ZSE market value retreats 5pc

The Herald

Business Reporter

The Zimbabwe Stock Exchange (ZSE) market value for the week weakened by 5 percent during the week after the 2023 National Budget presentation during which Finance and Economic Development Minister Professor Mthuli Ncube cut his economic forecast for 2022.

On November 24, 2022, Professor Ncube presented a $4,5 trillion 2023 budget whose main thrust is to accelerate economic development and maintain stability but further reviewed downwards economic growth projections for 2022 to 4 percent.

The economy was initially projected to grow by 5,5 percent this year but revised downwards this mid-year to 4,6 percent.

The Treasury boss says the economy will grow at a slower pace due to high inflation and the impact of the tight monetary policy on aggregate demand. Next year, the economy is projected to grow by 3,8 percent.

Now on the ZSE, total market value went down 5 percent to $1,610 trillion from $1,698 trillion recorded the previous week on the back of weakness in selected counters.

The primary indicator, the ZSE All Share Index rose 3 percent to 14 577 points compared to 14 115 points achieved in the previous week.

The market’s heavies, the ZSE Top 10 Index jumped 4 percent to 8 495 points while the ZSE Top 15 Index added 3 percent of value to 9 441 points.

At 32 888 points, the Medium Cap index was 0,4 percent above prior week while the Small Cap weighed the market with a 6 percent decline to 472 431 points.

Property firm Mashhold headlined risers for the week with a 69 percent increase to $20 followed by NMBZ, which rose 24 percent to $29,97. Peers FCB added 13 percent to $10,28 from $9,03 recorded in the comparable week.

At $235,26, beverage giant Delta was 8 percent above prior week comparable while Zimpapers completed the top five risers with a 7 percent increase to $2,80.

Further gains were mitigated by losses in brick maker – Willdale which gave up 26 percent to $1,95 followed by sugar processor – Star Africa which eased 17 percent to settle at $1,42.

At $39,96, Dairibord was 14 percent below prior week. Hospitality group, African Sun also retreated by 14 percent to $21,40 as the group announced they shall be ceasing operations at the Kingdom at Victoria Falls Hotel with effect from January 05, 2023.

Wrapping up the week’s top five fallers was Seed Co which went down 13 percent to $72,05 from $83,65 in the prior week.

On the exchange-traded funds (ETF) market, Morgan & Co Made in Zim rose 13 percent to $1,38 from $1,21. The Old Mutual ZSE Top 10 ETF fell 2,9 percent to $5,44. The Duo of Cass Saddle Agric ETF and Datvest MCS ETF were both flat at $2 and $1,69 respectively.

Elsewhere on the Victoria Falls Stock Exchange (VFEX) Simbisa debuts on the bourse today after delisting from the ZSE on November 28, 2022, becoming the fifth listing on the US dollar-denominated exchange.

Padenga added 0,22 percent to end at 23,05 US cents as Seed CO International ticked up 0,77 percent to US31,24 cents in Wednesday session alone. Resource groups, Bindura Nickel Corporation and Caledonia were unchanged. A total of 195 873 shares worth US$45 202 exchanged hands on the VFEX.

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