Zimbabwe Stock Exchange index up 36 percent in first six months


The Zimbabwe industrial index advanced 35.6 percent in the six months to June, as investors sought to escape poor returns on the money market and the possible impact of the country’s bond note surrogate currency. 

All heavyweight counters recorded gains in the period as the index closed the month on 195.97 points while the resources index rose 19.28 percent to 69.79 points,

On a year-on-year basis,  the industrial index and the mining index gained 94 percent and 182.55 percent respectively.

Poor returns from the money market coupled with financial insecurity induced by the local bond note currency has seen investors seek refuge in real assets.

Punters see stocks as a preferable investment option despite a poorly performing economy given the fungibility of Zimbabwe’s bond note currency, driving the ZSE indices to their highest level in over three years.

“Investors are deserting money market securities for equities owing to low interest rates coupled with loss of confidence in the banking sector following the recently introduced bond notes,” an analyst with a brokerage house said.

Total market turnover recorded in the first half  increased by 28.84 percent to $115 million from $89.3 million recorded in the same period last year.

Volume of shares traded on the local bourse increased to  917.6 million shares from  630.4 million shares recorded in the comparable period last year.

The average monthly turnover increased to $19.2 million from $14.9 million previously.

The month of June recorded the highest turnover in the half year period at $39.7 million.

January, on the other hand, recorded the least value of trades amounting to $8.6 million.

Market capitalisation rose by 104.79 percent year-on-year to $5.7 billion while in the half year, it  increased 42.1 percent.

All heavy weight counters recorded gains in the half year, with the largest company by market share, Delta advancing 43.5 percent to 127 cents.

The telecommunications giant, Econet’s share price grew 17.93 percent to 35.38 cents.

Hippo, Padenga and Innscor advanced 115.03 percent, 69.06 percent and 50 percent to close at 75.26 cents, 27.05 cents and 72 cents in that order.

Seedco and Simbisa were up 38.61 percent and 25 percent in the first half to close at 140 cents and 20 cents respectively, while BAT and National Foods advanced 18.3 percent and 5.48 percent to settle at  1 800 cents and 380 cents respectively

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 10.82 percent to close at 387 cents.

ZB Financial Holdings led the movers pack, advancing 265 percent in the half year to 16.5 cents.

Ariston and Masimba put up 185.71 percent and 182.35 percent  to 1 cent and 4.8 cents respectively.

FML and Hippo grew 152.38 percent and 115.03 percent to 10.6 cents and 75.26 cents respectively.

Bindura was the worst performer in the half year after shedding 25 percent to close at 3 cents.

 RTG, Hwange and ZPI also lost 17.5 percent, 16.67 percent and 15.15 percent to settle at 0.99 cents, 2.5 cents and 1.4 cents in that order.

Edgars also eased 12.5 percent to close at 4.2 cents.

On the mining space, Riozim and Falcon  pushed the resource index high after their share prices grew 83.33 percent and 66.67 percent to close at 55 cents and 1 cent respectively. – The Source


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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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