The ZSE continued its rebound, closing 1.62% higher on strong gains in big caps and moderate gains in mid-caps. This comes at a time when most of the companies have started to produce environmental, social and governance (ESG) reports other than focusing on the financials. ESG reports have managed to catch the eye of investors which are interested in areas like renewable energy.
Renewable energy is steadily growing in Africa and some countries have already made significant progress in generating electricity as they move towards green energy projects.
Treasury chief Mthuli Ncube recently said the government is just about to conclude a framework for the solar energy sector which includes various areas of the “hedging regime so that those who lend us money are able to receive their payments and proceeds.”
At the close of trades, turnover reached ZWL$158.03 million after 4.88 million shares traded. Turnover was mainly restricted to heavyweights with beverage maker Delta contributing ZWL$59.64 million, CBZ at ZWL$25.37 million and Innscor at ZWL$14.68 million.
The recovering big caps saw the All Share Index close 1.62% to 6,878.96pts. The Top 10 Index added 2.29% to 3,723.60pts. Cigarette manufacturer BAT led the risers with a 20% gain to close at ZWL$1140.0000. Fintech giant Cassava was 1947% higher to ZWL$23.1031.
ZB led the top fallers with a 16.67% fall to close at ZWL$80.0000. As a result, the Medium Cap Index retreated 1.26% to 17,261.35pts.
NMB and Proplastics were among the decliners on the ZSE.
Banking stock NMB lost 0.0050% to ZWL$16.0000. NMB’s half year profit before tax declined 67.53% to ZWL$566.73 million from ZWL$1.74 billion in the comparative period. The Bank’s non-performing loans (NPLs) remain very low, with the NPL ratio closing the period ended 30 June 2021 at 0.63% compared to the 0.44% recorded at 31 December 2020. “The low NPL ratio is largely due to aggressive collections, stricter credit underwriting standards and growth in the loan book,” it said.
Proplastics eased 0.58% to ZWL$27.0000. The company said despite sound supplier relationships and arrangements, raw material acquisition to meet rising demand will depend on foreign currency availability through the auction system.
“In addition, further delays in settling allocated amounts will result in the worsening of the Group’s foreign currency exposure,” said the company in its first half results.
“The backlog at the end of the period stretched to almost 2 months and arrears to foreign creditors stood at USD1.7 million. The position exposes the Group to huge exchange rate risks as well as negative impact on supplier relations.” Turnover rose 120% to ZWL$889 million from ZWL$404 million in H1 2020 backed by a 71% increase in sales volumes.
Exports surged by 240% and contributed 11% of total turnover for the period under review.
In the green was GetBucks, ZHL and FML rose 9.49%, 8.35% and 8% to ZWL$8.0750, ZWL$3.9368 and ZWL$27.0000 respectively.
The Small Cap Index lost 0.79% to 220,147.99pts. Medtech and Turnall eased 5.33% and 4.76% to ZWL$0.2310 and ZWL$4.0000 in that order.
Gold miner RioZim fell 15.15% to ZWL$28.0000. Nickel miner BNC back in the red with a 6.55% loss to ZWL$5.1892 – Harare