With exchange rate volatility, the stock market managed to record gains on Thursday, after gains in select heavyweight counters were supported by positive trades in mid-tier caps.
This comes as the Zimbabwe Stock Exchange gained ZWL$286.760 billion in value during the third quarter ended 30 September 2021. This was largely due to inflation hedging activities and increased retail investors’ participation, according to the Old Mutual Investment Group (OMIGZIM).
“Value of trades declined by 2.96% to ZWL$11.453 billion in Q3 2021 compared to Q2 2021 due to IMF SDRs induced market slow down experienced in August,” OMIGZIM said in its third quarter report.
It reported that daily trade values averaged ZWL$173.637 million, down by 2.64% from the prior quarter. Foreign investors registered a net quarterly sell-off of ZWL$685 million compared to ZWL$3.27 billion in the prior quarter. Foreign trades accounted for 6.8% of total trades during Q3 2021, down from 22% in Q2 2021.
“There was a significant jump in trades on the Victoria Falls Stock Exchange (VFEX) due to the addition of Padenga onto the bourse.” US$473,336 worth of trades in Seedco International and Padenga Holdings were recorded in the quarter.
At the close of trades, the All Share Index was up 2.06% to 10,184.95pts. Retail giant OK Zimbabwe led the overall risers gaining 1.83% to 6,142.98c. Meikles put on 7.94% to 12,958.29c. As a result, the Top 10 Index gained 1.83% to 6,142.98pts.
The Medium Cap Index advanced 2.81% to 21,528.31pts after Axia put on 14.80% to 3,590.53c and Proplastics added 11.96% to 2,798.95c. Seed maker SeedCo Limited firmed 6.61% to 10,705.50c.
Partially offsetting the gains recorded were ZHL, Masimba and Bindura which fell 7.19%, 5.84% and 5.71% to 351.76c, 5,000.00c and 529.16 respectively.
The Small Cap Index retreated 0.53% to 316,365.60pts on Fidelity life which led the day’s fallers after dropping 8.17% to 740.00c. Medtech, which is trading under caution, lost 2.14% to 22.86c and completed the top five losers table.
Turnover stood at ZWL$154.79 million after 3.31 million shares traded – Harare