Stocks to watch in Zimbabwe in 2018



ZB Financial Holdings gained 696 percent in the year to close at 36 cents. Currently the company is valued at $63.07 million. In the six months to June last year, ZB Holdings reported a 38 percent increase in net profit from to $8.2 million from $5.9 million in the comparable period in the previous year on increased transaction volumes and improved net insurance premiums . The banking unit expects non interest income to spur total income due to a surge in the use of plastic money. Upgrade of the core banking platform is underway whilst the supporting infrastructure has been scaled up. Additionally, the Group has also invested in a further 3 000 Point of Sale machines in order to boost its non interest income in a cashlite economy.  The company was removed from the sanction list in October 2016, a development which is expected to provide a boon to the group.



Packaging group Nampak advanced 650 percent in the year to close at 18 cents. Its market capitalisation stood at $136.02 million. The company recorded a 13.5 percent growth in net income for the year to September 30 to $4.9 million from $4.3 million in 2016. The company is poised to further improve performance across the board in an environment of growing competition and greater regulatory requirements. The group focuses on delivering more operational improvements, most particularly at Glass and at Nampak Plastics Europe.



The agro-industrial group, CFI advanced 626 percent in the year to close at 70.75 cents . The company is valued at $75.02 million. CFI reported an impressive performance after significantly narrowing its after tax loss to $272 784 in the six months to March 31 from $6.1 million loss incurred in the prior half year, supported by the improved performance of its Farm and City unit. Analysts say despite being choked by high levels of debt, the agro industrial concern still holds a great potential supported by its strategic business units across the agriculture value chain. It has three divisions in poultry, retail and light manufacturing and property, all potential gold mines once the economy is on the recovery path. The group will also continue to unlock value opportunities from the existing land banks with identified development partners. However the agro industrial group is currently under suspension from trading in shares on the Zimbabwe Stock Exchange (ZSE) on corporate governance matters, following a dramatic major shareholder war, which saw a number of top directors leaving the group.

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Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.


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