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Equities outperform inflation rate


Zim stock market in recovery mode



THE All-Share index has closed the month of January in positive territory, adding 17% driven by the medium cap which gained 32% compared to the prior month. The bourse had a month characterised by more gains than regressions.


The top 10 index, which represents the heavyweights, gained 12.29% in January compared to the previous month. In the last week of the month ended 27 January 2023, all four indices were bullish.

The primary ZSE All-Share Index went up 2.2% to settle at 22,142.52 points, while mid-cap increased by 3.55% to close at 45,157.58 points.

Similarly, the Top 10 was 1.70 up to end the week at 13,612.50 points and the Industrial Index put on 2.22% for the week to close pegged at 73,013.98 points. Commenting on the movements, market analyst Rufaro Hozheri said the agricultural sector performed well due to the good rainy season experienced throughout the month.

“Companies in the agriculture-related business have done well given the good rains and the anticipation of a good agric season. Seed Co, Hippo Valley Estates and Tanganda are all part of the best-performing counters in January,” he said.

 Seed manufacturer Seed Co led the movers of the market last week by 39.33% to ZW$165.0333, while tea processor Tanganda rose 21.02% to ZW$155.2500.

 Trading in the negative last week was Willdale which dipped 16.22% to ZW$3.1000 while, First Mutual Holdings followed on a 14.85% drop to close at ZW$19.0500. Sugar processor Star Africa withdrew 10.68% and closed at ZW$1.9650 as Nampak retreated 9.02% to end week at ZW$12.5556.

 Elsewhere, the Zimbabwean dollar continued to depreciate against the US dollar on the RBZ forex auction, dropping 6.5% to trade at US$1:ZW$779.31.

Hodzeri said February might be dark for the local-currency bourse as more securities migrate to the Victoria Falls Exchange (VFEX).

“Getting into February, fear of suppressed activity as more counters move to the VFEX is becoming real. I however believe that in the long run the ZSE will stand its ground,” he said.

ZSE-listed counters have been migrating to VFEX to gain access to US dollar capital and other favourable financial terms such as low trading costs.

 In the month under review, blue chip counter Innscor and Axia Corporation Limited announced intentions to migrate to the foreign currency bourse.

Last year, Simbisa Brands, National Foods Limited and Nedbank Limited listed on VFEX.

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