Stocks falter in early trades of the year

Author Name
Respect Gwenzi
Stock Market 9 months ago

ZSE Daily Comment 06.01.21

*Performance Charts incl (ZSE indices, ZSE Value Traded, Interbank)

The ZSE ended the tumultuous 2020 at record highs, only to plunge on the first session of the year on Monday. The local bourse has largely been sailing in tandem with global markets. At the close of business today, global stocks had collectively slipped amid a fresh wave of the novel, Corona virus, which has led to the government of Zimbabwe declaring a full-lockdown for 30-days to 04 February.

The All Share Index dipped by -4.48% in today’s session to close at 2467.24points, with losses spanning across all indices segments. Annual nominal gains for 2020 recorded stood at 1045.84%, while comparativel but since the beginning 2021 stock have cumulatively dipped by -6.41%. Meanwhile, JSE shares hit a 2-year record high as of yesterday’s close, driven by increasing metal prices; while in other portfolios, the currency market is dipping across major currencies, including the ZWL which depreciated by -0.061% in the last auction trades.

A total of 39 counters exchanged hands in mid-week session from which 25 weighed on the market. Dawn Properties performed the worst, slumping by -19.91% to close at 43.25c, closely trailed by TSL which plummeted by -19.81% to settle at 1660c. Innscor fell by -17.6%, on its 3rd consecutive retreat, to close at 2928.89c, while the duo of Zimplow and FML capped the Top 5 laggards set at 419.01c and 900c/share respectively upon dwindling by -16.2% and -14.29% each.

On the upside, a pack of 10 counters emerged risers, led by the clothing retailer, Truworths, which gained 20% to close at 40.80c, a 3rd straight gain. The duo of Natfoods and ZBFH garnered 19.97% gains apiece to settle at 7210c and 3455c in that order. Lafarge notched by 14.58% to settle at 1100c, leaving ARTD to cap the Top 5 risers’ set upon surging by 7.78%, reversing its prior session’s loss, to close at 485c.

Total turnover surged by 17% from the prior to ZWL15.12 million in today’s session while volumes comparatively went up by 33%. Miner, RioZim, led the turnover contributers at 35% of total, trailed by SeedCo, Zimplow, FML and First Capital Bank in that respective order. Aggregate turnover has been dipping since the close of last year, only to reboot in today’s session.

Total turnover for 2020 came in at ZWL16.8 billion, which translates to USD297.6 million at an average annual exchange rate of 56.5. This compares to about USD184.3 million transacted in 2019, at an average annual exchange rate of 11. The average turnover for the month of December grew by 38% in 2018, in USD terms; but fell by a whopping -86% for the full year 2020 compared to 2019 levels.




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