ZSE halts bloodbath as market heavies recover

Author Name
Tinashe W Duma
Author
Stock Market 1 month ago
  • The ZSE somersaulted almost erasing its prior session loss as demand recovered in Tuesday’s trades.
  • The All Share Index notched by 0.67% to close at 6645.03 points.
  • Gains were stimulated by market heavies after a huge jump of 1.4% which outweighed the 0.87% decline in penny stocks.
  • The positive sentiment was spread across bourses as Padenga firmed by 20% on the VFEX after trading a total of 500 shares.
  • Elsewhere, global stocks inched higher on Tuesday to a record high for the eighth straight session as investors wagered the U.S. Federal Reserve is likely to delay the start of tapering its asset purchases after the soft U.S. jobs data.
  • Locally, fundamental is slowly replacing value chasing in price movement as market correction ensues while currency stability is expected to be sustained throughout the year.
  • Meanwhile, across the border, the Rand slipped early on Tuesday before the release of second-quarter gross domestic product (GDP) data that will show the pace of South Africa’s economic recovery from the COVID-19 pandemic.
  • The data later reported a 1.2% GDP growth in Q2, which is above forecast. On the local formal currency market, the ZWL, depreciated for a 19th consecutive week as at the close of the most recent currency auction week.
  • An aggregate of 38 counters exchanged hands in today’s session from which 7 sailed stable while 16 emerged risers.
  • Cassava Smartech topped gains in the session at 14.03% to close at 1885.71c, partially reversing its prior session loss while miner, BNC, heavily countered its prior session loss on surging 5.73% to settle at a 5-week high of 549.79c.
  • Medtech set off its prior session loss on adding 5.54% to close at 25.52c, followed by Dairibord which extended gains to a 3rd straight session on gaining 5.5% to settle at 4141.86c.
  • Zimplow almost reversed its prior session loss on rising by 5.46% to close at 1593.38c, capping off the Top 5 risers’ pack.
  • BAT traded stable in today’s session after posting a 63% improved revenue to ZWL1.38 billion for the half year ended 30 June 2021 buoyed by an increase in sales volume, inflationary price adjustments, and the export of cut rag tobacco.
  • On the downside, a total of 15 partially weighed on the market.
  • Fidelity slumped by -20% to settle at 800c, trailed by First Capital Bank which reversed its prior session gains on plunging -12.58% to close at 300c.
  • Turnall partially countered its prior session gains on dwindling -11.18% to settle at 415.66c while ZHL heavily set off its prior session gains on easing -8.83% to close at 363.75c.
  • NTS shed off -8.62% to settle at 800c, capping off the Top 5 laggards’ set.
  • Aggregate turnover rose by 298% from prior session to ZW$110.64 million against a 197% growth in volumes.
  • Delta led turnover contributors in the session at 34% of the aggregate and was trailed by Innscor, Axia, Econet and First Capital Bank in that respective order.

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