Stocks rebound tapers as Zimdollar parallel market premiums nears 100%

Author Name
Tinashe W Duma
Author
Stock Market 1 month ago
  • Demand plunged in Tuesday trades but gains remained positive as low caps carried the day.
  • Penny stocks drove performance in the session on sustained recovery, scaling up the ZSE All Share Index to a 5-week high of 7018.48 points.
  • The 0.16% surge in the session stretched year-to-date returns to 166.22%.
  • CBZH maintained its position as the worst performing counter on a year to date scale.
  • It is the only counter, among the active 56 counters with a negative year to date performance.
  • The bank expects massive growth driven by asset growth, particularly earnings assets and advances together with some emerging new lines of income.
  • Meanwhile, global stock markets grappled with contagion fears on Tuesday, sparked by troubles at China Evergrande as growing risks the property giant could default on its massive debt pile prompted investors to flee riskier assets.
  • On currency markets, South Africa’s rand weakened, tracking other risk and commodity currencies, as concerns about property group China Evergrande’s solvency stoked risk aversion, while traders awaited the outcome of this week’s U.S. Federal Reserve policy meeting.
  • On the local formal currency market, the ZWL depreciated for a 21st consecutive week as at the close of the most recent currency auction week.
  • The premium between the formal currency market and the parallel market is now almost 100%.
  • A total of 38 stocks exchanged hands in today’s trades from which 7 sailed stable while 20 emerged risers.
  • Turnall came out as the top performer in the session on rising 7.67% to close at 420c, followed by FML which recouped its prior session loss on notching 7.05% to settle at 2684.38c.
  • The duo of Ariston and Truworths extended its gaining streak to 3 consecutive sessions on adding 6.12% and 5.19% respectively to close at 330c and 199.87c apiece.
  • The miner, BNC, reversed its prior session loss on gaining 4.89% to settle at 471.91c, capping off the Top 5 risers’ pack.
  • On the downside, a total of 11 stocks partially weighed on the market.
  • Willdale performed the worst in the session on dipping -7.95% to close at 300.37c, countering its prior session gains while Nampak plunged by -7.86% to settle at 1197.78c.
  • Proplastics shed off -7.41% to close at 2500c, trailed by the financial ticker, CBZ, which lost ground by -2.75% to settle at 8266.53c.
  • General Beltings capped off the Top 5 laggards set on easing -1.62% to close at 182c, reversing its prior session gains.
  • Aggregate turnover rose by 234% from prior session to ZW$136.14 million despite a -69% decline in volumes.
  • Innscor led turnover contributors in the session at 27% of the aggregate and was trailed by Delta, Cassava Smartech, Econet and OK Zim in that respective order.

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