ZSE sustains record highs as magnitude subsides

Author Name
Tinashe W Duma
Stock Market 3 months ago
  • The ZSE sustained record-breaking momentum in mid-week trades albeit at subsiding levels.
  • The mainstream All Share Index surged by 1.97% in today’s session, a slow-down from an average daily gain of 3.7% over the past 5 days, to close at an all-time high of 8586.7 points.
  • This is due to a -78% decline in demand as well as subsiding margins in market heavies and penny stocks respectively.
  • On the upside, overall year-to-date gains surpassed the 200% threshold to close the midweek session at 225.71% while penny stocks closed at 1994.51% as the bourse remains the best performing in the region.
  • On VFEX, Padenga plunged by -13.67% to 25.9c/share after a closing a trade of 637 shares.
  • Escalating trajectory has been fueled by value chasing as the premium between formal and parallel currency markets worsen.
  • On the local formal currency market, the ZWL depreciated for a 22nd 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% as the magnitude of loss on the formal market widens further.
  • Across the border, the South African rand firmed early on Wednesday but remained close to five-week lows with global financial markets nervous as energy prices surge and concerns mount about the growth outlook in China.
  • A total of 39 counters exchanged hands in Wednesday’s trades from which 4 sailed stable while 18 emerged risers.
  • BAT topped gains in the session at 20% to close at 179306c, followed by NatFoods which firmed up by 19.9% to settle at 75300c.
  • AfDis closed at 9000c after gaining 19.26% while African Sun buttressed its prior session gains by a further 17.91% to settle at 962.24c.
  • Masimba extended its prior session gains by a further 16.35% to close at 5315.45c, capping off the Top 5 risers’ pack.
  • On the downside, a total of 17 stocks partially weighed on the market.
  • Nickel miner, BNC, almost reversed its prior session gains on easing -4.85% to close at 570.23c after announcing a new and different mining strategy at its AGM held today.
  • Proplastics followed trail on plunging -3.43% to settle at 3000c, countering its prior session gain.
  • Cassava Smartech partially set off its prior session gains on softening -2.68% to close at 3015.91c while GetBucks lost ground by -1.95% to settle at 804c.
  • Star Africa countered its prior session gains on dwindling -1.76% to close at 170.69c, capping off the Top 5 laggards’ set.
  • Aggregate turnover fell by -68% from prior session to ZW$137.22 million against a -78% decline in volumes.
  • Delta led turnover contributors in the session at 45% of the aggregate and was trailed by Innscor, CBZ, Masimba and Econet in that respective order.
  • Foreign outflows remained high at a dominance of 35% of today’s aggregate turnover, against inflow’s foothold of 0.5%.

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