ZSE opens new month in the red as Zeco awakens

Author Name
Tinashe W Duma
Author
Stock Market 4 months ago
  • The ZSE sustained bearish momentum into the new month of September as Zeco made its first trade in over 5 months, which is the 2nd transaction in over 2 years. 200 shares exchanged hands in the counter, valued at a total of ZW$0.12.
  • The mainstream All Share Index slumped by -0.96% in the session to close at a 6-week low of 6588.74 points.
  • The month of August saw the ZSE succumb to a loss of -2.4%, having traded in red in 3 out of the 4 weeks of the month and the outturn came out as the worst performance in 9 months.
  • Losses in today’s trades were skewed towards market heavies as penny stocks seesawed back in gains.
  • The announcement of IMF SDR flow into Zimbabwe has raised hopes of increased sustainability of inflation, which adversely correlates to stocks as the stock market will halt the inflation-chase that raced stocks to all-time highs.
  • On global markets, Asian shares gave up some of their recent gains in cautious trading on Wednesday while the dollar inched back from three-week lows, as worries about slowing global growth in several markets returned to weigh on traders’ minds.
  • Meanwhile, 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.
  • A total of 39 counters exchanged hands in the md-week session, from which 7 sailed stabled while 20 heavily weighed on the market.
  • Zimpapers performed the worst in the session on easing -9.17% to close at 254.32c, extending its prior session loss, while Axia shed off -6.28% to settle at 2038.18c.
  • Econet took its losing streak to a 4th consecutive session on softening -6.23% to close at 3536.82c, trailed by BAT which lost ground by -4.9% to settle at 95000c.
  • Hippo retreated by -4.21% to close at 18200c, capping off the Top 5 laggards’ pack.
  • On the upside, a total of 12 counters partially countered the laggards.
  • Zeco emerged the top performer in the session on surging by a whopping 100% to close at 0.06%, followed by FMP which notched 10% to settle at 1320c.
  • Zimplow recouped its prior session loss on adding 5.75% to close at 1593.33c while FML partially reversed its prior session loss on gaining 2.86% to settle at 2386.36c.
  • Simbisa almost set of its prior session loss after surging 2.02% to close at 3984.60c, capping off the Top 5 risers’ set.
  • Aggregate turnover rose by 130% from prior session to ZW$155.54 million against a 37% growth in volumes.
  • Delta led turnover contributors in the session at 27% of the aggregate and was trailed by Innscor, OK Zim, FBCH and Hippo in that respective order.

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