300c. The Securities and Exchange Commission today issued a directive to market intermediaries to prescribe additional KYC and Enhanced Due Diligence requirements on the handling and transfer of fungible shares into Zimbabwe.

The Top Ten Index added 2.06% to 433.10 but gains were restricted by the 0.73% in Padenga Holdings at 607.57%.

The Medium Cap was the best performing index after it jumped 3.06% to 669.70. Another fungible share, PPC was 19.18% up to 655.50.  Axia was unchanged at 200c in the wake of its December interim results where the group reported a 411% increase in revenue to $1.19 million although turnover volumes were below those traded in the prior period.

There were losses however on the Small Cap Index, which lost 0.53% to 1499.58. Powerspeed led the day's fallers losing 14.55% to 47c and Turnall fell 14.29% to 15c.

Ariston, which recently released its September results, was 0.40% down to 59.75c.

The new ZSE Industrials Index led the sector performers gaining 9.47% to 658.38 while the Consumer Discretionary Index was the worst performer, losing 0.51% to 1100.93.
- finx
Tags: Shares, ZSE,


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